TSX-V Symbol: PCY
VANCOUVER, Nov. 6 /CNW/ - Prophecy Resource Corp. (TSX.V: PCY) has
completed the previously announced non-brokered private placement of
1,450,000 flow-through units at a price of $0.35 per unit. Each unit will
consist of one common share of the company and one half share purchase
warrant, with each full warrant exercisable into one additional common share
of the Company for a period of eighteen months from closing at an exercise
price of $0.45 per share. The shares and any shares acquired on the exercise
of warrants will be subject to a hold period expiring on March 1, 2008.
Finder's fees of $37,800 were paid on a portion of this placement along with
the issuance of 108,000 finder's warrants, exercisable at $0.35 per share
until April 30, 2009.
The proceeds of this placement are to be used for exploration of
Prophecy's Okeover copper/molybdenum property near Powell River, B.C.,
following which the Company will have satisfied its $1 Million work commitment
with Eastfield Resources Ltd. (TSX.V: ETF) and have earned a 60% interest in
what we believe may prove to be a significant copper/molybdenum project
located near infrastructure on the B.C. coast.
The Okeover property encompasses 3,900 hectares (15 square miles) of
mineral claims centered on the Bunster Hills, east of Okeover Inlet, and
located 20 km north of Powell River. In late 2006, N.C. Carter, PhD, P.Eng.
completed a technical report on the property pursuant to National Instrument
43-101 that estimated an inferred mineral resource for the North Lake Zone of
86.8 million tonnes grading 0.31% copper and 0.014% MoS(2) at a 0.20% copper
cut-off grade (approximately 593 Million lbs of copper and 15 million lbs of
Drilling is currently underway at Okeover, having commenced in late
October. This drill program will continue to delineate the North Lake Zone,
which is one of eight prospective zones identified at Okeover, but will also
explore the South Breccia area, which has not had any significant exploration
work undertaken for more than ten years.
The South Breccia area is a hydrothermal breccia first recognized
in 1979. Between 1966 and 1977, seven corporations, including Noranda,
Falconbridge and Asarco Exploration completed 14,000 metres of diamond
drilling at Okeover. In 1979, two years following these campaigns, logging
activities exposed the South Breccia Zone approximately 3.5 kilometres south
of the North Lake Zone. In 1979, Aquarius Resources Ltd. completed three holes
in this then newly discovered area (205 metres in total) with results which
included 1.49% Copper over 9 metres in hole 79-2 and 0.49% Copper over
21 metres in hole 79-3. In 1996, Canquest Resource Corp. drilled a single
154 metre deep hole with the strongest mineralization in that hole (0.21% Cu)
occurring at the bottom. A review of this drill hole indicates that it may
have stopped short (to the east) of the South Breccia Zone. In addition,
surface trenching returned assays of 2.4% copper and 0.52% MoS2 across a
12 metre width. Geological mapping of the area peripheral to the South Breccia
discovery outcrop indicates that brecciation and silicification extend over an
area of at least 300 metres by 600 metres, offering substantial potential for
J.W. (Bill) Morton, P.Geo., a director of the Company and qualified
person within the context of National Instrument 43-101, has read and takes
responsibility for this news release.
ON BEHALF OF THE BOARD OF DIRECTORS
Stuart Rogers, Chief Financial Officer
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: visit our web site at www.prophecyresource.com
or contact us toll-free at (888) 818-8748