Red Moon Commences Seasonal Production at Gypsum Project
Red Moon Commences Seasonal Production at Gypsum Project
ST. JOHN’S, Newfoundland and Labrador, April 27, 2021 (GLOBE NEWSWIRE) -- Red Moon Resources Inc. (the
“Company” or “Red Moon” - TSXV: RMK) is pleased to provide an update on its Flat Bay Gypsum Project in western
Newfoundland, immediately adjacent to its flagship Great Atlantic Salt Project. A tailwind for demand growth in natural gypsum
continues to come from a reduction in supply of synthetic gypsum produced from coal-fired thermo-electric plants converting to
alternative energy sources which do not produce gypsum as a by-product. Meanwhile, growth in the North American
construction markets has also created a favorable backdrop for gypsum demand.
Highlights:
• Red Moon is currently negotiating gypsum orders for 2021. Operations at the open-pit Ace mine have already
commenced;
• In preparation for a gypsum-anhydrite resource calculation covering the entire Flat Bay Project, the Company has
digitized the drill logs of 439 historic holes and will carry out a drill program in the near future to confirm the historic
results from highest priority areas;
• Red Moon continues to make progress in pursuing the reclamation of non-toxic gypsum tailings left over from
historic operations.
Gypsum Tailings Project
As previously reported, and in anticipation of increasing demand for natural rock gypsum, the Company has been evaluating
further mine development opportunities at the historic Flat Bay gypsum deposits. This includes the reclamation of gypsum
tailings left over from historic operations.
Red Moon has received encouraging test sample results from the tailings piles after completing a dry screening sampling
process to determine gypsum content and recoverability factors. The tests involved the dry screening of a minimum of 1 tonne
of material from each test site. That material was sorted into a coarse fraction (greater than 0.5 inch in diameter) and a fine
fraction (less than 0.5 inch). Approximately 35-50% of the material reported to the coarse fraction depending on the raw size
distribution of the particular sample. One-kilogram samples were randomly taken from the coarse fraction of 12 sample sites
and analysed at the Minerals Engineering Center at Dalhousie University. The average analysis of the coarse fraction is 83.4%
gypsum.
These results warrant scaling up the operation to fine-tune the process to decrease insoluble content and maximize gypsum
recovery. To this end, the Company has applied for a mining lease with the provincial government and has registered the
project pursuant to the Environmental Protection Act. Both regulatory processes are underway and following their completion
the Company will submit a Development and Rehabilitation plan for final tailings recovery approval. The objective is to start
tailings production operations as soon as the permitting is complete and processing equipment can be acquired and mobilized
to site. Existing stockpiles will be screened without any open-pit mining, blasting or underground operations. As such the
initial production process will allow for fine-tuning to evaluate what production rates will be ultimately attainable.
Red Moon’s Ace mine produced a total of 119,700 tonnes of gypsum in 2020, of which 94,700 tonnes were shipped.
Approximately 25,000 tonnes were produced late in the year and are ready for shipment. These amounts were in line with
expectations given COVID-19 disruptions last year. The Company’s year-end financial statements will be released April 30th.
Qualified Person
Patrick J. Laracy, P.Geo, and CEO is the Qualified Person responsible for the contents of this news release as defined in
National Instrument 43-101.
About Red Moon Resources
Red Moon Resources Inc. is an emerging commodities leader in Atlantic Canada, focused on Newfoundland and Labrador,
with 100% ownership of the Great Atlantic salt deposit in addition to a producing gypsum mine and an early-stage nepheline
discovery.
For information, please contact:
Patrick J. Laracy, CEO
(709) 754-3186
RedMoonResources.com
MarketSmart Communications Inc.
Adrian Sydenham
Toll-free: 1-877-261-4466
Email: [email protected]
Not for release in the United States or to U.S. newswire services
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.