News Column

Silica is the New Gold, Morgan Stanley Analyst Expects Shortages for Years – Rogue Resources Inc. Appears Poised to Yield Results

September 4, 2014

Category: Baystreet Newswire

Company: Sector Rotation Inc.

ID: 419938

Date: Thursday, September 04, 2014

Ticker: TSX.V:RRS

New York, NY / ACCESSWIRE / September 4, 2014 / Market Equities Research Group has published insight on the opportunity for investors in publicly traded silica producers and select junior miners with solid high-purity silica prospects -- Rogue Resources Inc. (TSX VENTURE:RRS) (OTC:GCRIF) is identified in this newly issued market bulletin report. Bloomberg noted last week that the stock price of publicly traded silica producers have been on an impressive and steady rise. The growing use of fracking (extracting oil and natural gas from shale formations) has contributed to a surge in share prices of U.S. companies which supply high-quality sand to energy producers. When used in the fracking process, silica helps prop open fractures in shale, which eases the flow of oil and gas. Bloomberg reported that investor demand does not look set to stop anytime soon, quoting "Sand is the new gold" from Ivaylo Ivanov, founder of Ivanhoff Capital. Additionally, Ole Slorer, a New York-based analyst at Morgan Stanley, expects demand for fracking-grade sand in 2016 will be 96 percent higher than last year's level. He expects shortages for years, with supplies in 2016 trailing demand by 10 percent. The full market bulletin report with charts may be found at online. Noteworthy silica producers on a tear include: 1) Emerge Energy Services LP (NYSE:EMES), a Southlake, Texas-based partnership that made its initial public offering at $17 a share in May-2013 -- it changed hands for more than $140 last week; 2) Hi-Crush Partners LP (NYSE:HCLP), based in Houston more than tripled during the past year; 3) U.S. Silica Holdings Inc. (NYSE:SLCA), based in Frederick, Maryland more than tripled during the past 15 months; A quality grade of silica is required for fracking, however even greater margins are available to silica producers with exceptional grades as high-purity silica is used to create fused quartz for high-tech manufacturing such as solar panels, semiconductors, LCD displays, and lithium batteries One strategy for astute investors seeking extraordinary returns is to establish a long position on a junior miner that is highly prospective for high-purity Silica results of significance, one such Company is Rogue Resources Inc. (RRS.V). RRS.V last week announced it has closed the first tranche of its $2.5 million private placement previously announced on July 30, 2014, for gross proceeds of $2,073,240. With ~35.3 million shares outstanding (~55.2M fully diluted), RRS.V has a tight share structure, and is apt to rise on good news. The Company appears undervalued with a market cap under $4 million; it is well capitalized to execute on near-to-mid-term objectives (with recent (August 26, 2014) closing of ~$2 million financing), and clearly possesses large inherent value in its diversified portfolio which justifies a market cap several times the current. RRS.V is a uniquely diversified/de-risked junior miner currently advancing projects on several commodity fronts, three of which present substantial near-term catalyst potential and make RRS.V an exceptional risk-reward scenario. 1) Silica - RRS.V is strategically positioned to capitalize on the demand for high-purity silica (SiO2) at its recently acquired >99.9% high-purity SiO2 target project in Quebec which is poised to advance quickly to resource. RRS.V's silica property is located adjacent to the Mine Sitec which has been in operation for the past 50 years. Sitec produces ~250,000 tonnes of SiO2 annually. RRS.V's silica property has very good infrastructure support with multiple transportation options (Baie-Saint-Paul on the St. Lawrence River is only 42 km south). The property is easily accessible and traversable. A May-2014 Technical Report on RRS.V's Lac de la Grosse Femelle Silica Project references historic sampling and exploration findings (non 43-101 compliant) revealing thicknesses over 200 metres and on average 150 metres, with 275 metres width and a strike length of at least 365 metres. The 'G' lens located on RRS.V's silica property appears to host grades superior to what Sitec is mining, the area has not been mapped extensively, and there is the possibility to discover significantly more. Rogue Resource's Lac de la Grosse High-Purity Silica Project hosts zones that were identified as part of a historic (non 43-101 compliant) resource estimate from 1979 that encompassed the project in part -- RRS.V's technical team will be targeting >99.9% purity silica quartzite. The nature of the material allows for low cost exploration, quick to resource, and quick to market. High-grade high-purity silica deposits are rare. Uncommon geological formations exist in Quebec that host high-grade SiO2 (with low impurities), and significant investment is being made to advance this sector; Spanish based Grupo FerroAtlantica, one of the largest silicon metal producers in the world, has announced plans for a $382 million silicon metal plant. FerroAtlantica's Port Cartier Plant is located under 400 km from RRS.V's Lac de la Grosse Project. The Port Cartier Plant will be operational in 2017 and produce 100,000 tons of silicon metal. With prices for economic high purity silicon ranging from $130 to >$5,000 per tonne (depending on % purity), it puts RRS.V in play. RRS.V's quartzite silica deposit is top-notch/superior-grade and purity compared to more prevalent quartz sandstones deposits, the superior nature lends the deposit to specialized high-tech industrial interests, and the proximity of RRS.V's high-grade SiO2 project to the ports of the St. Lawrence make it a coveted asset. 2) Gold - RRS.V is conducting one of the most exciting Gold exploration programs in Canada this summer at it's high-grade East-West Gold Project deposit in the heart of Val d'Or, Quebec. Historic near-surface drill results Rogue intends to build on include 72.4 g/T Gold over 3.2 m, 84.48 g/T Gold over 3.97 m, and 123.96 g/T Gold over 2.14 m -- all of the aforementioned results were drilled between surface and 200 m vertical. NOTE: RRS.V's technical team is the same team that was responsible for the success surrounding Integra Gold which discovered and advanced the Triangle Zone, the highest grade resource in its project area (adjacent the Sigma and Lamaque Mines) despite Teck having held the ground for 80 years prior. 3) Nickel - RRS.V possesses an advanced-stage Nickel project that has received in excess of $7 million in development, and contains a sizeable high-grade Ni resource (18 million lbs of Nickel in all categories, see below for breakdown), with most of the resource in the high-grade Indicated category near surface a further rise in nickel prices has the potential to generate substantial interest. 4) Iron - RRS.V also has exposure to Iron commodity prices from a project holding that was prepped for full production in the 1960's. Both the nickel and iron projects have large inherent value, yet present no drain on capital. The full market bulletin report with charts may be found at online. This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL(s). Contact information: Simon Levinson Market Equities Research SOURCE: Market Equities Research Group

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Source: ACCESSWIRE (Canada)

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