Victory Nickel Enters the Frac Sand Business
Victory Nickel and its wholly owned subsidiary Victory Silica have commissioned
the 500,000-mt/y Seven Persons frac sand
plant near Medicine Hat, Alberta, and
expect to ramp up production and sales
through the remainder of 2014.
Victory Nickel has four early-stage nickel sulphide projects in Canada: Minago,
Mel, and Lynn Lake (currently under option
to Prophecy Platinum Corp.) in Manitoba
and Lac Rocher in northwestern Québec.
Its new frac sand business provides it with
its first source of cash flow.
The Seven Persons frac sand plant is
processing concentrated sand imported
from Wisconsin and selling various grades
of high-quality frac sand. The plant is
located near potential customers and within a few hours trucking distance of major
oil and gas well sites. It represents the first
phase of Victory Nickel’s three-phase plan
for its frac sand business.
Phase 2 includes construction of a frac
sand wet plant in Wisconsin, which is
expected to reduce costs and assure security of sand supply through ownership of a
frac sand mine in the state. In phase 3, the
company intends to construct a larger frac
sand plant in Manitoba to process and distribute both imported and domestic sand,
which may potentially, but not necessarily,
include sand mined as a co-product of nickel at Minago. The company has identified a
site in Winnipeg, Manitoba, for this plant.
Victory Silica CEO Ken Murdock said,
“Going from a standing start to first frac
sand production and sales in less than two
years is quite an achievement. We now
have 70% of the Medicine Hat-based oil
field service companies as customers. This
is just the beginning, however, and we have
begun the push to implement phase 2 of
our business plan.”
As featured in Womp 2014 Vol 09 - www.womp-int.com