Prophecy to Submit Key State Permit Applications by end of Q3 2019 for its Gibellini Vanadium Project
Prophecy to Submit Key State Permit Applications by end of
Q3 2019 for its Gibellini Vanadium Project
Vancouver, British Columbia, July 19, 2019 – Prophecy Development Corp. (“Prophecy” or
the “Company”) (TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) is pleased to update its
objectives for the second half of 2019 for its Gibellini Vanadium Project (the “Gibellini Project”).
With the submittal of its updated Plan of Operations/Reclamation Permit Application to the Bureau
of Land Managem ent, Mount Lewis Field Office (the “BLM”) and the Nevada Division of
Environmental Protection ( “NDEP”) on June 28, 2019 and appointment of the National
Environmental Policy Act ( “NEPA”) contractor, SWCA Environmental Consultants ( “SWCA”) to
prepare the Environmental Impact Statement (“EIS”) for the Gibellini Vanadium Project, Prophecy
is moving forward to submit the key Nevada state permit applications required for project
construction by the end of the third quarter 2019. It is anticipated that all approvals will be received
by first quarter 2021.
Given the significantly shortened timeline for conducting an EIS under Secretarial Order 3355
(3355) (12 months from publication of the Notice of Intent (“NOI”) in the Federal Register to BLM
issuance of the R ecord of Decision ( “ROD”)), it is essential that the Nevada State permitting
process is fully integrated with the Federal NEPA process to ensure the 3355 timeline can be met.
In order to support this integration, Prophecy has implemented a project plan to complete the
following tasks:
1. The Company has developed an Enhanced Baseline Report (“EBR”) format with the BLM
that allows early identification of potential environmental impacts so the project design can
be optimized to avoid or minimize these impacts. The EBR’s have been submitted to
BLM, NDEP, the Nevada Department of Wildlife (“NDOW”) and Eureka County to review
and offer suggestions on additional measures that could be taken to further minimize
potential impacts from the Project.
2. The Plan of Operat ions/Reclamation Plan that was submitted to the BLM and NDEP on
June 28, 2019 incorporated the proposed Environmental Protection Measures for each
resource identified in the EBR’s that may be potentially affected.
3. The Company is working closely with NDEP a nd the Nevada Department of Health
(“NDoH”) to incorporate these protection measures into the State permit applications.
Early submittal of the state permit applications will allow identification of issues that could
affect the Gibellini Project design tha t can be resolved to the satisfaction of federal and
state agencies prior to the start of the streamlined 3355 EIS process (publication of the
NOI).
4. The Nevada permits will include construction level designs of all the facilities that must
demonstrate protection of natural resources as well as closure and reclamation plans that
provide for the long -term chemical and physical stability of the site and m eet land use
objectives similar to the pre-mining land uses
5. The Company is working with key stakeholders early to identify issues of concern that
can be resolved prior to submittal of state permit applications to further reduce the risk of
any changes to the project design during the 12 -month 3355 EIS process. All
commitments made with project stakeholders can then be memorialized in the EIS as
Applicant Committed Practices.
Further supporting the Gibellini Project permitting, on June 4, 2019 the US Depar tment of
Commerce (“DoC”) issued a press release on the 35-listed critical metals, which shows United
States has 100% import reliance on vanadium and rare earth elements. DoC simultaneously
published a 50-page report titled “Federal Strategy to Secure Supplies of Critical Metals,” which
outlined a strategy with highlight actions to:
• Streamline the permitting and review processes related to developing mining claims or
leases and enhancing access to the domestic critical mineral resources, with emphasis
on providing timely processing of mining Plans of Operations and Environmental Impact
Statements.
• Strengthen America’s Critical Mineral Supply Chains and seek opportunities to “more
effectively leverage the National Defense Stockpile (“NDS”) Program and other industrial
base business assistance support programs.”
• Develop a publicly accessible online system to track milestones for mining projects,
including the time it takes State and Federal agencies to review, process and issue
permits.
Prophecy’s CEO, Mike Doolin, states: “We are very encouraged by administration’s emphasis to
provide timely processing of mining Plans of Operations and EIS’s and the Battle Mountain District
Office of the BLM to work with Prophecy in the strategic planning needed t o meet the
administration’s policies, which will assist our goal of building Gibellini into the first ever primary
vanadium producing mine in the US by the end of 2022. We are in discussions with several global
vanadium traders and end users regarding vanadium sales and purchase contracts. We believe
positive progress from those off-take contracts and permitting will significantly de-risk the Gibellini
Project and could materially enhance the Gibellini Project valuation going forward.”
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 EP CM
and Permit preparation. Prophecy also has mining projects 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 estim ates of the length of financing payback periods; (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, includ ing
internal rate of return from an operating 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 discount 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 reco very 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 real izing proposed operations; and (xiii) assumptions 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 M ineral 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 other
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 plac e 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 assurance 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 forward -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.