DGAP-News: Prophecy Resource Corp.: Prophecy Resource Announces Coal Production Decision And Delivers Timeline For 2010.
(firmenpresse) - Prophecy Resource Corp. / Results Forecast/Development of Sales
11.05.2010 17:52
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PROPHECY CONTRACTS LEIGHTON FOR Q3 COAL PRODUCTION AT ULAAN OVOO, MONGOLIA.
Prophecy Resource Corp. (TSX.V: PCY; OTC: PCYRF; Frankfurt: 1P2) announced
today that it has entered into a Mine Services Agreement with Leighton Asia
Limited for the infrastructure establishment, equipment leasing, and mining
operation at the Ulaan Ovoo coal deposit in northern Mongolia.
Ulaan Ovoo site establishment will commence in July 2010 to ensure that the
commissioning of the 250,000 tonnes starter pit will take place as planned
as of August 2010 with 57,500 tonnes in the first month ramping up to
100,000 tonnes per month by December 2010. The initial equipment suite will
comprise one Caterpillar 385 excavator (85 tonne bucket capacity) and three
Caterpillar 773D (50 tonne) dump trucks.
Prophecy expects to incur total cash payments to Leighton of $3.8 million
for this contract in 2010. Prophecy currently has over $7.5million in cash
Leighton Asia Limited is a wholly owned subsidiary of the world's largest
contract miner, and Australia's largest project development and contracting
group, the Leighton Group. It is the operating entity for the Asia region
covering Hong Kong, Macau, Indochina, Indonesia, Philippines, Guam, China
and Mongolia.
Leighton Asia have been operating across Asia for 35 years in all facets of
mining including mine development, operation and management, resource
optimisation, mine planning, cost estimating, machine maintenance ,mine
infrastructure, crushing, processing and materials handling. Its strength
lies in the ability to develop competitive, innovative, practical solutions
for its clients.
2011 Target Mine Plan
In the second half of 2010, Leighton will undertake further mine planning
to extract 2.0 million tonnes of coal for calendar year 2011. The optimal
mining equipment suite will be configured based on the 2010 starter pit
experience and a detailed mine plan by Wardrop Engineering's Preliminary
Economic Assessment (PEA). Wardrop's PEA is expected in June 2010.
Amortisation of the capital outlay will be spread over a 6 year time window
and included in the delivered cost per ton. It is expected that the
increased production volume will cause a decrease in the total cash cost
per tonne by approximately 20%.
Close of 2% Ulaan Ovoo NSR
Prophecy is also pleased to have extinguished the 2% Net Smelter Return
(NSR) held by Dunview Services Limited, a private British Virgin Islands
company. Prophecy paid Dunview US$130,000 in cash and 2,000,000 Prophecy
shares, subject to a 4 months hold.
Ulaan Ovoo Mining License
The Mongolian government has granted the project a 30 year mining license
that can be extended by an additional 40 years. The project has met
Mongolian environmental approvals as per the Mongolian Ministry of Nature
and the Environment which approved a Detailed Environmental Impact
Assessment (DEIA) and Environmental Protection
Plan (EPP). As the last step to commence mining, Prophecy filed for its
Ulaan Ovoo operating permit in April including necessary license, mine
plan, and environmental approvals. Prophecy is advised by its Mongolia
counsel and the Minerals Resources and Petroleum Authority that current
minerals licenses and operating permits are not affected by the President's
recent order to freeze exploration license grants. The company expects to
obtain the permit by summer.
John Lee Chairman of Prophecy Resource Corp stated today that: 'Leighton
Asia is the world's premier contract miner and we look forward to a long
and fruitful partnership. We are moving at a rapid pace to commence coal
production from Ulaan Ovoo this year in a responsible manner. We are also
in excellent standing with the local and the national governments of
Mongolia. The company is pleased to contribute to the local economy by
supplying our coal to domestic coal-fired power plants and schools and
hospitals in need. '
The material in this news release has been reviewed and approved by Danniel
Oosterman P. Geo, a Prophecy geologist and also a Qualified Person as
defined by NI 43-101.
For more information about Prophecy, please contact Scott Parsons at
+1.604.642.2625 ext. 106 or John Lee at +1.800.851.1528 or visit our web
site at www.prophecyresource.com.
ON BEHALF OF THE BOARD OF DIRECTORS of
Prophecy Resource Corp.
'JOHN LEE'
John Lee
Chairman
About Ulaan Ovoo
Prophecy has 100% interest in the 208.8 million tonne Ulaan Ovoo project
that features Bituminous (5,204 kcal/kg), low ash (12.46%), low sulphur
(0.40%) thermal coal suitable for export markets. The deposit features
single massive coal seam 45-80 m thick with an average strip ratio of 2:1
and requires no washing for the first 50 million tonnes of production. The
project is located within 10 km of the Russian border, northern Mongolia
and is 120km (75 miles) east of the Central Mongolian Railroad linking the
project to the vast coal markets of Russia and Asia.
About Prophecy Prophecy controls over NI-43-101 compliant Measured and
Indicated mineral resources of 232 million pounds of nickel, 1 billion
tonnes of coal and 116 million pounds of copper as well as inferred
resources of 82 million pounds of nickel, 500 million tonnes of coal, and
593 million pounds of copper. The Company's Ulaan Ovoo Coal Project,
Mongolia is expected to be in production this year. Prophecy will hold
properties with significant exposure to vanadium and titanium. All
Prophecy's coal assets are located in Mongolia with its remaining assets
located in Canada. The Company is currently reviewing additional
opportunities for growth.
Prophecy Resource Corp.
John Lee - Chairman and CEO
For further information:
John Lee
Telephone 1.800.851.1528
Email: john(at)prophecyresource.com
www.prophecyresource.com
11.05.2010 17:52 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Datum: 11.05.2010 - 17:52 Uhr
Sprache: Deutsch
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