Applied Minerals Inc (AMNL)

[RBisPoo]

You should not be invested here Stix

OSBURN, Idaho, Aug. 25 /Xinhua-PRNewswire/ -- Atlas Mining Company (OTC Bulletin Board: ALMI - News), a natural resource and mining company, today announced its quarterly earnings for its 2nd fiscal quarter. The company also provided the investment community with an update of its pre-mining activities.

The company recently filed SEC Form 10Q, reporting revenues for the second quarter of $229,096 with a gross profit of $75,723, up substantially compared to the same period last year. The company also reported a net loss of $145,152, which overall represents a 31% improvement over the same quarter in 2003. The company's 2nd quarter revenues were offset by the hard costs of getting its Dragon Mine property into operation.

Atlas Mining CEO, William Jacobson said, ''In the 2nd quarter we had cash expenditures of $50,000 in exploration and development costs, and $266,000 in equipment for the mine. We have come a long way in a relatively short period of time, and have been quite cautious on dilution,'' explained Jacobson. ''We continue our underground drive to the halloysite bed, and have removed clay from the pit wall. In addition to the construction projects, we now have the KDS Micronex processor and generator virtually ready to go.''

A water system and septic system have been installed per county health regulations. A plant building has been erected. The plant building is a 50 foot by 60 foot insulated steel building with 18 foot walls, a ten foot by 12 foot rollup door, a 16 foot by 12 foot overhead door, and two manway doors. This building currently houses the KDS dryer crusher unit, feed hopper, conveyor system, inventory storage and a lab area. A 650KW diesel generator will provide power to the entire operation.

Additionally, a 50 foot by 100 foot concrete pad has been constructed for raw halloysite storage. The underground development has begun and the decline into the halloysite bed is advancing at a rate of 20 feet per day. Photos of the progress have been added to the company web site: http://www.atlasmining.com .

Jacobson continued, ''We have buyers ready, willing, and able to accept the first processed product. This is very exciting. However, the primary concern for all parties is not in just getting the first shipment out, but insuring that the operation will be able to continue providing a steady stream of product each and every month,'' explained Jacobson.

The Dragon Mine is a rich cache of the mineral ''halloysite''. Historically, halloysite has been used in the manufacturing of bone china, fine china, and porcelain products. However, internal and other chemists and scientists have discovered new uses for the processed mineral. The Dragon Mine halloysite also has a unique tubular quality, not unlike a grain of rice, only considerably smaller and hollow. The halloysite microtubules can act as a time-release capsule, dissolving over time, and can be filled with such things as antifouling paint, antiscalants, herbicides, pest repellents, and other agents, which could benefit from a controlled release.

''We'll begin shipping finished product when we're confident we'll be able to ship to our buyers regular amounts of clay each month. With the mine development well underway and product on the pad, we foresee no problems in quickly becoming a steady supplier of a very high quality halloysite,'' concluded Jacobson.