January 14, 2010 - Prophecy Resource Corp. (TSX.V: PCY; OTC: PCYRF; Frankfurt: 3P1) has entered into an option agreement with Randsburg International Gold Corp. (TSX.V: RGZ) whereby Prophecy can earn an 80% interest in the Titan Vanadium-Titanium-Iron project located in Ontario, Canada.
The Titan project is located in eastern Ontario approximately 120 km east-northeast of Sudbury, straddling the boundary between Angus and Flett Townships, with access to excellent infrastructure. The Titan property consists of 1,052 contiguous hectares (2,600 acres) comprising 17 patented claims and 3 mining claims.
Magnetite, ilmenite, titanium dioxide, and vanadium mineralization at Titan occurs in a southeast plunging body in gabbro to leucotroctolite in the northeastern corner of the Fall Lake complex. The Titan deposit is located at the northern end of an aeromagnetic anomaly that is approximately1,200 by 800 meters in area.
A total of 4,898 assay intervals are recorded from 38 core holes drilled by Randsburg on the property. Drilling highlights reported by Randsburg included 142 meters of 0.27% Vanadium (0.48% Vanadium Pentoxide) from hole RA-5-21 and 174 meters of 0.26% Vanadium (0.46% Vanadium Pentoxide) from hole RA-5-10. The mineralization started from surface to an open vertical depth of 500 meters. The complete horizontal and vertical extent of the deposit is still to be determined. Information on the geology at Titan and assay results reported by Randsburg are available below.
A Technical Report dated February 12, 2007 prepared by Mines Development Associates for Randsburg calculated a National Instrument 43-101 compliant Inferred resource for the Titan project. This Technical Report can be accessed under Randsburg’s filing at www.sedar.com.
Under the agreement, Prophecy shall have the right to acquire an 80% interest in the Titan Project by paying Randsburg an aggregate of $500,000 and incurring $200,000 in Exploration Expenditures by December 31, 2010. This transaction is subject to completion of due diligence and acceptance for filing by the TSX Venture Exchange.
John Lee, Chairman of Prophecy states: "Vanadium and Lithium car batteries are the green wave of the future. We are fortunate to acquire one of the few Vanadium deposits available anywhere in the world. Titan fits perfectly with our business strategy of acquiring advanced mineral assets to provide Prophecy investors financial leverage on rising metal prices. We intend to explore and expand the Titan Vanadium resource in 2010.”
This news release has been reviewed and approved by Bill Morton, P.Geo., a director of Prophecy and a Qualified Person under National Instrument 43-101.
About Prophecy Resource Corp.
Prophecy has entered into an agreement to acquire the Lynn Lake Nickel Project in Manitoba, which contains a National Instrument 43-101 compliant Measured and Indicated resource of 17 million tonnes with an average grade of 0.62% Nickel and 0.31% Copper at a 0.4% nickel cut-off grade. The Lynn Lake Technical Report, dated December 5, 2007, was prepared by Wardrop Engineering Inc. for Independent Nickel Inc. and is available under Independent Nickel’s filings at www.sedar.com.
Prophecy has also earned a 60% interest in the Okeover Copper-Molybdenum property in B.C. where, in 2006, Dr. N.C. Carter, PhD, P.Eng, completed a technical report on the Okeover Property pursuant to NI 43-101 that estimated an inferred mineral resource of 86.8 million tonnes grading 0.31% copper and 0.014% MoS2 at a 0.20% copper cut-off grade. This report is available at www.sedar.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Prophecy Resource Corp.
“JOHN LEE”
John Lee
Chairman
Airborne mag survey.
Click to enlarge
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