Prophecy Reports Measured and Indicated Mineral Resource for Gibellini Primary Vanadium Project in Nevada
Prophecy Reports Measured and Indicated Mineral Resource for
Gibellini Primary Vanadium Project in Nevada
Vancouver, British Columbia, November 20 , 2017 – Prophecy Development Corp. (“Prophecy ” or
the “Company”) (TSX:PCY, OTCPK:PRPCF, Frankfurt:1P2N) has received an independent technical
report titled “Gibellini Vanadium Project Nevada, USA NI 43- 101 Technical Report” with an effective date
of November 10, 2017 ( the “Report”) prepared by Amec Foster Wheeler E&C Services Inc. on the
Gibellini vanadium project (the “ Project”) which has been filed under the Company ’s profile on the
System for Electronic Document Analysis and Retrieval (SEDAR) at . www.sedar.com
The Project is located in Eureka County, Nevada, about 25 mi les south of the town of Eureka, and is
easily accessed by a graded gravel road ext ending south from US Highway 50. Nevada is featured in the
2016 Fraser Institute survey of mining companies as the f ourth most attractive jurisdiction for mining
investment globally.
The Report describes resources according to category following the guidelines of the CIM Definition
Standards for Mineral Resources and Mineral Reserves.
Two mineral resource estimates were prepared, one for the Gibellini deposit and the second for the Louie
Hill deposit.
Gibellini Deposit
The Report has estimated 7.85 million tons at a weighted average grade of 0. 316% vanadium pentoxide
(V2O5) in the Measured category and 14.16 million tons at a weighted average grade of 0.28 1% V2O5 in
the Indicated category leading to a total combined Measured and Indicated Mineral R esource of 22.01
million tons at a weighted average grade of 0.29 4% V2O5. Total contained metal content of the Measured
and Indicated Mineral Resources is 129.28 million pounds V2O5. The Inferred Mineral Resource estimate
is 9.82 million tons at a weighted average grade of 0.1 9% V2O5. The total contained metal content of the
Inferred Mineral Resource estimate is 37.27 million pounds V 2O5. The table below summarizes the
Gibellini deposit estimate.
Gibellini Deposit Mineral Resource Statement
Resource
Category Domain Cut-off V2O5
(%)
Tons
(M)
Grade
(%V2O5)
Metal Content
(M lbs V2O5)
Measured Oxide 0.116 3.90 0.253 19.74
Transition 0.105 3.95 0.379 29.88
Indicated Oxide 0.116 7.04 0.235 33.12
Transition 0.105 7.12 0.327 46.55
Total Measured and Indicated 22.01 0.294 129.28
Inferred Oxide 0.116 0.14 0.179 0.50
Transition 0.105 0.01 0.179 0.03
Reduced 0.134 9.68 0.190 36.75
Total Inferred 9.82 0.190 37.27
Notes to accompany mineral resource table for Gibellini deposit:
(1) The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM SME, an Amec Foster Wheeler employee.
The Mineral Resource estimate has an effective date of 10 November, 2017.
(2) Mineral Resources are reported at various cut-off grades for oxide, transition, and reduced material.
(3) Mineral Resources are reported within a conceptual pit shell that uses the following assumptions: mineral
resource V 2O5 price: $10.81/lb; mining cost: $2.21/ton mined; process cost: $13.14/ton processed; general and
administrative (G&A) cost: $0.99/ton processed; m etallurgical recovery assumptions of 60% for oxide material, 70%
for transition material and 52% for reduced material; tonnage factors of 16.86 ft 3 /ton for oxide material, 16.35 ft 3 /ton
for transition material and 14.18 ft 3 /ton for reduced material; roy alty: 2.5% net smelter return (NSR); shipping and
conversion costs: $0.37/lb. An overall 40º pit slope angle assumption was used.
(4) Rounding as required by reporting guidelines may result in apparent summation differences between tons,
grade and contained metal content. Tonnage and grade measurements are in US units. Grades are reported in
percentages.
Louie Hill Deposit
The Louie Hill deposit lies approximately 1,600 ft south of the Gibellini deposit.
The Report estimated an Inferred Mineral Resource of 7.06 million tons at a weighted average grade of
0.284% vanadium pentoxide (V2O5). The oxidation domains were not modeled. The total contained metal
content of the estimate is 40.16 million pounds V2O5 . The table below summarizes the Louie Hill deposit
estimate.
Louie Hill Deposit Mineral Resource Statement
Resource
Category Domain Cut-off V2O5
(%)
Tons
(M)
Grade
(%V2O5)
Metal Content
(M lbs V2O5)
Inferred Not modeled 0.116 7.06 0.284 40.16
Notes to accompany mineral resource table for Louie Hill:
(1) The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM SME, an Amec Foster Wheeler employee.
The Mineral Resources have an effective date of 10 November, 2017. The resource model was pre pared by Mr.
Mark Hertel, RM SME.
(2) Oxidation state was not modeled.
(3) Mineral Resources are reported within a conceptual pit shell that uses the following assumptions: mineral
resource V 2O5 price: $10.81/lb; mining cost: $2.21/ton mined; process cos t: $13.14/ton processed; general and
administrative (G&A) cost: $0.99/ton processed; metallurgical recovery assumptions of 60% for mineralized material;
tonnage factors of 16.86 ft3 /ton for mineralized material, royalty: 2.5% net smelter return (NSR); shi pping and
conversion costs: $0.37/lb. For the purposes of the resource estimate, an overall 40º slope angle assumption was
used.
(4) Rounding as required by reporting guidelines may result in apparent summation differences between tons,
grade and contained metal content. Tonnage and grade measurements are in US units. Grades are reported in
percentages.
A total of 280 drill holes (about 51,265 ft) have been completed on the Project since 1946, comprising 16
core holes (4,046 ft), 169 rotary drill holes (25,077 ft; note not all drill holes have footages recorded) and
95 RC holes (22,142 ft).
The vanadium -host black shale unit ranges from 175 to over 300 ft thick and overlies gray mudstone.
The shale has been oxidized to various hues of yellow and orange to a depth of 100 ft. Alteration
(oxidation) of the rocks is classified as one of three oxide codes: oxidized, transitional, and reduced.
A feasibility study was commissioned in late 2010 by the previous operator, American Vanadium Corp. ,
and was completed in 2011 ( the “2011 Feasibility Study”). The 2011 Feasibility S tudy assumed a
conventional open pit mine using a truck and shovel fleet for mining and a heap leach to produce V 2O5 as
a bagged product. P rophecy is not treating either the Mineral Reserves resulting from the 2011
Feasibility Study or the economic results of that study as current. No work has been conducted on the
Project since 2011. Prophecy has completed no exploration or drilling activities since Project acquisition.
Metallurgy
A heap leach operation without initial roasting step was modeled and designed to produce V 2O5 as a
bagged product.
Metallurgical test work and associated analytical procedures were performed by recognized testing
facilities during the period 1975 to 2011, and the tests performed were appropriate to the mineralization
type. Samples selected for testing were representative of the various types and styles of mineralization.
Samples were selected from a range of depths within the deposit. Sufficient samples were obtained to
ensure that tests were performed on sufficient sample mass. For the purposes of the Mineral Resource
estimate, recoveries of 60% for oxide material and 70% for transitional material were considered
appropriate. No processing factors were identified from the completed metallurgical test work that would
have a significant effect on extraction. The table below summarizes the projected metallurgical
recoveries for the three defined oxidation-type domains.
Mill Feed Material Type Percent Recovery
Oxide 60%
Transition 70%
Reduced 52%
Environmental and Permitting Considerations
Baseline studies conducted in 2010– 2011 included studies to document the existing conditions of
biological resources, cultural resources, surface water resources, ground water resources, and waste
rock geochemical characterization. The baseline data collected would be subject to review and appr oval
by the Bureau of Land Management (the “ BLM”) and the Nevada Department of Environmental
Protection and other regulatory agencies.
Prior to commencing any mining operations on public lands administered by the BLM, a Plan of
Operations describing how a proponent will prevent unnecessary and undue land degradation and
reclaim the disturbed areas must be submitted to the BLM.
Both the baseline studies and the Plan of Operations were prepared and submitted by the Project’s
previous operator and deemed complete by the BLM in order to start the National Environmental Policy
Act process.
John Lee, Chairman of Prophecy, states:
“Gibellini is an exceptionally rare open pit, heap leach vanadium project in Nevada, with low deleterious
(less than 1% Fe, Ti, and MgO) elements . In 2018, Prophecy intends to update and accelerate prior
feasibility and permitting work. We believe vanadium batteries have a bright future in the United St ates
with strong renewable energy mandates in Texas, Arizona, California, Nevada and many other
windy/sunshine states. Our goal is to make Gibellini the first primary vanadium operating mine in North
America.”
Qualified Persons
The technical contents of this news release have been prepared under the supervision of 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 Com pany and is not independent of the Company since
most of his income is derived from the Company.
Edward J.C. Orbock, III , RM SME of Amec Foster Wheeler E&C Services Inc. is the Qualified Person
within the meaning of NI 43- 101 who supervised preparation of, and is responsible for, all sections of the
Report and Mineral Resource estimates addressed in this news release.
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 infor mation 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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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 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 estimates and assumptions are inherentl y 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 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 bein g 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 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 increasing on a
basis consistent with Prophecy’s current expec tations; 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, es timated 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.