Prophecy Development Corp. has entered into a definitive agreement with Randsburg International Gold Corp. to acquire Randsburg's 20-per-cent title interest in the patented claims that comprise the Titan vanadium-titanium-iron project in Ontario, Canada. Prophecy currently owns 80 per cent of Titan prior to this pending transaction.
The Titan project is located in Eastern Ontario, approximately 120 kilometres northeast of Sudbury, straddling the boundary between Angus and Flett townships, and has access to water, roads and electrical power. The Titan property consists of 262 contiguous hectares comprising 17 patented claims.
The magnetite, ilmenite, titanium dioxide and vanadium mineralization at Titan occurs in a southeast-plunging body in gabbro to leucotroctolite in the northeastern corner of the Fall Lake complex. The Titan deposit is located at the northern end of an aeromagnetic anomaly that is approximately 1,200 metres long by 800 metres wide.
A total of 4,898 assayed intervals is recorded from 38 core holes drilled by Randsburg on the property. Drilling highlights reported by Randsburg included 142 metres of 0.27 per cent vanadium (0.48 per cent vanadium pentoxide) from hole RA-5-21, and 174 metres of 0.26 per cent vanadium (0.46 per cent vanadium pentoxide) from hole RA-5-10. The mineralization starts from surface to an open vertical depth of 500 metres. The complete horizontal and vertical extent of the deposit is still to be determined.
A technical report prepared by Mine Development Associates dated Feb. 26, 2010, disclosed in compliance with National Instrument 43-101, standards of disclosure for mineral projects, an inferred resource for the Titan project is shown in the associated table.
Resource category Tonnes (t)* Fe2O3 (%) V (%)** TiO2 (%)** Inferred 49.0 million 48.09 0.24 14.82 V converted to V2O5: 0.24 per cent. V equals 0.43 per cent V2O5. The company estimates vanadium content at 259 million pounds and titanium dioxide content at 7,259 million kilograms. * Based on resource estimated at cut-off grade of 40 per cent Fe2O3. ** One-hundred-per-cent metals recovery is assumed.
The technical report is authored by Neil Prenn, PEng, who was an independent qualified person under National Instrument 43-101 at the time the report was prepared.
Information on the geology at Titan and assay results reported by Randsburg are available at the company's website.
Under the agreement, Prophecy will acquire Randsburg's remaining 20-per-cent interest in the patented claims that comprise the Titan project by issuing to Randsburg (or other nominee party it designates) 20,000 Prophecy common shares, which will be subject to a four-month hold period. Closing of this transaction will be subject to the approval of the Toronto Stock Exchange.
John Lee, executive chairman of Prophecy, stated: "The use of wind energy has increased eight-fold in the last 10 years. The grid energy storage market, while in its infancy, is set to grow significantly to improve the availability factor of renewal energy sources. We believe the vanadium redox battery (VRB) will lead the energy storage market due to its proven technology, high scalability and environmental friendliness. Prophecy has begun discussions with VRB manufacturers, with the view to eventually producing and selling vanadium electrolyte from Titan to VRB suppliers."
Qualified persons
The technical content of this news release was reviewed and approved by Christopher M. Kravits, CPG, LPG, who is a qualified person within the meaning of NI 43-101. Mr. Kravits is a consultant to the company and serves as its qualified person and general mining manager.