Red Moon Potash – Acquires Nepheline Property in Southern Labrador
St. John’s, Newfoundland and Labrador: Red Moon Potash Inc. (“the Company” – “Red Moon” TSX-V: RMK), announces that it has acquired, by staking the Red Bay Nepheline property in southern Labrador. The property consists of 15 claims covering a known surface occurrence of nepheline syenite along the southern Labrador highway. The project is located 10 kilometers from Red Bay and 6 kilometres from tide water. The Blanc Sablon, QC airport is a 90-minute drive from the property (visit www.redmoonpotash.com for further information).
Nepheline occurs in an alkali feldspar syenite unit reported to be up to 200 metres wide and in excess of 2000 metres in length based on field work carried out by the Newfoundland and Labrador Department of Natural Resources. Previous work on the property included the analysis of grab samples, which indicated that the chemistry of the syenite unit has the potential to meet the specifications for industrial uses. Nepheline is an industrial mineral and a source of aluminum (Al2O3), sodium (Na2O) and potassium (K2O) used primarily in the manufacture of glass, ceramics, extenders and fillers. Commercial nepheline deposits are rare with only one mine in production in North America at Blue Mountain in Ontario which produces about 600,000 tonnes per year. Though feldspar is used as a substitute for nepheline because of nepheline’s limited supply, nepheline is generally a preferred material over feldspar because of its higher concentration of potassium and sodium resulting in significant energy savings in industrial uses. The world feldspar market is approximately 20,000,000 tonnes per year. In Russia nepheline is used as a source of alumina, competing with bauxite. In 2013 Russia produced 4.7 million tonnes of nepheline (reference USGS 2013 http://minerals.usgs.gov/minerals/pubs/commodity/feldspar/index.html#mcs)
As with most industrial minerals, pricing is based primarily on negotiated contracts and as a result can vary depending on grade, specifications, quantity, accessibility and market conditions. Commerciality is often market dependent. For the purposes of illustrating the value range for this commodity we reference the following information. In 2013 nepheline sold for an average of US$ 120 per tonne based on imports into the United States of 491,000 tonnes at a value of US$ 59,300,000 (ref above USGS source). Current pricing for nepheline sourced from Asia is in the range of $US 200-250 per tonne (ref Alibaba https://www.alibaba.com/trade/search?fsb=y&IndexArea=product_en&SearchText=nepheline)
The Company plans to map the nepheline occurrence and conduct detailed sampling this fall to outline the mineralogical variation within the deposit to better evaluate its chemistry. If the results are positive the deposit will require drill definition and bulk sampling to test its processing characteristics.
In acquiring this project, Patrick Laracy, President said “this acquisition is consistent with Red Moon’s industrial mineral portfolio currently led by its Captain Cook Salt project in western Newfoundland, which is currently seeking funding to complete a feasibility study. The nepheline project is located in an easily accessible part of southern Labrador with infrastructure nearby. Whether this project can proceed to a feasibility stage will depend on its chemistry and tonnage potential. We intend to answer those questions”.
Patrick J. Laracy, P. Geo, President is the qualified person responsible for the contents of this news release as defined in National Instrument 43-101.
Red Moon is an exploration company pursuing the development of the Captain Cook salt deposit in Western Newfoundland and other mineral opportunities. Vulcan Minerals Inc. (TSX.V: VUL) owns approximately 67% of the common shares of Red Moon.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors beyond the Company’s control may affect the actual results achieved. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except by law, the Company undertakes no obligation to publicly update or revise forward-looking information.
For information please contact:
Patrick J. Laracy, President