Athabasca Minerals Receives Positive Test Results of Silica Sand for Commercial Use
June 10, 2011
Edmonton, Alberta - June 10, 2011 - Athabasca Minerals Inc. (the "Corporation" or "Athabasca" - TSX Venture: ABM) is pleased to announce the results from the Corporations' 12,800 hectare Firebag property located in the Wood Buffalo region of Northern Alberta (the "Firebag Property"). Initial results of this testing demonstrate that the proppants quality testing of the silica sand conducted by Stim-Lab Inc. ("Stim-Lab"), a recognized leader in proppants testing for the oil and gas industry, has produced favorable results.
The samples submitted to Stim-Lab were initially prepared by Outotec (USA) Inc. of Jacksonville, Florida ("Outotec"), a global leader in frac sand plants design and supply. The samples were selected from various test holes that represent a typical layer of silica sand from the Firebag Property.
Stim-Lab Test Results
Stresses Tested (psi)
Stresses Tested (psi)
Stresses Tested (psi)
Crush K Value
These non-beneficiated sample test results of three grades meet or exceed API/ISO Specifications for Proppants used in Hydraulic Fracturing and Gravel-Packing Operations.
Dom Kriangkum, President and CEO of the Corporation said: "We are delighted by the Stim-Lab test results. Proppants require a high quality crush strength silicas rating. The Corporation's ratings of 6K for 20/40, 8K for 40/70, and 10K for 70/140 exceed the requirements. These test results position our products as being eligible for use in most oil and gas drilling operations across North America."
The average wet sieve analyses of 70 samples from the drilling program on the Firebag Property were tested by Loring Laboratories Ltd. of Calgary, Alberta. The results follow:
"The sieve analyses indicate the raw materials can be processed as proppants with little waste", said Kriangkum. "Our current permitted Firebag area is in excess of 12,800 hectares of land. The next steps are to retain an independent expert to confirm the size of the resource and to obtain approval for development."
Kriangkum further explained, "Transportation is the largest cost component determining the delivered price of frac sand. By locating in the Fort McMurray area, the Corporation anticipates that it can compete favorably against existing suppliers to the Bakken Oil Play and the Horn River Basin".
The Corporation intends to proceed with preparing a National Instrument 43-101 compliant independent report with respect to the Firebag Property this year. The Corporation also intends to work with Outotec to review and consider the most appropriate design for a frac sand plant at the Firebag Property, as well as the capital costs required.
Mr. Darrell Cotterrill, P.Geol, is identified as the Company's qualified person under NI 43-101 for this news release.
About Athabasca Minerals Inc.
Athabasca is a resource company involved in the management, exploration and development of aggregate projects. These activities include contracts works, aggregate pit management, new aggregate development and acquisitions of sand and gravel operations. The Corporation also has industrial mineral land holdings in the vicinity of Fort McMurray and Peace River, Alberta, for the purpose of locating and developing sources of industrial minerals and aggregates essential to high growth economic development.
For further information on Athabasca, please contact:
CHF Investor Relations
Robin Cook, Senior Account Manager
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Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this 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 the Corporation. The forward-looking statements or information contained in this news release are made as of the date hereof and the Corporation 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.
The securities of Athabasca have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.