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Prophecy Announces Submission of 'MPO' for Gibellini Vanadium Project

Prophecy Development Corp.  is pleased to announce the submission of its Management's Plan of Operations (the "MPO") for the Gibellini vanadium project (the "Gibellini Project") to the United States Department of the Interior, Bureau of Land Management, Mount Lewis Field Office (the "BLM") and the Reclamation Permit Application to the Nevada Division of Environmental Protection, Bureau of Mining Regulation and Reclamation (the "BMRR").

The MPO was prepared by SRK Consulting (U.S.) Inc. with over 1,100 pages of detailed development plans for the open pit mining operations and processing facilities to extract and recover vanadium from the Gibellini Project with stated average mine production during the seven-year mine life of 15.7 million tons of ore material containing 120.5 million pounds of vanadium.

The primary facilities include the: pit, waste rock disposal facility, mine office, auxiliary facilities such as water and power, crushing facilities and stockpile, heap leach pad, process facility, water ponds, borrow areas, and mine and access roads.

A map of the proposed facilities is available at https://www.prophecycoal.com/.

In addition, the MPO includes the following designs along with associated environmental baseline studies:

1. Quality Assurance Plan
2. Storm Water Management Plan
3. Adaptive Waste Rock Management Plan
4. Monitoring Plan
5. Noxious Weed Management Plan
6. Spill Contingency Plan
7. Feasibility Study Level Pit Slope Design
8. Heap Leach and Waste Rock Dump Facility Stability Report
9. Geochemical Characterization Report
10. Water Management Plan
11. Closure and Reclamation Plan
12. Transportation Plan
13. Standardized Reclamation Cost Estimate

The baseline studies supplementing the MPO were completed by the previous operator between 2010 and 2012, and included studies of biological resources, cultural resources, surface water resources, ground water resources, and waste rock geochemical characterization.

The next steps for the Gibellini Project's permitting are:

  • the BLM and Prophecy shall identify data and baseline studies requiring updates, which Prophecy will engage contractors to perform;
  • Prophecy shall begin preparing an environmental report relating to the Gibellini Project to be submitted to the BLM;
  • Prophecy shall begin preparing a Water Pollution Control Permit application to be submitted to the BMRR;
  • upon acceptance of the baseline studies, MPO, and environmental report by the BLM, Prophecy expects to trigger a Notice of Intent ("NOI") in 2019 by the BLM to prepare an environmental impact statement ("EIS") for the Gibellini Project.

As a result of direction from Secretary of the Interior Order No. 3355 (Streamlining National Environmental Policy Reviews and Implementation of Executive Order 13807) Prophecy anticipates the Gibellini EIS will not be more than 150 pages (excluding appendices) and the BLM to complete the Gibellini final EIS within one year from the issuance of the NOI. Should that occur, it means that permitting for the Gibellini Project may potentially be concluded in 2020.

Prophecy's Executive Chairman, John Lee, states: "With the filing of our Plan of Operations, Prophecy has achieved an important project milestone today, on schedule and under budget. The Company is on firm footing for an accelerated, predictable path to advance Gibellini to become the first primary vanadium mine in North America, offering the best quality vanadium pentoxide product that exceeds customer requirements for a variety of applications from traditional re-enforcement bars to high-tech grid-scale batteries and the aerospace industry.

We believe Gibellini offers the best leverage and a direct play that reflects vanadium prices in a politically-safe, mining-friendly jurisdiction."

The Company also announces that pursuant to the terms of the Company's share-based compensation plan as amended, which was approved by shareholders at the Company's annual general meeting of shareholders held on June 2, 2016 and amended on June 13, 2017, it has granted 20,000 incentive stock options (the "Options") to a consultant of the Company. The Options are exercisable at a price of $3.10 per Common share for a term of five years expiring on May 1, 2023 and vest at 12.5% per quarter for the first two years following the date of grant.

Qualified Persons

The technical contents of this news release have been prepared under the supervision of Danniel Oosterman, VP, Exploration. Mr. Oosterman is not independent of the Company in that he is employed as a consultant to the Company and most of his income is derived from the Company. Mr. Oosterman is a Qualified Person as defined in NI 43-101.

Source: https://www.prophecycoal.com/

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