Prophecy Submits Enhanced Plan of Operations for its Gibellini Vanadium Project On Schedule
Prophecy Submits Enhanced Plan of Operations for its
Gibellini Vanadium Project On Schedule
Vancouver, British Columbia, July 8, 2019 – Prophecy Development Corp. (“Prophecy” or
the “Company”) (TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2 N) is pleased to announce the
submission of its updated Plan of Operations (the “POO”) through the Company’s US subsidiary
for its 100% owned Gibellini vanadium project (the “Gibellini Project” ) to the United States
Department of the Interior, Bureau of Land Management, Mount Lewis Field Office (the “BLM”)
and the Reclamation Permit Application to the Nevada Division of Environmental Protection,
Bureau of Mining Regulation and Reclamation (the “BMRR”).
The POO which was submitted on schedule and prepared under budget, incorporated data and
information from a number of consulting companies that are working on the project. Having
submitted all the requisite environmental baseline studies, Prophecy’s POO submission is the last
major step before the publication of the Notice of Intent (NOI) which will initiate the Environmental
Impact Statement (EIS) process under the Secretary of Interior Order No. 3355 (Streamlining
National Environmental Policy Rev iews and Implementation of Executive Order 13807; see
Company’s press release dated March 28th, 2018). The streamlined EIS process from NOI to the
record of decision (ROD) is one year. Upon receipt of a positive ROD and issuance of Nevada
State permits, Prophecy plans to start mine construction in 2021 subject to project financing
completion, and begin vanadium production by Q4 2022.
This POO details the development plans for the open pit mining operations and processing
facilities to extract and recover vanadium from the Gibellini Project with stated average mine
production during the seven-year mine life of 15.7 million tons of materialized resource containing
120.5 million pounds of vanadium. The POO also includes an exploration plan to fully define all
the additional mineralized target areas within the Project claim block . The primary facilities
include the: pit, waste rock dispos al facility, mine office, auxiliary facilities such as water and
power, crushing facilities and stockpile, heap leach pad, process facility, water ponds, borrow
areas, and mine and access roads.
Prophecy’s CEO, Mike Doolin, states: “With the filing of our Plan of Operations, we expect the
NOI will be published in Q1 of 2020. We are confident to meet the NOI schedule, just as we have
done with the filing of the POO as announced today.”
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 by the Company. Mr. Oosterman is a Qualified Person (“QP”) as defined by the
guidelines in NI 43-101.
About Prophecy
Prophecy is developing the Gibellini project – the only large-scale, open-pit, heap-leach vanadium
project of its kind in North America. Located in Nevada, Gibellini is currently undergoing EPCM
and Permit preparation. Prophecy also has mining proj ects in Mongolia and Bolivia. Further
information on Prophecy can be found at www.prophecydev.com.
PROPHECY DEVELOPMENT CORP.
ON BEHALF OF THE BOARD
“Michael Doolin”
Chief Executive Officer
For more information about Prophecy, please contact Investor Relations:
+1.604.569.3661 ext. 101
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
Some statements in this news release are about future events and performance. Such statements
are based on current estimates, predictions, expectations, or beliefs. The subjects of the
statements include, but are not limited to, (i) the PEA representing a viable development option
for the project; (ii) construction of a mine at the project and related actions; (iii) estimates of the
capital costs of constructing mine facilities, bringing the mine into production, and sustaining the
mine, together with estimates of the length of financing payback per iods; (iv) the estimated
amount of future production, of metal recovered; and (vi) estimates of the life of the mine and of
the operating and total costs, cash flow, net present value, and economic returns, including
internal rate of return from an operati ng mine constructed at the project. All forward -looking
statements are based on Prophecy’s or its consultants’ current beliefs and assumptions, which
are in turn based on the information currently available to them. The most significant assumptions
are set forth above, but generally these assumptions include: (i) the presence and continuity of
vanadium mineralization at the project at the estimated grades; (ii) the geotechnical and
metallurgical characteristics of the rock conforming to the sampled results; (iii) infrastructure
construction costs and schedule; (iv) the availability of personnel, machinery, and equipment at
the estimated prices and within the estimated delivery times; (v) currency exchange rates; (vi)
vanadium sale prices; (vii) appropriate d iscount rates applied to the cash flows in the economic
analysis; (viii) tax rates applicable to the proposed mining operation; (ix) the availability of
acceptable financing on reasonable terms; (x) projected recovery rates and use of a process
method, which although well-known and proven with other commodity types, such as copper, has
not been previously brought into production for a vanadium project; (xi) reasonable contingency
requirements; (xii) success in realizing proposed operations; and (xiii) assum ptions that the
project’s environmental approval and permitting is forthcoming from county, state, and federal
authorities. The economic analysis is partly based on Inferred Mineral Resources that are
considered too speculative geologically to have the economic considerations applied to them that
would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA
based on these Mineral Resources will be realized. Currently there are no Mineral Reserves on
the Gibellini property. Although the Company’s management and its consultants consider these
assumptions to be reasonable, given the information currently available to them, they could prove
to be incorrect. Many forward -looking statements are made assuming the correctness of oth er
forward-looking statements, such as statements of net present value and internal rates of return.
Those statements are based in turn on most of the other forward -looking statements and
assumptions made herein. The cost information is also prepared using current values, but the
time for incurring the costs is in the future and it is assumed costs will remain stable over the
relevant period.
These factors should be considered carefully, and readers should not place undue reliance on
forward-looking statements by Prophecy or its consultants. Prophecy and its consultants believe
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 assur ance can be
given that these expectations will prove correct. In addition, although Prophecy and its consultants
have attempted to identify important factors that could cause actual actions, events, or results to
differ materially from those described in f orward-looking statements, there may be other factors
that cause actions, events, or results not to be as anticipated, estimated, or intended. Prophecy
and its consultants undertake no obligation to publicly release any future revisions of the forward-
looking statements that reflect events or circumstances that occur after the date of this news
release or reflect the occurrence of unanticipated events, except as expressly required by law.