Canadian mineral explorer Athabasca Minerals Inc (AMI) has signed a ten-year aggregates management agreement with the Montana First Nation (MFN) for the processing and sale of aggregates from MFN’s 185 acre Colchester property located near Ponoka, Alberta.
The scope of the agreement includes exploration, permitting, production management, marketing and progressive reclamation of the Colchester property to supply sand and gravel materials to industry and municipalities in central Alberta, as well as to Edmonton markets.
It is anticipated that the Colchester property will begin operations in the third quarter of 2019, pending regulatory approvals.
The Colchester property is in MFN’s traditional territory, with close proximity to major roadways and rail, and situated in a regional belt of aggregate operations with promising industrial mineral resources of this nature.
The corporation will be assessing the extent of the resource from field tests in the coming weeks.
The location enables cost-effective logistics with very good access to regional infrastructure, oil and gas, petrochemical maintenance and capital projects.
“We are excited and honoured to provide our services for MFN, and about embarking on a journey together to establish a new aggregate production operation that will bring economic and community benefits,” commented AMI CEO Robert Beekhuizen in a statement released on Wednesday.