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Prophecy Resource attains final permit for start of Ulaan Ovoo coal project in Mongolia

Last updated: 21:48 11 Nov 2010 GMT, First published: 22:48 11 Nov 2010 GMT

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Prophecy Resource Corp. (TSX-V: PCY)(OTCQX: PRPCF)(FSX: 1P2) said it has received the final permit to begin operations at its Ulaan Ovoo coal mining project in Mongolia.

The mine is production ready, the company said, with an official opening ceremony scheduled for next week.

The Ulaan Ovoo open pit mine is 10km from the Russian border and within 120km from Nauski TransSiberian railway station, allowing easy transportation of coal to Russia and by extension to Russia's eastern seaports. Prophecy said it has already received interest from Russian entities wishing to finalize coal sales contracts.

Leighton Engineering was contracted to mine Ulaan Ovoo coal, and trucking operations have already begun in transporting coal by road from the mine site to Sukhbaatar rail station. The coal then travels either south to local Mongolian thermal powerplants or north to Russia by rail.

The 208.8 million tonne Ulaan Ovoo Mine features Bituminous, low sulphur thermal coal. The deposit features a single massive coal seam 45-80 m thick, with an average strip ratio of 2:1.

The Mongolian government has granted the project a fully transferable 30 year mining license that can be extended by an additional 40 years.

In Canada, Prophecy owns the Wellgreen PGM Project in Yukon, the Lynn Lake Nickel Sulphide Project in Manitoba, and a 10% equity stake in Victory Nickel.

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