Prophecy Development Corp. Prepares to Drill Gibellini Vanadium Project
Prophecy Development Corp. Prepares to Drill
Gibellini Vanadium Project
Vancouver, British Columbia, April 30, 2018 – Prophecy Development Corp. (“Prophecy” or
the “Company”) (TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) is initiating preparations for its
exploration and verification drilling program on the Gibellini vanadium project in Q2 2018. A total
of 4,880m of reverse circulation drilling in 64 holes are planned in the following target areas:
Gibellini: 33 holes total 2,740 meters
The report ( the “Technical Report ”) prepared by Amec Foster Wheeler E&C Services Inc .
(“AMEC”) according to National Instrument 43-101, Standards of Disclosure for Mineral Projects
(“NI 43-101”) with an effective date of November 10, 2017 , estimated combined Measured and
Indicated Mineral Resource of 22.01 million tons at a weighted average grade of 0.294% V 2O5,
containing 129.28 million pounds V 2O5. The Inferred Mineral Resource estimate is 9.8 2 million
tons at a weighted average grade of 0.19% V2O5 containing 37.27 million pounds V2O5.
1) The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM SME, an AMEC 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.
Thirty-three (33) infill drill holes have been planned to increase the confidence level of a potential
near-surface higher-grade starter pit (“HSP”) with the following historic drilling highlights:
Table 1. Historic drill results on the Gibellini Resource
Hole ID
From
(m) To (m) Meters % V2O5
T-38 3.05 45.72 42.7 0.755
including… 28.96 44.20 15.2 1.399
NG-47 1.52 57.91 56.4 0.533
including… 28.96 39.62 10.7 1.005
NG-6 6.10 70.10 64.0 0.455
T-33 1.52 57.91 56.4 0.462
including… 33.53 41.15 7.6 1.102
T-27 1.52 60.96 59.4 0.419
NG-12 22.86 60.96 38.1 0.652
including… 24.38 45.72 21.3 0.857
IG-2 4.57 53.34 48.8 0.501
NG-4 3.05 56.39 53.3 0.413
A successfully delineated HSP could be incorporated in the early mining sequence that can
potentially boost metal recoveries, increase production throughput, and lead to faster investment
payback.
Louie Hill: 28 holes total 1,765 meters
Also disclosed in the Technical Report is an inferred NI 43-101 compliant resource for the Louie
Hill deposit of 7.06 million tons at a grade of 0.284% V 2O5, or 40.2 million pounds of contained
V2O5 metal with 1,765 meters of drilling. A total of 28 holes are planned for i nfill and expansion
which are aimed to increase total resource tonnage, upgrade resource confidence level, and to
delineate whether higher grade mineralized intercepts comprise continuous zones, based on the
following past drill highlights:
Table 2. Historic drill results from the Louie Hill resource
Hole ID
From
(m) To (m) Meters % V2O5
UC58-1 1.52 24.38 22.86 0.457
UC58-11 16.76 30.48 13.72 0.489
UC58-13 13.72 25.91 12.19 0.428
UC58-3 0.00 27.43 27.43 0.406
including… 18.29 22.86 4.57 0.877
UC58-46 0.00 9.14 9.14 0.620
UC58-6 0.00 12.19 12.19 0.733
including… 0.00 7.62 7.62 0.936
1) The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM SME, an AMEC 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.
Middle Earth, Big Sky and Northeast Regional Prospects: 3 holes total 375 meters
Regional prospects are all within a three-kilometer trend of Prophecy’s controlled claims.
Combined, the three prospects covers 2.5 squared kilometers which is over twice the size of
Gibellini’s foot print (refer to plan map).
These prospects contain exposures of the same host rocks found at Gi bellini and Louie Hill,
known as the Woodruff Formation, which is comprised predominantly of various mudstones and
lesser chert.
Over 390 trench results from Big Sky and Northeast targets and core samples from the historic
drilling at Middle Earth target all demonstrated appreciable vanadium grades. Below are
highlights from past trench and drilling:
Table 3. Historic results from exploration prospects on Gibellini property
Prospect Hole ID/Trench
From
(m) To (m) Meters % V2O5
Middle
Earth UC58-18 0 4.572 4.6 0.567
Middle
Earth UC58-19 0 18.288 18.3 0.337
Northeast TRENCH Nt3 3.0 60.0 57.0 0.270
A total of three holes total 375 meters are designed to drill test the three regional prospects. A
discovery from those prospects could turn the area into a vanadium district play with already
established vanadium resources at Gibellini and Louie Hill.
Concluding Comments
Danniel Oosterman, VP, Exploration states: “This carefully planned drill program could:
1. Establish a higher-grade starter pit that accelerates future project payback;
2. Increase resource tonnage and upgrade confidence level of Gibellini and Louie Hill
resources; and
3. Expand the project into a vanadium district play with multiple discoveries.
Gibellini is the only black shale project in the world we are aware of, that can achieve up to 70%
high metallurgical recoveries, as referenced in the November 2017 Technical Report, through
heap leach without a costly, energy -intensive, high temperature pre -roasting step. With
permitting, EPCM (engineering , procurement and construction management), and vanadium
product off-take sales initiatives already underway, Prophecy’s Gibellini project offers the fastest
pace, best leverage and a direct play in vanadium that reflects increased vanadium prices in a
politically-safe, mining-friendly jurisdiction of Nevada, USA.“
Prophecy expects to report findings from an in dependent preliminary economic assessment of
the Gibellini vanadium project in May 2018. Also in May, Prophecy expects to submit updated
base line studies and an updated Plan of Operations for the Gibellini vanadium project to the
Bureau of Land Management.
Visit www.prophecydev.com for plain view and sample cross sections of proposed drill holes.
The Company also announces that it has entered into separate agreements with Andreas
Curkovic of Proconsul Capital Ltd. as well as Karen Michno (Willoughby) to provide investor
relations and shareholder communication services for the Company , effective April 20th, 2018
and April 18th, 2018, respectively.
The Company further announces that pursuant to the terms of the Company’s share -based
compensation plan as amended, which was approved by shareholders at the Company’s annual
general meeting of shareholders held on June 2, 2016 and amended on June 13, 2017, it has
granted in aggregate, 15,000 incentive stock options (the “Options“) to various consultants of the
Company. The Options are exercisable at a price of $3.15 per Common share for a term of five
years expiring on April 27, 2023 and vest at 12.5% per quarter for the first two years following the
date of grant.
Qualified Person
The technical contents of this news release have been prepared under the supervision of Danniel
Oosterman, VP, Exploration. Mr. Oosterman is not independent of the Company in that he is
employed as a consultant to the Company and most of his income is derived from the Company.
Mr. Oosterman is a Qualified Person as defined in NI 43-101.
References to historic results indicate work completed prior to the Company’s acquisition of the
Gibellini project and thus fall under the category of “Historic” as defined by NI 43 -101 and have
not been otherwise verified.
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 historical facts, are forward -looking information
within the meaning of applicable securities laws. Such forward-looking statements, which reflect
management’s expectations regarding Prophe cy’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: all required third party contractual,
regulatory and governmental approvals will be o btained for the development, construction and
production of Prophecy’s properties 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
vanadium, 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 estimates; 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 Fa ctors” 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 positive
cash flow; exploration, development and pr oduction risks, including risks related to the
development of Prophecy’s mineral properties; Prophecy not having a history of profitable mineral
production; commencing mine development without a feasibility study; the uncertainty of mineral
resource and mi neral 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 ope rating in Bolivia
and Mongolia, which are developing countries and being subject to their local laws; the availability
and timeliness of various government approvals, permits and licenses; the feasibility, funding and
development of Prophecy’s projects; pr otecting 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 insura nce to cover all
potential risks associated with mining operations; conflicts of interest; and cyber -security risks
related to the Company’s reliance on information technology systems.
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.