Titan (Titanium Vanadium)

    Location and Ownership

    In January 2010, Prophecy Resource Corp. (now Prophecy Development) entered into an option agreement with Randsburg International Gold Corp., whereby Prophecy assumed an 80% interest in the Titan Vanadium-Titanium-Iron.  The Titan project is located in eastern Ontario, approximately 120 km east-northeast of Sudbury.  Straddling the boundary between Angus and Flett townships, the property features proximity to excellent infrastructure. The main line of the Ontario Northland Railway crosses the property through the Bushnell flag station, about five miles southwest of the mineralized area. Highway 11, a main provincial highway linking northern and southern Ontario, is just 18 km west of Titan.  A major high voltage transmission line (about 230-kv) runs approximately 2.5km east of the property and the Northern Ontario Natural Gas pipeline lies approximately 25km west of the property.

    There is a large work force available in the region and the property is very close to major North American markets for iron and titanium.

    The Titan property consists of 1,052 contiguous hectares (2,600 acres) comprising 17 patented claims and 3 mining claims.

    Geology and Mineralization

    Titan is located at the extreme northeast end of the Fall Lake intrusive and is delineated by very high magnetic susceptibility. The airborne magnetic signature shows a sub-circular surface expression that is 1,200 by 800 metres in area. The mineralization is known to be located in the northern portion of the magnetic anomaly, and has a steep plunge towards the south-southeast.

    Magnetic Map of Titan
    Click to enlarge

    The Titan mineralization was formed by hydrothermal alteration of an intrusive mafic-ultramafic rock complex that is a younger part of the Grenville Metamorphic Terrane. The host rock is a fine-grained olivine gabbro, with possible troctolitic overtones. Magnetite, ilmenite and a vanadium mineral, make up most of the economic minerals that are present in the mineralized system. There is also potential for the occurrence of platinum group metals along the margins of the mafic and ultramafic intrusives in the Angus and Flett townships, based on the slightly anomalous values for platinum, palladium and gold that have been returned in assays.

    Exploration Findings

    • The magnetite-ilmenite mineralization is present as a body that plunges steeply towards the southeast. Its characteristics south of 5190100N are little known, due to somewhat widespread wet ground. Relatively strong magnetism extends southeasterly.
    • Titanium and Vanadium are present in the intrusive complex away from the areas of pronounced magnetite content, although in lower amounts.
    • Susceptibility and assay data are, generally, in direct correlation.
    • At present, the mineralization is open, in part, towards the east, west, south and to depth.

    The Titan deposit is located at the northern end of an aeromagnetic anomaly that is approximately 1, 200 by 800 metres in area. Magnetite, ilmenite, titanium dioxide, and vanadium mineralization occurs in a southeast-plunging body in gabbro to leucotroctolite, in the northeastern corner of the Fall Lake complex.

    A total of 4,898 assay intervals have been recorded from 38 core holes drilled by Randsburg. Highlights of these drilling efforts included 142 meters of 0.27% Vanadium (0.48% Vanadium Pentoxide) from Hole RA-5-21 and 174 meters of 0.26% Vanadium (0.46% Vanadium Pentoxide) from Hole RA-5-10. Mineralization starts from the surface to an open vertical depth of 500 meters.

    An updated Technical Report prepared by Mines Development Associates for Randsburg, dated February 26, 2010, calculated a National Instrument 43-101 compliant Inferred resource for the Titan project. This Technical Report, which includes comprehensive mineralization tables, information on the geology at Titan and full assay results can be accessed here.

    History

    Titaniferous magnetite mineralization associated with the mafic and ultramafic rocks of this part of Ontario, was identified in the 1890s and mapped in the 1930s. Hurst (1932) mapped and described what is now called the Titan magnetite occurrence (formerly the O’Connor occurrence) noting that the deposit had not been developed because of a lack of demand for iron ore containing titanium. From the 1930s through the early 1970s, there was exploration in the region seeking iron and titanium.

    Exploration activity specifically directed at what is now the Titan property dates from 1942, when Titan Iron Mines Limited (“Titan Iron”) conducted trenching, surface pitting, and sampling. However, at that time, the presence of titanium was a detriment to the potential value of the iron mineralization. In 1947, Titan Iron refurbished and extended the old trenches and drilled 11 diamond drill core holes. In 1948, 120 samples collected from the trenches were analyzed for titanium and iron by the Ontario Department of Mines and Swastika Laboratories. By 1953, Titan Iron had ceased exploration on the property, although tax payments were made to maintain the property in good standing. In that same year, samples were submitted to the Cranmet Corporation in Chicago.  Analysis concluded that the ore is mainly a mixture of magnetite and ilmenite, with only about 5% as spinel-type intergrowths of magnetite and ilmenite, which seemed favorable for separation (Bayne, 1967b).

    In 1964, the property was sampled by Watts, Griffiths and McOuat Ltd. for Southfield Mines Limited (Docherty and Germundson, 2006; Bayne, 1967b). In 1966, Lockwood Survey Corporation Ltd. (“Lockwood”) flew an airborne magnetic survey over the area for Titan Iron. A. S. Bayne prepared a report, in 1967, for use in seeking capital to develop the Titan property. Lake Ontario Steel Company Ltd. optioned the property from Titan Iron in July 1968, and conducted a ground magnetic survey (Mead, 1969).

    Between 1973 and 1996, Flett and Angus were among a number of townships withdrawn from mineral staking and exploration activities due to the Temagami Land Caution. However, according to Easton (2002), Candol Developments Ltd. undertook a bulk sampling program that included the O’Connor magnetite occurrence (now Titan) in 1988; no results were available to MDA.
    Mineral resources that are not mineral reserves do not have demonstrated economic viability. Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this website.

    Qualified Person under NI 43-101

    Christopher M. Kravits P.Geo., a consultant of the Company is the qualified persons responsible for the technical information on this website.

    Highlights

    • Deposit is in Ontario, Canada, between Angus and Flett townships, with access to excellent infrastructure
    • 142 metres of 0.27% Vanadium (0.48% Vanadium Pentoxide) from Hole RA-5-21 and 174 metres of 0.26% Vanadium (0.46% Vanadium Pentoxide) from Hole RA-5-10. Mineralization starts from the surface to an open vertical depth of 500 meters. The complete horizontal and vertical extent of the deposit is still to be determined.
    • Features aeromagnetic anomaly approximately 1,200 X 800 metres in area

    NI 43-101 Resources

    Based on resource estimated at cutoff grade of 40% Fe2O3.

    Tonnes (t) Fe2O3 V (%) TiO2 (%)
    Inferred 49.0 Million 48.1 % 0.24 % 15.82 %

    Based on resource estimated at cutoff grade of 40% Fe2O3.

    Metal Inferred
    Vanadium 259 Million lbs
    Titanium Dioxide 7,259 Million kgs

    Based on resource estimated at cutoff grade of 40% Fe2O3. Titan resource estimate is based on the February 2010 NI 43-101 Technical Report by Mine Development Associates. The report is authored by Neil Prenn, P. Eng, who is an independent Qualified Person under NI 43-101. Titan is 80% owned by Prophecy Development.

    Next Steps

    • Survey drill holes and project area to obtain more accurate drill hole coordinates and site topography
    • Commission the metallurgy testing in preparation for a preliminary assessment of the Titan Project

    Technical Report

    Table of Drill Logs

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    Numerous factors could cause Prophecy’s actual results to differ materially from those expressed or implied in the forward looking statements, including the following risks and uncertainties, which are discussed in greater detail under the heading “Risk Factors” in Prophecy’s most recent Management Discussion and Analysis and Annual Information Form as filed on SEDAR and posted on Prophecy’s website: Prophecy’s history of net losses and lack of foreseeable cash flow; exploration, development and production risks, including risks related to the development of Prophecy’s Ulaan Ovoo coal property; Prophecy not having a history of profitable mineral production; the uncertainty of mineral resource and mineral reserve estimates; the capital and operating costs required to bring Prophecy’s projects into production and the resulting economic returns from its projects; foreign operations and political conditions, including the legal and political risks of operating in Mongolia, which is a developing jurisdiction; title to Prophecy’s mineral properties; environmental risks; the competitive nature of the mining business; lack of infrastructure; Prophecy’s reliance on key personnel; uninsured risks; commodity price fluctuations; reliance on contractors; Prophecy’s minority interest in Prophecy Platinum Ltd.; Prophecy’s need for substantial additional funding and the risk of not securing such funding on reasonable terms or at all; foreign exchange risks; anti-corruption legislation; recent global financial conditions; the payment of dividends; and conflicts of interest.

    These factors should be considered carefully, and readers should not place undue reliance on the Prophecy’s forward-looking statements. Prophecy believes that the expectations reflected in the forward-looking statements contained on this page and the documents incorporated by reference herein are reasonable, but no assurance can be given that these expectations will prove to be correct. In addition, although Prophecy has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Prophecy undertakes no obligation to release publicly any future revisions to forward-looking statements to reflect events or circumstances after the date when information on this page is published or to reflect the occurrence of unanticipated events, except as expressly required by law.