Prophecy Outlines Mining Permit and Proposed Construction Schedule at Gibellini Vanadium Project in Nevada
Prophecy Outlines Mining Permit and Proposed Construction
Schedule at Gibellini Vanadium Project in Nevada
Vancouver, British Columbia, May 1, 2019 – Prophecy Development Corp. (“Prophecy” or the
“Company”) (TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) is pleased to announce that the
Company has received guidance regarding expected permitting timelines following Prophecy meeting
with regulators in late April 2019.
The Company estimates Q1 2020 as the target date for publication of the Notice of Intent (“NOI”) to
prepare an Environment Impact Statement ( “EIS”) in the Federal Register . Upon publication of the
NOI the review process is mandated to be completed within a 12 -month period under the US
Department of the Interior’s Secretarial Order No. 3355.
Based on this guidance, an EIS Record of Decision (“ROD”) would be expected no later than Q1 2021.
Upon receipt of a positive ROD and issuance of Nevada State permits, Prophecy plans to start mine
construction in 2021 and begin vanadium production by Q4 2022. The Company will be seeking project
financing in the interim of this process.
With the above schedule Gibellini would become the first primary vanadium mine in the US within a
period of three-and-a-half years.
Mike Doolin, Prophecy’s COO and interim CEO states: “Selection process is underway for a qualified
third party EIS contractor who will develop the EIS document and conduct the required environmental
impact analysis for the Gibellini Project. In conjunction, M3 Engineering of Tucson AZ is working to
complete the engineering designs as part of overall Engineering Procurement Constr uction
Management (EPCM).”
Visit www.prophecydev.com to learn about Gibellini project economics.
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.
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
“Michael Doolin”
Chief Executive Officer
For more information about Prophecy, please contact Investor Relations:
+1.604.569.3661 ext. 101
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
Some statements in this news release are about future events and performance. Such statements are
based on current estimates, predictions, expectations, or beliefs. The subjects of the statements
include, but are not limited to, (i) the PEA representing a viable development option for the project; (ii)
construction of a mine at the project and related actions; (iii) es timates of the capital costs of
constructing mine facilities, bringing the mine into production, and sustaining the mine, together with
estimates of the length of financing payback periods; (iv) the estimated amount of future production,
of both [raw mater ial?] and metal recovered; and (vi) estimates of the life of the mine and of the
operating and total costs, cash flow, net present value, and economic returns, including internal rate
of return from an operating mine constructed at the project. All forward-looking statements are based
on Prophecy’s or its consultants’ current beliefs and assumptions, which are in turn based on the
information currently available to them. The most significant assumptions are set forth above, but
generally these assumptions include: (i) the presence and continuity of vanadium mineralization at the
project at the estimated grades; (ii) the geotechnical and metallurgical characteristics of the rock
conforming to the sampled results; (iii) infrastructure construction costs and sc hedule; (iv) the
availability of personnel, machinery, and equipment at the 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, which although well -known and proven with other co mmodity types,
such as 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 the project’s environmental approva l and permitting is forthcoming 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 categorized 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 consu ltants consider these
assumptions to be reasonable, given the information currently available to them, they could prove to
be incorrect. Many forward-looking statements are made assuming the correctness of other forward-
looking statements, such as statemen ts of net present value and internal rates of return. Those
statements are based in turn on most of the other forward-looking statements and assumptions made
herein. The cost information is also prepared using current values, but the time for incurring the costs
is in the future and it is assumed costs will remain stable over the relevant period.
These factors should be considered carefully, and readers should not place undue reliance on forward-
looking statements by Prophecy or its consultants. Prophecy an d 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 correct. In addition, although 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 and its consultants undertake no
obligation to publicly release any future revisions of the forward-looking statements that reflect events
or circumstances th at occur after the date of this news release or reflect the occurrence of
unanticipated events, except as expressly required by law.