Stikine - Nonda 100 Mesh Conductivity Results

TSX-V: SKY

VANCOUVER, July 15 /CNW/ - Stikine Gold Corporation (TSX.V: SKY) ("Stikine" or the "Company") announces that it has received excellent results from long-term Conductivity and Permeability testing of its Nonda +70-140 ("100 Mesh") processed sand from Stim-Lab, Inc. based in Oklahoma, USA.

Stim-Lab carried out duplicate evaluations for Nonda +70-140 processed sand, and continuously monitored conductivity and permeability at 150 degrees F for 50 hours for closure stresses of 2000, 4000, 6000 and 8000 psi, respectively. The following table summarizes the results;

    
    Table 1: Measured conductivity results in milliDarcy-ft (md-ft)

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       Sample                  2000 psi  4000 psi  6000 psi  8000 psi
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       Nonda 70/140               320       217       130       74
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       Nonda 70/140 duplicate     302       220       135       75
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API/ISO Testing of Lab-scale Samples Demonstrates High Quality

The Nonda 100 mesh results are approximately 10% higher in conductivity than that predicted for an Ottawa sand, with similar grain size distribution. Ottawa-type sands are generally recognized as higher quality and are used as a bench mark for comparing various frac sands. However, producers in the Horn River Basin (HRB) in northeast British Columbia are some of the only users of 100 mesh frac sand in North America, and very few other suppliers have committed their materials to conductivity testing to date.

As reported previously, Nonda +40-70 ("40/70") sand also delivered excellent conductivity results. The primary proppants used in the HRB are 40/70 and 100 mesh frac sands with estimated demand of 300,000 tonnes in 2010. This amount is anticipated to increase dramatically as the basin approaches full-scale development in the coming years. Stikine's Nonda project is located within 150km of the western edge of the HRB and has a significant transport cost advantage over other sand supply to the area.

500 tonne Sampling Now Completed for Pilot Testing

Stikine is proceeding quickly to pilot plant testing to make Nonda 40/70 and 100 mesh for the first time at an industrial scale. The planned 500 tonnes of Nonda quartz-pure arenite (sandstone) samples have now been transported to a staging area adjacent to the Alaska Highway and will be delivered to the pilot plant shortly. Operation of the pilot plant will help to define operating parameters, yield and capital/operating costs for the project.

Corporate Name Change

To reflect its strengthening commitment to the energy sector, the Company also announces its intention to change its name to Stikine Energy Corp., subject to approval by the TSX Venture Exchange

Scott Broughton, P.Eng. is the qualified person as defined by national instrument 43-101 responsible for the preparation of this news release.

    
                           STIKINE GOLD CORPORATION

                              "Scott Broughton"

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                 Scott Broughton, P.Eng. - President and CEO
    

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information: Investor Relations, Tel: [phone], Fax: [phone], Email: [email protected], Web: www.stikinegold.com