Prophecy Development Corp. Prepares to Drill Gibellini Vanadium Project
Date:May 1, 2018
VANCOUVER, British Columbia–(BUSINESS WIRE)–Prophecy Development Corp. (“Prophecy” or the “Company”) (TSX:PCY,OTCQX:PRPCF, Frankfurt:1P2N) is initiating preparations for its exploration and verification drilling program on the Gibellini vanadium project in Q2 2018. A total of 4,880m of reverse circulation drilling in 64 holes are planned in the following target areas:
Gibellini: 33 holes total 2,740 meters
The report (the “Technical Report”) prepared by Amec Foster Wheeler E&C Services Inc. (“AMEC”) according to National Instrument 43-101, Standards of Disclosure for Mineral Projects (“NI 43-101”) with an effective date of November 10, 2017, estimated combined Measured and Indicated Mineral Resource of 22.01 million tons at a weighted average grade of 0.294% V2O5, containing 129.28 million pounds V2O5. The Inferred Mineral Resource estimate is 9.82 million tons at a weighted average grade of 0.19% V2O5 containing 37.27 million pounds V2O5.
(1) The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM SME, an AMEC employee. The Mineral Resource estimate has an effective date of 10 November 2017.
(2) Mineral Resources are reported at various cut-off grades for oxide, transition, and reduced material.
(3) Mineral Resources are reported within a conceptual pit shell that uses the following assumptions: mineral resource V2O5 price: $10.81/lb; mining cost: $2.21/ton mined; process cost: $13.14/ton processed; general and administrative (G&A) cost: $0.99/ton processed; metallurgical recovery assumptions of 60% for oxide material, 70% for transition material and 52% for reduced material; tonnage factors of 16.86 ft3/ton for oxide material, 16.35 ft3/ton for transition material and 14.18 ft3/ton for reduced material; royalty: 2.5% net smelter return (NSR); shipping and conversion costs: $0.37/lb. An overall 40º pit slope angle assumption was used.
(4) Rounding as required by reporting guidelines may result in apparent summation differences between tons, grade and contained metal content. Tonnage and grade measurements are in US units. Grades are reported in percentages.
Thirty-three (33) infill drill holes have been planned to increase the confidence level of a potential near-surface higher-grade starter pit (“HSP”) with the following historic drilling highlights:
Table 1. Historic drill results on the Gibellini Resource
| Hole ID |
From |
To (m) | Meters | % V2O5 | ||||
| T-38 | 3.05 | 45.72 | 42.7 | 0.755 | ||||
|
including… |
28.96 | 44.20 | 15.2 | 1.399 | ||||
| NG-47 | 1.52 | 57.91 | 56.4 | 0.533 | ||||
|
including… |
28.96 | 39.62 | 10.7 | 1.005 | ||||
| NG-6 | 6.10 | 70.10 | 64.0 | 0.455 | ||||
| T-33 | 1.52 | 57.91 | 56.4 | 0.462 | ||||
|
including… |
33.53 | 41.15 | 7.6 | 1.102 | ||||
| T-27 | 1.52 | 60.96 | 59.4 | 0.419 | ||||
| NG-12 | 22.86 | 60.96 | 38.1 | 0.652 | ||||
|
including… |
24.38 | 45.72 | 21.3 | 0.857 | ||||
| IG-2 | 4.57 | 53.34 | 48.8 | 0.501 | ||||
| NG-4 | 3.05 | 56.39 | 53.3 | 0.413 |
A successfully delineated HSP could be incorporated in the early mining sequence that can potentially boost metal recoveries, increase production throughput, and lead to faster investment payback.
