Prophecy Platinum Corp. ("Prophecy Platinum" or the "Company") (TSX
VENTURE:NKL)(OTCQX:PNIKF) is pleased to announce the commencement of the 2013
field program at its 100%-owned Wellgreen PGM-Nickel-Copper project in Canada's
Yukon Territory. Field activities, metallurgical test work and engineering
initiatives commenced in June with the comprehensive re-logging and re-sampling
of up to 12,000 metres of historic drill hole cores from across the main
Wellgreen deposit, approximately 75% of which have never been tested. A targeted
exploration drilling program, designed to facilitate a higher-grade, lower CAPEX
start-up concept convert a significant amount of Inferred Mineral Resources to
the Measured and Indicated category, and test recently determined potential
high-grade zones, is set to begin before the end of July.
Our 2013 Wellgreen exploration program has been designed to support and maximize
the results of a revised Preliminary Economic Assessment (PEA) and updated
mineral resource estimate as the next major milestones in the development of the
project. The updated PEA, expected to be completed in the first half of 2014,
will reflect a new approach to the project under which a significantly reduced
CAPEX and enhanced economic Key Performance Indicators are key goals. In
addition to the field activities now underway, environmental, socio-economic,
engineering and metallurgical contracts have been awarded in accordance with the
Company's target timeline.
Outline of the 2013 Exploration Program:
We expect to achieve the following results with our 2013 Wellgreen exploration
program:
-- Re-Sampling Program
-- Re-logging / sampling and bulk mineability assessment of up to
12,000 metres of historic drill holes which were previously only
selectively assayed for narrow, very high-grade, massive sulphide
zones. Drill hole cores will be re-logged and comprehensively
analyzed for platinum, palladium, rhodium, and gold (4E), nickel,
copper and cobalt mineralization with NI 43-101 quality control
measures to allow for their inclusion in the updated 2014 PEA.
-- Drilling Program
-- Definition of higher-grade mineralization for scheduling in the
first 5-10 years of operations to enhance existing positive
economics;
-- Step-out drilling to offset higher grade mineralized zones and bring
currently unclassified blocks that are within the previous pit model
into the mineral resource;
-- Conversion of a significant portion of the mineral resource from
Inferred to the Measured and Indicated category to increase overall
confidence in the mineral resource model;
-- Testing of high priority, road-accessible targets adjacent to the
main Wellgreen deposit for the existence of new higher grade, bulk
mineable mineralization.
-- Metallurgical Optimization
-- Next phase of test work is underway in order to optimize metal
recovery of disseminated mineralization as well as grind size and
flotation process improvements.
-- Engineering and Mine Plan Optimization
-- Studies are underway to look at a staged development approach with
an initial smaller scale start-up operation at reduced CAPEX and
with increased project internal rates of return. Expansion is
planned to be incorporated on a staged basis and funded, in part,
from operations.
Greg Johnson, President and CEO, states, "With our $5.9-million financing
completed, we have the working capital to carry out the next phase of work at
our Wellgreen project. During the past six months, our technical team has
undertaken a comprehensive review of the project, including a compilation of all
historic information on the deposit back to the 1950s. We are excited about key
new observations on the controls to the disseminated PGM, nickel and copper
mineralization that have come out of new geologic modelling work. Wellgreen
shares many geologic characteristics with such world-class PGM deposits as
Norilsk and Voisey's Bay. However, the width of continuous significant PGM
mineralization starting at surface, which includes zones up to 500 metres in
thickness, makes Wellgreen unique among these other major PGM systems. In
addition, several of these broad, higher-grade zones have been identified that
have the potential to be optimized early in the mining of the project and that
should further improve the already positive existing economics described in the
2012 PEA."
Mr Johnson continues, "Concurrent with the work on targeting new higher-grade
bulk mineable zones, a metallurgical program is underway to optimize metal
recoveries, particularly in the PGMs. Engineering studies are also investigating
a number of opportunities to lower operating and capital costs to further boost
project returns. As part of an updated PEA planned for the first half of 2014,
management is targeting an initial start-up capital expenditure in the range of
$300 to $400 million with phased expansion to the ultimate project capacity to
occur over time. We believe this flexible approach to the project will allow
development to accelerate, while also demonstrating the project's larger-scale
potential production levels. Wellgreen is one of the largest PGM resources
outside of southern Africa and Russia and, with the sector confronting
protracted global supply issues, we are looking at a number of opportunities to
expedite this important project's path to production."
Wellgreen 2013 Field and Engineering Activities
The grade thickness plan view below shows the grade-thickness results for the
drilling to date on the Wellgreen project and indicates that, although the
deposit remains open, the currently defined system is at least 2.5 kilometres
long and 1.5 kilometres wide. Please refer to the Company's news release dated
February 4, 2013 for details on our most recent drill results.
The current model for the Wellgreen deposit, as outlined in the technical report
entitled "Wellgreen Project Preliminary Economic Assessment, Yukon, Canada"
dated effective August 1, 2012 (the "2012 PEA") prepared by Andrew Carter,
P.Eng., Pacifico Corpuz, P.Geo.,Philip Bridson, P.Eng. and Todd McCracken,
P.Geo., is as a bulk mineable system which would principally use open pit
mining, potentially supplemented with large-scale underground methods.
Mineralization is hosted in a tabular ultramafic body that begins at surface to
at least 700 metres depth with typical widths of 75-100 metres with zones up to
300-500 metres of continuous mineralization.
To view the 'Grade Thickness Plan View', please visit the following link:
http://media3.marketwire.com/docs/pgrade0717.pdf
Mineralization generally grades 1.5-4.5 g/t platinum equivalent (Pt Eq.) with
typical grade thickness (grade x width) values of 100 - 300 gram-metres Pt Eq.
and the occurrence of zones exceeding 1,000 gram-metres Pt Eq. The open pit
cut-off grade is anticipated to be 0.70 g/t Pt Eq., while a bulk underground
cut-off grade would be anticipated to be approximately 1.5 g/t Pt Eq.
Re-Sampling Program
The first phase of this season's field work at Wellgreen started with a
re-sampling program on up to 12,000 metres of historic drill core that was
previously only selectively sampled for very high grade, massive sulphide
material. 75% of the drill hole core from the potentially bulk mineable
ultramafic hosted mineralization was never sampled. These historic holes are now
being analyzed from this bulk mineability perspective across broad zones of
disseminated mineralization for platinum, palladium, rhodium, and gold (4E) in
addition to nickel, copper, cobalt and trace elements. The analysis will include
NI 43-101 quality control processes to allow these historic drill holes to be
utilized in the next mineral resource update and revised PEA.
This re-sampling program highlights the contrast between the historic model
which focused on narrow, very high-grade zones in the deposit and the current
approach which looks at potential open pit and bulk mineable underground
production. This low-cost, high-impact re-sampling program will allow for better
assessment of bulk mineability across a large area of the deposit and has the
potential to define new zones of mineralization that have not been previously
recognized (see figure below). Samples from the East and Far East Zones (E and
FE) and North Arm have been submitted for analysis with broad visually
mineralized intervals of ultramafic intrusive rocks. First results from this
re-sampling program should be available within the next 4 to 6 weeks.
To view the '2013 Resampling Program', please visit the following link:
http://media3.marketwire.com/docs/pplan0717.pdf
Drill Program
Our 2013 drill program will be conducted by Boart Longyear Canada Inc. and, as
noted above, has the following key objectives:
-- Definition of higher-grade mineralization for scheduling in the first 5-
10 years of operations to improve existing positive economics;
-- Key step-out drilling to offset higher-grade mineralized zones and bring
currently unclassified blocks that are within the previous pit model
into the mineral resource;
-- Conversion of a significant portion of the mineral resource from
Inferred to the Measured and Indicated category to increase overall
confidence in the mineral resource model; and
-- Testing of high priority, road-accessible targets adjacent to the main
Wellgreen deposit for the existence of new, higher-grade, bulk mineable
mineralization.
Two areas, the Far West Zone (FW) and the Far East Zone, demonstrate wide
intervals of mineralization that are of significantly higher grade than the
average of the deposit. These will be assessed in order to determine whether
they can potentially be accessible and scheduled within the first 5-10 years of
operation.
The Far West target, which begins at surface, is significantly enriched in PGMs
and is as much as three times higher than the average grade. The Far West Zone
is at the western end of the deposit and is open to expansion down dip. In
addition, geophysical surveys in the Far West indicate the potential for an
untested parallel zone. The Far West and West (W) areas both contain higher
grade material which will be further investigated to determine potential
suitability for location of possible starter pits.
A second higher grade target area occurs within the Far East Zone at the eastern
end of the main Wellgreen deposit. Modeling and compilation of historic drill
holes has identified a thick mineralized zone which appears to occur in this
area to the north of the main tabular Wellgreen deposit. This zone is completely
open to the east and may connect the main Wellgreen deposit with the nearly
untested North Arm ultramafic body. The North Arm falls within the current pit
model but, due to a lack of modern drilling data, is not included in the current
mineral resource estimate. This area has the potential of being reclassified
from waste material into a mineral resource designation, adding to the economics
of the Wellgreen project. The areas to the east and north of the main deposit
hold potential for expansion of the mineral resource, with some of the best
holes drilled in the deposit to date in these areas.
In addition to the two areas highlighted above, the main Wellgreen deposit
appears to be open to expansion over its entire 2.5 kilometre length down dip to
the south. Key drill holes are planned to offset higher grade mineralized zones
and bring these areas, which are currently within the pit model as unclassified
blocks, into the mineral resource. The Central Zone (C) is one of these areas
for testing down dip, where two of the best grade-thickness holes in the deposit
(WS-188 and WS-214) have not yet been offset.
The development of new geologic model has enabled the technical team to map out
a targeted offset and infill drilling program designed to maximize conversion of
existing Inferred resources into the Measured and Indicated category and thereby
increase overall confidence in the mineral resource.
To view the 'Wellgreen Target Zones', please visit the following link:
http://media3.marketwire.com/docs/pmap0717.pdf
Lastly, a series of high-priority, road accessible targets adjacent to the main
Wellgreen deposit are viewed by the Company as having potential for the
discovery of new higher grade, near surface mineralization. These targets, which
include the Quill and Burwash areas, are outside of the current limits of the
current mineral resource model but demonstrate geomagnetic and surface
geochemical signatures which are strikingly similar to those found at Wellgreen
proper. Initial results indicate the possibility that these sites may be part of
the same overall system which exceeds 18 kilometres in length.
Metallurgical Optimization
The metallurgical program will be conducted by Eggert Engineering, who is being
assisted by Mike Ounpuu, Consulting Metallurgist.
Metallurgical test work has commenced at SGS Minerals Services at Lakefield.
This program is pursuing optimization opportunities including improved 3E PGM
and base metals recovery and recovery of rare PGMs as well as increased
concentrate grades. The test work, upon which assumptions in the 2012 PEA were
based, was preliminary in nature and attained the initial objective of
demonstrating that the disseminated mineralization would report to a
conventional sulfide flotation circuit and would also report to separate nickel
and copper concentrates.
The 2013 metallurgical program will test optimization of the flotation recovery
of the metals by using variation of grind size, flotation methods, magnetic
separation methods and other techniques to enhance overall recovery of PGMs and
base metals and improve overall concentrate value.
During its production phase in the early 1970s, Wellgreen operated as an
underground mine focused on very high-grade horizons and produced a bulk
concentrate which was purchased by Sumitomo in Japan containing PGMs, nickel and
copper along with rare PGM's including rhodium, osmium and iridium.
Engineering and Mine Plan Optimization
Studies currently underway are examining a staged development approach with a
smaller scale start-up operation, including reduced initial CAPEX and improved
economic key performance indicators.
The Company has awarded the surface infrastructure engineering contract to JDS
Energy & Mining Inc. (JDS). and the tailings pond engineering will be conducted
by Knight Piesold. In addition, the Company is currently assessing contractors
in relation to the open pit and underground mine engineering work.
The revised PEA will include Liquefied Natural Gas (LNG) as a primary power
source, which will significantly decrease the $0.28 per kW/h unit operating cost
cited in the 2012 PEA, as well as optimize the location and general arrangements
of the mill, tailings storage facility and other site facilities.
In addition, the project team has commenced with a benchmarking analysis that
establishes comparisons regarding pre-production CAPEX, production throughput,
mineral processing requirements and metallurgical performance at similar
projects.
John Sagman, Senior Vice President and Chief Operating Officer, indicated,
"Prophecy Platinum has recruited additional personnel and engineering firms with
the necessary expertise and experience to effectively contribute to the updated
PEA that is expected to further define Wellgreen as a project with robust
economics and one that is well supported by First Nations and stakeholders.
Following completion of an updated PEA early in 2014, the Company expects to
initiate Pre-feasibility level studies in 2014, and Feasibility level studies in
2015."
Shakespeare Project Activities
Concurrent with the advancements on the Wellgreen project, during 2013, Prophecy
Platinum has been conducting a comprehensive review of its fully-permitted,
production ready Shakespeare PGM-Nickel-Copper mine located in the Sudbury
mining district of Ontario. This review has been focused on opportunities to
reduce operating costs in three key areas: toll milling/smelting costs,
reduction in ore haulage transport costs using a new route proposed by the
Sagamok Anishnawbek First Nations, and refinement of the mine plan/site
operations. At sustained recent metal prices Shakespeare could provide a source
of funding for the exploration and engineering activities at Wellgreen as well
as provide benefits to the Sagamok Anishnawbek First Nations and local community
stakeholders.
We anticipate issuing regular news updates over the coming months as we
undertake re-sampling and exploration programs, complete metallurgical
optimization studies, and engineering updates.
About Prophecy Platinum
Prophecy Platinum Corp. is a growth-focused PGM exploration company with
projects in the Yukon Territory, Ontario and Manitoba, Canada. The Company's
100% owned Wellgreen PGM-Ni-Cu project, located in the Yukon, is one of the
world's largest undeveloped PGM deposits and one of few significant PGM deposits
outside of southern Africa or Russia. The Company's Shakespeare PGM-Ni-Cu
project is a fully-permitted, production-ready mine located in the Sudbury
mining district of Ontario, and its Lynn Lake project is a former operating mine
located in Manitoba, Canada. The Company's experienced senior management team
has a track record of successful, large-scale project discovery, development,
operations and financing combined with an entrepreneurial approach to
sustainability and collaboration with First Nations and communities. The
Company's shares are listed on the TSX Venture Exchange under the symbol "NKL"
and on the US OTC-QX market under the symbol "PNIKF".
Further information about the Company and its projects can be found at
www.prophecyplatinum.com.
Quality Assurance: The technical information in this news release has been
prepared in accordance with Canadian regulatory requirements set out in National
Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian
Securities Administrators ("NI 43-101"). The Wellgreen Project geological
technical information is supervised and reviewed by Neil Froc, P. Eng., Prophecy
Platinum Wellgreen Project Manager, a "Qualified Person" as defined in NI 43-101
and the person who oversees exploration activities on the Wellgreen Project. All
other technical information is supervised and reviewed by John Sagman, P.Eng.,
Prophecy Platinum's Senior Vice President and Chief Operating Officer and a
"Qualified Person" as defined in NI 43-101. In addition, Mr. Sagman has reviewed
and approved the geological technical information contained in this news
release.
Forward-Looking Information: This news release includes certain information that
may be deemed "forward-looking information". All information in this release,
other than information of historical facts, including, without limitation,
information regarding the 2013 filed program with respect to resampling,
drilling, metallurgical optimization, engineering and mine planning, the timing
and success of exploration activities generally, the timing of future technical
reports and general future plans and objectives for the Wellgreen and
Shakespeare projects are forward-looking information that involve various risks
and uncertainties. Although the Company believes that the expectations expressed
in such forward-looking information are based on reasonable assumptions, such
expectations are not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking
information. Forward-looking information is based on a number of material
factors and assumptions. Factors that could cause actual results to differ
materially from the forward-looking information include unsuccessful exploration
results, changes in project parameters as plans continue to be refined, results
of future resource estimates, future metal prices, availability of capital and
financing on acceptable terms, general economic, market or business conditions,
risks associated with operating in foreign jurisdictions, uninsured risks,
regulatory changes, defects in title, availability of personnel, materials and
equipment on a timely basis, accidents or equipment breakdowns, delays in
receiving government approvals, the Company's ability to maintain the support of
stakeholders necessary to develop the Wellgreen project, unanticipated
environmental impacts on operations and costs to remedy same, and other
exploration or other risks detailed herein and from time to time in the filings
made by the Company with securities regulatory authorities in Canada. Readers
are cautioned that mineral resources that are not mineral reserves do not have
demonstrated economic viability. Mineral exploration and development of mines is
an inherently risky business. Accordingly, actual events may differ materially
from those projected in the forward-looking information. For more information on
the Company and the risks and challenges of our business, investors should
review our annual filings which are available at www.sedar.com. The Company does
not undertake to update any forward looking information, except in accordance
with applicable securities laws.
Cautionary Note to United States Investors: This news release has been prepared
in accordance with the requirements of the securities laws in effect in Canada,
which differ from the requirements of U.S. securities laws. Unless otherwise
indicated, all resource and reserve estimates included in this news release have
been prepared in accordance with NI 43-101 and the Canadian Institute of Mining,
Metallurgy, and Petroleum Definition Standards on Mineral Resources and Mineral
Reserves. NI 43-101 is a rule developed by the Canadian Securities
Administrators which establishes standards for all public disclosure an issuer
makes of scientific and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly from the
requirements of the United States Securities and Exchange Commission ("SEC"),
and resource and reserve information contained herein may not be comparable to
similar information disclosed by U.S. companies. In particular, and without
limiting the generality of the foregoing, the term "resource" does not equate to
the term "reserves". Under U.S. standard s, mineralization may not be classified
as a "reserve" unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time the reserve
determination is made. The SEC's disclosure standards normally do not permit the
inclusion of information concerning "measured mineral resources", "indicated
mineral resources" or "inferred mineral resources" or other descriptions of the
amount of mineralization in mineral deposits that do not constitute "reserves"
by U.S. standards in documents filed with the SEC. Investors are cautioned not
to assume that any part or all of mineral deposits in these categories will ever
be converted into reserves. U.S. investors should also understand that "inferred
mineral resources" have a great amount of uncertainty as to their existence and
great uncertainty as to their economic and legal feasibility. It cannot be
assumed that all or any part of an "inferred mineral resource" will ever be
upgraded to a higher category.
Under Canadian rules, estimated "inferred mineral resources" may not form the
basis of feasibility or pre-feasibility studies except in very rare cases.
Investors are cautioned not to assume that all or any part of an "inferred
mineral resource" exists or is economically or legally mineable. Disclosure of
"contained ounces" in a resource is permitted disclosure under Canadian
regulations; however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves" by SEC standards as in-place
tonnage and grade without reference to unit measures. The requirements of NI
43-101 for identification of "reserves" are also not the same as those of the
SEC, and reserves reported by the Company in compliance with NI 43-101 may not
qualify as "reserves" under SEC standards. Accordingly, information concerning
mineral deposits set forth herein may not be comparable with information made
public by companies that report in accordance with U.S. standards.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release."
FOR FURTHER INFORMATION PLEASE CONTACT:
Prophecy Platinum Corp.
Greg Johnson
President & CEO
1-800-459-5583
info@prophecyplatinum.com
Prophecy Platinum Corp.
Chris Ackerman
Senior Manager, Investor Relations
+1.604.569.3690
+1.604.569.3617 (FAX)
cackerman@prophecyplatinum.com
www.prophecyplatinum.com
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