I found a post that has the process for making Grandma's Red Powder using rust sugar and niter from chicken manure. You can find it here:
http://www.accelix.net/pipermail/kno3/2008-March/000117.htmlTwo or three times a year, Grandma would shovel up a batch of the soil
from inside her chicken run. After placing a clean, heavy cloth over
the perforated bottom of a metal bucket, half a cup of clean, sifted
white wood ashes were evenly spread atop the cloth. With a second piece
of cloth lain atop the ashes, she'd then fill the bucket with the dirt
she had dug earlier. After resting this bucket atop a slightly smaller
bucket, she would sprinkle 1 1/2 gallons of boiling water over the soil
which was left to drain. She would then boil the liquid that drained
out. Tiny grains of salt would form as the liquid simmered and she
would remove these. Once the liquid had reduced by 2/3 it was set aside
to cool. After cooling, the "nitre" crystals were strained out. When
she was ready to make a batch of powder, she would boil 2 cups of water
to which she added 1 cup plus 2 tablespoons of the "nitre", one cup of
sugar (extracted from sorghum or boiled down from maple sap), and 2
tablespoons of fine red rust (scraped with a knife blade from and
available rusted iron or steel). She's keep this mixture simmering
until it became a little thicker than breakfast oatmeal. This rusty
orange colored mixture was spread out, about 1/4" thick on a metal
cookie sheet. About every 15 minutes or so she would come by and cut
the pieces up. When it had finally dried enough that the mixture would
no longer stick to her fingers, she would rub it through a window
screen. This was put aside until thoroughly dry. All of this left
Grandma with about 1 pound of good, high quality blackpowder which could
be loaded on a volume for volume basis. Grandma would use this in the
flash pan, and "half a thimble full" in her .34 caliber flint lock
squirrel rifle.