Measured, Indicated, and Inferred Mineral Resources for Coal, Vanadium (V), Titanium Oxide (TiO2), Nickel (Ni), and Copper (Cu). As at September 28, 2011
| Resources | In Situ Grade | Total Contained Metal Net After Earn Ins | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Property % Ownership |
Resource Category |
Tonnes (Millions) | V (%) |
TiO2 (%) |
Cu (%) |
Mo (%) |
Coal (Mt) |
V (Mlbs) |
TiO2 (Mkg) | Cu (Mlbs) | Mo (Mlbs) | |||
| Ulaan Ovoo 100% Ownership |
Measured | 174.5 | 174.5 | |||||||||||
| Indicated | 34.3 | 34.3 | ||||||||||||
| Total M&I | 208.8 | 208.8 | ||||||||||||
| Inferred | 35.9 | 35.9 | ||||||||||||
| Chandgana 100% Ownership |
Measured | 633 | 633 | |||||||||||
| Indicated | 539 | 539 | ||||||||||||
| Total M&I | 1,172 | 1,172 | ||||||||||||
| Titan* 80% Ownership++ |
Inferred | 49.00 | 0.24 | 14.82 | 259 | 7,259 | ||||||||
Ulaan Ovoo the resource estimate of 174 million tonnes measured and 34 million tonnes indicated is from the NI 43-101 Behre Dolbear report prepared in 2007. Coal reserves estimate from the NI 43-101 report prepared by Wardrop Engineering in 2010. Chandgana consists of two properties-Chandgana Tal and Khavtgai Uul (formerly Chandgana Khavtgai) . Chandgana Tal consists of 124.4 mt of measured resource. Khavtgai Uul consists of 509 mt measured and 539 mt indicated resource. Khavtgai Uul’s resource estimates are based on the September 2010 NI 43-101 Chandgana Khavtgai Technical Report by Kravits Geological Services, LLC. The report is authored by Christopher M. Kravits CPG, LPG of Kravits Geological Services, LLC., who was an independent Qualified Person under NI 43-101 at the time of report. The Chandgana Tal resource estimate is based on the November 2012 NI 43-101Updated Technical Report and PEA on Chandgana Tal by John T. Boyd Co. (USA). The lead Qualified Person for the report is Thaddeus J. Sobek, who is an independent Qualified Person under NI 43-101. Titan resource estimate is based on the February 2010 NI 43-101 Technical Report by Mine Development Associates. The report is authored by Neil Prenn, P. Eng, who is an independent Qualified Person under NI 43-101.
Titan cutoff grade of 40% Fe2O3.
++Titan. Based on the Jan 13, 2010 agreement and June 30, 2011 amended agreement the Prophecy Coal Corp. (the Company) has with Randsburg International Gold Corp., the Company can acquire 80% interest on the Titan property by making $500,000 cash payment (paid) and expending $200,000 on the property on the agreed dates. All required cash payments above were made, but the $200,000 expenditure requirement was not made. On June 30, 2011, the Company signed an amended agreement with Randsburg whereby the Company will pay Ransburg the remaining balance of an unexpended amount of $114,472 (paid on June 30, 2011). As a result, the Company now has 80% interest in Titan. Randsburg has the option to sell the remaining 20% interest to the Company by receiving 400,000 shares or $150,000 until December 31, 2012. The Titan Property is subject to a 3% NSR that may be purchased for $20,000.
Resource Definitions
A Mineral Resource is a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are subdivided, in order of increasing geological confidence, into inferred, indicated and measured categories.
An Inferred Resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
An Indicated Resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geologic and grade continuity to be reasonably assumed.
A Measured Resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geologic and grade continuity.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this website.
Qualified Person under NI 43-101
Christopher M. Kravits P.Geo., a consultant of the Company is the qualified persons responsible for the technical information on this website.
Cautionary Note Regarding Mineral Resources and Mineral Reserves
Readers should refer to the Company’s current technical reports and other continuous disclosure documents filed by the Company available on Sedar at www.sedar.com for further information on the mineral resource estimates of the Company’s projects, which are subject to the qualifications and notes set forth therein, as well as for additional information relating to the Company more generally. Mineral resources which are not mineral reserves, do not have demonstrated economic viability. Inferred mineral resources have insufficient confidence to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability suitable for public disclosure. Neither the Company nor readers can assume that all or any part of an inferred mineral resource will be upgraded to indicated or measured mineral resources. Most projects at the inferred mineral resource stage do not ever achieve successful commercial production. Each stage of a project is contingent on the positive results of the previous stage and that there is a significant risk that the results may not support or justify moving to the next stage.
Click here for the forward-looking statements and the cautionary note.