Red Moon Resources Inc. said Aug. 9 that it will begin development of the Ace gypsum mine in western Newfoundland after it received government approval for its plan for the open pit operation.

Operational work, consisting of scrubbing vegetation and overburden removal, has begun at the site.

The Canada-listed explorer is working with Vinland Materials Inc. to undertake contract mining operations and secure sales agreements for gypsum and anhydrite. In addition, it is working towards initiating shipments this year, with sales contracts to be sourced by 2019.

Red Moon estimated potential resources of between 3 million and 5 million tonnes within the mining lease, which was obtained in October 2017.