October 03, 2019
Stock Symbol: TSX.V: RMK
Red Moon Resources – Operations Update
St. John’s, Newfoundland and Labrador: Red Moon Resources Inc. (“the Company” – “Red Moon” TSX-V:RMK), is pleased toannounce that since production commenced in May the company has shipped over 130,000 tonnes of gypsum/anhydrite from its Ace mine in western Newfoundland. Production will continue into late October and it is anticipated that the total production for 2019 will exceed 150,000 tonnes as forecast. The Company is working with Vinland Materials Inc., a related company, to undertake contract mining operations and secure sales agreements for gypsum and anhydrite. The Company and its contractors worked diligently to initiate shipments in late 2018 and have followed this up with a successful first full season of production. This year is an important step for the establishment of the Ace mine as a reliable producer of consistent quality material in eastern Canada.
Gypsum/anhydrite are mined by traditional open-pit methods, which are amenable to scaling of production to meet the demand cycle. The company is utilizing a deep-water port connected by a haulage road located approximately 10 kilometres from the Ace mine. The project is situated off a paved road approximately six kilometres from the TransCanada Highway and 25 kilometres from the local service centre of the town of Stephenville. The Ace mine covers approximately 12 hectares and has the potential for a 10-year mining life at an average production rate of 350,000 tonnes per year. The mine is an extension of the dormant Flat Bay mine which produced at least 15 million tonnes of gypsum prior to 1990. The company believes that current market opportunities warrant ramping up production, but future production rates are speculative at this time due to normal commercial mining risks associated with scaling of production, production costs, competition, commodity prices and market availability. If the company can access markets requiring production rates beyond the Ace mine capacity, the company is prepared to develop other existing gypsum deposits located on its mineral licences, which cover approximately 700 hectares of the historic Flat Bay gypsum mines.
Patrick J. Laracy, President of the company said: “We have successfully opened up the Ace mine and will continue to work towards a larger operation. We have engaged some of the best operational resources in the area to make the mine a success and ensure its viability. The economic impact in the immediate area is significant with an estimated 45 people employed on a seasonal basis in mining, trucking, port facility, marketing, shipping and supervision. This is in addition to the utilization of specific services such as drilling and blasting.”
Fischell’s Brook Salt Exempt Mineral Land
The Company also reports that pursuant to a “Request for proposals on the Fischell’s Brook Salt Property Exempt Mineral Land” issued by the Government of Newfoundland and Labrador, the Company is the successful bidder and has been awarded the mineral rights to the Fischell’s Brook Salt property in western Newfoundland. The property is situated approximately 15 kilometers south of the Company’s Captain Cook Salt project which is currently at the prefeasibility stage. The Fischell’s deposit was discovered in 1968 when a geophysical anomaly was drilled for potash. Follow up work has established that it is a substantial salt dome containing numerous potash beds. Subsequent investigations have evaluated the deposit as a source of rock salt and a cavern storage facility for natural gas. Red Moon will carry out an evaluation of its geotechnical attributes and potential uses. The property consists of 39 claims (975 hectares).
Patrick J. Laracy, PGeo, President is the qualified person responsible for the contents of this news release as defined in National Instrument 43-101.
Red Moon is an industrial minerals company developing the Ace Gypsum deposit, the Captain Cook Salt deposit and the Black Bay Nepheline deposit in Newfoundland and Labrador. Vulcan Minerals Inc. (TSX.V: VUL) owns approximately 63% of the common shares of Red Moon.
We seek Safe Harbor.
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