Red Moon Potash Announces Maiden Resource Estimate for the Captain Cook Halite (Salt) Project in Western Newfoundland
(firmenpresse) - ST. JOHN'S, NEWFOUNDLAND AND LABRADOR -- (Marketwired) -- 01/14/16 -- Red Moon Potash Inc. ("the Company" - "Red Moon") (TSX VENTURE: RMK) announces that it has received a National Instrument 43-101 maiden Mineral Resource Estimate on the Captain Cook Halite Project in western Newfoundland. The Resource Estimate was completed by APEX Geoscience Ltd. (APEX Report) and has an effective date of January 11th, 2016.
Resource Estimate Highlights
Resource Estimate Overview
The Captain Cook deposit is classified as an Inferred Resource based on geological confidence, data quality and grade continuity. The most relevant factors used in the classification process were: drillhole number and spacing density; level of confidence in the geological interpretation; estimation parameters (i.e. continuity of halite); and number and nature of the existing sampling. The resource area is 3.73 km2.
Mineral resource modeling and estimation utilized a three-dimensional block model based on geostatistical applications and used inverse distance squared (ID2) estimation algorithms. Five drillholes, together with seismic data, were used to guide the geological interpretation of the resource area. Within the model, the thickness of the halite zone ranges from 68 m to 343 m, has an average thickness of 200 m to 250 m, and occurs at depths of between 183 m and 394 m.
To demonstrate that the halite has reasonable prospects of economic extraction, the mineral resource is reported at a lower base case cut-off of 95.0% NaCl. This is the general standard used in the purchase of road salt and follows the specification outlined in American Society for Testing and Materials (ASTM) Designation D632-12 (2012), which is applicable for sodium chloride intended for use as a de-icer and for road construction or maintenance purposes. Accordingly, with respect to reporting a resource estimate that abides by the General Guidelines of NI 43-101, the Red Moon halite test work results show that the Captain Cook halite deposit has good prospects of economic viability for an industrial mineral deposit.
Patrick Laracy, President, stated, "Given our successful drilling campaigns in the Captain Cook area we are very pleased that the maiden resource estimate supports our expectations of a high grade, large tonnage salt deposit. It vindicates the significant investment we have made in the Bay St. George area, particularly in the currently depressed equity markets for exploration ventures."
The APEX Report recommends a two phased budget of $2,326,500 for further definition drilling, geotechnical work, marketing analysis and environmental studies towards a pre-feasibility study. Based on the positive resource estimate the Company will continue to advance the project towards a feasibility stage including a market analysis for salt as a road de-icer in the northeastern seaboard area of North America. Internal research indicates that the United States is estimated to have imported approximately 18,000,000 tonnes of salt in 2014. Rock salt prices in the US for 2014 averaged USD$55 per tonne F.O.B. at the minesite. This represents a material increase in both imported tonnage and price since 2010 (Source: Salt, US Geological Survey, Mineral Commodity Summaries, January 2015). The marketing analysis work will continue while further drilling and related work will be subject to financing. The company is seeking partners to provide the financing to advance the project.
The APEX Report will be filed on Sedar. Interested parties can also access the report at including contextual information, diagrams and maps. Patrick J. Laracy, P.Geo., President and Patrick Collins P.Geo. are qualified persons and have prepared, supervised and approved the scientific and technical contents of this news release as defined in National Instrument 43-101.
Red Moon is engaged in the exploration for salt and potash in western Newfoundland. Vulcan Minerals Inc. (TSX VENTURE: VUL) owns approximately 67% of the common shares of Red Moon and owns a 3% royalty on the project lands. The Company currently owns 922 mineral claims covering approximately 23,050 hectares of prospective lands for industrial minerals in the Bay St. George Sub-basin. The basin is of similar geology to the Sussex Sub-basin in New Brunswick where potash and salt are currently being mined.
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.
Contacts:
Red Moon Potash Inc.
Patrick J. Laracy
President
(709) 754-3186
(709) 754-3946 (FAX)
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Datum: 14.01.2016 - 15:29 Uhr
Sprache: Deutsch
News-ID 444283
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