Aug 21 2015
Prophecy Development Corp. ("Prophecy" or the "Company") is pleased to announce further to its press release dated July 7, 2015, that it has completed the first phase of its systematic, district exploration program at its Pulacayo project.
Detailed geological mapping and close-spaced sampling from surface trenches and underground tunnels were conducted at four priority target areas: El Abra, Pero, Paca North and Pacamayo. The detailed geological mapping has provided better information on the possible extent of mineralization. 495 samples have been collected. However, due to laboratory backlog, Prophecy has prioritized the most prospective samples for delivery to the laboratory. Prophecy has delivered the first batch of 30 samples to ALS Geochemistry Laboratory in Oruro, Bolivia for assay. Included with the 30 samples are QA/QC samples which will also be assessed to ensure the validity of the assay results. ALS Geochemistry Laboratory is a qualified and accredited laboratory.
A district exploration presentation and maps are available at www.prophecydev.com, along with high resolution, close-up pictures of the assayed samples. The assayed and pictured samples are non-representative of the sampled population.
Target Descriptions:
El Abra target (184 samples obtained):
Located north west of the Tajo vein system where a hydrothermal breccia system was identified. The reconnaissance mapping and sampling carried out in 2008 by Apogee Silver Ltd. ("Apogee") identified a strong hydrothermal alteration of silica-alunite, associated with barite, pyrite and iron oxides. The outcrop samples showed the presence of galena crystals and assay of samples yielded lead values of up to 1%. The Phase 1 geological mapping found visible metallic sulphides, greater extent of oxidation and indicator minerals suggesting mineralization at depth.
Pero target (165 samples obtained):
Located south east of the Tajo vein system where reconnaissance mapping and sampling identified several veinlets of mineralization that developed into a stockwork. Limited rock sampling carried out in 2008 by Apogee yielded samples with assay values ranging from 15 to 262 g/t silver and ranging from 0.2 to 2.3% lead.
Paca North target (21 samples obtained):
Located approximately 1km north of Paca's historic open-pit resource boundaries, and 7km north of the Tajo vein system. The target consists of a sequence of conglomerates with a siliceous matrix containing pyrite and barite. The area has an estimated dimension of 400m length, 100m width and 50m depth. Most of the cobbles of the conglomerate at the surface have silver values ranging from 50 g/t to 400 g/t and lead values ranging from 0.3 to 2%. The geological mapping found much abandoned underground mining development and barite veinlets.
Pacamayo target (125 samples obtained):
Located north east of the Tajo vein system where four veins were identified on the surface with estimated thickness of 2m and an estimated width of 26m. In underground mines developed by local residents, exposures of extensive vein development have been observed with an estimated width of 1.5m. Strong oxidation, indicator minerals and geological features found during the geological mapping suggest Pacamayo mineralization may be similar to the Tajo Vein System and mineralization may be found at depth.
The assay results are expected by late September 2015 and will be announced. The results will be integrated with the geological mapping and existing IP survey data to refine the geology of the targets. Drilling plans will then be developed for the second phase of this systematic district exploration program.
Paca Mineral Resource Estimate
Further to the Company press release dated April 2, 2015, a mineral resource estimate in accordance with NI 43-101 for the Paca open pit deposit based on a silver equivalency cut off value of 200g/t Ag Eq. is being prepared by Mercator Geological Services Limited. The Company expects to receive and announce the mineral resource estimate in September 2015.
Pulacayo Background and District Potential:
On June 18, 2015, Prophecy reported 1.27 million tonnes of indicated resource grading 530 g/t silver, 3.63% zinc, 2.51% lead (688 g/t Ag Eq.) for the Pulacayo project.*
Historic Pulacayo production was predominantly from the Tajo vein system which extends over a strike length of more than 2.5km and to a depth of at least 1,000m. Total production from the Pulacayo mine during the period 1857 to 1959 is estimated by the National Geological and Mineral Service of Bolivia (SERGEOTECMIN) to be 678 million ounces of silver, 200,000 tons (181,400 tonnes) of zinc and 200,000 tons (181,400 tonnes) of lead (SERGEOTECMIN Bulletin No. 30, 2002). Prior resource drilling only covered approximately 20% of the Tajo vein system strike length. With new drilling, there is potential to discover additional resources along the Tajo structure.
The Company is examining Pulacayo as a large-scale district silver project that includes a number of other well-known silver occurrences and anomalies in addition to the Tajo vein system. These include the: El Abra, Pero, Paca and Pacamayo prospects that all occur within 10km of the Pulacayo town site. The Company considers these as having potential for discovery of future mineral resources and is currently exploring these prospects using modern techniques.
*The mineral resource estimate was prepared in accordance with the CIM Definition Standards for Mineral Resources and Mineral Reserves referenced in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The effective date of the estimate is June 16, 2015. Silver equivalent Ag Eg. (g/t) = Ag (g/t)*89.2% + (Pb% *(US$0.94/ lb. Pb /14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000*91.9%) + (Zn% *(US$1.00/lb. Zn/14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000*82.9%).
Metal prices used in the silver equivalent calculation are US$16.50/Troy oz. Ag, US$0.94/lb Pb and US$1.00/lb Zn. Metal recoveries 89.2% Ag. 91.9% Pb. 82.9% Zn. The mineral resource estimate was prepared by Mercator Geological Services Limited under supervision of Michael Cullen, P.Geo., who is an independent Qualified Person under NI 43-101. Refer to the Company's June 18, 2015 press release at www.prophecydev.com.
Qualified Persons
The technical content of this news release was reviewed and approved by Christopher M. Kravits, P. Geo., 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.
About Prophecy
Prophecy Development Corp. is a Canadian public company listed on the Toronto Stock Exchange that is engaged in developing mining and energy projects in Mongolia Bolivia and Canada. Further information on Prophecy can be found at www.prophecydev.com.
PROPHECY DEVELOPMENT CORP.
ON BEHALF OF THE BOARD
"JOHN LEE"
Executive Chairman
Source: http://www.prophecydev.com/