The Prophecy Development of a “massive” historical silver producing mine is attracting investors

Silver gets little attention compared to gold, but silver often follows gold. With gold up significantly in 2019, and silver starting to catch up, investors would be wise to look again at some silver miners. One in particular is set to soar as it has definitely flown under most investors radar, and appears to be very undervalued. This stock has had a great 2019, drawing in the attention of Eric Sprott as a significant investor.

Prophecy Development Corp. (TSX: PCY | OTCQX: PRPCF) specializes in mine permitting, construction, and operations. Prophecy is developing the massive Pulacayo-Paca Silver Project in Bolivia and the Gibellini Vanadium Project in Nevada. The Company is managed by mine builders with a combined 100 years plus of industry experience.

The Pulacayo-Paca Silver Project in Bolivia

Prophecy acquired the project in 2015 at the bottom of the silver cycle when silver was priced at US$14/oz. According to Prophecy: “Based on historical production the mine is the second largest silver mine in the world.” It is very well advanced with over 95,000 meters of drilling, a Feasibility Study, and is fully environmentally compliant.

Executed on October 3, 2019 the Pulacayo-Paca Mining Production Contract between Prophecy and the Bolivian government grants Prophecy the 100% exclusive right to develop and mine at the concessions for up to 30 years. This is comparable to a mining license in Canada or the United States.

John Lee, Executive Chairman of Prophecy Development Corp., stated: “It is only recently that we started the program on this wonderful silver project called Pulacayo in Bolivia.”

Pulacayo in Bolivia is a world premiere silver address

Resource details at Pulacayo-Paca 

The Pulacayo deposit currently has a NI43-101 compliant Resource of 2.08 million tonnes at 455 g/t Ag, 2.18% Pb, 3.19% Zn in the Indicated category. It also has 0.48 million tonnes at 406 g/t Ag, 2.08% Pb, 3.93% Zn in the Inferred category. Company estimates put the contained metal in the Indicated category at 30.4 million ounces of silver, 100 million pounds of lead, and 146.3 million pounds of zinc. Estimates in the Inferred category are 6.3 million ounces of silver, 22.0 million pounds of lead, and 41.6 million pounds of zinc.

The Paca deposit has contained 20.9 million ounces of silver in the Inferred category.

Pulacayo-Paca NI43-101 compliant Resource summary

According to historical underground mining records the current Pulacayo Resource covers 1.4 km in strike and represents only a small portion of the Tajo vein system which is over 3 km in strike length and open to least 1,000 meters at depth.

Phase two drilling has started on a 5,000-meter program that will consist mainly of wide step-out drilling up to 1.5km west (Western Block) of the current Pulacayo Resource.

Joaquin Merino, Prophecy’s VP for South American Operation, states: “Current artisanal mining at the surface serves as strong evidence that the Tajo vein projects to surface at the Western Block (underground mining took place from early 1800 to 1952). Pulacayo is a very large system and with this program we will test the boundaries of mineralization near the surface and its continuity along strike.”

Recent drill results at the Paca Silver Project were very good

Phase one diamond drilling results from Prophecy’s 100% controlled Paca Silver Project located 7km north of Pulacayo were reported in October. Borehole PND 110 intersected 89 meters grading 378 g/t Ag-Equivalent (“AgEq;” 279 g/t Ag, 1.28% Zn, 1.17% Pb) starting from 9 meters downhole, including 12 meters grading 1,085 g/t Ag starting at just 16 meters downhole. The Pulacayo-Paca drill program is fully funded with a recent $3.9 million equity financing backed by Mr. Eric Sprott.

Prophecy’s Gibellini Vanadium Project continues to progress

Prophecy Development Corp. (through its wholly owned US subsidiary Nevada Vanadium) has submitted the applications and Engineering Design Reports to the Nevada Division of Environmental Protection for the primary mining permits that govern project construction, operations and closure of its Gibellini Vanadium Project located in Eureka County, Nevada, USA. With the support of federal and state regulators the Prophecy team is actively engaging all stakeholders in order to obtain all the state and federal permits required to begin construction of North America’s first primary vanadium mine and will represent the starting point of a well defined 12 month process.

Prophecy appears very undervalued to peers

Not only is Prophecy very undervalued relative to peers, Prophecy offers investors a very large high grade poly-metallic opportunity (silver, vanadium, and some zinc and lead) with plenty of exploration upside at both the Pulacayo-Paca Silver Project in Bolivia and the Gibellini Vanadium Project in Nevada.

Prophecy Development Corp. is based in Vancouver Canada; and has a market cap of C$ 38 million. The analyst target price is $13.50, representing a massive upside. It seems legendary miner, Eric Sprott, also sees the potential, suggesting investors should also take a long look at Prophecy.

Investors can watch a recent InvestorIntel interview here.




Prophecy’s stock price jumps 56% after announcing a spin-off plan

Prophecy Development Corp. (TSX: PCY | OTCQX: PRPCF) specializes in mine permitting, construction, and operations. Prophecy has two near-term producing (vanadium, silver) and one producing (coal) mining projects. Prophecy has recently announced the formation of two subsidiaries to facilitate potential future spin-offs of the Company’s wholly-owned Bolivian silver operation and Mongolian coal operation; Silver Elephant Mining Corp. and Asia Mining Inc. in order to facilitate potential future spinoffs of the Company’s wholly owned Bolivian silver operation and Mongolian coal operation.

Prophecy reorganization (to be completed by end of August)

Prophecy will be the parent company to the following direct subsidiaries:

Silver Elephant Mining Corp. (Pulacayo Silver-Zinc-Lead Projects)

The Company’s Pulacayo Bolivian property features a top-tier diamond drill intercept of 1,030 g/t Ag over 25 meters. With only 30% of the known mineralization drilled, Pulacayo has a starter resource of 30 million oz of silver at 455 g/t Indicated, and 21 million oz of silver grading 256 g/t Inferred. Added to this are significant amounts of lead, zinc, and copper.

John Lee, Prophecy Chairman, states: “We foresee a strong upward performance in silver prices. Silver Elephant is structured and intended to be a premier pure silver play, which may go public in the near term.”

Company research has shown there are very few silver underground deposits grading at over 400 g/t Ag and open pit silver projects grading at over 200 g/t Ag. To take advantage of rising silver prices the Prophecy team is examining various production scenarios at Pulacayo that can be implemented as soon as a production contract is granted. There is strong potential to increase the silver resources at Pulacayo through modern exploration and drilling methods in this prolific silver district of Bolivia.

Prophecy’s resources and some drill results over their Pulacayo property in Bolivia

Asia Mining Inc. (Ulaan Ovoo Coal mine)

The Company’s Ulaan Ovoo coal mine is located in northern Mongolia and has received over US$50 million investment since 2010. It features an average strip ratio of 1.8. The mines coal has less than 1% sulfur, and low ash (8 to 11%) which is well-suited for power plants, cement plants and boiler heat applications. Since March 2019 the mine has been operated by a lessee where Asia Mining stands to earn $2 per tonne of Ulaan Ovoo coal sold. The mine achieved a record production of 37,800 tonnes in June 2019, and has reportedly secured close to 400,000 tonnes of orders through to April 2020.

Chairman John Lee comments: “Ulaan Ovoo thermal coal is gaining steady reputation for its premium quality and reliable delivery in northern Mongolia. Barring any unforeseen circumstance which curtails production, Prophecy’s Mongolia operation is expected to become net cash flow positive for the remainder 2019.“

Nevada Vanadium Mining Corp. (Gibellini and Louie Hill Vanadium Projects)

Prophecy’s US subsidiary, Nevada Vanadium, is developing its 100% owned Gibellini and Louie Hill Vanadium Projects. The open pit-heap leach vanadium project is scheduled to start a year long Environmental Impact Statement in Q1 of 2020. Construction is expected in 2021 with production by end of 2022.

The recent Preliminary Economic Assessment published in November 2017 stated an annual vanadium pentoxide (V2O5) production of 9.7 million pounds a year for 14 years at cash cost of a US$4.77 pound and a Capex of US$117 million. The Gibellini and Louie Hill Vanadium Projects have received over US$20 million of investment; includes drilling, metallurgy, feasibility and environmental baseline studies. Nevada Vanadium offers leverage on vanadium prices and is the only US vanadium mine poised to go into production by 2022, and will have no bank debt.

Prophecy’s strategy

Given the stock market currently assigns almost no value for Prophecy’s two assets (silver/lead/zinc/copper (Silver Elephant) and coal (Asia Mining Inc.), it makes sense for Prophecy to spin out these assets so that value can be recognized. For example, the resources at the Company’s Pulacayo district totals 52 million ounces of contained silver in the Indicated & Inferred categories, yet gets no value recognition. It is a similar story for their producing Mongolian coal mine.

This should benefit shareholders as investors should come to see the value in the spin-off assets as valuable additions to the flagship Nevada Gibellini Vanadium Project. The market seems to agree given the stock price rise of ~56% since announcing the spin-offs just a few days ago.

Prophecy is managed by mine builders with over 100 years of combined industry experience. Headquartered in Vancouver Canada; Prophecy Development Corp. has a market cap of C$ 29 million.




Prophecy Development’s John Lee on the Gibellini Project and vanadium market in the US

“We are embarking on the permitting process with construction starting in 2021. We will be the first greenfield vanadium mine production coming onstream in the middle of 2022. So, in less than three years from now, you will be seeing the first vanadium mine in the United States, in a politically safe jurisdiction. We believe we will hit production right when the supply-demand curve is in most acute position.” States John Lee, Executive Chairman of Prophecy Development Corp. (TSX: PCY | OTCQX: PRPCF), in an interview with InvestorIntel’s Tracy Weslosky.

John went on to discuss the effect of US-China trade war on the vanadium market in the US. He said that the US is currently relying on non-Chinese sources such as South Africa and Russia for its vanadium needs. Sooner or later these vanadium feeds are going to run out. John also provided an update on Prophecy’s Gibellini Vanadium Project in Nevada. He said that the company has spent over $15 million in the last two years to advance the project. The company has spent a lot of time on team building, permitting, environmental work and local community relations. Currently, Prophecy is doing engineering work and permitting and the company is led by a CEO who has permitted mines in Nevada before.

To access the complete interview, click here

Disclaimer: Prophecy Development Corp. is an advertorial member of InvestorIntel Corp.




Prophecy Development’s Oosterman on the permit license process for the Gibellini Vanadium Project in Nevada

Recently during PDAC 2019, Danniel Oosterman, Vice President of Exploration at Prophecy Development Corp. (TSX: PCY | OTCQX: PRPCF), shared an update on the Gibellini Vanadium Project in an interview with InvestorIntel’s Peter Clausi.

Danniel said: “Currently we are in the permitting stage. We are an advanced stage project. This month we are about to submit all our baseline studies on the project. We are basically going to submit that and our updated mine plan of operations and what that will do, it will be reviewed by the BLM and it is going to kick off our environmental impact statement…at the end of that process we should have a permit in hand to mine and we will be the first vanadium mine in the United States.”

Prophecy is developing the Gibellini Project – the only large-scale, open-pit, heap-leach vanadium project of its kind in North America. Located in Nevada, Gibellini is currently undergoing EPCM and Permit preparation. Prophecy also has mining projects in Mongolia and Bolivia.

To access the complete interview, click here

Disclaimer: Prophecy Development Corp. is an advertorial member of InvestorIntel Corp.




Prophecy Development CEO says: ‘definitely good timing to get involved in vanadium’

“I think it is definitely good timing to get involved in vanadium, but also you would not see myself if I were to be in a conflict area. I have spent most of my career in conflict areas when I was working with Barrick Gold for many years. I definitely prefer to be either in Canada or the U.S.” States Gerald Panneton, President and CEO of Prophecy Development Corp. (TSX: PCY | OTCQX: PRPCF), in an interview with InvestorIntel Corp. CEO Tracy Weslosky.

Tracy Weslosky: Prophecy Development Corporation, their mandate is to seek vanadium properties that are in conflict free areas in the planet. Is that correct?

Gerald Panneton: I think it is definitely good timing to get involved in vanadium, but also you would not see myself if I were to be in a conflict area. I have spent most of my career in conflict areas when I was working with Barrick Gold for many years. I definitely prefer to be either in Canada or the U.S.

Tracy Weslosky: That is a great segue for asking you, with your significant professional career you have just accepted the role as CEO and President for Prophecy Development. Can you tell me why you would take this role at this point in your career? We as shareholders want to know Gerald. 

Gerald Panneton: It is very simple. I am a shareholder too. More importantly is that I have already built three mines during my career; two at Barrick and one with the Detour Lake project. You do not join a company because you just want to join a company. There must be a reason. The main reason is that Prophecy Development or PCY ticker is undervalued, tremendously undervalued compared to the value of the vanadium deposit. Of course it is subject to the vanadium price.

Tracy Weslosky: Alright so let us discuss vanadium prices. For those of you out at InvestorIntel who are not familiar with how hot vanadium is right now you should check our trending section. Vanadium continues to be one of the most well-read topics that we are covering presently. There are not a lot of real players out there in the vanadium market, are there Gerald?

Gerald Panneton: No, mainly 50% of the production comes out of China, 10% South Africa, 10% Brazil, maybe 10% to 15%. There are two types of deposits that will produce vanadium. The one we have at Gibellini is one of the easiest ones compared to all the others. 

Tracy Weslosky: You just made an announcement about the Gibellini with an MOA with the Bureau of Land Management. Can you provide us with some highlights from that news release? 

Gerald Panneton: With the recent election of the Republican being in power in the U.S. there is an Article 3335 that is very important for BLM to apply, which means every project that has a notice of intent, which means you completed all the baseline studies or for us it is the gap analysis from the last predecessor. We have 12 months basically to provide an environmental report with consultation and approved by BLM Nevada. In the MOA it is the understanding to help each other achieve this target and if necessary Prophecy will help pay for some consultant to review the process. 

Tracy Weslosky: Now that you are leading the company, leading Prophecy Development, can you tell us where you plan on focusing your energies next?

Gerald Panneton: Twofold, the first one is our gap analysis of all the baseline studies that were initiated some time ago by our predecessor. What we need to do is complete those by September of next year…to access the complete interview, click here

Disclaimer: Prophecy Development Corp. is an advertorial member of InvestorIntel Corp.




Prophecy Development’s Oosterman on becoming a major global supplier for vanadium

“We recently did a preliminary economic assessment on our Gibellini Project in Nevada, U.S.A and we had some key findings. Basically some of the numbers projecting over 13.5 year mine life. We anticipate an internal rate of return of 50.8%, a net present value of $338 million. This is using a base case price for vanadium of $12.73.” States Danniel Oosterman, Vice President of Exploration at Prophecy Development Corp. (TSX: PCY | OTCQX: PRPCF), in an interview with InvestorIntel Corp. CEO Tracy Weslosky.

Tracy Weslosky: You have had so much news recently, but I think one of the most significant pieces of news is your PEA results. Can you talk to us about that?

Danniel Oosterman: Absolutely. We recently did a preliminary economic assessment on our Gibellini Project in Nevada, U.S.A and we had some key findings. Basically some of the numbers projecting over 13.5 year mine life. We anticipate an internal rate of return of 50.8%, a net present value of $338 million. This is using a base case price for vanadium of $12.73. Today’s price of vanadium is $14.10. If you were to use today’s price for vanadium the internal rate of return actually goes up to 57% and the net present value goes up to $415 million. Keep in mind that our capex or capital expenditure to move the mine into production is only $117 million dollars. That is one-third of the NPV. There are not a lot of projects out there that can boast these sorts of numbers.

Tracy Weslosky: When I look at your market cap and I look at what you are supplying and all of the present geopolitical issues at the forefront, I would think that many smart investors that are interested in sustainability would be looking at Prophecy. 

Danniel Oosterman: Exactly. There are no primary vanadium producing mines in North America currently. We are the only project, not only in North America, but really in the world, that has a near-term production timeline. We are looking at production hopefully within 3 years. We already submitted our Plan of Operation to the Bureau of Land Management in the United States. This basically over time kicks off for us the permitting schedule for us. We anticipate to get 38 permits over the next 2 years. We are also submitting our Engineering Procurement and Construction Management, which is basically going to cost the entire project with a contract mining outfit over the next year.

Tracy Weslosky: I think you told me previously that 99% of all the vanadium is imported in the United States. When you are actually producing you will then be providing 3½% of the world’s supply. Did I read that correct?

Danniel Oosterman: That is correct. If you were to take out China as a player we would actually produce 15% of the world’s supply. That makes us a major supplier. We will be producing 9.7 million pounds of vanadium annually with this project…to access the complete interview, click here

Disclaimer: Prophecy Development Corp. is an advertorial member of InvestorIntel Corp.