Date: Feb 15, 2019
February 14, 2019 (Source) — Prophecy Development Corp. (“Prophecy” or the “Company“) (TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) announces that it has retained Amec Foster Wheeler E&C Services Inc. (Wood) to undertake updating of the mineral resource and mining section for the Company’s upcoming Feasibility Study (“FS“) to be completed to the standards of National Instrument 43-101 (“NI 43-101“) for its Gibellini vanadium project located in Nevada, USA. The FS is anticipated to be completed by year end 2019.
Vanadium is a product classified as a strategic metal by the US Government and is primarily used for strengthening structural steel, but is also used in the aerospace industry for Ti-Al alloys. More recently, there has been an increase in demand to supply the new era of redox flow batteries for long-term energy storage, which has long been a challenge for the renewable energy sector.
Gibellini is the most advanced primary vanadium deposit in the United States, with a contained NI 43-101 compliant combined measured and indicated resource of 22.95 million tons at 0.286% V2O5 (technical report filed on SEDAR titled “Gibellini Vanadium Project, Eureka County, Nevada, NI 43-101 Technical Report on Preliminary Economic Assessment” effective May 29, 2018). The drilling program is expected to start following approval from the Bureau of Land Management (BLM), and will include up to 10 holes drilled 150 to 250 feet long in the higher-grade portions of the Gibellini deposit. It is hoped that by characterizing this mineralization with greater confidence, the Company can quantify more value for the project overall.
The remaining drill holes will focus on the Louie Hill deposit. There is strong indication from historical drilling that the Louie Hill deposit can be a high-value vanadium asset. However, much of this historical drilling could not be verified as archive drill samples were not available and thus, could not be used in the verification of the database supporting the resource estimation. Only the 9 holes that were drilled more recently were used in the Louie Hill Mineral Resource estimate that was reported in May 2018. The Company is confident that the 2019 drilling described herein could result in a significant addition of measured and indicated vanadium-bearing material to the project and add to the Gibellini project’s overall value and anticipated mine life. These drill holes will also be used for geochemical characterization of the deposit in support of future permitting.
