Prophecy Provides Update on Titan and Gibellini Vanadium Projects
Prophecy Provides Update on Titan and Gibellini
Vanadium Projects
Vancouver, British Columbia, July 11, 2017 – Prophecy Development Corp.
(“Prophecy” or the “Company”) (TSX:PCY, OTCPK:PRPCF, Frankfurt:1P2N) is pleased
to provide the following updates on its vanadium projects:
Titan
The Titan vanadium-titanium-iron project (“Titan”) is located in eastern Ontario,
approximately 120km east-northeast of Sudbury. The property is located in close proximity
to necessary infrastructure such as 8km from a railway station, 18km from a highway,
2.5km from a major transmission line, and 25km from a natural gas pipeline.
A Technical Report prepared by Neil Prenn, P. Eng of Mine Development Associates dated
February 26, 2010 (available at www.sedar.com and www.Prophecydev.com) disclosed in
compliance with National Instrument 43 -101, Standards of Disc losure for Mineral
Projects (“NI 43-101”) an inferred resource for the Titan project of:
Tonnes (t)* Fe2O3 (%)** V (%)** TiO2 (%)**
Inferred 49.0 million 48.09 0.43% 14.82
The Company estimates vanadium content at 259 million lbs and titanium dioxide content at
7,259 million kgs.
* Based on resource estimated at cutoff grade of 40% Fe2O3.
** 100% metals recovery is assumed.
Titan’s previous operator completed a preliminary metallurgical test on material from one
core hole at the f acilities of Altairnano Inc. in the US A in 2009, which used a proprietary
patented “Altair Hydrochloride Pigment Process” dissolution test on the composites. This
process uses hydrochloric acid and hydrochloride gas to dissolve iron, titanium and
vanadium metals. The test concluded that 88% of the iron, 96% of the titanium and 80% of
the vanadium could be dissolved after 4 hours of using this process.
Since then, there has been a few maturing, patented hydrometallurgical technologies
developed to extract titanium dioxide, iron, and vanadium from titaniferous vanadiferous
deposits.
Prophecy is preparing and shipping samples from Titan to two independent laboratories in
Canada for testing. Each batch of samples will undergo bench -scale testing to determine
the percentage of metals dissolveable into solution and the recovery rate of metals from
solution.
Prophecy has no preference as to a particular recovery technology but rather , seeks the
best technology to recover valuable metals from Titan that will be both environmentally
friendly and cost effective. Each laboratory has its own proprietary, patented
hydrometallurgical process to treat materials similar to Titan. Results from the testing will be
announced when they become available.
Gibellini
The Gibellini project (“Gibellini”) is located in Eureka County, Nevada, about 25 miles south
of the town of Eureka and is easily accessed by a graded, gravel road extending south from
US Highway 50.
To the Company’s knowledge, Gibellini is the only North American black shale vanadium
project with a full feasibility study. The Gibellini feasibility study was published and prepared
by AMEC E&C for Gibelli ni’s previous operator , American Vanadium Corp. (AVC), with an
effective date of August 31, 2011 (available at www.sedar.com and www.Prophecydev.com)
and disclosed in compliance with NI 43-101.
Black shale (also called stone coal) is an important vanadium resource in China, where it is
found extensively in the southern provinces and autonomous regions of the country. It is
regarded as a low -grade, multi-element ore. However , because of its relatively high
vanadium grade compared to other metallic and nonmetallic elements found in black shale,
studies of the recovery of vanadium from black shale have received considerable attention
in China based on the Company’s research.
Gibellini represents one of a few pure -play, low -political-risk North American vanadium
opportunities for investors, since Gibellini material typically contains less than 1% Fe, 0.5%
Ca, 0.3% Mg, 0.2% Ti, and is low in other deleterious metals and non -metals and hence,
appears conducive to established, low cost, solvent extraction and precipitation methods.
Prophecy’s management just concluded a visit to a Chinese university with over a decade
of research and development in the recovery of vanadium from sulf uric and hydrofluoric
mixed acid solutions generated by the direct leaching of black shale using solvent extraction
and precipitation methods. The process consists of reduction, solvent extraction, and
stripping, followed by precipitation and calcination t o yield vanadium pentoxide. It was
concluded that the combination of solvent extraction and precipitation is an efficient method
for the recovery of vanadium from a multi -element leach solution generated from black
shale.
Their faculty has practical experi ence from working with over ten black shale vanadium
producing, or past producing, mines in China.
John Lee, Executive Chairman of Prophecy, states: “We are highly encouraged by what we
witnessed at the university laboratory, which is a five-story building dedicated to
metallurgical engineering and excellence. While black shale vanadium projects are
relatively rare in North America, there ha ve been a number of such projects in commercial
production in China – some with production throughput double o r triple of that proposed for
Gibellini in the AMEC E&C feasibility study. F rom this visit and discussion with experts
specialized in vanadium recovery from black shale, we believe there are a number of areas
to improve on the feasibility study that would increase metals recovery, lower capital
expenditures, and lower operating cost.”
Prophecy shall continue to investigate commercial -scale black shale vanadium recovery
methods and report specific factual findings in due course. In addition, the Company also
plans to expedite completion of the Gibellini environmental and mine permitting processes
that were previously started by American Vanadium Corp..
With the Gibellini Project in Nevada, USA and the Titan vanadium -titanium-iron project in
Ontario, Canada, Prophecy is well -positioned with these two vanadium projects, to be a
leading North American vanadium exploration company. The Company’s objectives for
these two projects are to:
1. Provide exposure and leverage to rising vanadium prices by defining and adding
attributable vanadium resources in the ground in politically safe jurisdictions.
2. Build the first vanadium mine in North America by steadily advancing mine
permitting, project financing and construction.
Qualified Persons
The technical contents of this news release have been reviewed and approved by
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 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
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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 achievemen ts 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: 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; 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 Prophe cy’s
current mineral resource estimates; labour and materials costs increasing 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 g lobal supply
and demand for coal, energy, silver 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 th ose
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 Info rmation
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 production
risks, including risks related to the development of Prophecy’s mineral pr operties; Prophecy
not having 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 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; protecting title to Prophecy’s mineral
properties; environmental risks; the competiti ve 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 fun ding 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 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 expectations
reflected in the forward -looking statements contained in this news rele ase 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 action s, 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 pub licly 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.