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Posts tagged ‘Prophecy Coal Corp (PCY)’

Mongolian coal mine resumes operations

November 4th, 2013

by Ana Komnenic | November 4, 2013 | Reprinted by permission of

Suspended since July 2012, the Ulaan Ovoo thermal coal project in northeastern Mongolia is up and running again.

Prophecy Coal TSX:PCY, the Canadian company that owns the mine, announced on November 1 that it has re-hired all the required staff and that with a fleet of excavators and dump trucks, production should reach up to 50,000 tonnes per month until the end of the year.

Mongolian coal mine resumes operations

Ulaan Ovoo pit. (Photo: Prophecy Coal)

The $55-million project was temporarily suspended last year because the stockpile of coal was enough to meet the company’s contractual obligations for the year. Following the suspension, the company said it was in active discussions with potential customers to increase sales.

Earlier this month, the company announced a sales contract with a new customer for 30,000 tonnes of coal. The first shipment is planned for November.

Ulaan Ovoo is located 17 kilometres from the Russian border and 120 kilometres from Mongolian and Russian rail links. Customers include both Russian and Mongolian companies, as well as the Mongolian government-owned power plants.

Prophecy Coal gained nearly 17% on the Toronto exchange on November 4, trading at 11 cents per share.

Reprinted by permission of

Guest Columnist

June 25th, 2012

Market Bottom Only in Hindsight

By John Lee

Read here for a feature story on Prophecy Platinum and its Wellgreen copper-nickel-PGE project.

The last 18 months have been gut-wrenching for mining equity investors.

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As the above chart demonstrates, the TSX Venture Composite Index, a fair representation of the junior mining sector, has come back down to levels seen in 2002, when gold first broke out of $300 an ounce.

While the TSX Venture Composite Index is still well above its 2008 low, the pain is just as pronounced now as it was then, as the TSX Composite Index, relative to the Dow, is now trading below 2009 levels. The following chart indicates a flight out of Canadian markets into the US markets.

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With emerging markets, such as China, struggling and the Eurozone in outright crisis mode, global investors not only have been pouring money into US stocks but have also driven US bonds into an all-time high, ignoring the fact that the bonds are sporting negative real interest.

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While this represents an extreme flight to perceived “safety,” the US dollar index has failed to break out of its 2009 high, indicating the fundamental weakness of the US dollar.

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Focusing back on the gold sector, the severe correction is not just felt by the juniors but senior producers as well. Kinross, for example, is now back to its 2008 low, when gold was below $1,000 an ounce.

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Overall, gold producers, relative to the price of gold, have indeed reverted back to the 2009 level as the following chart indicates.

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Despite the financial crisis worldwide, gold has held up very well in the last 23 months, currently ($1,600 an ounce) trading comfortably above the 2008 crisis level ($900). This clearly shows that gold is gaining momentum as the safe haven and reserve currency in the time of crisis.

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Also notice, post 2008 crisis, that gold doubled from the $800-an-ounce level to peak at more than $1,900 an ounce in less than three years. In 2008, the US Federal Reserve embarked on unprecedented quantitative easing, creating trillions of dollars to revive the banks and the equity and housing markets. Such inflationary measures had a direct positive impact on gold.

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As we seemingly come out of the Euro crisis and with world governments eager to again embark on unlimited monetary easing, there are reasons to be again bullish on gold as it completes the current 18 months’ consolidation.

My conclusion is that the degree of flight to safety today and risk aversion is no less than the case in 2008. The dollar and US bonds were the main beneficiary during the 2008 crisis, and they are in the current crisis.

Post 2008 crisis, gold and gold equities were the big winner, registering triple digit gains. There are preliminary signs of gold and gold equity market bottoms, if one considers the bottoming ratios of TSX to Dow and gold equity to gold and the blowoff of US bonds.

I am reminded of two old famous adages: never catch the falling knife, and a market bottom is only known in hindsight. For me, successful investing means buying 20% from the bottom and selling 20% from the top. If we are not currently 20% from the bottom, I’d say we are darn near.

John Lee, CFA, is Chairman and Interim CEO of Prophecy Platinum Corp TSXV:NKL and Chairman and CEO of Prophecy Coal Corp TSX:PCY. He holds degrees in economics and engineering from Rice University in Houston, Texas. The views expressed above are those of the author and may not reflect those of Prophecy Platinum Corp or Prophecy Coal Corp. Read here for a feature story on Prophecy Platinum and its Wellgreen copper-nickel-PGE project. Prophecy Platinum is a client of OnPage Media.

South of Klondike

May 28th, 2012

Prophecy adds PGEs to its Yukon Nickel-Copper-Gold Project

By Greg Klein

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Long after the Gold Rush that such inspired characters as Sam McGee, Blasphemous Bill and Dangerous Dan McGrew, Yukon is again coming to international prominence as a new gold play matures. In the territory’s southwest, Prophecy Platinum Corp TSXV:NKL is developing one of the world’s largest undeveloped resources of nickel-copper-platinum group elements towards PEA and prefeasibility.

Unlike Russia and South Africa, producers of 85% of world PGE supply, Robert Service’s old stomping ground has settled into a stable, mining-friendly jurisdiction. That bodes well for Prophecy‘s Wellgreen Project and its newly found potential to host a rare PGE resource in addition to nickel, copper and gold.

Prophecy adds PGEs to its Yukon Nickel-Copper-Gold Project

The company has just released 90 additional assays from a 2011 hole which show an average 28% increase in the full spectrum of six PGEs. Results from the hole released September 26, 2011, reported nickel-copper-gold assays in addition to platinum-palladium, but didn’t include results for the other four PGEs. The September assays showed

0.29% nickel, 0.18% copper, 0.34 g/t platinum, 0.33 g/t palladium and 0.05 g/t gold over 457.4 metres
(including 0.36% nickel, 0.3% copper, 0.63 g/t platinum, 0.54 g/t palladium and 0.08 g/t gold over 120.9 metres)
(and including 1.03% nickel, 0.75% copper, 1.33 g/t platinum, 1.64 g/t palladium and 0.17 g/t gold over 17.8 metres)

The hole started 7.1 metres from surface, extending to 263.8 metres. Ninety sample assays from the same hole released May 25 included the missing PGE quartet. Highlights include

0.023 g/t osmium, 0.019 g/t iridium, 0.054 g/t ruthenium and 0.024 g/t rhodium
0.022 g/t osmium, 0.013 g/t iridium, 0.038 g/t ruthenium and 0.018 g/t rhodium
0.023 g/t osmium, 0.021 g/t iridium, 0.055 g/t ruthenium and 0.025 g/t rhodium
0.05 g/t osmium, 0.03 g/t iridium, 0.078 g/t ruthenium and 0.035 g/t rhodium
0.018 g/t osmium, 0.016 g/t iridium, 0.042 g/t ruthenium and 0.02 g/t rhodium

Rhodium, platinum and palladium are the most important of the six PGEs, with some 80% to 85% going into auto-catalyst manufacture. Prophecy cites a 1997 Geological Survey of Canada bulletin stating that only Russia’s Norilsk ores have nickel-copper cores with comparable values of rhodium. As Prophecy Head Geologist Danniel Oosterman says, “A lot of nickel-copper-PGE deposits around the world don’t have appreciable values of PGEs beyond platinum and palladium.”

Assays are pending for an additional 260 samples from the same hole. Meanwhile, drilling continues. About 30% of a 9,000-metre underground program has been completed so far, with results to come. Surface drilling will resume within the next two weeks, with 7,000 metres planned. The plan is to upgrade the July 2011 resource.

As it stands now, the indicated category shows 220 million pounds nickel, 200 million pounds copper, 15.8 million pounds cobalt, 460,000 ounces platinum, 340,000 ounces palladium and 240,000 ounces gold. The inferred category shows 2.4 billion pounds nickel, 2.2 billion pounds copper, 191.3 million pounds cobalt, 4.9 million ounces platinum, 3.9 million ounces palladium and 2.1 million ounces gold. The estimate uses a 0.4% nickel-equivalent cutoff.

Prophecy‘s timeline calls for a preliminary economic assessment for possible release as early as June and a resource update in 1Q 2013, to be followed by prefeasibility.

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