"In connection with the submittal of our mine plan and the quantification of our mining costs, we are pleased with the results of our drilling program. The results confirm that there is no ground water that will be affected by our mining and processing activities and the absence of methane in the formation. In addition, rock mechanics support several mining methods," said William Gibbs, Chairman and CEO.
Robin Gereluk, COO, added, "The absence of methane and ground water and the favorable rock mechanics support a reduction in our mining cost estimates, the largest component of our overall production cost that previously was projected to be approximately $49 per barrel. As important, these results assure we can develop and operate a project that is safe for the environment and for miners and our employees that will be working at our site."
This is the final site-specific step required for the company to complete its state mining permit and other regulatory applications for the project, which is expected to be filed in March.
American Sands Energy 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.
