Red Moon Potash Inc.
TSX VENTURE : RMK

Red Moon Potash Inc.

January 27, 2015 11:21 ET

Red Moon Reports High Grade Salt in 2014 Drill Program

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - Jan. 27, 2015) - Red Moon Potash Inc. ("the Company" - "Red Moon") (TSX VENTURE:RMK), is pleased to report significant widths of high grade salt from its 2014 drill program in the Captain Cook area of the Bay St. George Basin in western Newfoundland. The Company drilled two holes in its 2014 exploration program (Captain Cook #4 and Captain Cook #5). Drill Hole CC#4 is located approximately 1750 metres northeast of the potash/salt discovery hole CC#1 (previously reported). CC#5 is 1000 metres east of CC#1. A drill hole location map is available on the company's website (www.redmoonpotash.com). The objective of the program was to delineate the salt deposit towards supporting a National Instrument 43-101 Compliant Resource Assessment. The holes tested a seismic anomaly interpreted to be salt swell (area of thickened salt due to flow movement) trending approximately northwest -southeast. The holes were successful in confirming that the anomaly is a salt swell with CC#4 encountering a gross interval of 347 metres of salt and CC#5 encountering a gross interval of 231 metres of salt. The potash zones in both holes were dominated by mudstone and orange-red salt resulting in little preservation of potash. This is consistent with the geologic model that potash is best developed and preserved down slope of salt swells similar to the New Brunswick potash mines in the Sussex basin. The best potash drilled in the Captain Cook area is situated off the salt swell. These two holes represent large step outs from the previous drilling and confirm the presence of a significant salt deposit.

A first pass sampling program was carried out on both core holes to gauge the tenor of Sodium Chloride -NaCl (halite - salt) and Potassium Chloride (potash) grade over various zones. The samples are considered representative of the wider zones in which they are contained.

Captain Cook #4
Depth Depth Length NaCl KCl Insolubles
From (m) to (m) (m) % (calc) % (calc) %
195.00 195.30 0.30 97.90 0.76
200.00 200.30 0.30 98.40 0.10
208.80 209.10 0.30 0.31 13.90
215.00 215.30 0.30 98.60 0.29
220.00 220.30 0.30 96.70 0.93
225.00 225.30 0.30 94.20 0.72
230.00 230.30 0.30 99.40 0.40
267.80 268.10 0.30 0.08 0.73
273.00 273.30 0.30 99.10 0.09
275.00 275.30 0.30 99.10 0.10
280.00 280.30 0.30 99.90 0.22
285.00 285.30 0.30 99.40 0.21
290.00 290.30 0.30 99.60 0.26
295.00 295.30 0.30 98.90 0.18
300.00 300.30 0.30 99.90 0.30
305.00 305.30 0.30 96.40 0.77
315.00 315.30 0.30 96.40 0.74
319.30 319.60 0.30 0.13 19.00
340.30 340.60 0.30 0.39 26.10
343.30 343.90 0.60 0.24 17.10
345.60 345.80 0.20 0.16 7.35
393.00 393.30 0.30 99.10 0.47
398.00 398.30 0.30 98.90 0.57
403.00 403.30 0.30 98.40 1.56
408.00 408.30 0.30 99.60 1.23
413.00 413.30 0.30 100.00 0.25
440.00 440.30 0.30 98.10 0.37
445.00 445.30 0.30 96.70 0.30
450.00 450.30 0.30 97.60 0.34
455.00 455.30 0.30 92.70 0.26
460.00 460.30 0.30 95.70 0.95
465.00 465.30 0.30 95.90 1.36
470.00 470.30 0.30 98.90 0.71
475.00 475.30 0.30 95.90 0.52
480.00 480.60 0.60 98.40 0.20
485.00 485.30 0.30 98.40 0.38
490.00 490.30 0.30 97.60 0.52
510.00 510.30 0.30 95.70 0.68
515.00 515.30 0.30 97.60 0.69
Captain Cook #5
Depth Depth Length NaCl KCl Insolubles
From (m) to (m) (m) % (calc) % (calc) %
405.00 405.40 0.40 0.40 2.10
409.00 409.10 0.10 0.38 6.05
410.00 410.30 0.30 0.18 1.04
423.00 423.30 0.30 98.40 1.88
428.00 428.30 0.30 98.60 0.31
432.00 432.30 0.30 99.40 0.23
435.00 435.30 0.30 98.90 0.63
440.00 440.30 0.30 98.10 0.28
444.00 444.30 0.30 97.60 0.77
455.00 455.20 0.20 0.64 5.36
496.60 496.80 0.20 0.50 12.90
510.00 510.30 0.30 93.90 2.93
520.00 520.30 0.30 93.20 3.69
530.00 530.30 0.30 91.20 2.57
540.00 540.30 0.30 89.80 4.84
550.00 550.30 0.30 91.50 3.88
551.65 552.40 0.75 0.67 8.83
558.20 558.40 0.20 0.50 8.79
590.00 590.30 0.30 96.20 1.39
595.00 595.30 0.30 95.70 0.82
600.00 600.30 0.30 98.60 0.63
605.00 605.30 0.30 96.90 0.35
610.00 610.30 0.30 94.90 0.77
615.00 615.60 0.60 94.20 0.52

The salt assays are consistently high grade while the potash zones are diluted by the intercalation of extensive mudstone as noted by the high insoluble analysis. It appears that the potash in these holes has been disrupted by salt movements to a greater degree than seen in CC#1 and CC#2 where higher grades were encountered.

The analysis was carried out by Activation Laboratory Services Ltd. of Ancaster, Ontario. Assays greater than 94% NaCl are considered to meet specifications for use as road de-icing salt, the major use for salt in northeastern North America.

CC#4 encountered a 347m salt interval from a depth of 183m to 530m of consistent quality with the exception of approximately 24m of inter bedded mudstone/orange-red salt/potash spread over several intervals. CC#5 encountered a 231m salt interval from a depth of 394m to 625m of consistent quality with the exception of approximately 8m of mudstone/red-orange salt/potash. The middle salt section grades slightly lower in NaCl due to anhydrite impurities.

The Captain Cook area has access to important infrastructure including two nearby deep water ports, an airport, the Trans-Canada highway, high voltage power grid and an extensive woods road network. For interested parties, information regarding the Salt industry is available at www.saltinstitute.org.

Hooker Robinson Hole-Historical Information

As a result of the Company's ongoing evaluation of the Bay St. George Basin, some historical drilling results have been compiled to demonstrate its potash potential. In 1972 Hooker Chemical Corp. drilled the Robinson's hole approximately 25 kilometres southwest of the Captain Cook area in search of potash. The hole was located on the basis of a gravity low anomaly indicative of a salt swell. They encountered a gross salt interval of 483m from 212m to 695m depth. Within that salt they intersected a gross interval of 159m of potash/salt/mudstone in the following zones:

Hooker-Robinson
Depth Depth Length NaCl KCl Insols
From (m) to (m) (m) % (calc) % (calc) %
249.02 254.51 5.49 98.27 2.61 0.13
254.51 257.56 3.05 98.14 2.95 0.10
257.56 260.60 3.05 98.00 2.30 0.03
260.60 262.43 1.83 98.07 4.20 0.12
262.43 267.31 4.88 96.11 9.97 0.71
267.31 269.14 1.83 97.71 3.18 1.09
269.14 272.49 3.35 70.34 4.69 27.05
276.45 279.50 3.05 94.50 3.62 3.04
282.55 288.65 6.10 69.84 2.78 28.20
300.08 303.89 3.81 86.50 6.40 5.20
331.93 335.58 3.66 96.49 4.31 1.41
332.23 332.32 0.09 8.40
363.93 365.46 1.52 91.70 5.07 3.70
365.46 369.72 4.27 76.14 2.27 21.15
418.49 422.15 3.66 88.00 9.30 2.10
425.50 429.16 3.66 79.80 2.52 17.07
434.34 439.83 5.49 92.60 7.06 0.50
439.83 445.01 5.18 97.20 2.65 0.20
445.01 449.58 4.57 91.21 3.20 4.76
463.60 465.89 2.29 91.77 9.10 2.04
479.45 485.55 6.10 63.79 4.79 32.20
485.55 491.34 5.79 47.63 5.30 47.95
521.82 527.00 5.18 91.16 7.76 3.54
Including 522.73 522.82 0.09 22.90
522.82 522.91 0.09 17.70
522.91 523.01 0.09 22.30
523.01 523.10 0.09 20.00
527.00 533.10 6.10 54.11 2.97 42.50
539.19 545.29 6.10 24.12 2.30 70.27
545.29 551.38 6.10 58.86 5.43 36.09
563.58 569.67 6.10 35.40 4.86 59.00
581.86 587.96 6.10 52.45 3.74 43.45
613.56 619.66 6.10 81.53 2.59 16.38
619.66 625.75 6.10 96.62 2.38 1.34
625.75 631.85 6.10 93.64 2.23 4.18
637.95 642.82 4.88 93.96 2.97 2.87
642.82 648.92 6.10 84.63 4.39 11.79
673.30 679.40 6.10 92.45 5.68 3.20
679.40 685.50 6.10 91.38 4.69 3.90

The zones are relatively thick and consist of salt, potash and mudstone such that the assays are probably blended and contain higher grades of potash over narrower intervals across each zone. This is suggested in the interval 522.73 - 523.10m where four individual samples of potash were reported with relatively high grade potassium including magnesium. These were the only samples for which assays were provided over narrow intervals. These results are as reported by Hooker Chemical in an assessment report filed with the Government of Newfoundland, Dept of Natural Resources in 1973, specifically Stormon, D.B.(1973) "Analysis of Robinson's Salt Deposit, private report to Hooker Chemical" NFLD 12B (151). Though it is historical in nature and not verifiable by a Qualified Person pursuant to National Instrument 43-101 the report and its contents appear to have been prepared under standard best practices of the time and the Company has no reason to doubt its validity. The Hooker Robinson's hole was located on a gravity low anomaly and appears to have been drilled on a salt swell where significant amounts of potash were preserved in mudstone and salt beds. There are no records known to the Company about any further drilling near this hole for potash. Based on the geologic model of exploring for higher grade potash down slope of salt swells, the Robinson's area deserves serious exploratory attention given the magnitude of potash occurring in the swell. The company is evaluating the merits of further exploration for potash in this area.

All core samples from CC#4 and CC#5 were acquired, sampled, packaged, labelled and transported by or under the direct supervision of company personnel. Patrick J. Laracy, P. Geo, President, and Corwin Northcott, P. Geo, Exploration Manager, are qualified persons responsible for the contents of this news release as defined in National Instrument 43-101.

The Company graciously acknowledges support for the drilling campaign pursuant to the Junior Exploration Assistance Program sponsored by the Government of Newfoundland and Labrador. The program has committed to make an $85,000 contribution towards eligible costs.

Red Moon is a junior exploration company focused on potash/salt exploration in Western Newfoundland. Vulcan Minerals Inc. (TSX VENTURE:VUL) owns approximately 65% of the common shares of Red Moon and owns a 3% royalty on the project lands. The Company currently owns 1152 mineral claims covering approximately 28,800 hectares of prospective lands for salt/potash mineral exploration in the Bay St. George Basin. The basin is of similar geology to the Sussex 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.

Shares Issued: 43,000,004

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