To double the strength of steel you just need to add 0.5% vanadium. In high rise buildings vanadium alloy reinforced steel bars are required to help fend off earthquakes and floods. But it’s just not steel hardening where vanadium’s market strength is, it’s also in vanadium redox batteries used in massive energy storage.
Meanwhile global vanadium demand is very strong and supply is constrained; hence the vanadium price has risen fourfold over the past 2 years.
Prophecy Development Corp.
Prophecy Development Corp. (TSX: PCY | OTCQX: PRPCF) engages in the acquisition, exploration, and development of mineral and energy projects and is developing their first major vanadium mine at their 100% owned Gibellini Project in Nevada USA.
The Gibellini Project Nevada
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Prophecy’s key focus is the Gibellini vanadium project, designed to be an open pit, heap leach operation. It is located in Nevada’s Battle Mountain region, about 25 miles south of the town of Eureka. The Company’s Preliminary Economic Assessment (PEA) resulted in a post tax NPV of $338.3 million at a 7% discount rate, an internal rate of return of 50.8%, and a 1.72 years payback on investment from start-up, assuming an average vanadium pentoxide price (V2O5) of $12.73 per pound. CapEx is estimated at a low $117m. Overall a very solid result.
The project permitting is to be completed by 2020, construction estimated to begin in 2021, and production is estimated to commence in 2022.
On October 10, 2018, Prophecy were pleased to announce the appointment of Gerald Panneton as the Company’s President and new Chief Executive Officer, replacing John Lee, who will remain as Chairman of the Board of Directors of the Company. Mr Panneton is a geologist with over 30 years experience in mineral exploration and development, and was the founder, President and CEO of Detour Gold Corporation from its incorporation in July 2006 until November 2013. Today, the Detour Lake mine ranks as one of the largest gold mines in Canada. Mr. Panneton helped raise approximately $2.6 billion in capital while at Detour Gold. Under his leadership the Detour Lake Project grew over tenfold from 1.5 million ounces in resources to over 16 million ounces in reserves and into production. Mr. Panneton and his Detour Gold team were the recipients of the PDAC 2011 Bill Dennis Award for Canadian mineral discoveries and prospecting success of the year.
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