Prophecy Resource Corp. Announces Mine Commission Inspection Complete at Ulaan Ovoo in Mongolia; First Coal Shipment to Power Pl
14 Oktober 2010 - 4:49PM
Marketwired
Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:
PCY)(OTCQX: PRPCF)(FRANKFURT: 1P2) announces that an official
government commission appointed by the Mongolian Ministry of
Mineral Resources and Energy conducted the final permit inspection
at Prophecy's Ulaan Ovoo mine site on October 4, 2010.
The permit inspection is the final step required for Prophecy to
commence production operations at Ulaan Ovoo. During the October
4th visit, the commission, consisting of eight officials, drew
satisfactory conclusions and Prophecy was instructed by the
commission to begin coal production at the mine site and advised
that receipt of the mine permit is imminent.
Prophecy advises that various members of the Mongolian media
have recently publicized the official commissioning of the Ulaan
Ovoo mine. The Company wishes to make its shareholders aware of
this situation and that it has not endorsed and will not comment
further on Mongolian press reports regarding mine commissioning
until Prophecy has received the final permit from the Mongolian
Ministry of Mineral Resources and Energy.
At present time, Leighton and Prophecy have deployed over 50
staff at Ulaan Ovoo with a full line of mining equipment to start
production at the rate of 120,000 tonnes a month. Over 2 million
tonnes of waste have already been removed to expose the project's
massive coal seam at surface. Prophecy is looking to become the
second Canadian company after SouthGobi Resources Ltd to receive a
permit to mine in Mongolia.
Contract coal shipment to local power plants and beyond
Based on positive dialogue with the Mongolian Ministry of
Mineral Resources and Energy, Prophecy is pleased to provide 10,000
tonnes of coal as a trial run to power stations in Darkhan and
Erdenet, Mongolia's largest cities behind its capital Ulaanbaatar.
At the Ministry's request, Prophecy has commenced mining and
trucked the first coal shipment to Sukhbaatar rail station, ready
to be transported to Darkhan power plant by rail.
Ulaan Ovoo is 10km from the Russian border and within 120km from
Nauski TransSiberian railway station, enabling transportation of
coal to Russia and by extension to Russia's eastern seaports.
The technical information 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, Paul McKenzie at
+1.604.642.2625 ext. 107 or John Lee at +1.800.851.1528.
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. The Mongolian government has granted
the project a fully transferable 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)
specifically for Ulaan Ovoo.
About Prophecy Resource
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 Wellgreen PGM Project in Yukon,
Lynn Lake Nickel Sulphide Project in Manitoba, and a 10% equity
stake in Victory Nickel. 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
Forward Looking Statements: This news release includes certain
statements that may be deemed "forward-looking statements". All
statements in this release, other than statements of historical
facts, including, without limitation, statements regarding future
plans and objectives of the companies are forward-looking
statements that involve various risks and uncertainties. Although
Northern and Prophecy believe the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Forward-looking statements are based on
a number of material factors and assumptions. Factors that could
cause actual results to differ materially from those in
forward-looking statements include general economic, market or
business conditions, and other risks detailed herein and from time
to time in the filings made by the companies with securities
regulators. Mineral exploration and development of mines is an
inherently risky business. Accordingly the actual events may differ
materially from those projected in the forward-looking statements.
For more information on Northern and Prophecy and the risks and
challenges of their businesses, investors should review their
annual filings that are available at www.sedar.com.
This press 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. John Lee +1.800.851.1528
john@prophecyresource.com www.prophecyresource.com
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