Athabasca Minerals Inc.
TSX VENTURE : ABM

Athabasca Minerals Inc.

March 02, 2007 16:12 ET

Athabasca Announces Its Financial (Unaudited) Results for the Three-Month Period, October 1, 2006 to December 30, 2006

EDMONTON, ALBERTA--(CCNMatthews - March 2, 2007) - Athabasca Minerals Inc. (TSX VENTURE:ABM)("Athabasca" or the "Company") is pleased to announce its financial (unaudited) results for the three-month period, October 1, 2006 to December 30, 2006.



Three Months
ended
December 30, 2006
(unaudited)

Financial:
Revenue $ -
Expenses $ (167,958)
Other Income - Interest $ 11,735
Net Loss for the period $ (156,223)
Deficit - beginning of period $ (19,193)
Deficit - end of period $ (175,416)

Assets:
Cash and cash equivalents $ 1,467,325
Goods and Services Tax receivable $ 14,711
Equipment $ 1,914
Mineral Properties $ 211,090

Liabilities:
Current $ 153,468
Future Income Tax $ 71,800

Shareholders' Equity $ 1,469,772


The Company has actively investigated and tested several locations for minerals- specifically silica sand. The exploration program included helicopter reconnaissance, outcrop examination and sampling within and beyond the Company permits and test drilling of silica sand deposits on company permit holdings. The fieldwork was also accompanied by study of selected well logs in the vicinity of outcrop areas, to gain a better understanding of geological characteristics of the Pelican Formation.

Test drilling was conducted on two sites (approximately 8 kilometres apart). Additional drill sites have been identified and will be tested in the New Year. These drill sites are accessible only by air, so the rig selected was a helicopter-transportable auger drill capable of depth to 100 feet.

The samples collected during fieldwork from outcrops were submitted for grain size and chemical analyses. Most of the samples fall in the fine-grained category, although some do have a sizable component in the medium-grained size. The results of the chemical analyses show silica contents ranging from 93 to 98 percent in the raw, unwashed and untreated sand. The samples yielding the lower silica values are higher in alumina, suggesting the presence of a clay component in the sand. Normally an impurity of this nature could be eliminated with standard washing treatment.

The analytical results obtained to date are encouraging. Although representing only a very small sampling of the Pelican Formation sands, these initial results confirm the existence of high-grade silica sand within the Corporation's permit holdings. This is sufficient encouragement to continue the exploration program proposed for silica sand.

The Company has engaged Aker Kvaerner of Vancouver, British Columbia for their engineering services related to Chlor-Alkali plant design. Caustic soda is used as a reagent for separating the bitumen from the oil sand. The present source of supply of caustic soda for the Fort McMurray area is Dow Chemical of Canada Ltd (Dow). Dow is shutting down its Chlor-Alkaline plant operation at Fort Saskatchewan by October 31, 2006. This presents a development opportunity for the Corporation and the salt resources it has under permit. The first level engineering study should be completed in March 2007.

In conjunction to developing minerals resources, the Company is actively pursuing the exploration and development of sand and gravel deposits in the Fort McMurray area.

As at December 30, 2006, the Corporation had working capital of $1,328,568, which is comprised of cash, accounts receivables, and accounts payable, which is sufficient for the Corporation to meet its ongoing obligations.

About Athabasca

Athabasca Minerals Inc. is an innovative exploration company formed to explore for mineral resources, other than oil, gas and oil sands, in northeast Alberta. The Company's aim is to find and develop local sources of the minerals essential to the economic development of the region, i.e., minerals used in oil sand processing, construction, and in the everyday requirements of community living. Athabasca's permit holdings of 710,023 hectares in the vicinity of Fort McMurray, Alberta have exploration prospects for an assortment of industrial minerals, including salt, silica sand, gypsum and limestone, and (in the Birch Mountains area) diamonds.

Independent from its mineral exploration activities, Athabasca is also pursuing sand and gravel exploration and development projects throughout northern Alberta. These activities include contract works, gravel pit management, new gravel pit development and the acquisition of other sand and gravel operations.

Further Information

The Company's December 30, 2006 financial statements and management discussion and analysis may be viewed on SEDAR at www.sedar.com

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. The forward-looking statements or information contained in this news release are made as of the date hereof and Athabasca 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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Athabasca Minerals Inc.
    Dom Kriangkum, P.Eng.
    President and CEO
    (780) 465-5696
    or
    Athabasca Minerals Inc.
    Mike Rousseau
    Consultant
    (403) 816-1947