UTS and Teck outline plans for oil sands developments

UTS Energy Corporation has released preliminary development plans for the new Frontier oil sands mine, which includes Leases 311, 468, 470, 477 and 610 along with the new Equinox oil sands mine, previously referred to as Lease 14. The projects are jointly owned by UTS and Teck Cominco.

The first phase of the Frontier project will have an estimated production capacity of between 100,000-160,000 b/d of de-asphalted bitumen. This may be followed by an additional phase as the full extent of the bitumen resources are delineated through additional exploration drilling programs.

The Equinox project will be a single phase development with an estimated production capacity of 50,000 b/d of de-asphalted bitumen. The Equinox project could proceed either as a stand-alone mine with dedicated bitumen production and extraction facilities or as one where bitumen froth is exported to either the Frontier Project or another neighbouring project.

UTS President and Chief Executive Officer, Dr Will Roach: “This is an important development for both of our companies. Extensive exploration programs over the last three years have identified the presence of significant quantities of mineable oil sands in both project areas.

The Public Disclosure Document outlines our preliminary development plans and schedules for the development of the resources. We also have a very clear commitment to environmental, health and safety considerations and have spelled out a number of details of our commitments in the document.”

The Frontier Project Phase 1 includes development of Leases 311, 468, 470, 477 and 610, west of the Athabasca River in Townships 100 and 101, Range 11. The proposed mining area of the Frontier project is about 10-20 km northwest of the Fort Hills project and is bordered to the south and east by the Shell Canada’s proposed Pierre River project.

The Equinox project is west of the Athabasca River, directly across from the Fort Hills Project and 10 km south of the Frontier project in Township 98, Ranges 10 and 11, approximately 90 kilometres north of Fort McMurray.

“We are excited about advancing these two projects to the regulatory phase,” Roach said. “Our partner, Teck Cominco, brings a wealth of mining, mineral processing and engineering experience that will provide a significant benefit as we jointly plan out the operational phases of these projects in more detail in the coming year.”