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MOMENTUM REPORTS — BLUEMOON — Report #2 — October, 2017 1
Blue Moon Zinc Meets Milestone: Files Resource Update, Showing Company Sitting
On Potential $Billion Zinc Ore Stockpile At Current Prices
Zinc Resources Increase From Historic 2.6 Million Tons Indicated and 2.7 Million Tons
Inferred; to 3.7 MillionTons Indicated And 4.1 MillionTons Inferred In New NI 43-101
Blue Sky Potential For Further Increases Exists Because Polymetallic Massive
Sulphide Deposits Often Come in Clusters
MOMENTUM REPORTS — BLUEMOON Report #2 — October, 2017
TSXV: MOON
Stock Info
Share Price: $0.075
52-week High: $0.115
52-week Low: $0.015
Market Cap: 6,956,303
Looking Forward
"The Blue Moon updated NI 43-101
Mineral Resource estimate announced on
October 3, 2017 saw a 20% increase in the
indicated zinc resource to 377 million
pounds of zinc, and a 23% increase in the
inferred zinc resource to a total of 395
million pounds of zinc, using a 4% zinc
equivalent cut-off grade. The updated
Mineral Resource estimate will be utilized
in the upcoming Preliminary Economic
Assessment (PEA), which we believe will
highlight Blue Moon's economic potential
and a catalyst for a material drill program
in the near future."
Blue Moon Zinc (TSXV:MOON; OTC:BMOOF)
announced on October 3, 2017 that it had
met its first milestone: an updated NI 43-101
Mineral Resource on its wholly-owned Blue
Moon polymetallic zinc property in California.
The new Mineral Resource Estimate showed
an increase of 42% of the indicated tons at
8.3% zinc equivalent and an increase of 52%
of the inferred tons at 7.8% zinc equivalent.
The new 2017 Mineral Resource Estimate is
now 3.7 million tons of indicated resources
and 4.1 million tons inferred resources.
Blue Moon CEO Patrick describes what the
Mineral Resource Update means to the com-
pany by saying: “We can now show the mar-
ket what this deposit looks like in a current
commodity price environment.”
New NI 43-101 sees Indicated Tons
Increase by 42%; Inferred Tons Increase by 52%
MOMENTUM REPORTS — BLUEMOON — Report #2 — October, 2017 2
“It is a logical step. We came up with a sys-
tematic plan and we are on that path. The re-
source update is the first step, the PEA is the
second, and following that we will be doing
a large drill program. After that we will move
into feasibility and the permitting exercise.”
The Blue Moon deposit is located in Mari-
posa­ County in the rolling foothills of the
Sierra ­Nevada, California, 21 miles northeast
of Merced (population 50,000). The mine has
been worked before. During WWII it produced
55,656 tons at 12% zinc.
The thought of permitting in environmentally-­
conscious Californiadoesn’tfazeMcGrath.“In
California permitting is done at the county­
level, and the local county is open to devel-
opment. Two members of our team have
­recently obtained mining permits in California,
Lutz Klingmann, who put the Soledad Moun-
tain mine into production outside of Los
Angeles; and Larry O’Conner who restarted
the Mesquite Mine. We have the experience.”
Blue Moon has also retained the same envi-
ronmental team who oversaw the permitting
process for Soledad Mountain.
The Mineral Resource is based on 1,540 assay results from 82
­diamond drill holes, totalling 111,250 feet of drilling. The new report
shows an estimated 377 million pounds of zinc in the Indicated
Mineral Resource category, and 395 million pounds of zinc in the
Inferred Mineral Resource category. Both are at a conservative 4%
zinc equivalent cut-off grade for a total of 772 million pounds of
zinc plus significant byproducts of copper, gold and silver.
On October 3, 2017 the price of zinc reached US$1.58, effectively
valuing the company’s potential gross value of zinc at slightly more
than US$1.2 Billion.
“We believe the updated Mineral Resource will bring validity to the
project and highlight that we have sufficient tons and contained metal
to move this to a PEA.”
“We can give a more realistic view of how
many tons, grade and pounds of zinc we have,
and what the total contained metal looks
like. This will form the basis of moving into
an economic assessment which is the PEA,
(Preliminary Economic Assessment). Now, we
really do think the market will be able to see
what we have.”
MOMENTUM REPORTS — BLUEMOON — Report #2 — October, 2017 3
People tend to forget that there is a strong nat-
ural resources industry in the state. According
to the U.S. Energy Information Administration,
California is the fourth largest crude oil pro-
ducer in the U.S. coming in after Texas, North
Dakota and Alaska.
The Blue Moon property itself is in an ideal
­location from a mining perspective. Practically
all the infrastructure it needs is already in
place. The project is within one mile of elec-
tric transmission lines, and within three miles
of a paved road. It is also close to a town of
50,000 people, from which it can house and
draw its workforce.
One of the reasons that McGrath
believes the local community
may be open to development is
the project’s location. “This is the
home of the original California
Gold Rush. There are people here
who are friendly to mining, some
of them are here because their
ancestors worked the gold rush,
and others will have had relatives
who worked at the original Blue
Moon mine.”
Patrick McGrath says that the company’s next
milestones are to produce a PEA; launch an
infill drilling program, and during the Spring,
the baseline environmental study. Commenting
on the environmental study McGrath adds,
“We have done the preliminary work and the
bulk of it will be done during the Spring.”
MOMENTUM REPORTS — BLUEMOON — Report #2 — October, 2017 4
DISCLAIMER - Momentum PR provides information only. This report does not constitute investment advice and should not be interpreted as such.
TECHNOLOGY AND LIFE SCIENCE
MINING AND MINERAL EXPLORATION
OIL AND GAS, AND ENERGY SERVICES
MOMENTUM PR | T: +1 450 332 6939 | E: INFO@MOMENTUMPR.COM | WWW.MOMENTUMPR.COM
“The PEA will take three to four months to
finalize and release.” As for the Holy Grail, a
mining permit, McGrath says of the prelimi-
nary work being done now, “It all goes into a
big filing, probably in a year’s time from now.
The feasibility report will be the foundation of
the mining permit application.”
While Blue Moon works at firming up the in-
formation it needs to file for a mining permit;
the company has also applied for a drilling
permit and expects to launch an infill drilling
program in 2018. The drill program is de-
signed to raise the tonnage in the Indicated
Mineral Resource category. Much of the ore
in the Inferred Mineral Resource category
is there, McGrath believes, and an infill drill
program should increase the confidence of
the inferred resources and upgrade it to the
indicated category.
While the drilling campaign is needed for the
feasibility study, Blue Moon also intends to
do some exploratory drilling. “We are looking
at poking a couple of holes because we have
excellent blue sky potential. There are IP sur-
veys and soil anomalies that look interesting
along strike.”
“Volcanic massive sulphide (VMS) deposits
are found in pods and clusters, and so far
we have found one pod, being the Blue Moon
deposit. There are a lot of IP and soil anoma-
lies that show the potential to find other Blue
Moon style deposit along strike. There is a lot
of exploration potential here, and there might
be a second or a third Blue Moon deposit on
the site.”
“I think what is also important about this project is
its recovery rate. Based on historical metallurgical
tests, the recovery rate is around 95%, and that puts
it at the top of the class.”
Updated Blue Moon Indicated Mineral Resources
Updated Blue Moon Inferred Mineral Resources

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Blue Moon Zinc - Momentum Report #2

  • 1. MOMENTUM REPORTS — BLUEMOON — Report #2 — October, 2017 1 Blue Moon Zinc Meets Milestone: Files Resource Update, Showing Company Sitting On Potential $Billion Zinc Ore Stockpile At Current Prices Zinc Resources Increase From Historic 2.6 Million Tons Indicated and 2.7 Million Tons Inferred; to 3.7 MillionTons Indicated And 4.1 MillionTons Inferred In New NI 43-101 Blue Sky Potential For Further Increases Exists Because Polymetallic Massive Sulphide Deposits Often Come in Clusters MOMENTUM REPORTS — BLUEMOON Report #2 — October, 2017 TSXV: MOON Stock Info Share Price: $0.075 52-week High: $0.115 52-week Low: $0.015 Market Cap: 6,956,303 Looking Forward "The Blue Moon updated NI 43-101 Mineral Resource estimate announced on October 3, 2017 saw a 20% increase in the indicated zinc resource to 377 million pounds of zinc, and a 23% increase in the inferred zinc resource to a total of 395 million pounds of zinc, using a 4% zinc equivalent cut-off grade. The updated Mineral Resource estimate will be utilized in the upcoming Preliminary Economic Assessment (PEA), which we believe will highlight Blue Moon's economic potential and a catalyst for a material drill program in the near future." Blue Moon Zinc (TSXV:MOON; OTC:BMOOF) announced on October 3, 2017 that it had met its first milestone: an updated NI 43-101 Mineral Resource on its wholly-owned Blue Moon polymetallic zinc property in California. The new Mineral Resource Estimate showed an increase of 42% of the indicated tons at 8.3% zinc equivalent and an increase of 52% of the inferred tons at 7.8% zinc equivalent. The new 2017 Mineral Resource Estimate is now 3.7 million tons of indicated resources and 4.1 million tons inferred resources. Blue Moon CEO Patrick describes what the Mineral Resource Update means to the com- pany by saying: “We can now show the mar- ket what this deposit looks like in a current commodity price environment.” New NI 43-101 sees Indicated Tons Increase by 42%; Inferred Tons Increase by 52%
  • 2. MOMENTUM REPORTS — BLUEMOON — Report #2 — October, 2017 2 “It is a logical step. We came up with a sys- tematic plan and we are on that path. The re- source update is the first step, the PEA is the second, and following that we will be doing a large drill program. After that we will move into feasibility and the permitting exercise.” The Blue Moon deposit is located in Mari- posa­ County in the rolling foothills of the Sierra ­Nevada, California, 21 miles northeast of Merced (population 50,000). The mine has been worked before. During WWII it produced 55,656 tons at 12% zinc. The thought of permitting in environmentally-­ conscious Californiadoesn’tfazeMcGrath.“In California permitting is done at the county­ level, and the local county is open to devel- opment. Two members of our team have ­recently obtained mining permits in California, Lutz Klingmann, who put the Soledad Moun- tain mine into production outside of Los Angeles; and Larry O’Conner who restarted the Mesquite Mine. We have the experience.” Blue Moon has also retained the same envi- ronmental team who oversaw the permitting process for Soledad Mountain. The Mineral Resource is based on 1,540 assay results from 82 ­diamond drill holes, totalling 111,250 feet of drilling. The new report shows an estimated 377 million pounds of zinc in the Indicated Mineral Resource category, and 395 million pounds of zinc in the Inferred Mineral Resource category. Both are at a conservative 4% zinc equivalent cut-off grade for a total of 772 million pounds of zinc plus significant byproducts of copper, gold and silver. On October 3, 2017 the price of zinc reached US$1.58, effectively valuing the company’s potential gross value of zinc at slightly more than US$1.2 Billion. “We believe the updated Mineral Resource will bring validity to the project and highlight that we have sufficient tons and contained metal to move this to a PEA.” “We can give a more realistic view of how many tons, grade and pounds of zinc we have, and what the total contained metal looks like. This will form the basis of moving into an economic assessment which is the PEA, (Preliminary Economic Assessment). Now, we really do think the market will be able to see what we have.”
  • 3. MOMENTUM REPORTS — BLUEMOON — Report #2 — October, 2017 3 People tend to forget that there is a strong nat- ural resources industry in the state. According to the U.S. Energy Information Administration, California is the fourth largest crude oil pro- ducer in the U.S. coming in after Texas, North Dakota and Alaska. The Blue Moon property itself is in an ideal ­location from a mining perspective. Practically all the infrastructure it needs is already in place. The project is within one mile of elec- tric transmission lines, and within three miles of a paved road. It is also close to a town of 50,000 people, from which it can house and draw its workforce. One of the reasons that McGrath believes the local community may be open to development is the project’s location. “This is the home of the original California Gold Rush. There are people here who are friendly to mining, some of them are here because their ancestors worked the gold rush, and others will have had relatives who worked at the original Blue Moon mine.” Patrick McGrath says that the company’s next milestones are to produce a PEA; launch an infill drilling program, and during the Spring, the baseline environmental study. Commenting on the environmental study McGrath adds, “We have done the preliminary work and the bulk of it will be done during the Spring.”
  • 4. MOMENTUM REPORTS — BLUEMOON — Report #2 — October, 2017 4 DISCLAIMER - Momentum PR provides information only. This report does not constitute investment advice and should not be interpreted as such. TECHNOLOGY AND LIFE SCIENCE MINING AND MINERAL EXPLORATION OIL AND GAS, AND ENERGY SERVICES MOMENTUM PR | T: +1 450 332 6939 | E: INFO@MOMENTUMPR.COM | WWW.MOMENTUMPR.COM “The PEA will take three to four months to finalize and release.” As for the Holy Grail, a mining permit, McGrath says of the prelimi- nary work being done now, “It all goes into a big filing, probably in a year’s time from now. The feasibility report will be the foundation of the mining permit application.” While Blue Moon works at firming up the in- formation it needs to file for a mining permit; the company has also applied for a drilling permit and expects to launch an infill drilling program in 2018. The drill program is de- signed to raise the tonnage in the Indicated Mineral Resource category. Much of the ore in the Inferred Mineral Resource category is there, McGrath believes, and an infill drill program should increase the confidence of the inferred resources and upgrade it to the indicated category. While the drilling campaign is needed for the feasibility study, Blue Moon also intends to do some exploratory drilling. “We are looking at poking a couple of holes because we have excellent blue sky potential. There are IP sur- veys and soil anomalies that look interesting along strike.” “Volcanic massive sulphide (VMS) deposits are found in pods and clusters, and so far we have found one pod, being the Blue Moon deposit. There are a lot of IP and soil anoma- lies that show the potential to find other Blue Moon style deposit along strike. There is a lot of exploration potential here, and there might be a second or a third Blue Moon deposit on the site.” “I think what is also important about this project is its recovery rate. Based on historical metallurgical tests, the recovery rate is around 95%, and that puts it at the top of the class.” Updated Blue Moon Indicated Mineral Resources Updated Blue Moon Inferred Mineral Resources