New Copper/ Molybdenum Mineralization Intersected at Okeover; Highlights Include 39.7 Metres Grading 0.045% MoS2 and 0.27% Cu Within 63 Metres of Surface

April 7, 2008 - Prophecy Resource Corp. has received the results from three diamond drill holes completed in the southern area of the Okeover project located on British Columbia's south central coast, 25 kilometers north of the City of Powell River. These three holes were drilled in November and December 2007 to complete a preliminary test of an area referred to as the "South Breccia Zone". A total of 782 metres of drilling was completed in these three holes and resulted in the discovery of a new area of copper- molybdenum mineralization. Highlights of the drilling include hole 07-08 with an intercept of 39.7 metres grading 0.045% MoS2 and 0.27% Cu, including 25.4 metres grading 0.068% MoS2 and 0.25% Cu.

Hole 07-08 was angled to the south of the mineralized area and the area beyond this point in this direction has not yet been drilled. A map of the Okeover property showing the recently completed drilling at the South Breccia Zone can be viewed on our website at www.prophecyresource.com.

A summary of results is as follows:

Hole

From
 (metres)

To
(metres)

Interval
(metres)

MoS2
%

Cu
%

Cu
Equiv. (1)

07-08

63.0

102.7

39.7

0.045

0.27

0.54

Including

63.0

88.4

25.4

0.068

0.25

0.66

07-09

33.0

69.4

36.4

0.010

0.27

0.33

And

84.6

114.6

30.0

0.017

0.36

0.47

07-10

            No

significant

results

 

 

 



(1) Based on copper priced at $2.50 per pound and molybdenum at $25 per pound without provision for recoveries or operating costs

Drilling completed in early 2007 at Okeover included four holes completed in the North Lake Zone, which hosts a NI 43-101 compliant inferred resource of 86.8 million tonnes grading 0.31% copper and 0.014% MoS2 as calculated in late 2006 by N.C. Carter, Ph.D., P. Eng. Three of these holes were completed as step outs (average 75 metres) to the east and one as a deeper test beneath the western area of the current resource. All four holes encountered significant mineralization with the three eastern step outs all ending in mineralization grading in excess of 0.19% copper and 0.017% MoS2 (the approximate cut off grade for the resource) confirming that the North Lake Zone is open for expansion to the east and at depth. Ten additional drill sites were constructed in the North Lake area during October and November 2007 and this area will be the subject of additional drilling scheduled to commence in May, 2008.

A rock exposure located approximately 400 metres southwest of the North Lake Zone returned an analysis of 0.17 % Mo (0.288% MoS2 ) and greater than 1000 ppb rhenium. This result encouraged a reanalysis of several other samples which had returned higher molybdenum values. A higher grade intercept in hole 07-03 which had returned an assay of 1.26% copper and 0.38% Mo (0.63% MoS2 ) over 0.8 metres (73.7-74.5 metres) returned a rhenium analysis also greater than 1000 ppb which is the upper limit that the assay lab, Acme Analytical Laboratories Ltd., is equipped to provide. The two samples are approximately 1200 metres distant from each other. Acme Analytical Laboratories Ltd is currently reviewing the availability of other laboratories to provide an unconstrained rhenium value for these samples which is considered to be potentially significant given the current rhenium price of $10,700 per kilogram. Rhenium is reputed to have been an important byproduct for the Island Copper Mine (copper, molybdenum and gold) located on Vancouver Island and operated by BHP Minerals Canada until 1994.



J.W. (Bill) Morton, P.Geo., a director of the Company and qualified person within the context of National Instrument 43-101, has read and takes responsibility for this news release.


About Prophecy Resource Corp.

Prophecy is currently drilling at the Okeover Copper-Molybdenum property on tidewater in B.C., twenty-five kilometres north of the City of Powell River. In 2006, N.C. Carter, PhD, P.Eng, completed a technical report on the Okeover Property pursuant to NI 43-101 that estimated an inferred mineral resource for the North Lake Zone of 86.8 million tonnes grading 0.31% copper (approximately 593,000,000 lbs.) and 0.014% MoS2 (approximately 15.9 million lbs of molybdenum) at a 0.20% copper cut-off grade. The current drill program is focused on the South Breccia area, which is one of eight prospective zones identified at Okeover and has not had any significant exploration work undertaken for more than ten years.

ON BEHALF OF THE BOARD OF DIRECTORS

"STUART ROGERS"

Stuart Rogers, Chief Financial Officer

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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*Ulaan Ovoo: 174 million tonnes  of measured and 34 million tonnes of indicated coal. Ulaan Ovoo’s resource numbers are from the Behre Dolbear & Company (USA), Inc  report referenced in the Dec 2010, 43-101 Prefeasibility Study by Wardrop Engineering. Chandgana consists of two properties-Chandgana Tal and Chandgana Khavtgai. Chandgana Tal consists of 141 mt of measured resource. Chandgana Khavtgai consists of 509 mt measured and 539 mt indicated resource. Chandgana Khavtgai’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 preparation. And the Chandgana Tal resource estimate is also based on the September 2007 NI 43-101 Chandgana Tal Technical Report by Behre Dolbear & Company (USA), Inc..The report is authored by Mr. Gardar G. Dahl, Jr., CPG of Behre Dolbear & Company (USA), Inc., who is an independent Qualified Person under NI 43-101.