Athabasca Minerals Inc. announced its financial results for the second quarter ended June 30, including six-month aggregates sales revenue of CDN $980,000.
Robert Beekhuizen, chief executive officer, stated, “During the second quarter of 2019, the corporation has continued to reposition across multiple business fronts growth of its base Aggregates division, growth of its AMI Silica sanddivision, and growth of its Aggregates Marketing division. AMI’s vision is to become the leading publicly trading aggregates company in Canada; and its mission is to do so with discipline by capturing progressive and innovative opportunities that will differentiate the Corporation’s performance in the market.”
The corporation was awarded a 15-year contract with a 10-year renewal option to manage the Coffey Lake Public Pit located approximately 50 km north of Susan Lake. Coffey Lake is situated on approximately 1,345 acres of crown land. The corporation is required to obtain regulatory approvals and permits to manage the pit on behalf of Alberta Environment and Parks.
The Duvernay frac sand project progressed with the delineation drilling program consisting of 55 auger holes drilled to date. Samples have been collected and testing has been conducted to verify the quality and scale of the resource. The NI 43-101 report is currently with management in draft form and is being updated with additional laboratory information. The corporation has secured a sufficient land position for the life of the project. Engineering design and permitting work has commenced.
The company exercised option to purchase additional 33.4% interest in the Duvernay frac sand project, increasing the corporation’s total ownership interest to 49.6%.
The company signed a 10-year aggregates management agreement with Montana First Nation for the processing and sale of aggregates from a 185-acre property located near Ponoka, Alberta, Canada. The corporation is conducting field tests to determine the extent of the resource.
Susan Lake Closure Plan is under review with AEP. Milestones for progressively closing the Susan Lake gravel pit have continued into 2019.
The corporation was also granted Metallic and Industrial Mineral leases for the Richardson Dolomite/Granite Aggregate Project. The Richardson Quarry Project comprises three contiguous subsurface leases totaling 3,904 hectares located 70 km from the heart of major oil sands operations north of Fort McMurray.
Over the coming year the corporation said it is actively addressing and working on various strategic and operational initiatives relating to restructuring the corporation’s business model and expanding its operating lines across the base Aggregates division, growth of its AMI Silica sand division, and growth of its Aggregates Marketing division.