OSBURN, Idaho, Jan. 18, 2007 (PRIME NEWSWIRE) -- Atlas Mining Company (OTCBB:ALMI), announced today that its 50% joint venture partner, KAT Exploration, Inc., has entered into an Option Agreement with Celtic Minerals, LTD, an Alberta based company. Under the agreement, Celtic has the right to acquire 75% of the jointly held Colliers property on an earn-in basis. Celtic intends to immediately start a drilling program.
The Colliers property, located on the eastern portion of the province of Newfoundland, is a copper mineralization occurrence in the subaerial mafic volcanic rocks which usually contain one or more of the native copper, chalcocite, chalcopyrite, covellite or bornite in veins, amygdule fillings, disseminations and shear zones. Malachite stains are abundant on the surface of the host rock. High grade Copper/Silver with assays have been found returning values in grab samples as high as 23.6% Copper and 236.3 g/t Silver. The occurrence was first discovered in 1858 at which time a small shaft was sunk, however no other work was completed.
Under the agreement Celtic Minerals, LTD will pay KAT Exploration cash and stock over a three-year period and commit to exploration on the property, which will amount to diamond drilling, mapping, and establishing a reserve basis. After the three-year period, Celtic and KAT will enter a 75%/25% joint venture arrangement to further develop the property. The agreement also allows a 2% net smelter royalty in KAT's favor.
According to Ken Stead, president of KAT Exploration, "Celtic Minerals has an excellent reputation, and we know they will do everything possible to bring this property to the development stage. I'm very pleased we have been able to establish this relationship. Celtic Minerals, LTD and our partner Atlas Mining Company have been very supportive of our efforts, and hopefully this project will turn out to be of great benefit to all involved."
About KAT Exploration: KAT Exploration Inc. is an exploration company based in Newfoundland and was incorporated on December 02, 2005. The company has a variety of mineral properties consisting of Gold, Copper and Silver. The company's main focus is on Sediment-Hosted Stratiform Copper Deposits in the eastern portion of the province. The company also has interest in gold properties in and around the central area of the province. With the dramatic rise in gold, copper and silver, the company feels that its focus is in the right areas and will proceed to bring its properties to their full potential.
About Atlas Mining Company: Atlas Mining Company is a diversified natural resource company with focus on the development of the Dragon Mine in Juab County, Utah, the only known commercial source of halloysite clay outside of New Zealand. The unique purity and quality of the Dragon Mine halloysite is unmatched anywhere in the world and has spawned considerable research in the nanotechnology fields and has created exciting new applications for this product. Atlas also holds mining and timber interests in Northern Idaho, operates an underground mining contracting business, and holds interests in copper and gold properties in Newfoundland. Atlas stock trades on the OTC Bulletin Board under the symbol "ALMI". More information about Atlas Mining Company can be found at http://www.atlasmining.com.
Safe Harbor Statement: Except for the historical statements made herein, the statements made in this release are forward-looking statements. Risk factors that could cause actual results to differ materially from those projected in forward-looking statements include, but are not limited to, general business conditions, managing growth, and political and other business risks. All forward-looking statements are expressly qualified in their entirety by this Safe Harbor Statement and the risks and other factors detailed in the Company's reports filed with the Securities and Exchange Commission. Atlas Mining Company undertakes no duty to update these forward-looking statements.