VANCOUVER, Sept. 12, 2017 /CNW/ - Blue Moon Zinc Corp.
(TSXV: MOON; US OTC: BMOOF) (the "Company") is pleased to
announce 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While the permit is no longer valid, it highlights past local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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This release includes certain statements
that may be deemed to be forward-looking statements. All statements
in this release, other than statements of historical facts that
address access to capital, regulatory approvals, exploration and
development drilling, exploitation and development activities and
events or developments that the Company expects are forward-looking
statements. Although the Company believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include market prices, exploitation and
exploration successes, continuity of mineralization, uncertainties
related to the ability to obtain necessary permits, licenses and
title and delays due to third party opposition, changes in
government policies regarding mining and natural resource
exploration and exploitation, and continued availability of capital
and financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees
of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements.
Readers are cautioned not to place undue reliance on this
forward-looking information, which is given as of the date it is
expressed in this press release, and the Company undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws. For
more information on the Company, investors should review the
Company's continuous disclosure filings that are available at
www.sedar.com.
SOURCE Blue Moon Zinc Corp.
