Prophecy Development Corp.: Prophecy Provides Pulacayo Project Update
VANCOUVER, BC / ACCESSWIRE / May 18, 2017 / Prophecy Development Corp. ("Prophecy" or the "Company") (TSX: PCY, OTC PINK: PRPCF, Frankfurt: 1P2N) is pleased to announce that it has finalized detailed internal mine plans for the Paca project, initially targeting nearsurface mineralization with a low mining strip ratio. In addition, the Company has executed agreements regarding the sourcing of skilled workers through the local Pulacayo cooperatives for future mining operations at the Pulacayo and Paca projects.
Further to the Company's news release dated December 2, 2016, Prophecy has renewed the letter of intent (LOI) to lease mining equipment from Oroscons S.R.L. Under the updated LOI which expires June 30, 2017, Oroscons agrees to provide Prophecy through lease, a mining and transportation fleet that would enable open-pit mining of the Paca deposit at a minimum rate of 200 tonnes of ore per day.
Further to the Company's news release dated December 14, 2016, Prophecy is negotiating with a number of vendors that provide dedicated toll milling services at their ore processing facilities located in Potosi, which is a 2.5 hour drive by car, on paved road from Pulacayo. The toll milling services would entail the processing of mined materials to be supplied by the Company, utilizing conventional crushing, grinding and flotation technology to produce zinc-silver and lead-silver concentrates. Given the low rates of capacity utilization of a great number of ore processing facilities (>50) in Potosi, the Company is confident it can finalize a new toll milling agreement at lower cost than the one signed last December.
Prophecy continues discussions with a number of large trading and smelting companies that are interested in purchasing future zinc-silver and lead-silver concentrates processed from Pulacayo and Paca mined materials and providing Prophecy with advance payment against future concentrate delivery to finance Paca to production. The most recent trial test runs at two concentrate-buyer designated processing facilities demonstrated high rates of silver recoveries (>85%) from Paca bulk sampling. Prophecy is further encouraged by an improved concentrate purchase term-sheet received from a major trader in May with significantly lower processing charges, consistent with industry trends.
Please refer to the Company's June 18, 2015 and September 21, 2015 news releases for details regarding the amount and grade of resources for the Pulacayo and Paca deposits.
Lastly, the Company's Bolivian subsidiary, ASC Bolivia LDC Sucursal Bolivia, has invested approximately US$28 million at Pulacayo and already acquired necessary environmental and social licenses to mine at Pulacayo. The Company is working with the Bolivian mining ministry and Corporacion Minera De Bolivia (COMIBOL) (which is under internal restructuring with a newly-appointed COMIBOL President) to obtain authorization for mining. The Company is confident that all key pre-requisites (community and ministerial support, mining equipment, mine plan, toll milling, concentrate off take and project financing through advance concentrate sales payments) are or will be in place for rapid mobilization to bring Paca and Pulacayo to production as soon as authorization is obtained.
In March, Prophecy partially sponsored a Bolivian delegation headed by the Bolivian Minister of Mining and Metallurgy to attend the Prospectors & Developers Association of Canada (PDAC) mining conference in Toronto, Canada. The event successfully brought new Canadian investors to Bolivia.
The Company will provide further update on project progress in due course.
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.
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