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Prophecy Development Corp (2)
Symbol PCY
Shares Issued 122,915,508
Close 2020-03-09 C$ 0.14
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Prophecy Development begins exploration at Pulacayo

2020-03-09 12:26 ET - News Release

Mr. Michael Doolin reports

PROPHECY STARTS DISTRICT EXPLORATION AT PULACAYO

Prophecy Development Corp. has begun a district exploration program at its Pulacayo project.

The exploration team will be conducting geological mapping, with relevant sampling and possible trenching on the property. Induced polarization geophysics will be conducted in tandem with the field program, with 106 line kilometres of survey having been outlined. The program is expected to be completed by June, 2020, when the results will have been evaluated. The intention is to then generate drilling targets in the district.

Background

Several Pulacayo regional exploration programs were carried out in the past, including a wide-spaced induced polarization survey in 2009 (which detected several near-surface, strong-to-medium chargeability anomalies) and a sampling program in 2015 (in which 495 samples were collected from Paca North, Pacamayo, Pero and El Abra).

Target area description

Paca North silver-lead target

Located adjacent to Paca's National Instrument 43-101 inferred resource and seven kilometres north of the Tajo vein system, this target area consists of a sequence of conglomerates with a length of 700 metres and a width of up to 200 metres, drilled to a true thickness of up to 50 metres. The conglomerate consists of clasts of quartzite (up to 30 centimetres in diameter) in a siliceous matrix. Below the conglomerate is an argillaceous tuff with veinlets of barite trending east-west. Historic audits dating back to the Spanish colonial era exist in the area where small-scale mining of the Paca conglomerates was undertaken. In 2015, chip channel samples were taken at two m intervals from the cobbles of the conglomerate at the surface. They yielded silver values ranging from 45 grams per tonne to 833 grams per tonne and lead values of up to 2.22 per cent.

Pacamayo silver-copper-antimony-lead-zinc target

Four veins were identified on the surface 1.4 km northeast of the Tajo vein system. They are estimated to have a thickness of two m and a spacing of 26 m. In the underlying San Leon tunnel, exposures of extensive vein development have been observed. Their estimated width is 1.5 m. Strong oxidation, indicator minerals and geological features found during previous geological mapping suggest Pacamayo mineralization may be similar to the Tajo vein system and mineralization may extend at depth. Select underground chip channel samples taken in 2015 at 0.6 m to one m intervals returned high-grade assays of over 1,500 grams per tonne Ag (beyond detection limit), up to 3.1 per cent copper, up to 17.6 per cent lead, up to 2.49 per cent antimony and up to 6.9 per cent zinc.

Pero silver-lead target

Reconnaissance mapping and sampling identified several veinlets of mineralization that developed into a stockwork 0.5 km southeast of the Tajo vein system. Limited chip channel rock sampling taken at 0.5 m to two m intervals carried out in 2008 by Apogee Silver Ltd. yielded samples with historic assay values ranging from 15 grams per tonne to 262 grams per tonne silver and ranging from 0.2 per cent to 2.3 per cent lead.

El Abra silver-lead target

El Abra is located 1.4 km northwest of the Tajo vein system -- where a hydrothermal breccia system was identified. Strong lead and antimony anomalies were found in the samples. Antimony anomalies are specially associated with siliceous structures, whereas lead anomalies are continuous and associated mainly with oxidation and zones of cerusite (lead carbonate). Cerusite usually occurs in the oxidation zone of lead deposits produced by the chemical alteration of galena. The chip channel outcrop samples taken in 2015 at two m intervals showed the presence of galena crystals. An assay of samples yielded silver values of up to 38.9 grams per tonne and lead values of up to 1.56 per cent. Geological mapping found visible metallic sulphides and a greater degree of oxidation and indicator minerals. These suggest that mineralization may continue at depth from near surface, with a potential conservative depth of 75 m and approximate dimensions of 250 m long by 110 m wide.

Pulacayo background and district potential

On Nov. 22, 2017, Prophecy reported an independent, NI 43-101-compliant indicated silver resource of 30.4 million ounces grading 455 grams per tonne silver, 3.19 per cent zinc and 2.18 per cent lead, and inferred resource of 6.3 million ounces grading 406 grams per tonne Ag, 2.08 per cent Zn and 3.93 per cent Pb for the Pulacayo project.

The results of the mineral resource estimate prepared by Mercator for the Pulacayo deposit are presented in an attached table.

Historical Pulacayo production was predominantly from the Tajo vein system, which extends over a strike length of more than 2.5 km and to a depth of at least 1,000 metres. Total production from the Pulacayo mine during the period 1857 to 1959 is estimated by the National Geological and Mineral Service of Bolivia to be 678 million ounces of silver, 200,000 tons (181,400 tonnes) of zinc and 200,000 tons (181,400 tonnes) of lead. Prior resource drilling only covered approximately 30 per cent of the Tajo vein system. With new drilling, there is the potential of discovering additional resources.

Paca deposit

On Nov. 22, 2017, Prophecy also reported an independent, NI 43-101-compliant inferred silver resource of 20.9 million ounces grading 256 grams per tonne silver, 1.1 per cent zinc and 1 per cent lead for the Paca project, located approximately seven km north of the Pulacayo deposit.

The results of the mineral resource estimate prepared by Mercator for the Paca deposit are presented in an attached table.

The company is examining Pulacayo as a large-scale district silver project that includes a number of other well-known silver occurrences and anomalies in addition to the Tajo vein system. These include the aforementioned Paca North, Pacamayo, El Abra and Pero prospects, all of which occur within 10 kilometres of the Pulacayo town site. The company considers these as having the potential for future discovery of mineral resources through the application of modern exploration techniques.

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, as he is employed by it. Mr. Oosterman is a qualified person, as defined by the guidelines in NI 43-101.

About Prophecy Development Corp.

Prophecy Development is developing its premier Pulacayo silver project in Bolivia.

We seek Safe Harbor.

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