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Prophecy Development Corp (2)
Symbol PCY
Shares Issued 109,341,127
Close 2019-09-30 C$ 0.395
Recent Sedar Documents

Prophecy Development begins drilling at Pulacayo

2019-09-30 10:53 ET - News Release

Mr. Michael Doolin reports

PROPHECY COMMENCED DRILLING AT PULACAYO PACA SILVER PROJECT

Prophecy Development Corp. has begun a 5,000-metre diamond drilling program at its Pulacayo Paca silver-zinc-lead deposit in Bolivia, with the first set of assay results expected in early November, 2019.

Michael Doolin, chief executive officer of Prophecy, states: "We are very excited to restart the development of our 100-per-cent-controlled Pulacayo-Paca silver deposits in the prolific silver-mining Potosi department in Bolivia. Pulacayo is a large system in a well-known silver district that is ripe for additional discoveries."

Phase 1 drilling will comprise surface drilling to expand the National Instrument 43-101-compliant Paca resource (see company press release dated Nov. 22, 2017) in the northern and eastern directions where previous drill holes encountered high-grade surface intercepts, including PND-062, which included 42 metres of 406 grams per tonne (g/t) silver (Ag) located on the edge of the resource envelope. The company will also evaluate upgrading the Paca resource from an inferred category to measured and indicated categories through infill drilling. Some of the high-grade zone extensions being explored are shown in an attached table.

Hole No.    From     To  Interval     Ag     Pb   Zn
              (m)    (m)       (m)  (g/t)    (%)  (%)

PND008      18.0   33.5      15.5    314    1.0  0.4 
PND029      12.0   22.3      10.3    436    0.0  0.0 
PND062      10.0   52.0      42.0    406    0.8  0.1 
ESM2         0.0   38.0      38.0    411    1.4  1.2

About Paca deposit

The Paca deposit is located in southwestern Bolivia approximately seven kilometres (km) north of the Pulacayo deposit approximately 20 kilometres from the town of Uyuni by paved highway. Water, local skilled work force and power are readily available on site.

The 2017 mineral resource estimate prepared by Mercator for the Paca deposit outlined an inferred resource of 2.54 million tonnes at a weighted average grade of 256 g/t Ag, 1.03 per cent lead (Pb) and 1.10 per cent zinc (Zn) (342 g/t silver equivalent (AgEq)) (from technical report effective Oct. 20, 2017, available on SEDAR). The contained metal content estimated by the company of the inferred category resources is 20.9 million ounces of silver, 57.7 million pounds of lead and 61.6 million pounds of zinc.

The geology of the Paca deposit includes a core zone of feeder-style mineralization associated predominantly with brecciated andesite, plus additional zones of shallowly dipping mantos-style mineralization that are hosted by the surrounding volcano-sedimentary sequence. The Paca deposit remains open at depth and along strike.

The Paca mineralization starts from surface and the deposit may be amenable to open-pit mining which will be evaluated in the future.

Phase 2 drilling

Phase 2 Pulacayo surface drilling is scheduled to commence in November, 2019. The plan is to expand the Pulacayo resource base along strike from one km to three km and at depth from 300 metres (m) to 600 m. There will also be infill drilling to confirm the geological model and test continuity of shallow high-grade indicated resource blocks that are near the San Leon tunnel and accessible through the existing adit. Some of the high-grade zone extensions being explored are shown in an attached table.

Hole No.     From       To  Interval       Ag     Pb   Zn   Distance from adit
               (m)      (m)       (m)    (g/t)    (%)  (%)                  (m)

PUD005       96.2    108.0      11.9      689    1.9  1.4                 67.5                 
PUD007       70.0     96.8      26.8      517    2.3  4.2                 44.5                 
PUD057      374.0    378.0       4.0    1,184    0.8  2.3                137.5                
PUD069      281.0    294.0      13.0      624    2.1  4.2                 46.0                 
PUD109      293.6    298.4       4.8    3,607    3.8  4.1                 30.4                 
PUD118      174.0    184.0      10.0    1,248    1.7  2.6                 93.9                 
PUD134      128.2    151.5      23.3      514    1.3  1.9                 55.7                 
PUD150      290.0    302.0      11.2      882    0.4  0.6                 75.2                 
PUD159      343.0    354.0      11.0      790    0.6  0.6                116.6                
PUD170      237.0    239.0       2.0    3,163    0.1  0.9                 32.5

About Pulacayo deposit

A 2017 mineral resource estimate prepared by Mercator for the Pulacayo deposit, based on 400 AgEq cut-off, outlined 2.08 million tonnes at a weighted average grade of 455 g/t Ag, 2.18 per cent Pb and 3.19 per cent Zn (594 g/t AgEq) in the indicated category and 480,000 tonnes at a weighted average grade of 406 g/t Ag, 2.08 per cent Pb and 3.93 per cent Zn (572 g/t AgEq) in the inferred category (from technical report effective Oct. 20, 2017, available on SEDAR).

Based on the resource statement, the contained metal content of the indicated resources are 30.4 million ounces of silver, 100.0 million pounds of lead and 146.3 million pounds of zinc. The contained metal content of the inferred category resources is 6.3 million ounces of silver, 22.0 million pounds of lead and 41.6 million pounds of zinc.

The Mercator study superceded the previous 2013 feasibility study by TWP Sud America that outlined a historic resource starting from surface of 20.7 million tonnes grading 100 g/t at a lower cut-off grade, containing 70 million ounces (oz) of silver. The TWP study is now considered historic in nature and should not be relied upon.

Past Pulacayo production was predominantly from the Tajo vein system (TVS), which extends over a strike length of more than 2.5 km and to a depth of at least 1,000 metres. Prior resource drilling only covered approximately 30 per cent of the TVS strike length. With additional drilling, Prophecy feels that there is great potential to discover additional resources along the TVS structure.

Prophecy's wholly owned Bolivian subsidiaries (acquired from Apogee Silver Ltd. in 2015) have invested over $25-million (U.S.) in Pulacayo-Paca since 2005, which included over 80,000 metres of drilling. The company is developing and operating at Pulacayo with full local community support.

Qualified person

The technical contents of this news release have been prepared under the supervision of Danniel Oosterman, vice-president of exploration. Mr. Oosterman is not independent of the company in that he is employed by the company. Mr. Oosterman is a qualified person (QP) as defined by the guidelines in NI 43-101.

About Prophecy Development Corp.

Prophecy is developing the Pulacayo silver project in Bolivia and Gibellini vanadium project in Nevada.

We seek Safe Harbor.

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