Prophecy Reports Measured 524.3 Mt and Indicated 545.7 Mt Coal Resources at Chandgana Khavtgai, Mongolia
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/16/10 -- Prophecy Resource Corp. ('Prophecy' or the 'Company') (TSX VENTURE: PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) reports today that the Measured and Indicated coal mineral resources within its Chandgana Khavtgai ('Khavtgai') coal project located in east central Mongolia exceeds one billion tonnes of coal.
The resource estimate is based on information from exploration programs completed in 2007 and this year. This year's program included 13 drill holes totaling 2,250 metres of infill drilling, 8 seismic geophysical lines totaling 11.3 km, and total magnetic field mapping of 5.1 sq km. A total of 274 core samples were obtained for analysis.
The exploration program confirmed the continuation of the major coal seam (averaging 37.7 metres) at Khavtgai. Further, the exploration program has increased the confidence in the previously defined Inferred portion of the Khavtgai Project's coal resource in to Indicated and Measured mineral resources. Khavtgai is estimated to contain a Measured and Indicated coal resource of 1.070 billion tonnes of which 524.3 million tonnes (49%) is in the Measured category and 545.7 million tonnes (51%) is in the Indicated category.
The Khavtgai coal project and neighboring Chandgana Tal (Tal) coal project, both 100% owned by Prophecy, are approximately 9 km apart. Analytical results of the core samples confirm the coal has desirable thermal coal characteristics including low ash, low sulfur content and moderate heating value. The average in-place coal quality for Khavtgai has ash (air dried) 12.66, sulfur (air dried) 0.72, and gross calorific value (air dried) 4,354 kcal/kg (7,837 Btu/lb). By comparison the average in-place coal quality for Chandgana Tal has ash (air dried) 12.49, sulfur (air dried) 0.68, and gross calorific value (air dried) 4,238 kcal/kg (7,628 Btu/lb).
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Measured Indicated Heating Value Ash Sulfur Strip Thickness
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Khavtgai 524.3mt 545.7mt 4,354 kcal/kg 12.66% 0.72% 1.9:1 37.7 m
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Tal 141.3mt 4,238 kcal/kg 12.49% 0.68% 0.53:1 45.4 m
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Total 665.6mt 545.7mt
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The combined resource estimates for the Chandgana projects total 1,211.3 million tonnes of Measured and Indicated mineral resources of thermal coal. Both projects have low stripping ratios, 0.53:1 in the case of Tal and 1.9:1 in the case of Khavtgai with respective average coal seam thicknesses of 45.4 and 37.7 metres.
The projects are adjacent to a 45kv electrical distribution line and within 150km from a 2x220kv electrical transmission line. Prophecy has received a mining license for Tal and intends to convert Khavtgai's exploration license to a mining license in 2011.
The Tal starter pit is well suited for a mine mouth power plant with extremely low strip ratio with Khavtgai to supplement mine production in later years. The projects are next to a paved road and within 160 km of the Central Mongolian Railroad, which can facilitate transport of construction equipment. The company intends to commission a mine feasibility study on Chandgana Tal and is conducting multiple site visits with power plant engineers from multinational companies. Prophecy would like to caution that discussion of power plants is preliminary and there is no assurance of project feasibility.
The updated NI 43-101 resource report incorporating the final resource estimate and coal quality information at Khavtgai will be filed within 45 days on www.sedar.com. This news release has been reviewed and approved by Christopher M. Kravits, PGeo who is a Qualified Person as defined in NI 43-101. Mr. Kravits has 34 years of US and international relevant coal geology experience. He has been active in Mongolia since 2007.
Visit our website at www.prophecyresource.com for detailed drill map.
About Prophecy
Prophecy Resource Corporation is an internationally diversified company engaged in developing energy, nickel and platinum group metals projects. The company controls over 1.4 billion tons of open-pittable thermal coal in Mongolia (839 Mt Measured, 579 Mt Indicated). In Canada Prophecy owns Lynn Lake Nickel Project, a 10% equity stake in Victory Nickel and agreed to merge with Northern Platinum (TSX-V: NTH) on June 15, 2010. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
ON BEHALF OF THE BOARD OF DIRECTORS of
Prophecy Resource Corp.
John Lee, Chairman
This news release does not constitute an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended ('the U.S. Securities Act') or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
'Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.'
Contacts:
Prophecy Resource Corp.
Paul McKenzie
+1.604.642.2625 ext. 107
Prophecy Resource Corp.
John Lee
+1.604.642.2625 ext. 107 or +1.800.851.1528
john@prophecyresource.com
www.prophecyresource.com