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Gibellini (Primary Vanadium)

0.5% vanadium doubles the strengths of steel.

Vanadium Steel Re-bar

Safeguard buildings from earthquakes and floods

Vanadium

Critical element for high tech and aerospace alloys.

Vanadium Batteries

Vanadium redox battery poised to be the leading choice for grid scale energy storage
Gibellini (Vanadium)
    Gibellini Project

    Related Documents

    pdf Gibellini Project Fact Sheet May 2019 (pdf)
    pdf November 2017 Gibellini Technical Report (pdf)
    pdf June 2018 Gibellini Preliminary Economic Assessment (pdf)

    Gibellini Project Highlights

    Gibellini Vanadium Project Timeline

    Gibellini Project Summary

    Gibellini Doposit Gibellini Vanadium Project, designed to be an open pit, heap leach operation in Nevada, USA – ranked #1 Mining Jurisdiction in the World, by Fraser Institute. The project is located about 25 miles south of the town of Eureka. Prophecy holds a 100% interest in the properties by way of a lease agreement and staked claims. The project consists of Gibellini and Louie Hill vanadium deposits, located in close proximity of each other.

    The project is currently undergoing EIS and EPCM preparation. Prophecy achieved a major permitting milestone by submitting its Management’s Plan of Operation (“MPO”) and associated baseline studies with the local office of the federal Bureau of Land Management (“BLM”) in May 9, 2018. Prophecy is currently working with the BLM to update all previous, and add all necessary, baseline studies. Upon acceptance of the baseline studies, MPO, and environmental report by the BLM, Prophecy expects to trigger a NOI in 2019 by the BLM, to prepare an environmental impact statement “EIS” for the Gibellini project.

    On August 15, 2018, the Company issued a request for proposal (the “RFP”) for EPCM from qualified bidders. The Company selected, in December 2018, M3 Engineering & Technology Corporation (“M3”) of Tucson, Arizona to provide engineering, procurement, construction and management services (EPCM) for its Gibellini Vanadium Project in response to its Request for Proposal. M3 was selected for its specific experience in heap leach engineering, and construction expertise in arid environments such as Nevada and Arizona.

    Gibellini Vanadium Project Timline


     

    The preliminary economic assessment “PEA” was completed on May 29, 2018 and reported an after tax cumulative cash flow of US$601.5 million, an internal rate of return of 50.8%, a net present value of US$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 April 3, 2019, the price of vanadium pentoxide is $15 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.

    The PEA Highlights

    Internal rate of return 50.8%
    Net present value (NPV) $338.3 million at 7% discount rate
    Payback period 1.72 years
    Average annual production 9.65 million lbs V2O5
    Average V2O5 selling price $12.73 per lb
    Operating cash cost $4.77 per lb V2O5
    All-in sustaining costs* $6.28 per lb V2O5
    Breakeven price** $7.76 per lb V2O5
    Initial capital cost including 25% contingency $116.76 million
    Average grade 0.26% V2O5
    Strip ratio 0.17 waste to leach material
    Mining operating rate 3.4 million tons (leach material and waste) per year
    Average V2O5 recovery through Direct Heap Leaching 62%
    Life of mine 13.5 years

    *includes selling costs, royalties, operating cash cost, reclamation, exploration and sustaining capital costs.
    **includes selling costs, royalties, operating cash costs, taxes (local, state, and federal), working capital, and sustaining & capital costs.

    Current NPV from Gibellini sensitivity analysis from company’s May 29th, 2018 PEA report

    Vanadium has been the best performing metal since 2016 and is currently trading at $15/lb up from 2016 low of $2.5/lb. The main driver for this has been new rebar standards set in place in China phasing out Grade 2 rebar and pushing for Grade 3 rebar (which requires 36 grams of vanadium to be added to 1,000 tons) across real estate and industrial applications. China mandated a minimum amount of vanadium to be added in all future rebar construction, as vanadium increases the tensile strength of steel. As a result, global demand for vanadium is expected to increase by 20% in the short term.

    3 Year Vanadium Pentoxide Price 98% min

    Historic and Projected Vanadium Demand and Supply

    Gibellini Project Near-Term Objectives

    • Submit our Notice of Intend for EIS in Q3 2019 to start the 12 months EIS process
    • Update all our engineering works (previous and current), and costs to produce an updated Feasibility Study in 2Q 2020
    • Optimize our current 98.5% Vanadium pentoxide (V2O5) to 99.5% – H1 2019
    • Test our exploration target in 2019 – 2020 over our 7km trend

    Permitting

    Prophecy achieved a major permitting milestone by submitting its Management’s Plan of Operation (“MPO”) and associated baseline studies to the local office of the BLM in May 9, 2018. Prophecy is currently working with the BLM to update all previous, and add all necessary, baseline studies. Upon acceptance of the baseline studies, MPO, and environmental report by the BLM, Prophecy expects to trigger a NOI in 2019 by the BLM, to prepare the EIS for the Gibellini project.

    In December 2017, vanadium was listed by the U.S. Geological Survey as one of 23 metals critical to the US economy despite there being no active primary vanadium mines in North America. As a result of direction from Secretary of the Interior Order No. 3355 (Streamlining National Environmental Policy Reviews and Implementation of Executive Order 13807), Prophecy anticipates the Gibellini EIS will not be more than 150 pages (excluding appendices) and the BLM to complete the Gibellini final EIS within 12 months from the issuance of the NOI. Should that occur, it means that permitting for the Gibellini project may be concluded in 2020.

    Engineering Procurement Construction Management (EPCM)

    On August 15, 2018, the Company issued a request for proposal (the “RFP”) for EPCM from qualified bidders. The Company selected, in December 2018, M3 Engineering & Technology Corporation (“M3”) of Tucson, Arizona to provide engineering, procurement, construction and management services (EPCM) for its Gibellini Vanadium Project in response to its Request for Proposal. M3 was selected for its specific experience in heap leach engineering, and construction expertise in arid environments such as Nevada and Arizona.

    The EPCM consists of three phases and Phase 1 of the EPCM, updating basic engineering design, is expected to be completed in2020; Phase 2, equipment procurement and detailed engineering design, to be completed in 2021; Phase 3, facilities construction, to be completed in 2022.

    To try to minimize technical and implementation risk, the Company is working closely with its chosen technology partner, NWME, to fine tune metallurgy, process design and engineering, and ensure maximum vanadium recovery and high-grade vanadium pentoxide commercial product on site. NWME owns and is currently operating the world’s largest black-shale vanadium mine in China with an environmentally friendly, hydrometallurgical leach processing technology without the need of a pre-roasting step.

    Offtake and Project Financing

    Prophecy has received unsolicited expressions of interest from various potential investment sources, and is currently engaged in discussions with potential cornerstone investors, vanadium product off-takers and banks on potential equity, debt and prepaid off-take financing possibilities. We expect to report material progress in due course.

    Gibellini Project Water and Power Supply

    On August 20, 2018, the Company secured water supply for the Gibellini Project construction and operation. The Company signed a 10-year Agreement with the owner of a private ranch, located approximately 14.5 km from the Gibellini Project. The Agreement can be extended for any number of additional 7-year terms, not to exceed (with the primary term) a total of 99 years.

    As per the terms of the Agreement, the lessor granted to Prophecy the rights to 805 acre-feet (approximately 262.4 million gallons) of water per year for the Gibellini Project, at a minimum flow rate of 500 gallons per minute (“gpm”) from its year-round springs surface water stream. The water flow rate was measured at the ranch springs in 1965, in 1981, from December 2011 to September 2013, and most recently, in 2017. The water flow rate ranges from 1,000 to 3,900 gpm with an average flow rate of 2,690 gpm, which exceeds the project’s maximum water operational requirement of 420 gpm based on the process engineering design prepared by Scotia International of Nevada, Inc. as a part of engineering, procurement, construction and management work done in 2014.

    The Gibellini Project completed water-related baseline studies including the drilling of water-test wells, water source data collection, characterization, flow rate testing and modeling. Due to the fact that the Agreement provides a source of water from surface springs located on a private ranch and baseline studies related to it have been completed, Prophecy expects to significantly expedite the permitting process by eliminating the need to appropriate water rights from the Nevada Division of Water Resources “DWR”.

    The power supply for the Gibellini Project site is assumed to be at 24.9 kV and supplied from a planned substation to be located near Fish Creek Ranch. This substation would tap and step-down the 69kV supply carried by the line to the Pan Mine to 24.9kV and place it on a line to the Gibellini Project. Negotiations with the power utility, Mt. Wheeler Power, would need to be undertaken to secure any future power supply contract and transmission line to the site.

    PEA

    On May 29, 2018, the Company received results of a PEA for the Gibellini Project. 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 of $12.73 per pound. As of April 3, 2019, the price of vanadium pentoxide is $14.9 per pound according to www.asianmetal.com. The PEA was prepared by Wood and is based on the NI 43-101 compliant resource calculations reported above.

    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 USD$491.3 million after-tax NPV at a 7% discount rate.

    V2O5 price
    change
    V2O5
    price $/lb
    After-tax
    IRR
    After-tax NPV
    $M @ 7%
    After-tax
    cashflow
    $M
    30% 16.55 69% 568.0 996.0
    20% 15.28 63% 491.3 864.4
    10% 14.00 57% 415.2 733.2
    Base price 12.73 51% 338.3 600.4
    -10% 11.46 44% 261.0 467.2
    -20% 10.18 36% 183.1 333.2
    -30% 8.91 26% 103.9 196.9

     

    V2O5 grade
    change
    V2O5
    grade
    After-tax
    IRR
    After-tax NPV
    $M @ 7%
    After-tax
    cashflow
    $M
    30% 0.34% 68% 554.4 972.8
    20% 0.31% 63% 482.4 849.0
    10% 0.28% 57% 410.7 725.4
    Base grade 0.26% 51% 338.3 600.4
    -10% 0.23% 44% 265.6 475.0
    -20% 0.21% 37% 192.2 348.9
    -30% 0.18% 28% 118.3 221.6

     

    Capex
    change
    Capex
    $M
    After-tax
    IRR
    After-tax NPV
    $M @ 7%
    After-tax
    cashflow
    $M
    30% 151.8 40% 307.2 564.3
    20% 140.1 43% 317.6 576.3
    10% 128.4 47% 328.0 588.4
    Base Capex 116.8 51% 338.3 600.4
    -10% 105.1 55% 348.6 612.5
    -20% 93.4 61% 358.9 624.6
    -30% 81.7 67% 369.3 636.8

     

    Opex
    change
    Opex
    $M
    After-tax
    IRR
    After-tax NPV
    $M @ 7%
    After-tax
    cashflow
    $M
    30% 6.20 45% 257.9 450.2
    20% 5.72 47% 284.8 500.3
    10% 5.25 49% 311.6 550.4
    Base Capex 4.77 51% 338.3 600.4
    -10% 4.29 53% 364.8 650.0
    -20% 3.82 55% 390.7 698.4
    -30% 3.34 56% 416.0 745.4

    Mining & Processing

    Mining at the Gibellini and Louie Hill projects is planned to be a conventional open pit mine utilizing a truck and shovel fleet comprised of 100-ton trucks and front end loaders. Average mine production during the 13.5 year mine life is 3.4 million tons of leach material (3 million tons) and waste (0.4 million tonnes) per year at a strip ratio of 0.17. Mining is to be completed through contract, with Prophecy’s mining staff overseeing the contracted mining operation and performing the mine engineering and survey work.

      Oxide
    ‘000 tons
    Transition
    ‘000 tons
    Reduced
    ‘000 tons
    Grade
    % V2O5
    Metal contained
    V2O5 (Mlb)
    Metal Produced
    V2O5 (Mlb)
    YR 1 2,600 400 0.291 17.440 10.633
    YR 2 2,400 600 0.278 16.690 10.480
    YR 3 1,760 1,240 0.310 18.580 12.067
    YR 4 650 2,350 0.372 22.320 15.217
    YR 5 310 2,680 10 0.366 21.950 15.185
    YR 6 2,240 750 10 0.315 18.920 11.928
    YR 7 3,000 0.316 18.980 11.394
    YR 8 1,910 700 380 0.189 11.310 7.085
    YR 9 690 1,220 1,090 0.216 12.940 8.023
    YR 10 110 370 2,520 0.208 12.480 6.898
    YR 11 450 360 2,180 0.182 10.910 6.103
    YR 12 50 140 2,820 0.166 9.980 5.349
    YR 13 390 10 2,600 0.183 10.970 5.839
    YR 14 1,710 0.195 6.670 4.096
    Totals: 18,290 10,830 11,590 0.258 210.15 130.297

     

    The processing method envisioned for the Gibellini Project will be to feed leach material from the mine via loader to a hopper that feeds the crushing plant. The leach material will then be fed to the agglomerator where sulfuric acid, flocculent and water will be added to achieve adequate agglomeration. The agglomerated leach material will be transported to a stacker on the leach pad, which will stack the material to a height of 15 feet. Once the material is stacked, solution will be added to the leach heap at a rate of 0.0025 gallons per minute per square foot. The solution will be collected in a pond and this pregnant leach solution will be sent to the process building for metal recovery where it will go through solvent extraction and stripping processes to produce the vanadium pentoxide.

    Vanadium Recoveries and Metallurgical Testing

    Approximately 130.3 million pounds of V2O5 is expected to be produced from Gibellini and Louie Hill leaching operations at an average recovery of 62% (oxide: 60%, transition: 70% and reduced: 52%). The heap leaching is performed at ambient temperature and atmospheric pressure without pre-roasting or other beneficiation process. The pregnant leach solution is continuously collected with leach material undergoing, on average, a 150-day heap-leaching cycle. Table 9 below summarizes the projected metallurgical recoveries used in the PEA for the three defined oxidation-type domains.

    Mill Feed Material Type Direct Leaching Recovery
    Oxide 60%
    Transition 70%
    Reduced 52%

     

    The direct heap leach vanadium recovery estimates used in the PEA were based on extensive metallurgical testing work performed by SGS Lakefield Research Laboratories, Dawson Minerals Laboratories, and McClelland Laboratories. Samples were selected from a range of depths within the deposit, representative of the various types and styles of mineralization. Samples were obtained to ensure that tests were performed on sufficient sample mass. The end results demonstrated low acid consumption (less than 100 lb acid consumption per ton leached) and high recovery through direct leaching. Notable test results included the following:

    Acid Heap Leach Testing of a Gibellini Bulk Sample, McClelland Laboratories, September 4, 2013

    A series of trenches were excavated and approximately 18 tons of material were sent to McClelland Laboratories for pilot testing. The material was air dried and stage crushed to 2” where a column sample was cut for 12” columns and then the leach material was crushed to – ½”. A head sample was taken and material for bench marking columns, and a bottle roll test was also taken. The results of the pilot plant testing are shown in Table 10:

    Crush Size 100% Passing Test Type Time (Days) Head Grade
    %V*
    % Vanadium
    Recovery
    Acid
    Consumption
    lbs/st
    50 mm (2”) Column, open circuit 123 0.299 76.6% 88
    12.5 mm (1/2”) Column, open circuit 123 0.313 80.2% 72
    12.5 mm (1/2”) Column, closed circuit 199 0.284 68.3% 84
    12.5 mm (1/2”) Column, closed circuit Column, closed circuit 0.313 74.0% 96
    12.5 mm (1/2”) Bottle Roll 4 0.286 67.1% 74
    1.7 mm (-10m) Bottle Roll 4 0.286 66.3% 66
    -75µ Bottle Roll 4 0.279 67.6% 62
    -75µ Bottle Roll 30 0.298 74.2% 54

    *to convert V to V2O5, multiply V by 1.7852.

    Solvent Extraction (SX) Test Work

    The design parameters from this test work are:

    • SX Extraction pH Range 1.8 to 2.0
    • Di-2-Ethyl Hexyl Phosphoric Acid Concentration 0.45 M (~17.3% by weight) Cytec
    • 923 Concentration 0.13 M (~5.4% by weight)
    • The Organic Diluent is Orform SX-12 (high purity kerosene)
    • SO2 addition of 1.0 to 1.5 g/l
    • Strip Solution Sulfuric Acid Concentration 225 to 250 g/l SX
    • Extraction Efficiency ~97%
    • SX Strip Efficiency ~98%

    Pilot Scale Solvent Extraction Testing on Vanadium Bearing Solutions from Two Gibellini Project Column Leach Tests, McClelland Laboratories, September 16, 2013

    Solvent extraction (“SX”) processing was conducted to recover vanadium from sulfuric acid pregnant leach solution (“PLS”) generated during pilot column testing on bulk leach samples from the Gibellini project. Laboratory scale testing was conducted on select solutions generated during the pilot SX processing, to optimize the SX processing conditions. Additional laboratory scale testing was conducted on the loaded strip solution generated during the pilot SX testing, to evaluate methods for upgrading and purifying it to levels that may be required for sale of a final vanadium bearing product.

    The final pregnant strip solution was 6.1% vanadium, 250 g/l sulfuric acid with approximately 2% Fe and Al. The solution was suitable for oxidation using sodium chlorate to convert the V+4 to V+5 which was then precipitated using ammonia to make ammonium metavanadate (“AMV”). To make a vanadium product for the steel industry, this AMV is calcined (ammonia driven off) and heated to above 700°C (the fusion temperature of V2O5). This fused V2O5 would then be cooled on a casting wheel, pulverized and packaged. Additionally, using ion exchange resins in conjunction with solvent extraction, strip solution was produced which met or exceeded specifications of electrolyte for vanadium flow batteries.

    In August of 2018, Prophecy received metallurgical results from its technology partner, NWME from samples collected during a site visit in March of 2018. Tests were performed at it’s laboratory testing facilities located in Xi’an, China. NWME utilized a SX processing method to recover vanadium from sulfuric acid PLS generated by bottle roll and column test acid leaching on Gibellini samples. The solution was reduced and then precipitated using ammonia to make AMV. The AMV was calcined and heated then cooled and pulverized. A vanadium pentoxide with 98.56 % purity content was produced. The assay for this work is shown below:

    V2O5 % SI % Fe % P % S % As % Na2O % K2O % Al % U %
    98.56 0.0078 0.88 0.058 0.47 0.0026 0.43 0.052 0.22 0.0001

     

    Uranium content is less than 0.0001% which does not affect the marketability of the product.

    The PLS was produced with very low deleterious elements which enabled using an efficient SX process. The PLS V2O5 concentration was 1.15 gram per liter and the Pregnant Strip Solution V2O5 concentration was 39.61 grams per liter.

    Capital and Operating Costs

    The projected capital costs for the Gibellini vanadium project over a 1 ½ year construction period and mine life average operating costs are summarized in Tables 11 and 12 below. The capital cost includes 25% contingency or USD23.4 million.

    Capital Costs

    Cost Description Total(US$000s)
    Open Pit Mine
    Open pit mine development 1,412
    Gibellini incremental WRSF 212
    Mobile equipment 111
    Infrastructure-On Site
    Site prep 2,431
    Roads 1,391
    Water supply 2,007
    Sanitary system 61
    Electrical – on site 2,052
    Communications 165
    Contact water ponds 174
    Non-process facilities – buildings 7,583
    Process Facilities
    Mill feed handling 15,380
    Heap leach system 20,037
    Process plant 14,441
    Off-Site Infrastructure
    Water system 4,495
    Electrical supply system 3,227
    First fills 860
    Subtotal Total Direct Cost 76,039
    Construction indirect costs 4,254
    Sales tax / OH&P 4,236
    EPCM 8,879
    Total Before Contingency 93,409
    Contingency (25%) 23,352
    Total Project Cost 116,761

    Operating Costs

    Total Cash Operating Cost $ per Ton
    Leached
    $ per lb of
    V2O5
    Produced
    G&A 0.99 0.31
    Mining Cost 2.72 0.85
    Total Processing Cost 11.54 3.61
    Total 15.26 4.77

     

    The cash operating costs in the first half of the project covering years 1-7 is $3.59 per lb of V2O5 produced and for the years 8-14 is $7.12 per lb of V2O5 produced, resulting in the weighted average cash cost of $4.77 per lb of V2O5 produced. The cash operating cost is lower in the first half of the project due to processing higher grade material.

    About AMEC

    AMEC is a part of Wood Group, a global leader in the delivery of project, engineering and technical services to energy and industrial markets. Wood Group operates in more than 60 countries, employing around 55,000 people, with revenues of over $10 billion. Wood Group provides performance-driven solutions throughout the asset life cycle, from concept to decommissioning across a broad range of industrial markets including upstream, midstream and downstream oil & gas, chemicals, environment and infrastructure, power & process, clean energy, mining, nuclear and general industrial sectors.

    Videos and Maps


    Gibellini & Vanadium Introduction 5min
    Non-YouTube

    Vanadium – Gibellini Heap Leach Animation
    Non-YouTube

    Vanadium – Gibellini Advancing To Development
    Non-YouTube

    Vanadium – Gibellini Aerial Looking Eastward
    Non-YouTube

    Vanadium – Gibellini Aerial Northward
    Non-YouTube

    Vanadium – Gibellini Aerial Looking North-East
    Non-YouTube

    Vanadium – Hight Grade Gibellini Alteration
    Non-YouTube

    Vanadium – Gibellini Trenching
    Non-YouTube

    Vanadium – Gibellini overlooking Louie Hill
    Non-YouTube

    Vanadium – Surface Exposure
    Non-YouTube

    Vanadium – Zoom to Gibellini
    Non-YouTube

    Vanadium – Gibellini Skyline
    Non-YouTube

     

    Gibellini Project, Prophecy Property Map 1
    April 30, 2018
    Gibellini Project, Prophecy Property Map 1
    Gibellini Project, Prophecy Property Map 2
    April 30, 2018
    Gibellini Project, Prophecy Property Map 2
    Gibellini Project, 2018 Drilling Plan
    April 30, 2018
    Gibellini Project, 2018 Drilling Plan
    Gibellini Project, 2018 Drillin Plan Section 1
    April 30, 2018
    Gibellini Project, 2018 Drillin Plan Section 1
    Gibellini Project, 2018 Drillin Plan Section 1
    April 30, 2018
    Gibellini Project, 2018 Drillin Plan Section 2
    Gibellini Project, 2018 Drillin Plan Section 3
    April 30, 2018
    Gibellini Project, 2018 Drillin Plan Section 3

     

    Cautionary Note Regarding Forward-Looking Statements

    *1. The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM SME, a Wood employee.The Mineral Resources have an effective date of 29 May, 2018.
    2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
    3. Mineral Resources are reported at various cut-off grades for oxide, transition, and reduced material.
    4. Mineral Resources are reported within a conceptual pit shell that uses the following assumptions: Mineral Resource V2O5 price: $14.64/lb; mining cost: $2.21/ton mined; process cost: $13.62/ton; general and administrative (G&A) cost: $0.99/ton processed; metallurgical recovery assumptions of 60% for oxide material, 70% for transition material and 52% for reduced material; tonnage factors of 16.86 ft3/ton for oxide material, 16.35 ft3/ton for transition material and 14.18 ft3/ton for reduced material; royalty: 2.5% net smelter return (NSR); shipping and conversion costs: $0.37/lb. An overall 40º pit slope angle assumption was used.
    5. Rounding as required by reporting guidelines may result in apparent summation differences between tons, grade and contained metal content. Tonnage and grade measurements are in US units. Grades are reported in percentages.


    Forward-looking statements on this page relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the PEA representing a viable development option for the project; (ii) construction of a mine at the project and related actions; (iii) estimates of the capital costs of constructing mine facilities and bringing a mine into production, of sustaining capital and the duration of financing payback periods; (iv) the estimated amount of future production, both produced and metal recovered; and (vi) life of mine estimates and estimates of operating costs and total costs, cash flow, net present value and economic returns including internal rate of return estimates from an operating mine constructed at the project. All forward-looking statements are based on Prophecy’s or its consultants’ current beliefs as well as various assumptions made by them and information currently available to them. The most significant assumptions are set forth above, but generally these assumptions include: (i) the presence of and continuity of vanadium mineralization at the project at estimated grades; (ii) the geotechnical and metallurgical characteristics of rock conforming to sampled results; (iii) infrastructure construction costs and schedule; (iv) the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times; (v) currency exchange rates; (vi) vanadium sale prices; (vii) appropriate discount rates applied to the cash flows in the economic analysis; (viii) tax rates applicable to the proposed mining operation; (ix) the availability of acceptable financing on reasonable terms; (x) projected recovery rates and use of a process method, that although well-known and proven on other commodity types like copper, has not been previously brought into production for a vanadium project; (xi) reasonable contingency requirements; (xii) success in realizing proposed operations; and (xiii) assumptions that project environmental approval and permitting will be forthcoming from county, state and federal authorities. The economic analysis is partly based on 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 based on these Mineral Resources will be realized. Currently there are no Mineral Reserves on the Gibellini property. Although the Company’s management and its consultants consider these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward-looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.


    These factors should be considered carefully, and readers should not place undue reliance on Prophecy’s or its consultant’s forward-looking statements. Prophecy or its consultants believe 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 and its consultants have 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 or its consultants undertake no obligation to release publicly any future revisions to forward-looking statements to reflect events or circumstances after the date of this news or to reflect the occurrence of unanticipated events, except as expressly required by law.