TSX-V: PCY
OTC: PCYRF
Frankfurt: 3P1
VANCOUVER, March 11 /CNW/ - Prophecy Resource Corp. (TSX.V: PCY; OTC: PCYRF; Frankfurt: 3P1) (the "Company" or "Prophecy") has received an updated Technical Report on its 80% owned Titan-Vanadium Property (the "Property") located at Flett and Angus Townships, 120 kilometres northeast of Sudbury, Ontario
The Property is estimated to contain an inferred resource of 49.0 million tonnes at 0.24% vanadium (0.43% vanadium pentoxide), 14.82% titanium dioxide, and 48.09% iron oxide. The estimate uses a 40% Fe2O3 cutoff grade. The results of the independent resource estimate are summarized in the following Table:
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Mineral Resource Estimate for Titan (at a cut-off of 40% Fe2O3)
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Resource Tonnes V Grade TiO2 Grade V Contained* TiO2 Contained*
Category (millions) (%) (%) Lbs Tonnes
Inferred 49.0 0.24 14.82 259,174,729 7,259,310
* Metal recoveries were assumed to be 100% for both vanadium and
titanium oxide.
The updated report was completed by Mine Development Associates ("MDA") on February 26, 2010, was prepared in accordance with National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects and provides as update at to ownership of a report completed by MDA for Randsburg International Gold Corp. in 2006 and revised in February, 2007. The resource estimate at Titan is based on 38 drill holes completed between 2004 and 2006, totaling 10,307 metres, that were drilled to depths between 170 metres and 604 metres on a 50 metre grid.
The Titan-Vanadium Property comprises 2,150 hectares and is located within 2.5 kilometres of a high-voltage transmission line and within 8 kilometres of a railroad. Titan-Vanadium is amenable to open pit mining and has an overburden cover between zero and approximately 1.5 metres.
The Titan-Vanadium deposit has the potential to become an important world vanadium supplier. Vanadium constitutes the next wave of car battery technology and is currently valued at approximately USD $29/kg (USD $13/lb).
Mineral resources which are not mineral reserves have not demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
The material in this news release has been reviewed and approved by Danniel J. Oosterman P. Geo, exploration manager of Prophecy and also a Qualified Person as defined by NI 43-101.
About Prophecy Resource Corp.
Prophecy is a Canadian company focused on the acquisition of advanced mineral assets. On March 4 2010, Prophecy signed definitive agreement to combine with Red Hill Energy (TSX-V: RH), which controls over 1.5 billion tons of thermal coal resource in Mongolia.
On October 21 2009, Prophecy entered into an agreement to acquire 100% of Lynn Lake from Victory Nickel Inc. The project is located in the Lynn Lake Nickel Camp, northern, Manitoba approximately 320 km by road northwest of the Thompson mining camp. Historically, Lynn Lake is the third largest nickel producing region in Canada offering excellent mining infrastructure. On January 12, 2010, Prophecy consolidated the Lynn Lake Nickel camp by acquiring 5 additional Nickel Gabbros from VMS Ventures Inc.
Prophecy on January 14 2010 acquired 80% of a Titan-Vanadium project in Ontario where, in February 2010, Neil Prenn, P.Eng, completed a technical report on the Titan-Vanadium Property pursuant to NI 43-101 that estimated an inferred mineral resource of 49 million tonnes grading 0.24% vanadium (0.43% vanadium pentoxide), 14.82% titanium oxide, and 48.09 iron oxide at a 40% iron oxide cut-off grade.. The mineralization started from surface to an open vertical depth of 500 meters. The complete horizontal and vertical extent of the deposit is still to be determined. This report is available at www.sedar.com.
Prophecy also holds a 60% interest in the Okeover Copper-Molybdenum property in B.C. where, in 2006, Dr. N.C. Carter, PhD, P.Eng, completed a technical report on the Okeover Property pursuant to NI 43-101 that estimated an inferred mineral resource of 86.8 million tons grading 0.31% copper and 0.014% MoS2 at a 0.20% copper cut-off grade. This report is available at www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS of
Prophecy Resource Corp.
"JOHN LEE"
John Lee
Chairman
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