Prophecy Discovers Multiple Vanadium Surface Mineralization At Gibellini
Prophecy Discovers Multiple Vanadium Surface
Mineralization At Gibellini
Vancouver, British Columbia, March 26, 2019 – Prophecy Development Corp.
(“Prophecy” or the “Company”) (TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) is pleased to
announce vanadium assay results from its Fall 2018 exploration reconnaissance program on its
Gibellini vanadium project, located in Eureka County, Nevada, USA. The 155 assays are taken
from three prospective exploration areas all within 5km to existing Gibellini vanadium NI43 -101
compliant resource pit outline whereat 49.9 million lbs measured and 81.5 million lbs indicated
vanadium resource have already been identified (see Company’s press release dated May 29 th,
2018).
Surface grab samples assay as high as 2% vanadium pentoxide (V2O5) and 75 samples (48%
of total 155) have V2O5 grades greater than the Gibellini deposit’s cut-off grade of 0.101% V2O5
at $12.5/lb V2O5; V2O5 currently trades at approximately $16/lb.
The high vanadium assay results along the 5-kilometer northeast-southwest trend which line-up
the Northeast Prospect, through Gibellini Hill, Louie Hill, Middle Earth Prospect, and Big Sky
Prospect providing an indication of potential and possibly significant future expansion of vanadium
mineralization along this corridor.
“From a geological perspective, the rocks at all three of these prospects have the same visual
hallmarks as what we see in the oxidized and transition zones at Gibellini Hill deposit which are
amenable to heap leach recovery” states Danniel Oosterman, Prophecy’s VP Exploration.
“Assay results demonstrate extensive vanadium mineralization with nearly half of the samples
well above the cut -off grades adopted at Gibellini. This confirms that any occurrence of t he
Woodruff Formation in this region is prospective from an exploration standpoint.”
Detailed maps are available at www.prophecydev.com
BIG SKY PROSPECT (300m by 50m)
The Big Sky prospect occurs 3.1 km southwest o f the Gibellini Hill measured and indicated
resource and 1.8 km southwest of Louie Hill inferred resource (NI -43-101 compliant; see
Company’s news release dated May 29th, 2018). A total of 62 samples were taken, of which 40%
(n=25) returned assays greater than Gibellini cut-off grade. Sixteen (16) samples returned assays
>0.200 V2O5. The distribution of samples occur along a 300 meter exposure of the Woodruff
Formation. Assays showing >0.200 V2O5 are shown in Table 1.
Table 1. V2O5% grab sample assay results at Big Sky prospect for samples with >0.200%
SAMPLE
ID
Prospect V2O5
%
301910 Big Sky 0.261
301913 Big Sky 0.223
301915 Big Sky 0.346
301916 Big Sky 0.400
301918 Big Sky 0.712
301920 Big Sky 0.264
301926 Big Sky 0.580
301927 Big Sky 2.008
301928 Big Sky 0.848
301944 Big Sky 0.264
301946 Big Sky 0.280
301947 Big Sky 0.218
301950 Big Sky 0.261
302050 Big Sky 0.214
302054 Big Sky 0.787
302055 Big Sky 1.982
MIDDLE EARTH PROSPECT (200m by 70m)
The Middle Earth prospect occurs 1.7 km southeast of the Gibellini Hill deposit and 300 meters
south of the Louie Hill deposit. A total of 50 samples were collected of which 68% (n=34) returned
assays >0.101% V2O5 or the Gibellini cut-off grade. Twenty-seven (27) samples returned assays
>0.200 V2O5. The samples are distributed over 3 road cuts of exposed Woodruff Formation
making up a 200 meter by 70-meter areal footprint. Assays showing >0.200 V2O5 are shown in
Table 2.
Table 2. V2O5% grab sample assay results at Middle Earth prospect for samples with >0.200%
SAMPLE Prospect V2O5
%
301951 Middle Earth 0.350
301952 Middle Earth 0.482
301968 Middle Earth 0.628
301969 Middle Earth 0.605
301970 Middle Earth 0.634
301972 Middle Earth 0.252
301973 Middle Earth 0.687
301974 Middle Earth 0.470
301975 Middle Earth 0.612
301976 Middle Earth 0.637
301978 Middle Earth 0.559
301979 Middle Earth 0.557
301980 Middle Earth 0.259
301981 Middle Earth 0.405
301983 Middle Earth 0.255
301984 Middle Earth 0.303
301985 Middle Earth 0.434
301987 Middle Earth 0.291
301988 Middle Earth 1.294
301989 Middle Earth 0.261
301991 Middle Earth 0.314
301992 Middle Earth 0.457
301993 Middle Earth 0.380
301995 Middle Earth 0.302
301998 Middle Earth 0.539
301999 Middle Earth 0.618
302000 Middle Earth 0.532
NORTHEAST TRENCH PROSPECT (500m by 300m)
The Northeast Trench prospect occurs 1.2 km northeast of the Gibellini Hill deposit and 2.5 km
northeast of the Louie Hill deposit. A total of 43 samples were collected of which 37% ( n=16)
returned assays >0.101% V2O5 or the Gibellini cut-off grade. Three (3) samples returned assays
>0.200 V2O5. The samples are distributed through road cuts (“trench es”) and dry gulches of
exposed Woodruff Formation making up a 500 meter by 350-meter areal footprint. The exposure
at the Northeast Trench is greatly obscured by colluvium material however the extent where it is
exposed might indicate a large volume of Woodruff Formation yet to be explored. Assays showing
>0.200 V2O5 are shown in Table 2.
Table 3. V2O5% grab sample assay results at Northeast Trench prospect for samples with >0.200%
SAMPLE
ID
Prospect V2O5
%
302004 NE
Trench
0.239
302005 NE
Trench
0.380
302016 NE
Trench
0.303
John Lee, Prophecy’s Chairman states, “We are excited at not only in developing Gibellini to
become America’s first primary vanadium mine, but also expanding Gibellini into a large district
vanadium discovery. Our permitting efforts are well underway, and further project milestones will
be announced throughout 2019.”
Gibellini is considered a highly strategic deposit given that;
1. In December 2017, the U.S. Geological Survey listed vanadium as one of 23 critical
mineral resources of the United States; yet there is not a primary vanadium producing
mine currently in the country;
2. Gibellini is the only known primary vanadium deposit in the US that is under going
permitting progress, the project’s annual production profile of 9.75 million lbs of V2O5
outlined in the independent preliminary economic assessment (see news release dated
May 29, 2018) is sufficient to supply United States current annual vanadium consumption
requirement.
Qualified Persons and QA/QC
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 by the Company. Mr. Oosterman is a Qualified Person (“QP”) as defined by the
guidelines in NI 43-101. Samples were prepared at analyzed at ALS Limited labs in Elko, Nevada,
USA where they were dried , crushed, split and pulverized and then shipped to the ALS lab in
Vancouver, Canada, where they were assayed (minimum 30 g) using the ME -ICP61a
(Conventional ICP-AES) analytical package.
About Prophecy
Prophecy is developing the Gibellini project – the only large-scale, open-pit, heap-leach vanadium
project of its kind in North America. Located in Nevada, Gibellini is currently undergoing EPCM
and permit development. Further information on Prophecy can be found at
www.prophecydev.com.
PROPHECY DEVELOPMENT CORP.
ON BEHALF OF THE BOARD
“John Lee”
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
Forward-looking statements in this news release relate to future events or future performance and
reflect current estimates, predictions, expectations or beliefs regarding future events and include, but
are not limited to, statements with respect to: (i) the PEA representing a viable development option for
the project; (ii) construction of a mine at the project and related ac tions; (iii) estimates of the capital
costs of constructing mine facilities and bringing a mine into production, of sustaining capital and the
duration of financing payback periods; (iv) the estimated amount of future production, both produced
and metal recovered; and (vi) life of mine estimates and estimates of operating costs and total costs,
cash flow, net present value and economic returns including internal rate of return estimates from an
operating mine constructed at the project. All forward-looking statements are based on Prophecy’s or
its consultants' current beliefs as well as various assumptions made by them and information currently
available to them. The most significant assumptions are set forth above, but generally these
assumptions include: (i) the presence of and continuity of vanadium mineralization at the project at
estimated grades; (ii) the geotechnical and metallurgical characteristics of rock conforming to sampled
results; (iii) infrastructure construction costs and schedule; (iv) the availability of personnel, machinery
and equipment at estimated prices and within the estimated delivery times; (v) currency exchange
rates; (vi) vanadium sale prices; (vii) appropriate discount rates applied to the cash flows in the
economic analysis; (viii) tax rates applicable to the proposed mining operation; (ix) the availability of
acceptable financing on reasonable terms; (x) projected recovery rates and use of a process method,
that although well-known and proven on other commodity types like copper, has not been previously
brought into production for a vanadium project; (xi) reasonable contingency requirements; (xii) success
in realizing proposed operations; and (xiii) assumptions that project environmental approval and
permitting will be forthcomi ng from county, state and federal authorities. The economic analysis is
partly based on Inferred Mineral Resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them to be categorize d as Mineral
Reserves, and there is no certainty that the PEA based on these Mineral Resources will be
realized. Currently there are no Mineral Reserves on the Gibellini property. Although the Company’s
management and its consultants consider these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect. Many forward-looking statements are made
assuming the correctness of other forward -looking statements, such as statements of net present
value and internal rates of return, which are based on most of the other forward -looking statements
and assumptions herein. The cost information is also prepared using current values, but the time for
incurring the costs will be in the future and it is assumed costs wil l remain stable over the relevant
period.
These factors should be considered carefully, and readers should not place undue reliance on
Prophecy’s or its consultant’s forward-looking statements. Prophecy or its consultants believe 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, althoug h Prophecy and its consultants have
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 or its consultants
undertake 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.