#Vanadium Stock News; Prophecy (TSX: $PCY.TO) (OTCPK:
$PRPCF ) Reports Measured and Indicated
Mineral Resource for Gibellini Primary Vanadium Project
in Nevada
Vancouver, British
Columbia, November 21, 2017 – Prophecy Development Corp. (“Prophecy” or the “Company”)
(TSX:PCY, OTCPK:PRPCF, Frankfurt:1P2N) has received an independent technical
report titled “Gibellini Vanadium Project Nevada, USA NI 43-101 Technical
Report” with an effective date of November 10, 2017 (the “Report”) prepared by Amec Foster Wheeler E&C Services
Inc. on the Gibellini vanadium project (the “Project”) which has been filed under
the Company’s profile on the System for Electronic
Document Analysis and Retrieval (SEDAR) at www.sedar.com.
The Project is located in
Eureka County, Nevada, about 25 miles south of the town of Eureka, and is
easily accessed by a graded gravel road extending south from US Highway 50.
Nevada is featured
in the 2016 Fraser Institute survey of mining companies as the fourth most
attractive jurisdiction for mining investment globally.
The Report describes
resources according to category following the guidelines of the CIM Definition
Standards for Mineral Resources and Mineral Reserves.
Two mineral resource estimates were prepared, one for the Gibellini
deposit and the second for the Louie Hill deposit.
Gibellini Deposit
The Report has estimated 7.85 million tons at a weighted
average grade of 0.316% vanadium pentoxide (V2O5) in the Measured
category and 14.16 million tons at a weighted average grade of 0.281% V2O5
in the Indicated category leading to a total combined Measured and Indicated
Mineral Resource of 22.01 million tons at a weighted average grade of 0.294% V2O5.
Total contained metal content of the Measured
and Indicated Mineral Resources is 129.28 million pounds V2O5.
The Inferred Mineral Resource estimate is
9.82 million tons at a weighted average grade of 0.19% V2O5.
The total contained metal content of the
Inferred Mineral Resource estimate is 37.27 million pounds V2O5. The table below summarizes the Gibellini
deposit estimate.
|
Gibellini Deposit Mineral
Resource Statement
|
|||||
|
Resource
Category |
Domain
|
Cut-off V2O5
(%) |
Tons
(M) |
Grade
(%V2O5) |
Metal Content
(M lbs V2O5) |
|
Measured
|
Oxide
|
0.116
|
3.90
|
0.253
|
19.74
|
|
Transition
|
0.105
|
3.95
|
0.379
|
29.88
|
|
|
Indicated
|
Oxide
|
0.116
|
7.04
|
0.235
|
33.12
|
|
Transition
|
0.105
|
7.12
|
0.327
|
46.55
|
|
|
Total Measured and
Indicated
|
22.01
|
0.294
|
129.28
|
||
|
Inferred
|
Oxide
|
0.116
|
0.14
|
0.179
|
0.50
|
|
Transition
|
0.105
|
0.01
|
0.179
|
0.03
|
|
|
Reduced
|
0.134
|
9.68
|
0.190
|
36.75
|
|
|
Total Inferred
|
9.82
|
0.190
|
37.27
|
||
Notes to accompany mineral resource table for Gibellini deposit:
(1) The Qualified Person for the
estimate is Mr. E.J.C. Orbock III, RM SME, an Amec Foster Wheeler employee. The Mineral Resource estimate has an effective
date of 10 November, 2017.
(2) Mineral Resources are
reported at various cut-off grades for oxide, transition, and reduced material.
(3) Mineral Resources are
reported within a conceptual pit shell that uses the following assumptions: mineral
resource V2O5 price: $10.81/lb; mining cost: $2.21/ton
mined; process cost: $13.14/ton processed; general and administrative (G&A)
cost: $0.99/ton processed; metallurgical recovery assumptions of 60% for oxide
material, 70% for transition material and 52% for reduced material; tonnage
factors of 16.86 ft3 /ton for oxide material, 16.35 ft3
/ton for transition material and 14.18 ft3 /ton for reduced
material; royalty: 2.5% net smelter return (NSR); shipping and conversion
costs: $0.37/lb. An overall 40º pit slope angle assumption was used.
(4) Rounding as required by
reporting guidelines may result in apparent summation differences between tons,
grade and contained metal content. Tonnage and grade measurements are in US
units. Grades are reported in percentages.
Louie Hill Deposit
The Louie Hill deposit lies
approximately 1,600 ft south of the Gibellini deposit.
The Report estimated an Inferred Mineral Resource of 7.06
million tons at a weighted average grade of 0.284% vanadium pentoxide (V2O5).
The oxidation domains were not modeled.
The total contained metal content of the estimate is 40.16 million
pounds V2O5 . The
table below summarizes the Louie Hill deposit estimate.
|
Louie Hill Deposit
Mineral Resource Statement
|
|||||
|
Resource
Category |
Domain
|
Cut-off V2O5
(%) |
Tons
(M) |
Grade
(%V2O5) |
Metal
Content
(M lbs V2O5) |
|
Inferred
|
Not modeled
|
0.116
|
7.06
|
0.284
|
40.16
|
Notes to accompany mineral
resource table for Louie Hill:
(1) The Qualified Person for the
estimate is Mr. E.J.C. Orbock III, RM SME, an Amec Foster Wheeler employee. The
Mineral Resources have an effective date of 10 November, 2017. The resource model was prepared by Mr. Mark
Hertel, RM SME.
(2) Oxidation state was not
modeled.
(3) Mineral Resources are
reported within a conceptual pit shell that uses the following assumptions: mineral
resource V2O5 price: $10.81/lb; mining cost: $2.21/ton
mined; process cost: $13.14/ton processed; general and administrative (G&A)
cost: $0.99/ton processed; metallurgical recovery assumptions of 60% for
mineralized material; tonnage factors of 16.86 ft3 /ton for mineralized
material, royalty: 2.5% net smelter return (NSR); shipping and conversion
costs: $0.37/lb. For the purposes of the resource estimate, an overall 40º
slope angle assumption was used.
(4) Rounding as required by
reporting guidelines may result in apparent summation differences between tons,
grade and contained metal content. Tonnage and grade measurements are in US
units. Grades are reported in percentages.
A total of 280 drill
holes (about 51,265 ft) have been completed on the Project since 1946,
comprising 16 core holes (4,046 ft), 169 rotary drill holes (25,077 ft; note
not all drill holes have footages recorded) and 95 RC holes (22,142 ft).
The vanadium-host black shale unit ranges from 175 to over 300 ft thick
and overlies gray mudstone. The shale
has been oxidized to various hues of yellow and orange to a depth of 100 ft.
Alteration (oxidation) of the rocks is classified as one of three oxide codes:
oxidized, transitional, and reduced.
A feasibility study was commissioned in late 2010 by the previous
operator, American Vanadium Corp., and was completed in 2011 (the “2011 Feasibility
Study”). The 2011 Feasibility Study assumed a conventional open pit mine using
a truck and shovel fleet for mining and a heap leach to produce V2O5
as a bagged product. Prophecy is not
treating either the Mineral Reserves resulting from the 2011 Feasibility Study
or the economic results of that study as current. No work has been conducted on the Project
since 2011. Prophecy has completed no
exploration or drilling activities since Project acquisition.
Metallurgy
A heap leach operation
without initial roasting step was modeled and designed to produce V2O5
as a bagged product.
Metallurgical test work and associated analytical procedures were
performed by recognized testing facilities during the period 1975 to 2011, and
the tests performed were appropriate to the mineralization type. Samples selected for testing were
representative of the various types and styles of mineralization. Samples were selected from a range of depths
within the deposit. Sufficient samples
were obtained to ensure that tests were performed on sufficient sample mass. For the purposes of the Mineral Resource
estimate, recoveries of 60% for oxide material and 70% for transitional
material were considered appropriate. No processing factors were identified
from the completed metallurgical test work that would have a significant effect
on extraction. The table below
summarizes the projected metallurgical recoveries for the three defined
oxidation-type domains.
Mill Feed Material Type Percent Recovery
Oxide 60%
Transition 70%
Reduced 52%
Environmental and
Permitting Considerations
Baseline studies conducted in 2010–2011 included studies to document the
existing conditions of biological resources, cultural resources, surface water
resources, ground water resources, and waste rock geochemical characterization.
The baseline data collected would be
subject to review and approval by the Bureau of Land Management (the “BLM”) and the Nevada Department of
Environmental Protection and other regulatory agencies.
Prior to commencing any mining operations on public lands administered by
the BLM, a Plan of Operations describing how a proponent will prevent
unnecessary and undue land degradation and reclaim the disturbed areas must be
submitted to the BLM.
Both the baseline studies
and the Plan of Operations were prepared and submitted by the Project’s
previous operator and deemed complete by the BLM in order to start the National Environmental Policy Act process.
John Lee, Chairman of
Prophecy, states:
“Gibellini is an
exceptionally rare open pit, heap leach vanadium project in Nevada, with low
deleterious (less than 1% Fe, Ti, and MgO) elements. In 2018, Prophecy intends to update and
accelerate prior feasibility and permitting work. We believe vanadium batteries have a bright
future in the United States with strong renewable energy mandates in Texas,
Arizona, California, Nevada and many other windy/sunshine states. Our goal is
to make Gibellini the first primarily vanadium operating mine in North America.”
Qualified Persons
The technical contents of this news release have been prepared under the
supervision of Christopher M. Kravits, CPG, LPG, General Mining Manager of
Prophecy. Mr. Kravits is a Qualified Person as defined in NI 43-101. Mr. Kravits is a consultant to the Company and
is not independent of the Company since most of his income is derived from the
Company.
Edward J.C. Orbock, III, RM SME of Amec Foster Wheeler E&C Services
Inc. is the Qualified Person within the meaning of NI 43-101 who supervised
preparation of, and is responsible for, all sections of the Report and Mineral
Resource estimates addressed in this news release.
About Prophecy
Prophecy Development
Corp. is a Canadian public company listed on the Toronto Stock Exchange. The
Company aims to provide exposure and leverage to rising vanadium prices by
defining and adding attributable vanadium resources in the ground in
politically safe jurisdictions. Further
information on Prophecy can be found at www.prophecydev.com.
PROPHECY DEVELOPMENT CORP.
ON BEHALF OF THE BOARD
“JOHN LEE”
Executive Chairman
For more information about Prophecy, please contact
Investor Relations:
+1.888.513.6286
Neither the Toronto Stock Exchange nor
its Regulation Services Provider (as that term is defined in the policies of
the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding
Forward-Looking Statements
Certain statements
contained in this news release, including statements which may contain words
such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”,
or similar expressions, and statements related to matters which are not
historical facts, are forward-looking information within the meaning of
applicable securities laws. Such forward-looking statements, which reflect
management’s expectations regarding Prophecy’s future growth, results of
operations, performance, business prospects and opportunities, are based on
certain factors and assumptions and involve known and unknown risks and
uncertainties which may cause the actual results, performance, or achievements
to be materially different from future results, performance, or achievements
expressed or implied by such forward-looking statements. These estimates and
assumptions are inherently subject to significant business, economic,
competitive and other uncertainties and contingencies, many of which, with
respect to future events, are subject to change and could cause actual results
to differ materially from those expressed or implied in any forward-looking
statements made by Prophecy. In making forward-looking statements as may be
included in this news release, Prophecy has made several assumptions that it
believes are appropriate, including, but not limited to assumptions that: there
being no significant disruptions affecting operations, such as due to labour
disruptions; currency exchange rates being approximately consistent with
current levels; certain price assumptions for coal, prices for and availability
of fuel, parts and equipment and other key supplies remain consistent with
current levels; production forecasts meeting expectations; the accuracy of
Prophecy’s current mineral resource estimates; labour and materials costs
increasing on a basis consistent with Prophecy’s current expectations; and that
any additional required financing will be available on reasonable terms.
Prophecy cannot assure you that any of these assumptions will prove to be
correct.
Numerous factors could
cause Prophecy’s actual results to differ materially from those expressed or
implied in the forward-looking statements, including the following risks and
uncertainties, which are discussed in greater detail under the heading “Risk
Factors” in Prophecy’s most recent Management Discussion and Analysis and
Annual Information Form as filed on SEDAR and posted on Prophecy’s website:
Prophecy’s history of net losses and lack of foreseeable cash flow;
exploration, development and production risks, including risks related to the
development of Prophecy’s mineral properties; Prophecy not having a history of
profitable mineral production; the uncertainty of mineral resource and mineral
reserve estimates; the capital and operating costs required to bring Prophecy’s
projects into production and the resulting economic returns from its projects;
foreign operations and political conditions, including the legal and political
risks of operating in Bolivia, which is a developing jurisdiction; amendments
to local Bolivian laws which may have an adverse impact on the Company’s
operations; title to Prophecy’s mineral properties; environmental risks; the
competitive nature of the mining business; lack of infrastructure; Prophecy’s
reliance on key personnel; uninsured risks; commodity price fluctuations;
reliance on contractors; Prophecy’s need for substantial additional funding and
the risk of not securing such funding on reasonable terms or at all; foreign
exchange risks; anti-corruption legislation; recent global financial conditions;
the payment of dividends; and conflicts of interest.
These factors should be
considered carefully, and readers should not place undue reliance on Prophecy’s
forward-looking statements. Prophecy believes that the expectations reflected
in the forward-looking statements contained in this news release and the
documents incorporated by reference herein are reasonable, but no assurance can
be given that these expectations will prove to be correct. In addition,
although Prophecy has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. Prophecy
undertakes no obligation to release publicly any future revisions to
forward-looking statements to reflect events or circumstances after the date of
this news or to reflect the occurrence of unanticipated events, except as
expressly required by law.
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