FLAT BAY GYPSUM PROJECT

The Flat Bay Gypsum Project, 3 km southwest of Red Moon’s Great Atlantic Salt deposit, currently features early-stage open-pit production from the Ace deposit with excellent potential to scale this up significantly in 2021 and beyond. The mine development plan for Ace was approved by Newfoundland’s Department of Natural Resources in April, 2018.

Gypsum has been mined by open-pit quarry in this area since the 1950’s with historical production estimated at approximately 15 million tonnes. Management believes there is multiple deposit potential at Flat Bay, beyond Ace, that could deliver an attractive long-term revenue stream for the Company.

Notably, modest sales from the small-scale production to date at Ace have allowed Red Moon to be cash flow positive for the 9-month period ending September 30, 2020, as per the Company’s most recent financials.

Gypsum mining is environmentally friendly and leaves behind no toxic tailings.

GYPSUM

Highlights

• Strong news flow from the gypsum operation expected in 2021 as Company targets increased activity at Flat Bay including higher production and potential drilling to evaluate opportunities adjacent to Ace;
• In anticipation of continued strong demand for gypsum, the Company’s review of further mine development opportunities in the Flat Bay area includes the possible reclamation of historic gypsum tailings (approximately 1 million tonnes) produced solely from physical crushing and screening. They were never processed with chemicals and as such are non-toxic;
• Gypsum prices have been trending higher over the past two years;
• A decline in synthetic gypsum from coal fired power plants has boosted demand for natural gypsum;
• Gypsum is used primarily in cement, wallboard, and drywall industries;
• The company is eyeing opportunities for strategic partnerships with one or more companies in those sectors;
• Environmental approval granted in February 2018