BLUE MOON ENGAGES MDA FOR PRELIMINARY ECONOMIC ASSESSMENT

Blue Moon Zinc hires contractor for Blue Moon PEA

2017-10-10 08:57 ET - News Release

Mr. Patrick McGrath reports
BLUE MOON ENGAGES MDA FOR PRELIMINARY ECONOMIC ASSESSMENT
Blue Moon Zinc Corp. has engaged Mine Development Associates Inc. (MDA) to carry out a preliminary economic assessment of the Blue Moon zinc project in the foothills of California. MDA is an independent and internationally recognized engineering firm based in Reno, Nev. Completion of the PEA is expected in the first quarter of 2018.

The 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% increased 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 PEA.

Patrick McGrath, Chief Executive Officer, stated "We are confident in MDA's experience to develop a high quality technical report that will provide our shareholders with a preliminary analysis of Blue Moon's economic potential. MDA has a solid reputation and has worked extensively in the western United States. We believe the Blue Moon project represents an excellent near-term development project for our shareholders." MDA's past clients include Golden Queen where MDA co-authored a 2015 feasibility study for the Soledad Mountain mine in Southern California that went into commercial production in December 2016. MDA will be assisted in the PEA by Samuel Engineering, an independent engineering firm based in Denver, Colorado.

The Blue Moon zinc deposit had modest production during World War II with approximately 56,000 tons mined at 12% zinc. Advanced stage work continued during the 1980s and 1990s by mid-tier producers Imperial Metals and Boliden, including scoping and optimization studies, metallurgy testing, baseline work and culminated in the granting of a permit issued by the local Californian County to build a shaft for underground development in 1991. The permit has since lapsed but the past production and historical issuance of permits signifies the local County's past support of the project's development.

The Blue Moon team includes two members with comprehensive knowledge of mining in California including building and revitalizing mines. Lutz Klingmann permitted, built and brought into commercial production the Soledad Mountain mine as Chief Executive Officer of Golden Queen and Lawrence O'Connor restarted the Mesquite mine as VP Operations of Western Goldfield (now New Gold).

About Blue Moon
The 100% owned Blue Moon polymetallic deposit has a Mineral Resource estimate of 3.7 million tons with a grade of 8.3% zinc equivalence including approximately 377 million pounds of zinc in the Indicated category and 4.1 million tons with a grade of 7.8% zinc equivalence including approximately 395 million pounds of zinc in the Inferred category with significant credits of copper, silver and gold. The resource is open at depth and along strike and historical metallurgical testing indicates excellent recovery and a clean zinc concentrate. A NI 43-101 report detailing the resource and summarizing metallurgical recoveries will be available on the company's website (www.bluemoonmining.com) and on SEDAR within 45 days of October 3, 2017. The Company plans to advance the Blue Moon project through to feasibility, permitting and ultimately production.

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.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of mineral resources will be converted to mineral reserves. Inferred Mineral Resources are based on limited drilling which suggests the greatest uncertainty for a resource estimate and that geological continuity is only implied. Additional drilling will be required to verify geological and mineralization continuity and there is no certainty that all of the inferred resources will be converted to measured and indicated resources. Quantity and grades are estimates and are rounded to reflect the fact that the resource estimate is an approximation.
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