July 28, 2011 / 7:13 PM / 7 years ago

UPDATE 1-Athabasca Minerals turns profit, revenue jumps

* Q2 2011 revenue up 34.5 percent from Q2 2010

* Net income rises to C$350,761 to C$300,716

* Company aims to become frac sand leader

TORONTO, July 28 (Reuters) - Athabasca Minerals Inc’s (ABM.V) turned a small quarterly profit as rising demand for its sand and gravel boosted revenue by 35 percent.

Net income came in at C$350,761, or 1 Canadian cent, in the quarter ended May 31, compared with a loss of C$300,716, or 1 Canadian cent, in the year-earlier quarter. The Canadian company’s revenue rose to C$2.4 million from C$1.7 million.

“Athabasca is very pleased with improving market demand for its aggregates, and the positive effect on the Corporation’s reported profitability,” Chief Executive Officer Don Kriangkum said in a release.

The Edmonton, Alberta-based company’s core business is managing sand and gravel resources, but it is also pursuing minerals exploration and development.

In a release earlier on Thursday, Athabasca announced new test results on silica sand from its Firebag property in northern Alberta. The company said tests indicated the sand is suitable for use in hydraulic fracturing, a process used for extracting shale gas and crude from oil sands.

Kriangkum said Athabasca aims to position itself as a leader in the supply of frac sand as demand for that resource increases.

Reporting by Allison Martell; Editing by Frank McGurty

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