Date:May 31, 2018
Prophecy Development Corp (TSX: PCY) said its Gibellini vanadium project in Nevada offered “phenomenal leverage” to rising vanadium prices in a politically-safe, mining-friendly jurisdiction, as it released a preliminary economic assessment.
Prophecy’s positive PEA for Gibellini vanadium project
The PEA set out an after-tax NPV (7% discount) of US$338.3 million, an IRR of 50.8%, a payback period of 1.72 years, with an initial capex of $116.76 million including a 25% contingency.
It outlined a 13.5-year mine life producing an average 9.65 million pounds of vanadium pentoxide at an all-in sustaining cost of $6.28/lb and estimated an average selling price of $12.73/lb.
Monday’s V2O5 price was $14.20/lb, the company said.
“This comprehensive 249-page PEA presents exceptional project economics and positions Gibellini as the most important vanadium mineral deposit in North America in terms of project viability and time to market,” executive chairman John Lee said.
