American Sands Energy Corp. Announces Update of Project and Mine Feasibility Studies
November 7, 2014 (Source: PRNewswire) — American Sands Energy Corp. (OTCBB: AMSE, “AMSE” or the “Company”), an oil sands exploration and development company operating in Utah, is pleased to report the completion of a new Project Feasibility Study, including a Class IV estimate of capital and operating costs, undertaken by FLSmidth USA, Inc. (which supersedes a previous study by AMEC BDR) and the issuance of an updated Mine Plan and Cost Study by Mine Engineers Inc..
“The updating and completion of these feasibility studies is an important step for AMSE as we move forward with our business strategy,” said William C. Gibbs, Company CEO. “The numbers provided by FLSmidth and Mine Engineers Inc., validate our business model and position the Company to be a lower cost producer of heavy oil starting in 2016.”
The highlights from the feasibility reports include:
- Capex estimates of $15,000 per flowing barrel at peak production; significantly below other unconventional projects.
- Operating costs averaging under $40 per barrel of heavy oil produced over the first four years of production.
- Maximum capacity of up to 9,000 barrels per day.
“With a total capital spend of $127M, AMSE will be able to produce over 9,000 barrels per day at peak production,” Robin Gereluk, Company COO, stated. “From a competitive standpoint, there are few unconventional projects that can compete on a cost basis with our technology and extraction methodology. Additionally, our lack of tailings ponds and production of reclamation ready sand differentiates us from the vast majority of all other oil projects in North America.”
American Sands is currently in the permitting process with the Utah Division of Oil, Gas & Mining and expects to be in production in 2016.
About American Sands Energy Corp.
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American Sands Energy Corporation is a development stage Delaware company with primary operations in Utah. The Company has acquired rights to oil sand ore covering approximately 1,800 private acres of prime oil sand deposits in the Sunnyside area of Utah. The Company has an extraction and recovery system using a licensed proprietary solvent that separates oil and other hydrocarbons from sand, dirt and other substances without creating tailing ponds and other environmental hazards. For more information, visit www.americansandsenergy.com.
About FLSmidth USA Inc.
FLSmidth is a leading supplier of equipment and services to the global cement and minerals industries. FLSmidth supplies everything from single machinery to complete cement plants and minerals processing facilities including services before, during and after the construction. For more information, visit www.flsmidth.com.
About Mine Engineers, Inc.
Mine Engineers, Inc. provides consulting mining engineering services for surface and underground mine projects including reserve analyses, mine plan design and engineering, cost and feasibility studies, permit support and acquisition, project management services and operations support to the mining industry. For more information, visit www.mine-engineers.com.
Forward Looking Statements
This release contains forward-looking statements regarding AMSE’s future plans and expected performance based on assumptions the Company believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of business development efforts, exploration efforts and the timeliness of development activities, the ability to place the project into full production; the ability to secure all necessary mining permits in a timely manner, fluctuations in energy prices, confirmation of estimated resources, and other risk factors described from time to time in the Company’s reports filed with the SEC. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company’s control. American Sands Energy Corp. undertakes no obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.
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