Prophecy Reports 46 Million Tonnes at 0.24% Vanadium and 14.88% TiO2 Inferred Resource at Titan, Gibellini Resource Estimate Currently in Preparation
Prophecy Reports 46 Million Tonnes at 0.24% Vanadium and
14.88% TiO2 Inferred Resource at Titan,
Gibellini Resource Estimate Currently in Preparation
Vancouver, British Columbia, November 8, 2017 - Prophecy Development Corp. (the
"Company" or "Prophecy ") (TSX:PCY, OTCPK:PRPCF, Frankfurt:1P2N) has received an
updated technical report on its 100% owned , Titan vanadium-iron-titanium property (the
"Property") located at Flett and Angus Townships, 120 kilometres northeast of Sudbury,
Ontario. The Property consists of 262 contiguous hectares comprising 17 patented claims, with
access to water, roads and electrical power.
The technical report was prepared by Mine Development Associates and is dated October 23,
2017 (the “Technical Report”). The Technical Report (available under the Company’s SEDAR
profile at www.sedar.com) was prepared in compliance with National Instrument 43-
101, Standards of Disclosure for Mineral Projects (“NI 43-101”) and reports an inferred resource
for the Property as follows:
Resource Category Tonnes (t)* Fe2O3 (%) V (%) TiO2 (%)
Inferred 46.0 million 48.32 0.24 14.88
V converted to V2O5: 0.24 % V = 0.43% V2O5
The metal content calculated by the Company totals 434 million pounds of vanadium pentoxide
content and 6,844 million kgs of titanium dioxide**.
*Based on resource estimated at cutoff grade of 40% Fe2O3 inside an optimized pit.
**100% metals recovery is assumed.
Mineral resources which are not mineral reserves have not demonstrated economic viability.
The estimate of mineral resources may be materially affected by environmental, permitting,
legal, title, taxation, sociopolitical, marketing, or other relevant issues.
The Technical Report is authored by Neil Prenn, P. Eng. and Neil Pettigrew, P. Geo., who were
independent Qualified Persons under NI 43-101 at the time the report was prepared.
The magnetite, ilmenite, titanium dioxide and vanadium mineralization at the Property occurs in
a southeast plunging igneous body of gabbro to leucotroctolite composition in the Northeastern
corner of the Fall Lake complex. The Titan deposit is located at the northern end of an
aeromagnetic anomaly that is approximately 1,200 metres long by 800 metres wide.
A total of 4,898 assayed intervals were recorded from 38 core holes drilled by Randsburg
International Gold Corp. (“Randsburg”) (the prior co-owner) on the Property. Drilling highlights
reported by Randsburg included 142 meters (drilled depths 3 to 145 meters) of 0.27% vanadium
(0.48% vanadium pentoxide) from hole RA -05-21, and 174 meters (drilled depths 102 to 276
meters) of 0.26% vanadium (0.46% vanadium pentoxide) from hole RA -05-10. The
mineralization starts at shallow depth (1.2 to 30.0 meters) below the s urface over most of the
deposit and is found to an open vertical depth greater than 500 metres at two drill holes . The
complete horizontal and vertical extent of the deposit is still to be determined.
The Titan vanadium deposit has the potential to become an important source of vanadium supply.
Grid-scale vanadium redox flow batteries are expected to enable efficient release of wind and
solar energy to the power grid, thus their deployment is anticipated to be generally in line with
the surge in wind and solar energy capacities currently estimated at over 600 gigawatts. Total
grid-scale battery deployment amount s to less than 2 gigawatts , representing a high -growth
market.
Separately, AMEC E&C Services, Inc. ha s been engaged by Prophecy since August 2017, to
prepare a technical report for the Gibellini and Louie Hill vanadium projects ( respectively,
“Gibellini” and “Louie Hill ”). The Company expects to announce updated mineral resource
estimates in accordance wi th N I 43-101 for both Gibellini and Louie Hill once the technical
report is completed.
Further to the Company’s news release dated July 21, 2017, Fairmont Resources Inc.
(“Fairmont”) and Prophecy have mutually agreed to terminate the letter agreement for
Prophecy to acquire the Buttercup project from Fairmont. Prophecy did not conclude its due
diligence inquiries within the timeframe required in the letter agreement.
Qualified Persons
The technical content of this news release 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 independent of the Company in that most of his income is derived from the
Company.
Neil Prenn, P. Eng. , of Mine Development Associates is the Qualified Person within the
meaning of NI 43 -101 who supervised preparation of, and is responsible for, all sections of the
Technical Report and mineral resource estimate addressed in this news release except those
issues described in Section 3 and Sections 7, 8 and 12.1. Neil Pettigrew, P. Geo., also of Mine
Development Associates is the Qualified Person within the meaning of NI 43- 101 who
supervised preparation of, and is responsible for, Sections 7, 8 and 12.1 of the Technical Report.
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 applicab le securities 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
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 estim ates 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 fr om 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 limit ed 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, prices for and availabil ity 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 consis tent with Prophecy’s current expectations; and that any additional required financing
will be available on reasonable terms. 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 Factors” 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 cash flow; exploration,
development and production risks, including risks related to the development of Prophecy’s mineral
properties; Prophecy not having a history of profitable mineral production; 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 Bolivia, which is a developing
jurisdiction; amendments to local Bolivian laws which may have an adverse impact on the
Company’s operations; 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 risks; anti-corruption legislation; recent global financial conditions; the payment of
dividends; 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 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.