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Project: | Ace | |
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Deposit: | Ace | |
Location: | Canada | |
Commodities: | Gypsum | |
Date: | 8/9/2018 | |
Report Code: | (Enviro) | |
Report Type: | EIA/ESIA | |
Project Stage: | Pursuing Resource Increase/Upgrade | |
Report details: | 9-8-2018: Red Moon Resources Inc. announces an EIA/ESIA report for its Ace deposit at the Ace project. Approval received for open pit mining at Ace mine. St. John’s, Newfoundland and Labrador: Red Moon Resources Inc. (“the Company” - “Red Moon” TSX-V: RM | |
Resources: | (not mentioned in this report) | |
CP/QP: | [Overall Report]: Patrick Laracy (Internal) | |
ABSTRACT: | St. John’s, Newfoundland and Labrador: Red Moon Resources Inc. (“the Company” - “Red Moon” TSX-V: RMK), is pleased to announce that it has received governmental approval of its Development Plan for the Ace gypsum mine in western Newfoundland. The plan includes the open pit mining method, project parameters, risk mitigation measures, rehabilitation and closure procedures and related financial assurance. As a result the project may now proceed to development. Operational work consisting of scrubbing vegetation and removal of overburden has commenced. The Company is working with Vinland Materials Inc. to undertake contract mining operations and secure sales agreements for gypsum and anhydrite. The Company is working towards initiating 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 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 10 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 which produced at least 15 million tonnes of gypsum prior to 1990. The Ace mine covers approximately 12 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. | |
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