Resource World Talks about Prophecy’s Gibellini

Date: Apr 11, 2018


Prophecy Development to build North America’s first primary vanadium mine

Prophecy team and its partners on top of Gibellini March 2018

While vanadium has been used to strengthen steel for decades, recently it has gained importance in the energy metals sector. The development of vanadium redox flow batteries is set to play a key role in storing electric power on a grid scale, thus solving the problem of storing power from intermittent sources such as wind turbines and solar panels.

Vanadium redox flow batteries are scalable, not flammable and do not gradually lose their capacity, which should mean longer working lives (20 years) and therefore lower costs. Other growing applications include pollution reduction catalysts, super-conducting magnets, solid-state car batteries, and automobile chassis.

According to a January 2018 Bloomberg article, the vanadium pentoxide price soared more than 130% in 2017, outperforming better-known battery components such as cobalt, lithium and nickel. Vanadium pentoxide is currently trading at US $14/lb. It has been forecast that the global energy storage market will double six times between 2016 and 2030.

Envisaging how vanadium redox battery developments will play out in the near future, Prophecy Development Corp.’s business plan is to advance the leased Gibellini primary vanadium mining project in northeastern Nevada to production. There are not many primary vanadium deposits and Prophecy is fortunate to have acquired the advanced-stage, road-accessible Gibellini Project, located about 25 miles south of Eureka in the Battle Mountain region, one of the best mining jurisdictions in the world. As there is not a primary vanadium mine in the country, the U.S. Geological Survey has listed vanadium as one of 23 critical mineral resources.

A November 2017 independent report prepared by consultants Amec Foster Wheeler E&C Services Inc. on the Gibellini Project stated there is an estimated 49.62 million pounds of vanadium pentoxide in the measured category and 79.67 million pounds of vanadium pentoxide in the indicated category, plus 37.27 million pounds inferred.

To advance the project, Prophecy has teamed up with a technology partner – Northwest Nonferrous Metals Mining Group Co., Ltd. (NWME). NWME’s work includes technical design and engineering of vanadium ore processing facilities to recover vanadium pentoxide at Gibellini with the goal of producing a high-grade vanadium pentoxide commercial product on site.

NWME owns and is currently operating the world’s largest black-shale vanadium mine in China with an environmentally friendly, hydrometallurgical leach processing technology without the need of a pre-roasting step.

Prophecy has now begun environmental and permitting work with both the state and federal regulatory agencies. A plan of operation accompanied by baseline studies is expected to be filed in Q2 2018 along with state permit applications.

With baseline and feasibility work carried out by a previous project operator, Prophecy anticipates significant cost and time savings in Environmental Impact Statement preparation and the state permitting process. At the same time, the company expects to receive an independent economic study in April that demonstrates the robustness of the Gibellini Project at recent vanadium pentoxide prices. A 2011 Feasibility Study based on vanadium price of US $10.80/lb indicated robust economics at that time. With vanadium prices is 30% higher than in 2011 Prophecy expects even better NPV and IRR numbers, given the lower tax brackets.

A combination of expedited permitting, favourable tax environment and permitting environment, and excellent team in place with a great technology partner that’s well-endowed technically and financially, the company has a solid footing to transition and transform Gibellini into the first vanadium mine in North America.

Under the leadership of John Lee, who holds degrees in both economics and engineering from Rice University, Prophecy has assembled all the necessary components to enable it to build and operate the Gibellini vanadium mine. With vanadium redox batteries poised to be the leading choice for grid scale energy storage, the company is now taking the steps to bring this important project to production.

Prophecy Development has 7.47 million shares outstanding (fully diluted 10.87 million shares). The company has approximately $3.5 million in its treasury.


Contact info:

CEO John Lee

While every effort has been made to ensure the accuracy of information contained in Resource World Magazine or on the website, and the reliability of sources, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or forward looking statements made by advertisers.

Articles and advertisements in Resource World Magazine, are not solicitations to buy, hold or sell specific securities; they are for information purposes only.

Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees. Investors should be aware that risk is associated with any security, strategy or investment and are advised to seek the counsel of a competent investment advisor before making any investment, or utilizing any information contained in this publication.


You are receiving this message because you have specifically subscribed to our list. If you’d rather not receive emails from us, reply with subject unsubscribe. Remember, your personal information will never be rented or sold and you may unsubscribe at any time. Advertisements above do not constitute endorsements from us of any stock or investment recommendation made by our advertisers.

Warnings and Disclaimers: As you know, every investment entails risk. We have not researched and cannot assess the suitability of any investments mentioned or advertised by our advertisers. We recommend you conduct your own due diligence and consult with your financial adviser before entering into any type of financial investment. This profile should be viewed as a paid advertisement. The publisher and staff of this publication may hold positions in the securities of companies discussed or recommended. The information contained herein has been received from sources which the publisher deems reliable. However, the publisher cannot guarantee that such information is complete and true in all respects. The advertiser provided a review of the factual content of this advertisement at the time of publication. The publisher is not a registered investment adviser and does not purport to offer personalized investment related advice; the publisher does not determine the suitability of advice and recommendations contained herein for any reader. Each person must separately determine whether such advice and recommendations are suitable and whether they fit within such person’s goals and portfolio. The advertiser featured  has paid the publisher for the costs and compensation related to the authorship, overhead, design and distributing this online edition, in the amount of between US 1,000 to US 7,500. The publisher may receive revenue, the amount of which cannot be predetermined, from sales resulting from any accompanying offer. Authors of articles contained herein may have been compensated for their services in preparing such articles.