May 7, 2018
Stock Symbol: TSX.V: RMK
Red Moon Resources – Update Ace Gypsum Mine
St. John’s, Newfoundland and Labrador: Red Moon Resources Inc. (“the Company” – “Red Moon” TSX-V:RMK), announces that it has commenced 2019 operations at its Ace gypsum mine in western Newfoundland. The Company opened the Ace Mine in late 2018 and shipped approximately 24,000 tonnes of material from its starter pit prior to yearend. Since mid-April the Company, through its contractors, has been stripping overburden from its 2019 production area. That phase is now complete and production operations have commenced. The first shipment is expected to be loaded in mid-May. The production season is anticipated to extend into October. Working with its marketing and distribution contractor, the Company anticipates production in 2019 to exceed 150,000 tonnes of gypsum/anhydrite. This year represents a key stage for the establishment of the Ace Mine both in terms of operational efficiencies and in its establishment as a reliable producer of consistent quality material.
Gypsum is 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 6 kilometres from the Trans-Canada 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 mine including unmined material and potential extensions of known deposits.
Patrick Laracy, President of the Company said, “We are off to a great start at the Ace Mine and expect that the work we do in 2019 will provide a base upon which to build a larger operation. We are working with some of the best operational resources in the area to make the mine a success. The Company continues to work towards establishing the mine as a source of high-quality natural gypsum/anhydrite while providing the Company with a sustainable source of revenue.”
The Company has granted 100,000 Directors stock options (options) exercisable at $0.10 for a period of five years. Fifty percent of the options vest immediately and 50% vest on December 31, 2020. The Company has reserved 5,060,000 listed shares for issuance under its stock option plan, of which 3,800,000 options have been issued prior to the current issue.
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.
We seek Safe Harbor.
Red Moon is an industrial minerals company operating in Newfoundland and Labrador. In addition to the Ace Gypsum Mine the company is at the pre-feasibility stage on the Captain Cook salt project and is at the metallurgical evaluation stage with the Black Bay Nepheline deposit. Vulcan Minerals Inc. (TSX.V: VUL) owns approximately 64% 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