Red Moon Potash Inc. (“the Company” – “Red Moon” TSX-V: RMK) is pleased to announce that it has received the necessary exploration approval to proceed with a drilling program on its Bay St. George potash project. The Company will drill two holes designed to step out 500 metres southwest and 1000 metres northeast from the discovery hole Captain Cook #1. The potash target zone is anticipated to be penetrated at depths less than 450 metres.
The Company has selected Logan Drilling Limited as drilling contractor, a company with extensive potash drilling experience in Atlantic Canada. Construction of the drill pads will commence in the next few days. Drilling should commence by early June and will take 4-6 weeks to complete.
Red Moon is a subsidiary of Vulcan Minerals Inc. (“Vulcan”). Vulcan is managing the project on behalf of Red Moon and brings 15 years of drilling experience in the Bay St. George basin using various drilling techniques.
Previous work in the basin located a new potash discovery in the Captain Cook area with variable grades up to 20% K2O (32% KCl). The current program will step out from the discovery hole to better understand the potash distribution in that area. The Company has the benefit of an extensive seismic database in the basin to integrate new drill results and better define the distribution of the evaporite rocks which contain the potash beds. The property has immediate access to deep water ports, road and power grid networks. The property is contained within the larger Maritimes Basin of Atlantic Canada which hosts the Sussex, (New Brunswick) Potash Mine operated and currently under expansion by Potash Corporation of Saskatchewan.
Commenting on the imminent drilling program Mr. Patrick Laracy, President of both Red Moon and Vulcan noted “We are very excited to be once again at the forefront of new resource exploration in western Newfoundland. This program will help determine the commercial prospects of the Captain Cook area. There are several other prospects on the 90,000 acre property that will require testing as well. Ultimately the exploratory phase will include 8-10 holes. Notwithstanding the tepid equity markets we are advancing this project towards attracting a joint venture partner for development work. The available infrastructure and the analogous geology to the potash mine in New Brunswick make for a compelling project.”
Red Moon is a junior exploration company focused on potash/salt exploration in western Newfoundland. Vulcan Minerals Inc (TSX.V: VUL) owns approximately 58% 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. The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company’s expectations. Certain risk factors may also affect the actual results achieved by the Company. There can be no assurance that forward-looking information will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
For information please contact:
Patrick J. Laracy, President
Gerri A. MacNeil, Business Manager, Investor Relations