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

Elder Calvin White Sr. of the Flat Bay Band Inc. is seen in this submitted file photo.
Elder Calvin White Sr. of the Flat Bay Band Inc. is seen in this submitted file photo. - Submitted

As Red Moon Resources Inc. makes plans to operate a gypsum mine in Flat Bay, the community is looking forward to meeting with the company.

Elder Calvin White Sr. said the community has asked for a meeting with the company to see what kind of involvement it could have and that company president Patrick Laracy has indicated he was willing to meet with them.

He said the community, which is run by Flat Bay Band Inc. — a non-profit village council — would like to see an environmental impact statement on the development.

White said Atlantic Gypsum Ltd. left quite an eyesore there, so the community wouldn’t want to see a repeat of that.

He really doesn’t see any opposition from the community, especially if it can create some local employment and doesn’t have a detrimental environmental impact.

Red Moon Resources Inc. said in a prepared release it has submitted a development plan for the Ace gypsum mine to the government of Newfoundland and Labrador. The plan describes the proposed open-pit mining method, project parameters, risk mitigation measures, rehabilitation and closure procedures.

Any modification of the plan by the company in response to regulator’s questions will be addressed quickly. This is in anticipation of approval and initiation of mining activity as soon as possible.

The company is working with a marketing group to identify customers for gypsum and anhydrite for 2018. Firm sales contracts can only be entered into after the development plan approval.

The project has already received environmental clearance and commercial implications for the company will be described in more detail as production commences.
The proposed open-pit operation is located in the dormant Flat Bay mine that produced at least 15 million tonnes of gypsum prior to 1990. A deep water port in St. George’s connected by a haulage road is located about nine km from the proposed Ace pit.
Laracy said this project should generate positive cash flow and provide invaluable experience the company can use in the permitting and development of its Captain Cook salt deposit which lies underground approximately three kilometres north of the Ace deposit.

The plan is to utilize some of the same existing infrastructure.

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