St. John’s, Newfoundland and Labrador: Red Moon Resources Inc. (“the Company” – “Red Moon” TSX-V:RMK), announces that its Environmental Registration document has been accepted and released from further environmental review for the Ace gypsum mining lease in western Newfoundland. This allows the company to finalize its Development Plan for submission to the provincial Department of Natural Resources and push forward on mine development. The company proposes to enter into a mining, distribution and sales contract with local operators through an affiliated entity to initiate production.
Gypsum is mined by traditional open pit methods, which are amenable to scaling of production to meet the demand cycle. A deep-water port connected by a haulage road is located approximately 9 kilometers from the proposed Ace pit. The project is situated off a paved road approximately 6 kilometers from the Trans Canada highway and 20 kilometers from the local service center of the Town of Stephenville.
The proposed open pit operation is located in the dormant Flat Bay mines that produced at least 15,000,000 tonnes of gypsum prior to 1990. Initially, mining will start at an existing face in the former open pit quarry. This project should generate cash flow and provide invaluable experience that the Company can use in the permitting and development of its Captain Cook salt deposit which lies underground approximately 3 kilometers north of the Ace deposit. Some of the same existing infrastructure will be utilized.
Captain Cook Salt Project
The Company is in the marketing phase of the project seeking feasibility financing for the development of a new salt mine in eastern Canada. It has entered into discussions with both salt producers and private equity groups to solicit this funding. The company believes a significant market opportunity exists on the eastern seaboard of North America for a new efficient low-cost salt producer. The closure of the potash mine at Sussex, New Brunswick has removed approximately 800,000 tonnes of annual by-product salt supply from the local market. Historically low global bulk shipping rates have allowed salt to be imported from distant sources such as Chile and Egypt. As shipping rates normalize, Captain Cook’s proximity to eastern seaboard markets will be a significant competitive advantage.
Black Bay Nepheline
In late 2017 the Company collected 3.5 tonnes of nepheline-bearing material from its Black Bay project. The material, obtained from approximately 130 channel samples, was sourced from an area that exhibited the highest grades of aluminum from the 2016 bedrock mapping project. Half of the 2017 material was sent to SGS Laboratories in Lakefield, Ontario, for detailed characterization and metallurgical testing and the other half is retained by the Company as a reference. The objective is to determine the chemical composition of a processed sample to determine if it can meet industrial specifications. The analytical work on a smaller sample from 2016 field work indicated that industrial specifications may be attainable. One of the main outcomes of the current analysis will be to establish how low the iron content can be reduced as this is a determinative factor in the ultimate value of the end product.
Geochemical results from the 2017 channel samples are similar to the average results from the approximately 30 grab samples of 2016 as below; these samples were collected over a similar field area.
|Zone||Al2O3 (Avg %)||Fe2O3 (Avg %)||Na2O (Avg %)||K2O (Avg %)|
A composite bulk sample created by blending the channel samples is currently being processed. A sequence of subsamples will be produced and subjected to dry magnetic separation testing at a series of progressively stronger magnetic fields in order to remove iron-bearing minerals. Details of this full beneficiation process will be reported when available.
Prospectors and Developers Association Convention (PDAC)
The Company will be exhibiting at the PDAC from Sunday, March 4th to Wednesday, March 7th in the Investors Exchange at the Metro Toronto Convention Centre. Please come and visit us at Booth 2744 if you are attending the conference. The PDAC International Convention is the world’s premier mining investment convention for people, companies and organizations in, or connected with, mineral exploration.
Please refer to www.redmoonresources.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.
We seek Safe Harbor.
Red Moon is an industrial minerals company developing the Ace Gypsum deposit, the Black Bay Nepheline deposit and the Captain Cook Salt deposit 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