May 17 2013
Red Moon Potash Inc. ("the Company" - "Red Moon") 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."