TSX-V Symbol: PCY
VANCOUVER, Oct. 10 /CNW/ - Prophecy Resource Corp. (TSX.V: PCY) has
agreed to a non-brokered private placement of up to 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. Finders
fees will be payable on a portion this placement, with the net proceeds being
used for exploration of the Company's Okeover copper/molybdenum property
located on the B.C. coast. This placement is subject to acceptance for filing
by the TSX Venture Exchange.
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 scheduled to begin at Okeover in mid-October. The
October 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
This flow-through financing will enable Prophecy to satisfy the
requirement of $1,000,000 in exploration at Okeover in order to earn its 60%
joint venture interest in what we believe may prove to be a significant
copper/molybdenum project located near infrastructure on the B.C. coast.
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
"JAMES BROWN "
James Brown, President
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