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Prophecy Development Corp.
Summary
| Project: | Gibellini | |
|---|---|---|
| Deposit: | Gibellini | |
| Location: | United States | |
| Commodities: | Vanadium | |
| Date: | 5/29/2018 | |
| Report Code: | NI43-101 | |
| Report Type: | PEA | |
| Project Stage: | Pursuing Resource Increase/Upgrade | |
| Report details: | 29-5-2018: Prophecy Development Corp. announces a PEA report for its Gibellini deposit at the Gibellini project. PEA results incl. post-tax NPV of US $338.3M (7%), IRR of 50.8%, and 13.5yr LOM at the project. Vancouver, British Columbia, May 29, 2018 – Pr | |
| Resources: | (Resource, M+I): 22.95Mt @ 0.286% V2O5 for 131.34Mlbs V2O5 contained | |
| CP/QP: | [Resources]: Edward Orbock (Amec Foster Wheeler Plc) | |
| ABSTRACT: | Vancouver, British Columbia, May 29, 2018 – Prophecy Development Corp. (“Prophecy” or the “Company”) (TSX:PCY, OTCQX:PRPCF, Frankfurt:1P2N) is pleased to announce results of a positive preliminary economic assessment study (the “PEA”) for its Gibellini vanadium project, designed to be an open pit, heap leach operation in Nevada’s Battle Mountain region, about 25 miles south of the town of Eureka. The PEA reported an after tax cumulative cash flow of $601.5 million, an internal rate of return of 50.8%, a net present value of $338.3 million at a 7% discount rate and a 1.72 years payback on investment from start-up assuming an average vanadium pentoxide price (V2O5) of $12.73 per pound. As of May 29, 2018, the price of vanadium pentoxide is $14.20 per pound according to www.asianmetal.com. The PEA was prepared by Amec Foster Wheeler E&C Services Inc. ("AMEC"), part of the Wood Group of companies. All dollar values are expressed in US dollars unless otherwise noted. The PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Sensitivity Analysis The tables below show the sensitivity analysis to the vanadium pentoxide price, grade, and to the PEA capital cost and operating costs. This sensitivity analysis indicates strong project economics even in very challenging conditions, and that the project is well positioned to benefit from the current rising vanadium price environment. A 20% increase in the vanadium price relative to the base case translates to a $491.3 million after-tax NPV at a 7% discount rate. | |
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