Prophecy Resource Corp.
TSX VENTURE : PCY
FRANKFURT : 1P2
OTCQX : PRPCF

Prophecy Resource Corp.

September 27, 2010 13:44 ET

Prophecy drills 496.06 Meters of 0.596 g/t PGM+Au, 0.27% Ni, 0.18% Cu, 0.02% Co (0.45% NiEq(i)) from Surface at Wellgreen, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 27, 2010) - Prophecy Resource Corp. ("Prophecy" or the "Company") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) announces the results from holes 177 and 178 at Wellgreen PGM Ni-Cu-property in Yukon. Northern Platinum (merged with Prophecy on Sep 23, 2010) drilled holes 177–182 during the summer of 2010.

Results from Wellgreen holes 177 and 178 including NiEq% are outlined in the following table:

Hole 177
    Length              
From: To: (m) Cu% Ni% Pt g/t Pd g/t Au g/t Co% NiEq%
5.33 531.24 525.90 0.17 0.26 0.248 0.248 0.054 0.020 0.43
Including:
    Length              
From: To: (m) Cu% Ni% Pt g/t Pd g/t Au g/t Co% NiEq%
5.33 501.40 496.06 0.18 0.27 0.279 0.261 0.056 0.020 0.45
324.52 337.35 12.83 0.33 0.57 0.530 0.683 0.067 0.020 0.90
380.27 418.98 38.71 0.35 0.26 0.439 0.346 0.128 0.020 0.56
426.72 501.40 74.68 0.35 0.21 0.483 0.318 0.127 0.020 0.51
Hole 178
    Length              
From: To: (m) Cu% Ni% Pt g/t Pd g/t Au g/t Co% NiEq%
5.18 571.96 566.78 0.16 0.23 0.247 0.219 0.051 0.014 0.39
Including:
    Length              
From: To: (m) Cu% Ni%  Pt g/t Pd g/t Au g/t Co% NiEq%
5.18 274.32 269.14 0.07 0.21 0.156 0.173 0.021 0.013 0.31
274.32 571.96 297.64 0.24 0.24 0.330 0.261 0.079 0.015 0.45
 
(i) Note - Nickel Equivalent is based on US metal prices of: Copper - $2.5/lb, Nickel - $7.00/lb, Cobalt - $10.00/lb, Gold - $600/oz, Platinum - $1,100/oz, Palladium - $350/oz, and assumes 100% metals recoveries.

Hole 177 and 178 are drilled 50 meters apart, designed to extend the eastern edge of the known mineralization at Wellgreen.

John Lee, CEO of Prophecy, states: "These results are very important as they demonstrate continuous disseminated sulphide mineralization. Prophecy is targeting Wellgreen to be a large scale deposit that could be mined by open pit and large tonnages. Such potential has never been seriously thought of in Wellgreen's 5-decade-long history."

Assays from (2010 summer drill program) hole 179-182 are pending. Furthermore Prophecy has commenced surface drilling of 5 additional holes. Cross sections and locations of holes 177 to 182 as well as the 5 planned holes are available at www.prophecyresource.com. Please refer to the company's morning news release on September 27 for its detailed development plans at Wellgreen.

Assay procedures at Wellgreen are as follows: The mineralized intervals of drill core are cut using a core saw. After cutting the core, one half of the core is bagged for assay using security seals. The samples are then delivered to ALS Chemex Laboratories in Whitehorse, Y.T. for sample preparation. The pulps were sent to ALS Vancouver for assays; the rejects were returned to Wellgreen for secure storage. In addition to the laboratory's quality control program, a rigorous on-site quality assurance and quality control program is implemented involving the insertion of blanks, standards and splits to ensure reliable assay results.

This news release has been reviewed and approved by John McGoran, P.Geo., and a Qualified Person as defined in NI 43-101.

About Prophecy Resource

Prophecy Resource Corporation is an internationally diversified company engaged in developing energy, nickel and platinum group metals projects. The company controls over 1.4 billion tons of open-pittable thermal coal in Mongolia (839 Mt Measured, 579 Mt Indicated). In Canada Prophecy owns Wellgreen PGM Project in Yukon, Lynn Lake Nickel Sulphide Project in Manitoba, and a 10% equity stake in Victory Nickel. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Contact Information

  • Prophecy Resource Corp.
    Paul McKenzie
    +1.604.642.2625 ext. 107
    or
    Prophecy Resource Corp.
    Scott Parsons
    +1.604.642.2625 ext. 106
    www.prophecyresource.com