Prophecy Discovers Multiple Vanadium Surface Mineralization At
Gibellini
Vancouver,
British Columbia, Canada -- March 26,
2019 -- InvestorsHub NewsWire -- Prophecy Development Corp.
("Prophecy" or the "Company")
(TSX:PCY, OTCQX:PRPCF,
Frankfurt:1P2N) is pleased to announce vanadium
assay results from its Fall 2018 exploration reconnaissance program
on its Gibellini vanadium project, located in Eureka County,
Nevada, USA. The 155 assays are taken from three prospective
exploration areas all within 5km to existing
Gibellini vanadium NI43-101 compliant resource pit outline whereat
49.9 million lbs measured and 81.5 million lbs indicated vanadium
resource have already been identified (see Company's press release
dated May 29th,
2018).
Surface grab
samples assay as high as 2% vanadium pentoxide (V2O5) and 75
samples (48% of total 155) have V2O5 grades greater than the
Gibellini deposit's cut-off grade of 0.101% V2O5 at $12.5/lb V2O5;
V2O5 currently trades at approximately $16/lb.
The high vanadium
assay results along the 5-kilometer northeast-southwest trend which
line-up the Northeast Prospect, through Gibellini Hill, Louie Hill,
Middle Earth Prospect, and Big Sky Prospect providing an indication
of potential and possibly significant future expansion of vanadium
mineralization along this corridor.
"From a geological
perspective, the rocks at all three of these prospects have the
same visual hallmarks as what we see in the oxidized and transition
zones at Gibellini Hill deposit which are amenable to heap leach
recovery" states Danniel Oosterman, Prophecy's VP
Exploration.
"Assay results
demonstrate extensive vanadium mineralization with nearly half of
the samples well above the cut-off grades adopted at Gibellini.
This confirms that any occurrence of the Woodruff Formation in this
region is prospective from an exploration standpoint."
Detailed maps are
available at
www.prophecydev.com
BIG SKY PROSPECT (300m by 50m)
The Big Sky
prospect occurs 3.1 km southwest of the Gibellini Hill measured and
indicated resource and 1.8 km southwest of Louie Hill inferred
resource (NI-43-101 compliant; see Company's news release dated May
29th,
2018). A total of 62 samples were taken, of which 40%
(n=25)
returned assays greater than Gibellini cut-off grade. Sixteen (16)
samples returned assays >0.200 V2O5. The distribution of
samples occur along a 300 meter exposure of
the Woodruff Formation. Assays showing >0.200 V2O5 are shown in
Table 1.
Table
1.
V2O5% grab sample assay results at Big Sky prospect for
samples with >0.200%
SAMPLE
ID
|
Prospect
|
V2O5
%
|
301910
|
Big Sky
|
0.261
|
301913
|
Big Sky
|
0.223
|
301915
|
Big Sky
|
0.346
|
301916
|
Big Sky
|
0.400
|
301918
|
Big Sky
|
0.712
|
301920
|
Big Sky
|
0.264
|
301926
|
Big Sky
|
0.580
|
301927
|
Big Sky
|
2.008
|
301928
|
Big Sky
|
0.848
|
301944
|
Big Sky
|
0.264
|
301946
|
Big Sky
|
0.280
|
301947
|
Big Sky
|
0.218
|
301950
|
Big Sky
|
0.261
|
302050
|
Big Sky
|
0.214
|
302054
|
Big Sky
|
0.787
|
302055
|
Big Sky
|
1.982
|
MIDDLE EARTH PROSPECT (200m by 70m)
The Middle Earth
prospect occurs 1.7 km southeast of the Gibellini Hill deposit and
300 meters south of the Louie Hill deposit. A total of 50 samples
were collected of which 68% (n=34)
returned assays >0.101% V2O5 or the Gibellini cut-off grade.
Twenty-seven (27) samples returned assays >0.200 V2O5. The
samples are distributed over 3 road cuts of exposed Woodruff
Formation making up a 200 meter by 70-meter areal footprint. Assays
showing >0.200 V2O5 are shown in Table 2.
Table
2.
V2O5% grab sample assay results at Middle Earth prospect for
samples with >0.200%
SAMPLE
|
Prospect
|
V2O5
%
|
301951
|
Middle
Earth
|
0.350
|
301952
|
Middle
Earth
|
0.482
|
301968
|
Middle
Earth
|
0.628
|
301969
|
Middle
Earth
|
0.605
|
301970
|
Middle
Earth
|
0.634
|
301972
|
Middle
Earth
|
0.252
|
301973
|
Middle
Earth
|
0.687
|
301974
|
Middle
Earth
|
0.470
|
301975
|
Middle
Earth
|
0.612
|
301976
|
Middle
Earth
|
0.637
|
301978
|
Middle
Earth
|
0.559
|
301979
|
Middle
Earth
|
0.557
|
301980
|
Middle
Earth
|
0.259
|
301981
|
Middle
Earth
|
0.405
|
301983
|
Middle
Earth
|
0.255
|
301984
|
Middle
Earth
|
0.303
|
301985
|
Middle
Earth
|
0.434
|
301987
|
Middle
Earth
|
0.291
|
301988
|
Middle
Earth
|
1.294
|
301989
|
Middle
Earth
|
0.261
|
301991
|
Middle
Earth
|
0.314
|
301992
|
Middle
Earth
|
0.457
|
301993
|
Middle
Earth
|
0.380
|
301995
|
Middle
Earth
|
0.302
|
301998
|
Middle
Earth
|
0.539
|
301999
|
Middle
Earth
|
0.618
|
302000
|
Middle
Earth
|
0.532
|
NORTHEAST TRENCH PROSPECT (500m by 300m)
The Northeast
Trench prospect occurs 1.2 km northeast of the Gibellini Hill
deposit and 2.5 km northeast of the Louie Hill deposit. A total of
43 samples were collected of which 37% (n=16)
returned assays >0.101% V2O5 or the Gibellini cut-off grade.
Three (3) samples returned assays >0.200 V2O5. The samples are
distributed through road cuts ("trenches") and dry gulches of exposed Woodruff Formation
making up a 500 meter by 350-meter areal footprint. The exposure
at the Northeast Trench is greatly obscured by colluvium material
however the extent where it is exposed might indicate a large
volume of Woodruff Formation yet to be explored. Assays
showing >0.200 V2O5 are shown in
Table 3.
Table
3.
V2O5% grab sample assay results at Northeast
Trench prospect
for samples with >0.200%
SAMPLE
ID
|
Prospect
|
V2O5
%
|
302004
|
NE
Trench
|
0.239
|
302005
|
NE
Trench
|
0.380
|
302016
|
NE
Trench
|
0.303
|
John Lee,
Prophecy's Chairman states, "We are excited at not only in
developing Gibellini to become America's first primary vanadium
mine, but also expanding Gibellini into a large district vanadium
discovery. Our permitting efforts are well underway, and further
project milestones will be announced throughout 2019."
Gibellini is
considered a highly strategic deposit given that;
-
In December
2017, the
U.S. Geological Survey listed vanadium as one of 23 critical
mineral resources of the United States; yet there is not a primary
vanadium producing mine currently in the
country;
-
Gibellini
is the only known
primary vanadium deposit in the US that is under going
permitting progress, the project's annual production
profile of 9.75 million lbs of V2O5 outlined in the independent
preliminary economic assessment (see news release dated May 29,
2018) is sufficient to supply United States current annual vanadium
consumption requirement.
Please Also Check Recent Prophecy's PDAC Video
Interview
Recently during PDAC 2019,
Danniel
Oosterman,
Vice President of Exploration at Prophecy
Development Corp. (TSX: PCY | OTCQX: PRPCF), shared an update
on the
Gibellini
Vanadium Project in an interview with
InvestorIntel's
Peter
Clausi.
Highlights of the interview:
-
Gibellini
is most advanced primary vanadium project in North
America;
-
Fraser Institute upgraded Nevada to be TOP jurisdiction in the
world in mining investment, up from third place in
2017;
-
Gibellini
is to complete all necessary base line studies in 2019 to trigger
EIS process before year's end;
-
The EIS process is mandated under Secretarial Order 3355 as a
12-month process;
-
Gibellini
all-in sustaining cost is $6.28/lb, current vanadium price is
$17/lb.
Watch Prophecy Video Interview at PDAC 2019
Qualified
Persons and QA/QC
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. Samples were prepared at analyzed at
ALS Limited labs in Elko, Nevada, USA where they were dried,
crushed, split and pulverized and then shipped to the ALS lab in
Vancouver, Canada, where they were assayed (minimum 30 g) using the
ME-ICP61a (Conventional ICP-AES) analytical package.
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 development. Further information on Prophecy can be
found at
www.prophecydev.com.
PROPHECY
DEVELOPMENT CORP.
ON BEHALF OF THE
BOARD
"John
Lee"
Chairman
For more
information about Prophecy, please contact Investor
Relations:
+1.888.513.6286
ir@prophecydev.com
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
Forward-looking
statements in this news release relate to future events or future
performance and reflect current estimates, predictions,
expectations or beliefs regarding future events and include, but
are not limited to, statements with respect 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 and
bringing a mine into production, of sustaining capital and the
duration of financing payback periods; (iv) the estimated amount of
future production, both produced and metal recovered; and (vi) life
of mine estimates and estimates of operating costs and total costs,
cash flow, net present value and economic returns including
internal rate of return estimates from an operating mine
constructed at the project. All forward-looking
statements are based on Prophecy's or its consultants' current
beliefs as well as various assumptions made by them and information
currently available to them. The most significant
assumptions are set forth above, but generally these assumptions
include: (i) the presence of and continuity of vanadium
mineralization at the project at estimated
grades; (ii) the geotechnical and metallurgical characteristics of
rock conforming to sampled results; (iii) infrastructure
construction costs and schedule; (iv) the availability of
personnel, machinery and equipment at 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 recovery rates and use of a process
method, that although well-known and proven on other commodity
types like copper, has not been previously brought into production
for a vanadium project; (xi) reasonable contingency requirements;
(xii) success in realizing proposed operations; and (xiii)
assumptions that project environmental approval and permitting will
be 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 based on information currently available to it, they may
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, which are based on most of the other
forward-looking statements and assumptions
herein. The cost information is also
prepared using current values, but the time for incurring the costs
will be 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 Prophecy's or its consultant's forward-looking
statements. Prophecy or 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 to be
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 or its consultants
undertake 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.