Record Year of Sand and Gravel Sold From the Susan Lake Gravel Pit
January 27, 2009
Edmonton, Alberta - January 27, 2009 - Athabasca Minerals Inc. (the "Company" or "Athabasca" - TSX Venture: ABM) is pleased to announce the benefits of its recent acquisition of Aggregates Management Inc. (AMI) which took effect on July 1, 2008. From the effective date to November 30, 2008, AMI sold a total of 7.95 million tonnes of sand and gravel from the Susan Lake Gravel Pit and approximately 45,000 tonnes of sand and gravel from the Poplar Creek Gravel Pit. For the year ended November 30, 2008, AMI has sold a total of 11.83 million tonnes of sand and gravel from the Susan Lake Gravel Pit and approximately 70,000 tonnes of sand and gravel from the Polar Creek Gravel Pit.
Oil sands companies are among the biggest users of the pit as they require large volumes of gravel to build and expand their infrastructure and to maintain the network of roads used to haul oil sands from the extraction point to upgrading and refining facilities on their respective leases. Significant amounts of sand and gravel from the Susan Lake Gravel Pit were also utilized for various infrastructure developments in the City of Fort McMurray. These aggregates were used primarily as concrete, asphalt and road base aggregates.
"We have seen a steady rise in sand and gravel sales since 1998 when AMI first became involved with the Susan Lake Gravel Pit when our first year's sales were only 600,000 tonnes", said Dom Kriangkum, President and CEO of the Company, "Our best month in 2008 was in September in which a total of 2.1 million tonnes of sand and gravel was sold. October sales were 1.6 million tonnes and we closed off the year in November with 1.9 million tonnes sold. "
"The Susan Lake Gravel Pit will provide a strong cash flow and good revenue to the Company" Kriangkum says, "and we will use this injection of cash and revenue in moving forward with our plans to acquire more existing pits as well as to explore and develop new sand and gravel pits."
The Susan Lake Gravel Pit is approximately 9,262 acres in size and the current area of development covers approximately 1,200 acres of the deposit. The pit is situated in the heart of the existing oil sands developments, approximately 85 km north of Fort McMurray, and straddles the oil sands operations of three major oil sands companies. "This deposit of sand and gravel is very unique because it sits immediately above the Athabasca Oil Sands," explained Kriangkum. "Our mandate is to extract the sand and gravel down to the oil sands, and then the oil sands will be extracted by these companies."
"Going forward we expect the existing oil sands infrastructures and the City of Fort McMurray will continue to require significant amounts of gravel. We are currently meeting with our customers to estimate their demands for 2009," Kriangkum concluded.
About Athabasca Minerals:
Athabasca Minerals Inc. is a resource company engaged in the management, exploration and development of industrial minerals in Canada. The Company's aim is to find and develop local sources of industrial minerals essential to the economic development of specific high growth regions. The Company has substantial land holdings in the vicinity of Fort McMurray, Alberta and Peace River, Alberta. Independent from its mineral exploration activities, the Company is also pursuing sand and gravel exploration and development projects throughout northern Alberta. These activities include contracts works, gravel pit management, new gravel development and acquisitions of sand and gravel operations.
On Behalf of the Board
Dom Kriangkum, President, CEO
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The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Athabasca Minerals. The forward-looking statements or information contained in this news release are made as of the date hereof and Athabasca Minerals does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.