Prophecy Development (“Prophecy” or the “Company”) (TSX:PCY, OTCPK:PRPCF, Frankfurt:1P2N) is pleased to announce that it has finalized detailed internal mine plans for the Paca project, initially targeting nearsurface mineralization with a low mining strip ratio. In addition, the Company has executed agreements regarding the sourcing of skilled workers through the local Pulacayo cooperatives for future mining operations at the Pulacayo and Paca projects.
Prophecy has renewed the letter of intent (LOI) to lease mining equipment from Oroscons S.R.L. Under the updated LOI which expires June 30, 2017, Oroscons agrees to provide Prophecy through lease, a mining and transportation fleet that would enable open-pit mining of the Paca deposit at a minimum rate of 200 tonnes of ore per day.
Prophecy is negotiating with a number of vendors that provide dedicated toll milling services at their ore processing facilities located in Potosi, which is a 2.5 hour drive by car, on paved road from Pulacayo. The toll milling services would entail the processing of mined materials to be supplied by the Company, utilizing conventional crushing, grinding and flotation technology to produce zinc-silver and lead-silver concentrates.
Prophecy continues discussions with a number of large trading and smelting companies that are interested in purchasing future zinc-silver and lead-silver concentrates processed from Pulacayo and Paca mined materials and providing Prophecy with advance payment against future concentrate delivery to finance Paca to production.