The Project is located in Bolivia, 107 km northeast of Sumitomo Corporation’s San Cristobal silver mine, 185 km southwest of Coeur Mining, Inc.’s San Bartolome silver mine, and 139 km north of Pan American Silver Corp.’s San Vicente silver mine.
Two mineral resource estimates were disclosed according to the requirements of National Instrument 43-101 – (“NI 43-101”) – one for the Pulacayo deposit and the second for the Paca deposit.
Between 2006 and 2012, a total of 69,739 metres of diamond drilling (226 surface and 42 underground drill holes) was conducted at Pulacayo, results of which support the mineral resource estimate reported in this news release. The Pulacayo site is currently permitted for production at a milling rate of 560 tonnes per day and no known legal, political, environmental, or other risks that would materially affect potential future development have been identified by Prophecy at the effective date of the current (October 20, 2017) mineral resource estimate.
Historic 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 meters. Prior resource drilling only covered approximately 20% of the Tajo vein system strike length. With new drilling, Prophecy feels that there is potential to discover additional resources along the Tajo structure.
Results of the mineral resource estimate prepared by Mercator for the Pulacayo deposit are presented below in Table 1. The Report filed on SEDAR documents the resource estimate.
The Company’s Bolivian subsidiary, ASC Bolivia LDC Sucursal Bolivia, has invested approximately US$28 million at Pulacayo and already acquired necessary environmental and social licenses to mine at Pulacayo. The Company is working with the Bolivian mining ministry and Corporacion Minera De Bolivia (COMIBOL) to obtain authorization which will allow Prophecy to mine at Pulacayo while transitioning from the current joint venture contract to a mining production contract.