Prophecy Explores Another Vein System at Pulacayo Project in Bolivia and Issues Shares for Debt
Vancouver, British Columbia (FSCwire) - Prophecy Development Corp. (“Prophecy” or the “Company”) (TSX:PCY, OTC:PRPCD, Frankfurt:1P2N) is pleased to announce the exploration of an additional vein system (the "AVS") at its Pulacayo silver-zinc-lead project in Bolivia.
The AVS is located approximately 200 metres west of the Rothschild shaft, at a level of 50 metres above the San Leon adit level (level 0, 4128m). The principal vein measures 1.0 to 1.5 metres in width. The strike and vertical extent of the principal vein are unknown. The location of the AVS is approximately 600 metres west of the San Leon adit and passes outside the western boundary of the area where Apogee Silver Ltd. conducted 70,000 metres of drilling between 2005 to 2012, and therefore was not included in the Pulacayo deposit resource estimate prepared by Mercator Geological Services LLC (see the Company’s news release dated June 18, 2015).
This additional vein is within 100 metres of the surface and is accessible via existing tunnels. The AVS was known from historical mining records. Extensive sampling had taken place between 1936 to 1940 by the Hochschild Group (founded by Mauricio Hochschild), which recorded average grades of 180g/t Ag, 9.5% Zn and 2.7% Pb, but had not yet mined the location. Because of insufficient information the AVS was not included in the Mercator 2015 resource estimate. The Company plans to continue exploration of the AVS to assess whether further exploration is warranted.
Separately, the Company is completing final preparations for underground mining including detailed mine plans, staffing, and equipment purchases at Pulacayo for the area (UG1) in particular. A positive production decision would not be based on a feasibility study of mineral reserves demonstrating economic and technical viability so would carry increased uncertainty and the risk of failure as to the mining method and profitability. UG1 is located at level 0 approximately 110 metres east of the San Leon adit and within 100 metres from the Central shaft. UG1 measures approximately 117 metres in strike, 93 metres in width and 38 metres in height. Veins can be observed at level 0 in UG1, where the following prior drill holes had intercepted the vein:
|Drillhole Number||From (m)||To (m)||Drilled Width (m)||Grade|
|Ag g/t||Zn %||Pb %|
Several samples from the AVS and UG1 areas have been obtained and sent for assay. Results are expected by mid-December.
Location maps and close-up pictures of samples are available at www.prophecydev.com.
The Company also announces that it has entered into settlement and release agreements (the “Settlement Agreements”) with Bekzod Kasimov and Nargil Molor, who are both insiders of the Company, to cover debts owing to them as well as advanced pre-payments for services to be rendered. Pursuant to the terms of those Settlement Agreements, the Company has agreed to issue, subject to the approval of the Toronto Stock Exchange, in aggregate, 46,875 Common shares at a deemed price of $3.20 per Common share, to Mr. Kasimov and Ms. Molor through its Share-Based Compensation Plan which was approved by shareholders at the Company’s annual general meeting of shareholders held on June 2, 2016.
The technical content of this news release and the materials referred to in this news release were reviewed and approved by Christopher M. Kravits, CPG, LPG, 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.
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.