Prophecy Provides Pulacayo Project Update
Prophecy Provides Pulacayo Project Update
Vancouver, British Columbia, May 18, 2017 – Prophecy Development Corp.
(“Prophecy” or the “Company”) (TSX:PCY, OTCPK:PRPCF, Frankfurt:1P2N) is pleased
to announce that it has finalized detailed internal mine plans for the Paca project, initially
targeting nearsurface mineralization with a low mining strip ratio. In addition, the Company
has executed agreements regarding the sourcing of skilled workers through the local
Pulacayo cooperatives for future mining operations at the Pulacayo and Paca projects.
Further to the Company’s news release dated December 2, 2016, Prophecy has renewed
the letter of intent (LOI) to lease mining equipment from Oroscons S.R.L. Under the updated
LOI which expires June 30, 2017, Oroscons agrees to provide Prophecy through lease, a
mining and transportation fleet that would enable open-pit mining of the Paca deposit at a
minimum rate of 200 tonnes of ore per day.
Further to the Company’s news release dated December 14, 2016, Prophecy is negotiating
with a number of vendors that provide dedicated toll milling services at their ore processing
facilities located in Potosi, which is a 2.5 hour drive by car, on paved road from Pulacayo.
The toll milling services would entail the processing of mined materials to be supplied by the
Company, utilizing conventional crushing, grinding and flotation technology to produce zinc-
silver and lead-silver concentrates. Given the low rates of capacity utilization of a great
number of ore processing facilities (>50) in Potosi, the Company is confident it can finalize a
new toll milling agreement at lower cost than the one signed last December.
Prophecy continues discussions with a number of large trading and smelting companies
that are interested in purchasing future zinc-silver and lead-silver concentrates processed
from Pulacayo and Paca mined materials and providing Prophecy with advance payment
against future concentrate delivery to finance Paca to production. The most recent trial test
runs at two concentrate-buyer designated processing facilities demonstrated high rates of
silver recoveries (>85%) from Paca bulk sampling. Prophecy is further encouraged by an
improved concentrate purchase term-sheet received from a major trader in May with
significantly lower processing charges, consistent with industry trends.
Please refer to the Company’s June 18, 2015 and September 21, 2015 news releases for
details regarding the amount and grade of resources for the Pulacayo and Paca deposits.
Lastly, the Company’s Bolivian subsidiary, ASC Bolivia LDC Sucursal Bolivia, has invested
approximately US$28 million at Pulacayo and already acquired necessary environmental
and social licenses to mine at Pulacayo. The Company is working with the Bolivian mining
ministry and Corporacion Minera De Bolivia (COMIBOL) (which is under internal
restructuring with a newly-appointed COMIBOL President) to obtain authorization for
mining. The Company is confident that all key pre-requisites (community and ministerial
support, mining equipment, mine plan, toll milling, concentrate off take and project financing
through advance concentrate sales payments) are or will be in place for rapid mobilization
to bring Paca and Pulacayo to production as soon as authorization is obtained.
In March, Prophecy part ially sponsored a Bolivian delegat ion headed by the Bolivian
Minister of Mining and Metallurgy to attend the Prospectors & Developers Association of
Canada ( PDAC) mining conference in Toronto , Canada. The event success fully brought
new Canadian investors to Bolivia.
The Company will provide further update on project progress in due course.
A positive production decision would not be based on a feasibility study of mineral reserves
demonstrating economic and technical viability so would carry increased uncertainty and
the risk of failure as to the mining method and profitability.
Qualified Persons
The technical content of this news rel ease was reviewed and approved by Christopher M.
Kravits, CPG, LPG, who is a Qualified Person within the meaning of NI 43 -101. Mr. Kravits
is a consultant to the Company and serves as its Qualified Person and General Mining
Manager. Mr. Kravits is not inde pendent 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 that is engaged in worldwide mineral and energy exploration and development.
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 sec urities 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 kn own 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 a nd 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 tho se 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, silver and other metals; price s 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 increasin g on a basis
consistent with Prophecy’s current expectations; that any additional required financing will
be available on reasonable terms; and market developments and trends in global supply
and demand for coal, energy, silver and other metals meeting exp ectations. 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 Mongolia and
Bolivia, 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 mning 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 e xpectations
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 a nticipated, 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.