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Gypsum industry being re-established in Flat Bay

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Red Moon Resources has loaded its first shipment of gypsum/anhydrite from its Ace mine in western Newfoundland.

Patrick Laracy, president, said the company is working with Vinland Materials Inc. — a related company, to undertake contract mining operations and secure sales agreements for gypsum and anhydrite.

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Red Moon Resources hoping to mine gypsum in Flat Bay this year

He said the company worked diligently to initiate shipments in 2018 and given sufficient lead time is now looking forward to sourcing sales contracts in 2019.

Gypsum is mined by traditional open-pit methods, amenable to scaling of production to meet the demand cycle. A deep-water port at St. George’s connected by a haulage road is located about nine kilometres from the Ace mine.

The open-pit operation is located in the dormant Flat Bay mine that produced at least 15 million tons of gypsum prior to 1990. The Ace mine covers approximately 11.79 hectares and has the potential for a 10-year mining life at an average production rate of 350,000 tons per year.

Laracy said in a prepared release the company believes market opportunities currently exist to warrant development but future production rates are speculative at this time due to normal commercial mining risks.
The markets for gypsum are primarily in the cement and wall board industries and are based on negotiated contracts. With the increasing switch from coal to natural gas fired power generation plants in the United States the supply of synthetic gypsum produced by sulphur dioxide scrubbers in power plant smoke stacks has been significantly reduced.

Emerging from that is an increase in demand for natural gypsum.

Laracy said if the company can access markets requiring production rates beyond the Ace mine capacity it is prepared to develop other existing gypsum deposits located on its mineral licenses in the area.
He is extremely pleased Red Moon is now a production company; with the prospect of positive cash flow from the Ace mine in the near future.

Laracy said the company continues to work towards establishing the Ace mine as a source of high quality natural gypsum/anhydrite for the cement and wall board industries.

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