Prophecy Makes New Coal Discovery 17 km From Its Ulaan Ovoo Coal Mine in Mongolia
August 17 2011 - 8:30AM
Marketwired
Prophecy Coal Corp. ("Prophecy") (TSX VENTURE: PCY)(OTCQX:
PRPCF)(FRANKFURT: 1P2) (the "Company") announces today that it has
intercepted a 19-meter-thickness coal seam at the newly acquired
Ilch Khujirt property ("Ilch"). The 4,773-hectare Ilch property is
located 17 km northeast of Prophecy's producing Ulaan Ovoo coal
mine. It is contiguous to Prophecy's existing exploration license
covering 7,392 hectares.
Prophecy Drilled Hole RHJ-11-01 on Ilch and encountered the
following coal seams:
----------------------------------------------------
Gross Seam Net
Depth (m) Thickness (m) Thickness (m)
----------------------------------------------------
41.2 3.0 3.0
----------------------------------------------------
48.5 0.5 0.5
----------------------------------------------------
69.3 19.4 15.0
----------------------------------------------------
Assay results (Air Dried Basis) of the coal core are - inherent
moisture 20.96%, ash 14.52%, volatile matter 29.83%, fixed carbon
34.69%, calorific value 5,130 kcal/kg and total sulfur 0.35%. These
are preliminary results because core recovery was poor and
additional drilling is needed. This license was considered
prospective for coal as is Prophecy's adjacent Khujirt license. Due
to its shallow nature, the coal seam has the potential to be
mineable. This new information is being reviewed and additional
surface mapping will be performed to plan additional drilling.
Prophecy has the right to acquire 100% ownership of Ilch for US
$2 million within the first year, or US $4 million in the second
year after the agreement signing (see the news release of May 4,
2011). Drill Hole RHJ-11-01 confirmed the presence of coal,
provided coal for assay, and provides information to plan future
exploration.
John Lee, CEO and Chairman of Prophecy Coal Corporation says "We
believe through systematic exploration, there exists great
potential to discover additional coal seams of minable depths in
the surroundings of Ulaan Ovoo mine."
Visit www.prophecycoal.com for core photo and drill location
map.
The core drilling methods followed Prophecy's quality analysis
and control procedures. These procedures include monitoring core
recovery to adjust drilling parameters and equipment as needed,
avoiding the use of drilling fluids that may contaminate the core
samples, and careful handling of the core to avoid loss and
breakage, among others. The core samples were preserved following
industry standard procedures including ASTM D5192 to retain in-situ
moisture and avoid contamination. Christopher M. Kravits P. Geo. a
Qualified Person as defined in Canadian National Instrument 43-101,
supervised the drilling, drill site geology, and core sampling. The
core samples were assayed following ASTM and ISO procedures and
methods appropriate for coal. The sampling plan was to sample the
core in three meter intervals making for approximately 6.7 kg of
sample but drilling conditions caused core loss so that the sample
masses were less. SGS Mongolia of Ulaanbaatar, Mongolia assayed the
core samples and is not owned or controlled to any degree by
Prophecy. This news release was prepared by Christopher M. Kravits,
P. Geo. Mr. Kravits has 34 years of US and international experience
as a coal geologist and has been active in Mongolia since 2007.
About Prophecy Coal
Prophecy Coal Corp. is a Canadian listed company engaged in
developing energy projects in Mongolia. The company has over 1.4
billion tonnes of surface minable thermal coal resources on two
coal properties in Mongolia. Prophecy Coal's Ulaan Ovoo coal mine
is in production and Chandgana mine mouth power plant is currently
being permitted. Prophecy Coal is the controlling shareholder of
Prophecy Platinum Corp (TSX VENTURE: NKL). Mineral resources that
are not mineral reserves do not have demonstrated economic
viability. Further information on Prophecy Coal can be found at
www.prophecycoal.com.
ON BEHALF OF THE BOARD OF DIRECTORS Prophecy Coal Corp.
John Lee, CEO/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
Prophecy believes 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, regulatory,
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 Prophecy and the risks and
challenges of its business, investors should review filings that
are available at www.sedar.com.
"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 Coal Corp. Joseph Li General Manager
1-800-362-7366 jli@prophecycoal.com www.prophecycoal.com
Prophecy Coal Corp (TSXV:PCY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Prophecy Coal Corp (TSXV:PCY)
Historical Stock Chart
From Jul 2023 to Jul 2024