Prophecy Secures Long Term Water Supply for Construction and Operation of Gibellini Vanadium Project
Prophecy Secures Long Term Water Supply for
Construction and Operation of Gibellini Vanadium Project
Vancouver, British Columbia, August 20, 2018 – Prophecy Development Corp.
(“Prophecy” or the “Company”) (TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) is pleased to
announce that it has secured water supply for the Gibellini vanadium project’s (the “Project”)
construction and operation. The Company has signed a 10-year Water Lease Agreement (the
“Agreement”) with the owner of a private ranch, located approximately 14.5 km from the
Project. The Agreement can be extended for any number of additional 7-year terms, not to
exceed (with the primary term) a total of 99 years.
Per the terms of the Agreement, the lessor has granted to Prophecy the rights to 805 acre-
feet (approximately 262.4 million gallons) of water per year for the Project, at a minimum flow
rate of 500 gallons per minute (“gpm”) from its year-round springs surface water stream.
The water flow rate was measured at the ranch springs in 1965, in 1981, from December
2011 to September 2013, and most recently, in 2017. The water flow rate ranges from 1,000
to 3,900 gpm with an average flow rate of 2,690 gpm, which exceeds the Project’s maximum
water operational requirement of 420 gpm based on the process engineering design prepared
by Scotia International of Nevada, Inc. as a part of engineering, procurement, construction
and management work done in 2014.
The Gibellini Project has completed water-related baseline studies including the drilling of
water-test wells, water source data collection, characterization, flow rate testing and
modeling. Due to the fact that the Agreement provides a source of water from surface springs
located on a private ranch and baseline studies related to it have been completed, Prophecy
expects to significantly expedite the permitting process by eliminating the need to appropriate
water rights from the Nevada Division of Water Resources (“DWR”).
Michael Drozd, Prophecy’s VP, Operations, comments: “The Gibellini project is the only
primary vanadium project in the United States with secured, long term water supply for its
construction and operation. The water at the ranch has been approved for irrigation use by
the DWR, which will require a change to the use by the project’s mine and processing facilities.
We expect to file a water usage change application with the DWR by the end of 2018.
Having already filed Gibellini’s plan of operation and baseline studies in May 2018, we continue
to work towards filing the Environmental Impact Sta tement in 2019 and obtain ing full permits in
2020.”
Qualified Person
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 as a consultant to the Company and most of his income is derived from
the Company. Mr. Oosterman is a Qualified Person as defined in NI 43-101.
About Prophecy
Prophecy Development Corp. is a Canadian public company listed on the Toronto Stock
Exchange. Prophecy's main objective is to develop the Gibellini primary vanadium mining
project in the Battle Mountain region in northeastern Nevada to production. 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 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 factors should be considered carefully, and readers should not place undue reliance
on the 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 actio ns, 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 pu blicly 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.