Prophecy Submits Plan of Operations for the Gibellini Vanadium Project on Schedule
Prophecy Submits Plan of Operations for the
Gibellini Vanadium Project on Schedule
Vancouver, British Columbia, May 9, 2018 – Prophecy Development Corp. (“Prophecy” or
the “Company”) (TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) is pleased to announce the
submission of its Management’s Plan of Operations (the “MPO”) for the Gibellini vanadium project
(the “ Gibellini Project ”) to the U nited 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 MPO was prepared by SRK Consulting (U .S.) Inc. with over 1,100 pages of detailed
development plans for the open pit mining operations and processing facilities to extract and
recover va nadium from the Gib ellini Project with stated average mine production during the
seven-year mine life of 15.7 million tons of ore material containing 120.5 million pounds of
vanadium.
The primary facilities include the : pit, waste rock disposal 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.
A map of the proposed facilities is available at www.prophecydev.com.
In addition, the MPO includes the following designs along with associated environmental baseline
studies:
1. Quality Assurance Plan
2. Storm Water Management Plan
3. Adaptive Waste Rock Management Plan
4. Monitoring Plan
5. Noxious Weed Management Plan
6. Spill Contingency Plan
7. Feasibility Study Level Pit Slope Design
8. Heap Leach and Waste Rock Dump Facility Stability Report
9. Geochemical Characterization Report
10. Water Management Plan
11. Closure and Reclamation Plan
12. Transportation Plan
13. Standardized Reclamation Cost Estimate
The baseline studies supplementing the MPO were completed by the previous operator between
2010 and 2012, and included studies of biological resources, cultural resources, surface water
resources, ground water resources, and waste rock geochemical characterization.
The next steps for the Gibellini Project’s permitting are:
• the BLM and Prophecy shall identify data and baseline studies requiring updates, which
Prophecy will engage contractors to perform;
• Prophecy shall begin preparing an environmental report relating to the Gibellini Project to
be submitted to the BLM;
• Prophecy shall begin preparing a Water Pollution Control Permit application to be
submitted to the BMRR;
• upon acceptance of the baseline studies, MPO, and environmental report by the BLM,
Prophecy expects to trigger a Notice of Intent (“NOI”) in 2019 by the BLM to prepare an
environmental impact statement (“EIS”) for the Gibellini Project.
As a result of direction from Secretary of the Interior Order No. 3355 (Streamlining National
Environmental Policy Reviews and Implementation of Executive Order 13807) Prophecy
anticipates the Gibellini EIS will not be more than 150 pages (excluding appendices) and the BLM
to complete the Gibellini final EIS within one year from the issuance of the NOI. Should that occur,
it means that permitting for the Gibellini Project may potentially be concluded in 2020.
Prophecy’s Executive Chairman, John Lee, states: “With the filing of our Plan of Operations,
Prophecy has achieved an important project milestone today, on schedule and under budget. The
Company is on firm footing for an accelerated, predictable path to advance Gibellini to become
the first primary vanadium mine in North America, offering the best quality vanadium pentoxide
product that exceeds customer requirements for a variety of applications from traditional re -
enforcement bars to high-tech grid-scale batteries and the aerospace industry.
We believe Gibellini offers the best leverage and a direct play that reflects vanadium prices in a
politically-safe, mining-friendly jurisdiction.”
The Company also announces that pursuant to the terms of the Company’s share-based
compensation plan as amended, which was approved by shareholders at the Company’s annual
general meeting of shareholders held on June 2, 2016 and amended on June 13, 2017, it has
granted 20,000 incentive stock options (the “Options“) to a consultant of the Company. The
Options are exercisable at a price of $3.10 per Common share for a term of five years expiring on
May 1, 2023 and vest at 12.5% per quarter for the first two years following the date of grant.
Qualified Persons
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. 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 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 achievements 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: all required third party contractual,
regulatory and governmental approvals will be obtained for the development, construction and
production of Prophecy’s properties and the Chandgana power plant; there being no significant
disruptions affecting operations, whether due to labour disruptions or other causes; currency
exchange rates being approximately consistent with current levels; certain price assumptions for
vanadium, silver, coal 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 Prophecy’s current mineral resource es timates; labour and
materials costs increasing on a basis consistent with Prophecy’s current expectations; any
additional required financing will be available on reasonable terms; and market developments and
trends in global supply and demand for vanadium, energy, silver, coal 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 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 SE DAR 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 properties; 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 Bolivia
and Mongolia, 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 competitive nature of the mining bus iness; 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 risk; anti -corruption legislation; recent
global financial conditions; the payment of dividends; the inability of insurance to cover all
potential risks associated with mining operations; conflicts of interest ; and cyber -security risks
related to the Company’s reliance on information technology systems.
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.