BLUE MOON PROVIDES CORPORATE UPDATE Blue Moon Zinc Corp (C:MOON)
Shares Issued 92,750,707
Last Close 9/11/2017 $0.065
Tuesday September 12 2017 - News Release
Mr. Patrick McGrath reports
BLUE MOON PROVIDES CORPORATE UPDATE
Blue Moon Zinc Corp. has provided an update on continuing corporate and operational progress since the management and board changes in May, 2017.
Patrick McGrath, Chief Executive Officer, stated, "The culmination of our historical data review continues to reinforce our opinion that the Blue Moon zinc project is a premium zinc asset. We've set out several short-term objectives to highlight the project's robustness."
Since May, the Company's management and technical advisors have assembled and reviewed the extensive database prepared by past operators, including Imperial Metals and Boliden (formerly Westmin). The historical database includes extensive plans to put the Blue Moon project into production, including several scoping and optimization studies. The database also details past baseline environmental work performed and an historical conditional use permit and reclamation plan that was approved by the local Californian County in 1989 for certain underground development. While the permit is no longer valid, it highlights past local County support for the project. These historical studies and permits will help fast track the project's progress as they form an excellent base for the upcoming Preliminary Economic Assessment ("PEA") and later feasibility study.
The Company has engaged Sespe Consulting Inc. ("Sespe"), an environmental engineering firm with a successful track record of permitting mining projects in California, including a key role in the permitting of the Golden Queen Soledad Mountain mine in 2015. Their assistance is important in moving the project towards eventual production. The Company and Sespe have had positive discussions with the planning department of the local County, who will be the lead agency for permitting.
Over the coming month, the Company will update its NI 43-101 resources estimate to capture current metal pricing as the last NI 43-101 released by the Company in 2008 used $0.75 per pound zinc, $2.00 per pound copper, $600.00 per ounce of gold and $8.50 per ounce silver.
The Company also intends to engage a recognized third-party engineering firm to prepare a PEA to demonstrate the potential economic viability of the Blue Moon mineral resources. The results of the PEA are expected to be released in the first quarter of 2018.
Engagement of Investor Relations Consultant
The Company has engaged Clear Cut Communications ("Clear Cut"), the principal of which is Mr. Terry Bramhall, as an investor relations consultant. Clear Cut brings over ten years' marketing, financial and corporate communications experience and will assist the Company by increasing exposure to the brokerage and retail investment community, while increasing liquidity to the existing capital structure. The initial term of the agreement is for one year's services in consideration of the Company paying Clear Cut a monthly fee of $5,000.
Stock Option Grant
The Company has granted 300,000 incentive stock options to Mr. Bramhall for his investor relations services and the Company granted 300,000 incentive stock options to a consultant of the Company. All stock options are exercisable at a price of $0.07 per share for a period of five years ending September 10, 2022. The stock options are governed by the terms of the Company's incentive stock option plan. In accordance with TSX Venture Exchange ("Exchange") policies, the options granted to Mr. Bramhall will be subject to vesting provisions over a 12-month period. The Clear Cut agreement and the grant of stock options are subject to Exchange approval.
About Blue Moon
The wholly-owned Blue Moon project has a resource estimate of 2.62 million tons with a grade of 6.01% zinc for approximately 315 million pounds of zinc in the Indicated category and 2.68 million tons with a grade of 5.98% zinc for approximately 320 million pounds of zinc in the Inferred category plus significant values of copper, silver and gold. The resource is open at depth and along strike and historical metallurgical testing indicates favourable recoveries. A NI 43-101 report detailing the resource and summarizing metallurgical recoveries is available on the company's website (www.bluemoonmining.com) and filed on SEDAR on February 21, 2008. The Company plans to advance the Blue Moon project through to feasibility and permitting.
Qualified Persons
Jack McClintock, P. Eng, a Director of the Company, is a qualified person as defined by NI 43-101, has reviewed the scientific and technical information that forms the basis for this press release.
We seek Safe Harbor.