Prophecy Resources` mine preparation for Ulaan Ovoo project on track
Prophecy Resource`s (TSX VENTURE: PCY) (OTCQX: PRPCF) mine services agreeement with Leighton Asia Limited is on track to execute mining operations at Prophecy`s Ulaan Ovoo Coal Project in northern Mangolia, as Leighton has established the required infrastructure and deployed all necessary equipment and manpower on schedule.
Ulaan Ovoo site establishment began on July 13 of this year to ensure that the commissioning of the 250,000 tonnes starter pit will take place as planned in September 2010, with 57,500 tonnes in the first month ramping up to 100,000 tonnes per month by December 2010.
To date, Leighton has removed and stockpiled approximately 30,696 BCM of topsoil and 209,095 BCM of overburden, which is approximately some 28,089 BCM of overburden ahead of schedule in preparation for mining.
Operational equipment deployed by Leighton includes three 773C Cat dump trucks; one 385D Cat excavator; one D8R Cat dozer; one 160H Cat grader; one 928G Cat loader; two 10,000lt water tankers; one 3,000lt fuel truck; two CD150 dewatering pumps; three Allmand portable lighting plants; and four diesel generators of varying capacity.
The design of the concrete bridges that will replace all existing wooden bridges along the haul road has been completed, and the foundation slabs are currently being poured, the company said.
Russian and Mongolian governments have also agreed to open the Zeltura border crossing on a permanent basis, which could present a significant reduction on the transportation cost, as Zeltura port is 15km by road from Ulaan Ovoo mine site.
The company is working with Wardrop to clarify taxation, royalty, and off take pricing; the release of Wardrop's final report is expected in September of this year. Prophecy is also currently in discussions with parties who have expressed interest to procure coal directly at the mine site.
Leighton Asia engages in mine development, operation and management, resource optimisation, mine planning and more.
Prophecy Resource is 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).
Prophecy has 100% interest in the 208.8 million tonne Ulaan Ovoo project that features Bituminous (5,204 kcal/kg), low ash (12.46%), low sulphur (0.40%) thermal coal suitable for export markets. The deposit features single massive coal seam 45-80 m thick with an average strip ratio of 2:1. The project is 120km (75 miles) east of the Central Mongolian Railroad linking the project to the vast coal markets of Russia and Asia.
In Canada, the company owns Lynn Lake Nickel Project, a 10% equity stake in Victory Nickel and agreed to merge with Northern Platinum (TSX-V: NTH) on June 15, 2010.
Prophecy`s stock was up 2.1% on the news to $0.48 on the TSX Venture Exchange today as of 1pm ET.
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