Prophecy Initiates
Deep IP survey and Bulk Tonnage Metallurgical Testing at Lynn Lake
Nickel Sulphide Project, Manitoba
VANCOUVER,
B.C. - March 23, 2010: Prophecy Resource Corp. ("Prophecy")(TSX-V:PCY,
OTC: PCYRF, Frankfurt: 3P1) is pleased to report on the
following field exploration and metallurgical testing operations
currently in progress on its Lynn Lake Nickel Sulphide Project located in
Manitoba, Canada.
The Lynn
Lake mine was operated by Sherritt-Gordon from
1953 to 1976 and ranked as the third largest nickel producer in North
America, after only the Sudbury and Thompson mining camps.
Wardrop Engineering Inc., in a National Instrument
43-101 report dated March 15, 2010 (available at www.sedar.com), estimated Lynn
Lake to contain a Measured and Indicated resource of 22.9 million tons at
0.57% nickel and 0.3% copper, and an Inferred resource of 8.1 million
tons at 0.51% nickel and 0.28% copper. (0.4% nickel equivalent cutoff).
The above
resource estimate does not include the recent Disco Zone discovery
located within 1.5 km of the outlined resource. The Lynn Lake
project has immediate access to electrical power and rail transportation
and can be operated year-round.
IP
Survey to Explore Extensions to Disco Discovery
In 2008,
the near-surface Disco Zone ("Disco") was discovered within 1.5
km of the existing resource outlined at Lynn Lake. Disco drill
intercepts include 47 meters of 0.7% nickel and 18 meters of 1.5% nickel
east of the primary trend, which is believed to reside on a secondary and
previously unexplored structural trend. Disco remains open
along strike and at depth beyond the 400 meters tested in 2008.
Prophecy
has retained Matrix Geotechnologies Ltd. to
conduct an Induced Polarization ("IP") survey utilizing
proprietary 3D techniques with a high proven drilling success rate.
The IP can effectively penetrate to depths of 600 meters (2,000
ft), where historical mining at Lynn Lake reached depths of 914 meters
(3,000 ft). The survey will concentrate on areas to the east of the
primary historic mine trend where no previous surveying has explored at
comparable penetration depths. Prophecy intends to prioritize drill
targets based on the results from this IP survey, which are anticipated
some time in April 2010.
Additional
2008 Disco drill intercepts and surface IP results can be accessed at www.prophecyresource.com/disco.
Bulk
Tonnage Bioleach Metallurgical Testing
In 2007, a
bioleaching bench test was performed at the Process Research Associates
Ltd. laboratory ("PRA") in Vancouver. PRA used thiobacillus thiooxidans
adapted to the nickel ore. The test procedure yielded 92.5% nickel
recovery and 81% copper recovery. The test was based on 60 kg of
rock samples from Lynn Lake.
Prophecy
has commissioned Mintek Laboratories, in
conjunction with Wardrop Engineering, to
conduct large scale pilot metallurgical testing. Five tonnes of samples are being
air sealed at Lynn Lake for shipment to Mintek
in South Africa, a world leader renowned for mineral processing and
research. Mintek's metallurgical testing
process involves flotation method development, production of concentrate,
bioleach setup, amenability and optimization
pilot tests. Final results are expected in November 2010 and, if
favourable, will be incorporated into the planned Lynn Lake Feasibility
Study.
John Lee, Chairman and CEO of Prophecy Resource
Corp. stated today that:
"Lynn Lake is one of a select few Nickel
Sulphide deposits worldwide that is in a geopolitically safe jurisdiction
with excellent infrastructure. Nickel prices have doubled from a
year ago and we intend to commission Lynn Lake to production responsibly
in the quickest time frame permissible."
Further information on Lynn Lake Nickel Sulphide
Project, including project photos, maps and detailed descriptions, can be
found at www.prophecyresource.com/lynn
This news
release has been reviewed and approved by Danniel
Oosterman, P.Geo., a Prophecy
Geologist and a Qualified Person under National Instrument 43-101.
About Prophecy Resource Corp.
Prophecy is a Canadian company focused on the
acquisition and development of advanced mineral assets. The company
holdings include the Lynn Lake nickel-copper project in Manitoba, the
Titan vanadium project in Ontario, and the Okeover
copper-molybdenum project in British Columbia. All together, Prophecy
controls 540 million lbs of copper, 345 million lbs of nickel, and 207
million lbs of vanadium. Technical reports on all these properties are
available at www.sedar.com
On March 4, 2010, Prophecy signed a definitive agreement to combine with
Red Hill Energy (TSX-V: RH), which controls over 1.5 billion tons of
thermal coal resource in Mongolia.
For more
information about Prophecy, please contact us toll-free at 1-800-459-5583
or visit our web site at www.prophecyresource.com.
ON
BEHALF OF THE BOARD OF DIRECTORS
Prophecy
Resource Corp.
"JOHN
LEE"
John Lee
Chairman
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