Prophecy’s Gibellini Vanadium Project to Undergo Streamlined NEPA Review Process (US Secretary of the Interior Order No. 3355)
Prophecy’s Gibellini Vanadium Project to Undergo Streamlined
NEPA Review Process
(US Secretary of the Interior Order No. 3355)
Vancouver, British Columbia, March 28, 2018 – Prophecy Development Corp. (“Prophecy” or
the “Company”) ( TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) is pleased to announce that f ollowing a
meeting between the Company and staff of the Battle Mountain District-Mt. Lewis field office of the Bureau
of Land Management (the “BLM”) on March 23, 2018, Prophecy’s Gibellini vanadium project (the “Gibellini
Project”) will be one of the first projects to undergo National Environmental Policy Act (“ NEPA”) review
under S ecretary of the Interior Order No. 3355 with the following subject: Streamlining National
Environmental Policy Reviews and Implementation of Executive Order 13807 (the “Order”).
The Order
The full text of the Order may be accessed with the following link:
https://elips.doi.gov/elips/0/doc/4581/Page1.aspx
The Order states as one of its intentions to “immediately implement certain improvements to [NEPA]
reviews conducted by the Department of the Interior (Department)”.
Background
The Order provided background to this intention, stating “ Both the Department and the Council on
Environmental Quality (CEQ) have issued regulations to implement NEPA. Because the purpose of
NEPA’s requirements is not the generation of paperwork, but the adoption of sound decisions based on an
informed understanding of environmental consequences, the regulations encourage agencies to: 1) focus
on issues that truly matter rather than amassing unnecessary detail ; 2) reduce paperwork, including by
setting appropriate page limits ; 3) discuss briefly issues that are n ot significant; and 4) prepare analytic
(rather than encyclopedic) documents, among other measures.”
Directives
The Directives laid out in the Order concerning page and timing limitations for environmental impact
statements (“EISs”) included for “…all EISs 1) for which a bureau is the lead agency and 2) that have not
reached the drafting stage shall not be more than 150 pages or 300 pages for unusually complex projects,
excluding appendices.... To ensure timely completion of EISs, and consistent with the timelines established
for major infrastructure projects in E.O. 13807, each bureau shall have a target to complete each Final EIS
for which it is the lead agency within 1 year from the issuance of a Notice of Intent (NOI) to prepare an EIS.”
Prophecy Comment
At the end of the meeting, the BLM and Prophecy tentatively agreed to the following:
1. Prophecy is to revise and submit the baseline studies and Plan of Operation for the Gibellini
Project in May 2018 based largely on submissions from the project’s previous operator;
2. the BLM and Prophecy will then identify data and studies requiring updates, which Prophecy will
engage contractors to perform;
3. in parallel, Prophecy will begin preparing an environmental report relating to the Gibellini Project;
and
4. upon acceptance of the baseline studies, Plan of Operation, and environmental report by the BLM,
Prophecy expects to trigger a Notice of Intent by the BLM to pre pare an EIS for the Gibellini
Project, currently expected to be completed in 2019.
Prophecy has in a short period:
1. announced a National Instrument 43 -101, Standards of Disclosure for Mineral Projects (“NI 43-
101”) compliant resource estimate of 49.62 million pounds of vanadium pentoxide in the
measured category and 79.67 million pounds of vanadium pentoxide in the indicated category
and 37.27 million pounds in the inferred category for the Gibellini deposit (refer to the Company’s
news release dated November 20, 2017), prepared by Amec Foster Wheeler E&C Services Inc.
(“AMEC E&C”). The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM SME, an
AMEC E&C employee. The Mineral Resource estimate has an effective date of November 10,
2017;
2. secured a land package of eight square kilometers for processing needs with exploration potential
(refer to the Company’s news release dated February 15, 2018);
3. brought on a seasoned team with decades of experience in permitting, project management and
vanadium metallurgy (refer to the Company’s news release dated February 26, 2018);
4. brought on a Chinese technology partner with a proven commercial vanadium operation to
engineer high grade vanadium production technology for Gibellini (refer to the Company’s news
release dated March 12, 2018);
5. re-engaged and reinitiated the environmental and permitting processes at the federal and state
levels. Because of the baseline and feasibility work carried out by the Gibellini Project’s prior
operator, Prophecy anticipates significant cost and time savings in EIS preparation and the state
permitting process; and
6. engaged AMEC E&C to prepare a preliminary economic assessment, with results due in late April
2018.
The price of v anadium pentoxide is up 65 % this year according to Asian Metal Inc ., a data vendor that
provides metal prices. Bloomberg and Bank of Montreal have recently started coverage on this increasingly
attractive metal. Vanadium is currently trading at USD14.9/lb up from the 2017 low of USD5/lb according
to Asian Metal Inc. and is outperforming cobalt and lithium by a wide margin.
With the Order, Prophecy is on a predictable track to make the Gibellini Project the first operating primary
vanadium mine and processing plant in North America, offering the best quality vanadium pentoxide product
that exceeds customer requirements for a variety of high-tech applications such as batteries and aerospace.
John Lee, Prophecy’s Executive Chairman, states: “To our shareholders, we want to offer the best leverage
and a direct play that reflects vanadium prices. To our future customers, we want to be your reliable source
for high quality vanadium supply in a politically-safe, mining-friendly jurisdiction.”
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.
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
www.prophecydev.com
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 historica l 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 a nd
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 s ubject 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: all required third party contractual, regulatory and governmental approvals will be
obtained for the development, construction and production of Prophecy’s prope rties and the Chandgana
power plant; there being no significant disruptions affecting operations, whether due to labour disruptions
or other causes; currency exchange rates being approximately consistent with current levels; certain price
assumptions for v anadium, silver, coal and other metals, 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 es timates; labour and materials costs
increasing on a basis consistent with Prophecy’s current expectations; any additional required financing will
be available on reasonable terms; and market developments and trends in global supply and demand for
vanadium, energy, silver, coal and other metals meeting expectations. 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 SE DAR and posted on Prophecy’s website: Prophecy’s
history of net losses and lack of foreseeable positive cash flow; exploration, development and production
risks, including risks related to the development of Prophecy’s mineral properties; Prophecy not havi ng a
history of profitable mineral production; commencing mine development without a feasibility study; 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 and Mongolia,
which are developing countries and being subject to their local laws; the avai lability and timeliness of
various government approvals, permits and licenses; the feasibility, funding and development of Prophecy’s
projects; protecting 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 risk; anti-corruption legislation;
recent global financial conditions; the payment of dividends; the inability of insurance to cover all potential
risks associated with mining operations; 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 incor porated 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.