Red Moon Resources – Acquires Ace Gypsum Mining Lease
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946 Email: [email protected]
www.redmoonpotash.com
News Release
October 12, 2017
Stock Symbol: TSX.V: RMK
Red Moon Resources – Acquires Ace Gypsum Mining Lease
St. John’s, Newfoundland and Labrador: Red Moon Resources Inc. (“the
Company” - “Red Moon” TSX-V: RMK), announces that further to the news release of August
03 2017 the Company has received a mining lease covering 11.79 hectares for the Ace gypsum deposit in
western Newfoundland from the government of Newfoundland and Labrador. It has a term of ten years
and is subject to renewal. It is the Company’s intent to develop the Ace gypsum deposit as soon as
possible. The markets for gypsum are primarily in the wall board and cement industries and are based
on negotiated contracts. With the increasing switch from coal to natural gas fired power generation
plants in the United States the supply of synthetic gypsum produced by sulfur dioxide scrubbers in
power plant smoke stacks has been s ignificantly reduced. As a result, an increase in demand for natural
gypsum has emerged. The Company, through an affiliated entity, has already initiated purchase order
solicitations. Gypsum is mined by traditional open pit methods, which are amenable to s caling of
production to meet the demand cycle. A deep -water port connected by a haulage road is located
approximately 9 kilometers from the proposed pit. Contract mining services are available in the area and
the Company has initiated discussions to avail of these services. 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.
A Development Plan is currently being prepared with the assist ance of a consulting engineering group.
Part of that plan involves further definition drilling of the deposit. A drill permit has been obtained for
up to 19 drillholes. The average depth of each hole is anticipated to be 20 meters and will confirm the
thickness distribution and chemical composition of the gypsum . This drill program is expected to be
completed by the end of October.
Commenting on the min ing lease, President Patrick L aracy said “It is our intent to get this deposit into
production as soon as possible with marketable material available for the Spring of 2018, subject to
regulatory approval and positive mining parameters. Development should be expedited g iven that we
propose to start mining from an existing face in a former open pit quarry . This venture will not only
generate cash flow it will provide invaluable experience that we can use in the permitting and
development of our Captain Cook salt deposit which lies underground approximately 3 kilometers north
of the Ace deposit. It will use some of the same existing infrastructure.”
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946 Email: [email protected]
www.redmoonpotash.com
Captain Cook Salt Project – Western Newfoundland
The company has delineated a major salt deposit in western New foundland adjacent to existing
infrastructure including port access. An independent maiden Resource Assess ment conforming to
National Instrument 43 -101 requirements has confi rmed an inferred resource of 908 million tonnes of
salt grading above 95 % sodium chloride which is the cut-off grade for road de -icing specifications. The
company envisions a mine with an annual production of up to 2 million tonnes to service the road salt
(de-icing) market in the eastern seaboard of North America and is soliciting partners to finance the
feasibility study to underpin development. Several parties have been approached in th is regard and
discussions are ongoing.
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.
We seek Safe Harbor.
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 a dvised 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
(709) 754-3186