Exclusive
Interview: Prophecy
Development Corp. Executive Chairman John Lee Discusses North
America's Most Advanced Vanadium Project
TORONTO, ON,
Canada -- July 8, 2019 -- InvestorsHub NewsWire --
via Junior Mining Network
-- Junior Mining Network
host Cory Fleck interviews
Prophecy
Development Corp. (TSX: PCY) (OTCQX: PRPCF) Executive Chairman
John Lee to discuss the Gibellini Vanadium Project and its path
forward to potential production in 2022.
The 2018
Gibellini Preliminary Economic Assessment (PEA) outlined a 13.5-year
mine life that returned a robust $338 million Net Present Value
(NPV @
7%) and
50.8% Internal Rate of Return (IRR). With a quick payback period of
less than 2 years and requiring only $116 million
in
initial capital
expenditures, the Gibellini operation
could quickly become a significant
global vanadium producer yielding an average of 9.65 million pounds
of vanadium
annually.
Thanks to its
location in the mining friendly jurisdiction of Nevada, Gibellini
is currently undergoing a streamlined permitting process.
The initial Plan of Operation and
associated environmental baseline studies have been
submitted
and, upon
acceptance, a Notice of Intent
is expected to be
triggered in 2019 to prepare the
project for final
Environmental Impact Studies. The Company is seeking
project financing in the interim and based upon the expected
permitting schedule, Gibellini could become the
first primary vanadium mine in the United States
within a period
of just over three years.
Listen
to the full
Interview:
http://bit.ly/prophecydevelopment782019
Listen
to the full
Interview:
http://bit.ly/prophecydevelopment782019
About
Vanadium
In addition to
its importance within the steel
markets, vanadium is expected to experience
a surge of
new demand over the coming decade
primarily originating
from
utility-scale battery storage, which in turn is directly tied to the
exponential growth in renewable energy. "Vanadium is becoming more
widely used in green technology applications, especially in battery
technology," said the U.S. Geological Survey
in its 2018 report on critical
minerals and metals. The reference relates to
growing excitement around vanadium redox-flow battery technology,
which potentially offers a
grid-scale
energy storage solution for electric utilities who
require long duration storage. Because of the intermittent nature
of renewable energy sources such as wind and solar, long duration
storage is a growing concern
that will need to
be addressed in order to
facilitate
a stable
grid that
could potentially become carbon free.
Vanadium produces
have enjoyed as spectacular few years in market cap growth as the
price of vanadium has risen steadily. Well
known vanadium producers include Largo Resources Ltd. (TSX:
LGO) (OTCQX:
LGORF), Bushveld Minerals Limited
(LON: BMN)
and Glencore PLC (LON: GLEN) (OTC:
GLNCY). Energy Fuels Inc. (TSX:
EFR)
(NYSE
AMERICAN: UUUU) also began producing vanadium
in 2018 in reaction to rising spot prices.
Even vanadium
explorers have done well over the past few years in a tough
mining
sector, including
the likes of First Vanadium Corp. (TSX.V: FVAN) (OTCQX: FVANF)
and VanadiumCorp
Resource Inc.
(TSX.V: VRB) (FSE: NWWN).
In 2018 the U.S. Department of
the Interior released a list of 35 critical minerals, which
included
vanadium. Being that the U.S. government has no current stockpiles
of vanadium, securing sources of this battery metal could become
critical in the near
future,
making Prophecy's Gibellini deposit in Nevada that much more vital to the
domestic security of the United States and the global vanadium
supply chain.
About
Prophecy
Development
Corp.
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.
Cautionary
Statements:
The
above
referenced PEA is
preliminary in nature and includes 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 will be realized. Mineral resources are not mineral reserves
and do not have demonstrated economic viability.
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
periods; (iv) the estimated amount of future production, of both
[raw material?] and 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 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 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) 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 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 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
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 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.
Junior
Mining Network (''JMN'') is not a financial advisory or advisor,
investment advisor or broker-dealer and does not undertake any
activities that would require such registration. The information
contained herein is not intended to be used as the basis for
investment decisions and should not be considered as investment
advice or a recommendation, nor is the information an offer or
solicitation to buy, hold or sell any security. JMN does not
represent or warrant that the information posted is accurate,
unbiased or complete and make no representations as to the
completeness or timeless of the material provided. JMN receives
fees for producing content on financial news and has been
compensated $750
by
Prophecy Development Corp. to
publish this interview.
Investors should consult with an investment advisor, tax and legal
consultant before making any investment decisions. All materials
are subject to change without notice.
SOURCE: Junior Mining
Network