Prophecy Reports 46 Million Tonnes at 0.24% Vanadium and 14.88% TiO2 Inferred Resource at Titan, Gibellini Resource Estimate Currently in Preparation
VANCOUVER, BC / ACCESSWIRE / November 8, 2017 / Prophecy Development Corp. (the "Company" or "Prophecy") (TSX: PCY, OTC PINK: PRPCF, Frankfurt: 1P2N) has received an updated technical report on its 100% owned, Titan vanadium-iron-titanium property (the "Property") located at Flett and Angus Townships, 120 kilometres northeast of Sudbury, Ontario. The Property consists of 262 contiguous hectares comprising 17 patented claims, with access to water, roads and electrical power.
The technical report was prepared by Mine Development Associates and is dated October 23, 2017 (the "Technical Report"). The Technical Report (available under the Company's SEDAR profile at www.sedar.com) was prepared in compliance with National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") and reports an inferred resource for the Property as follows:
|Resource Category||Tonnes (t)*||Fe2O3 (%)||V (%)||TiO2 (%)|
V converted to V2O5: 0.24 % V = 0.43% V2O5
The metal content calculated by the Company totals 434 million pounds of vanadium pentoxide content and 6,844 million kgs of titanium dioxide**.
*Based on resource estimated at cutoff grade of 40% Fe2O3 inside an optimized pit.
**100% metals recovery is assumed.
Mineral resources which are not mineral reserves have not demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
The Technical Report is authored by Neil Prenn, P. Eng. and Neil Pettigrew, P. Geo., who were independent Qualified Persons under NI 43-101 at the time the report was prepared.
The magnetite, ilmenite, titanium dioxide and vanadium mineralization at the Property occurs in a southeast plunging igneous body of gabbro to leucotroctolite composition in the Northeastern corner of the Fall Lake complex. The Titan deposit is located at the northern end of an aeromagnetic anomaly that is approximately 1,200 metres long by 800 metres wide.
A total of 4,898 assayed intervals were recorded from 38 core holes drilled by Randsburg International Gold Corp. ("Randsburg") (the prior co-owner) on the Property. Drilling highlights reported by Randsburg included 142 meters (drilled depths 3 to 145 meters) of 0.27% vanadium (0.48% vanadium pentoxide) from hole RA-05-21, and 174 meters (drilled depths 102 to 276 meters) of 0.26% vanadium (0.46% vanadium pentoxide) from hole RA-05-10. The mineralization starts at shallow depth (1.2 to 30.0 meters) below the surface over most of the deposit and is found to an open vertical depth greater than 500 metres at two drill holes. The complete horizontal and vertical extent of the deposit is still to be determined.
The Titan vanadium deposit has the potential to become an important source of vanadium supply. Grid-scale vanadium redox flow batteries are expected to enable efficient release of wind and solar energy to the power grid, thus their deployment is anticipated to be generally in line with the surge in wind and solar energy capacities currently estimated at over 600 gigawatts. Total grid-scale battery deployment amounts to less than 2 gigawatts, representing a high-growth market.
Separately, AMEC E&C Services, Inc. has been engaged by Prophecy since August 2017, to prepare a technical report for the Gibellini and Louie Hill vanadium projects (respectively, "Gibellini" and "Louie Hill"). The Company expects to announce updated mineral resource estimates in accordance with NI 43-101 for both Gibellini and Louie Hill once the technical report is completed.
Further to the Company's news release dated July 21, 2017, Fairmont Resources Inc. ("Fairmont") and Prophecy have mutually agreed to terminate the letter agreement for Prophecy to acquire the Buttercup project from Fairmont. Prophecy did not conclude its due diligence inquiries within the timeframe required in the letter agreement.
The technical content of this news release was reviewed and approved by Christopher M. Kravits, CPG, LPG, who is a Qualified Person within the meaning of NI 43-101. Mr. Kravits is a consultant to the Company and serves as its Qualified Person and General Mining Manager. Mr. Kravits is not independent of the Company in that most of his income is derived from the Company.
Neil Prenn, P. Eng., of Mine Development Associates is the Qualified Person within the meaning of NI 43-101 who supervised preparation of, and is responsible for, all sections of the Technical Report and mineral resource estimate addressed in this news release except those issues described in Section 3 and Sections 7, 8 and 12.1. Neil Pettigrew, P. Geo., also of Mine Development Associates is the Qualified Person within the meaning of NI 43-101 who supervised preparation of, and is responsible for, Sections 7, 8 and 12.1 of the Technical Report.
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
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