Red Moon Resources - First Shipment of Gypsum from Ace Mine in Western Newfoundland
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946 Email: [email protected]
www.redmoonresources.com
News Release
September 4, 2018
Stock Symbol: TSX.V: RMK
Red Moon Resources - First Shipment of Gypsum from Ace Mine in Western
Newfoundland
St. John’s, Newfoundland and Labrador: Red Moon Resources Inc. (“the Company” - “Red
Moon” TSX-V:RMK), is pleased to announce that it has loaded its first shipment of gypsum/anhydrite
from its Ace mine in western Newfoundland. 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 has worked diligently to initiate shipments in 2018 and given sufficient lead
time is now looking forward to sourcing sales contracts in 2019. The commercial implications for the
Company will be described in more detail as ongoing production is established and the full context of
market availability is demonstrated.
Gypsum is mined by traditional open-pit methods, which are amenable to scaling of production to meet
the demand cycle. A deepwater port connected by a haulage road is located approximately 9 kilometres
from the Ace mine. The project is situated off a paved road approximately 6 kilometres from the Trans-
Canada Highway and 20 kilometres from the local service centre of the Town of Stephenville. The open-
pit operation is located in the dormant Flat Bay mine that produced at least 15 million tonnes of gypsum
prior to 1990. The Ace mine covers approximately 11.79 hectares and has the potential for a 10 year
mining life at an average production rate of 350,000 tonnes per year. The company believes that market
opportunities currently exist to warrant development 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.
The markets for gypsum are primarily in the cement and wall board 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 sulphur dioxide scrubbers in power
plant smoke stacks has been significantly reduced. As a result, an increase in demand for natural gypsum
has emerged. 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 extremely pleased that Red Moon is now a
production company with the prospect of positive cash flow from the Ace mine in the near future. I
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946 Email: [email protected]
www.redmoonresources.com
would like to congratulate Vinland and its subcontractors on their role in putting Ace into production on
an expeditious schedule in order to close sales in 2018. We obtained final mine approval on July 19th and
in little over a month our first sale and shipment has been made. The Company continues to work
towards establishing the Ace mine as a source of high quality natural gypsum/anhydrite for the cement
and wall board industries.”
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 67% 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
(709) 754-3186
www.redmoonresources.com