Red Moon Resources Gypsum Update
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
August 03, 2017
Stock Symbol: TSX.V: RMK
Red Moon Resources Gypsum Update
St. John’s, Newfoundland and Labrador: Red Moon Resources Inc. (“the Company” - “Red
Moon” TSX-V: RMK), announces that it is advancing the Ace gypsum deposit towards production
in western Newfoundland. The Ace deposit is part of the historic Flat Bay open pit gypsum mines
which produced a reported 15,000,000 tonnes from the 1950’s until production ceased in 1990.
Based on historical reports, drilling data, geophysics and field mapping by the company the
gypsum resource was not exhausted, but rather signific ant potential resources remain. The
company has compiled and digitized 448 historical diamond drill holes and estimates that the
potential remaining gypsum resources contained adjacent to past producing deposits and
surrounding exploration zones of the Flat Bay gypsum deposit may be in the range of 30,000,000
to 40,000,000 tonnes on its mineral licences. This estimate is conceptual in nature and is not a
defined mineral resource as set out NI 43 -101 Standards of Disclosure for mineral projects. The
estimate will require confirmatory drilling to verify historic results and account for varying
stripping ratios and detailed chemical analysis to determine commerciality in the current market
conditions.
Based on the identification of potential markets for gypsum , the Company has applied for a
mining lease from the government of Newfoundland and Labrador on the Ace deposit. This
deposit was partially mined by a previous operator and covers approximately 12 hectares. The
company estimates that the potential resourc es within the mining lease are between 3 and 5
million tonnes based on 3D modelling of historic drilling, mapping and test pits. Again , this
estimate is conceptual in nature at this stage and is subject to the same limitation as cited above
regarding NI 43-101. The markets for gypsum are primarily in the wall board and cement business
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 significantly reduced. As a result, an increase in
demand for natural gypsum has emerged. In the eastern Canadian market gypsum currently sells
on average for approximately $15 per tonne FOB m ine site. It is projected, based on favourable
market demand and product specifications, that the Ace deposit could ramp up to a production
level in excess of 500,000 tonnes per year as customers are established. There is ample
opportunity to expand the lease if demand warrants it. Gypsum is mined by traditional open pit
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946 Email: [email protected]
www.redmoonpotash.com
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 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.
The company is planning a financing this Fall to acquire the additional funds necessary to bring
the Ace gypsum project into production. The company will provide updates on the progress of
this development as they occur.
Patrick Laracy, President and CEO commented “As we push forward on bringing our flagship
Captain Cook salt project forward we are encouraged by the development potential at the Ace
deposit which we have identified both from a resource and market perspective. This project has
a much shorter timeline to production than salt given that gypsum mining is an open pit
operation in a brown field site with modest upfront capital costs.”
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 which in addition to
its gypsum assets is advancing the Captain Cook salt deposit towards development in Western
Newfoundland. 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
(709) 754-3186