St. John’s, Newfoundland and Labrador: Red Moon Resources Inc. (“the Company” – “Red Moon” TSX-V: RMK), announces that it has acquired a bulk sample from its Black Bay nepheline project in southern Labrador. Previously reported test work (August 24, 2017) on grab samples from the Company’s Black Bay project indicated that the nepheline is amenable to processing to a high value product. Further analysis on a larger sample is required to confirm this initial assessment. As a result, the Company obtained a 3.5 tonne bulk sample during a three week program in September to further test its mineralogical, comminution, beneficiation and metallurgical characteristics. The bulk sampling program focussed on the eastern portions of the deposit covering a gross areal extent 350 meters long by 125 meters wide limited only by outcrop exposure. The sample was obtained from 13 sawn channels up to 19.5 meters in length with an average length of 6.5 meters. A total of 133 meters were channel sampled in duplicate. One set of the sample has been shipped to SGS’s Lakefield, Ontario laboratory for geochemical analysis, subsequent composite sample creation and test work described above, while the duplicate sample has been retained intact. The purpose of the beneficiation work will be to scale up the sample size to confirm the processing sequence required to obtain a low-iron final product with favourable aluminum and alkali chemistry. Results from this work will be released upon completion.
Nepheline is an industrial mineral and a source of aluminum, sodium and potassium used primarily in the manufacture of glass, ceramics, extenders and fillers. Commercial nepheline deposits are rare with only one mine in North America at Blue Mountain in Ontario which produces about 1,000,000 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 it provides significant energy savings in industrial uses. The world feldspar market is approximately 20,000,000 tonnes per year. 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. For the purposes of illustrating the value range for this mineral we reference the following information. In 2014 nepheline sold for an average of US$ 127 per tonne based on imports into the United States of 503,000 tonnes at a value of US$ 64,100,000 (ref USGS 2014 Minerals Yearbook). 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 property is situated along the southern Labrador highway 6 kilometers from tide water at Black Bay. The Blanc Sablon, QC airport is a 90-minute drive from the property.
Please refer to www.redmoonpotash.com for further information about the Company’s projects. 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.
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Red Moon is an industrial minerals exploration and development company advancing the Ace Gypsum deposit, the Black Bay Nepheline deposit and the Captain Cook salt deposit towards development in Newfoundland and Labrador. 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