Athabasca Minerals Announces Financial Results; Future Plans

Athabasca Minerals Inc. announced its financial results for the first quarter ended March 31. Revenue was $434,000 (net after royalty), up 281% compared to first quarter of 2018 revenue (net after royalty) of $114,000.

Robert Beekhuizen, chief executive officer, stated, “During the first quarter of 2019 the corporation has been re-positioning for growth across multiple business fronts – growth of its base Aggregates division, growth of its AMI Silica sand division, 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 government contract with a 10-year renewal option to manage the Coffey Lake Public Pit on behalf of Alberta Environment & Parks. The pit is located approximately 50 km north of Susan Lake Public Pit, on approximately 1,345 acres of crown land. The corporation will be seeking regulatory approvals and permits in 2019 to open the Coffey Lake Public Pit for operation.
  • The corporation continues to make advancements and progress with AMI Silica and its in-basin frac sand solutions. AMI acquired a 16.2% interest in the Duvernay Frac Sand Project in January 2019, which was increased to 49.6% in May 2019 following the drilling of 55 auger holes with positive field results. The corporation also announced preliminary test results on Jan. 11, for its Montney in-Basin Frac Sand Project, where these preliminary results indicate that the MIB Project sand aligns with API Standard 19C for hydraulic fracturing.
  • Aggregates Marketing Inc. secured a $1.5 million order for aggregates from a major oil sands entity with deliveries anticipated to commence in June 2019.
  • The corporation was granted Metallic and Industrial Mineral leases for the Richardson Dolomite/Granite Aggregate Project. The Richardson Project comprises three contiguous subsurface leases totaling 3,904 hectares located 70 kilometers from the heart of major oil sands operations north of Fort McMurray. These leases include a deposit which was evaluated in a National Instrument 43-101 Technical Report, disclosed March 26, that estimates an inferred resource of approximately 683 million tons of crush rock aggregate resource. The corporation will commence with preliminary activities to support the development in the fourth quarter of 2019.
  • Susan Lake Public Pit Closure Plan remains under review with AEP. As of the end of first quarter of 2019, commercial operations have concluded, and closure activities have been completed. The corporation is awaiting final approval of the Closure Plan by AEP. Thereafter, a monitoring period will follow until a reclamation certificate is granted by the Province;
  • The corporation has submitted an application for regulatory approval to open up and operate the Hargwen corporate pit located west of Edmonton near the Obed Rail Transload terminal, for which AMI has rights to access.