St. John’s, Newfoundland and Labrador: Red Moon Potash Inc. (“the Company” – “Red Moon” TSX-V: RMK), announces that it has conducted a field mapping and sampling program on the Red Bay Nepheline deposit in southern Labrador. The purpose of this program was to map the deposit, delineate its boundaries and define the mineralogical and compositional variation within the deposit. Mapping demonstrated that the deposit occurs over a continuous length exceeding 2 kilometres and a width averaging approximately 200 metres. Based on exposure of the deposit over a range of elevations, it is inferred to have a depth projection exceeding 200 metres, subject to drill verification. Outcrop exposure in the area was fair to good allowing for a meaningful sampling program of both the nepheline body itself and the surrounding host rock.
Twenty-seven samples have been sent to Actlabs, Ancaster Ontario for whole rock geochemical analysis in order to evaluate the deposit’s chemistry and its potential to meet the specifications required for industrial uses. Results will be released upon receipt.
The property is situated along the southern Labrador highway 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 http://www.redmoonpotash.com/projects/red-bay-nepheline for further information).
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)
Patrick J. Laracy, P. Geo, President and Patrick Collins P.Geo. are qualified persons responsible for the contents of this news release as defined in National Instrument 43-101.
We seek Safe Harbor.
Red Moon is an exploration company advancing the Captain Cook salt deposit towards development in Western Newfoundland. 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