Red Moon Resources – Project Updates
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
March 01, 2018
Stock Symbol: TSX.V: RMK
Red Moon Resources – Project Updates
St. John’s, Newfoundland and Labrador: Red Moon Resources Inc. (“the Company” - “Red
Moon” TSX-V:RMK), announces that its Environmental Registration document has been accepted and
released from further environmental review for the Ace gypsum mining lease in western Newfoundland.
This allows the company to finalize its Development Plan for submission to the provincial Department of
Natural Resources and push forward on mine development. The company proposes to enter into a
mining, distribution and sales contract with local operators through an affiliated entity to initiate
production.
Gypsum is mined by traditional open pit 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 Ace pit. The project is situated off a p aved road approximately 6
kilometers from the Trans Canada highway and 20 kilometers from the local service center of the Town
of Stephenville.
The proposed open pit operation is located in the dormant Flat Bay mines that produced at least
15,000,000 tonnes of gypsum prior to 1990 . Initially, mining will start at an existing face in the former
open pit quarry . This project should generate cash flow and provide invaluable experience that the
Company can use in the permitting and development of its Captain C ook salt deposit which lies
underground approximately 3 kilometers north of the Ace deposit . Some of the same existing
infrastructure will be utilized.
Captain Cook Salt Project
The Company is in the marketing phase of the project seeking feasibility financing for the development
of a new salt mine in eastern Canada. It has entered into discussions with both salt producers and
private equity groups to solicit this funding. The company believes a significant market opportunity
exists on the eastern seab oard of North America for a new efficient low -cost salt producer. The closure
of the potash mine at Sussex , New Brunswick has removed approximately 800,000 tonnes of annual by-
product salt supply from the local market. Historically low global bulk shipping rates have allowed salt to
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946 Email: [email protected]
www.redmoonresources.com
be imported from distant sources such as Chile and Egypt. As shipping rates normalize , Captain Cook’s
proximity to eastern seaboard markets will be a significant competitive advantage.
Black Bay Nepheline
In late 2017 the Company collected 3.5 tonnes of nepheline-bearing material from its Black Bay project.
The material, obtained from approximately 130 channel samples, was sourced from an area that
exhibited the highest grades of aluminum from the 2016 bedrock mapping project. Half of the 2017
material was sent to SGS Laboratories in Lakefield, Ontario, for detailed characterization and
metallurgical testing and the other half is retained by the Company as a reference. The objective is to
determine the chemical composition of a processed sample to determine if it can meet industrial
specifications. The analytical work on a smaller sample from 2016 field work indicated that industrial
specifications may be attainable. One of the main outcomes of the current analysis will be to establish
how low the iron content can be reduced as this is a determinative factor in the ultimate value of the
end product.
Geochemical results from the 2017 channel samples are similar to the average results from the
approximately 30 grab samples of 2016 as below; these samples were collected over a similar field area.
Zone Al2O3 (Avg %) Fe2O3 (Avg %) Na2O (Avg %) K2O (Avg %)
2016 Rocks 21.14 3.78 8.14 4.34
2017 Channels 21.57 3.69 9.00 4.36
A composite bulk sample created by blending the channel samples is currently being processed. A
sequence of subsamples will be produced and subjected to dry magnetic separation testing at a series of
progressively stronger magnetic fields in order to remove iron-bearing minerals. Details of this full
beneficiation process will be reported when available.
Prospectors and Developers Association Convention (PDAC)
The Company will be exhibiting at the PDAC from Sunday, March 4th to Wednesday, March 7th in the
Investors Exchange at the Metro Toronto Convention Centre. Please come and visit us at Booth 2744 if
you are attending the conference. The PDAC International Convention is the world’s premier mining
investment convention for people, companies and organizations in, or connected with, mineral
exploration.
Please refer to www.redmoonresources.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.
333 Duckworth Street, St. John's, NL, A1C 1G9
Telephone: (709) 754-3186 Fax: (709) 754-3946 Email: [email protected]
www.redmoonresources.com
Red Moon is an industrial minerals company developing the Ace Gypsum deposit , the Black Bay
Nepheline deposit and the Captain Cook S alt deposit 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. Th is 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 t o 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