Prophecy Commences Wellgreen Metallurgical and PEA Studies With SGS and Wardrop
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/06/11 -- Prophecy Platinum Corp. ('Prophecy Platinum' or the 'Company') (TSX VENTURE: NKL)(OTCQX: PNIKF)(PINK SHEETS: PNIKF)(FRANKFURT: P94P) has prepared and shipped 150kg samples to SGS Minerals Services ('SGS') to initiate a metallurgical and mineralogy study on the Wellgreen deposit. The study will focus on optimizing recoveries through conventional flotation to produce a PGM Nickel Copper concentrate. The mineralogy study will facilitate flowsheet conceptualization while closed circuit locked-cycle testing will be conducted to potentially enhance recoveries. The second part of the study will examine downstream treatment options involving pressure oxidation and leaching using the Platsol process, with which companies exploring in the Minnesota Duluth complex have demonstrated success. Results from the flotation study are expected in the first quarter (Q1) of 2012.The Company has also engaged Wardrop, A Tetra Tech Company (Tetra Tech) to conduct a preliminary economic assessment (PEA) for the Wellgreen deposit. This study will investigate all aspects of the future development of Wellgreen including updating the mineral resources, the open-pit design, determining the optimum mining rate, a review of metallurgical studies and the design of the processing plant, the selection of equipment and manpower needs, estimates of capital and operating costs, financial modeling and risk analysis. The study will, if appropriate, give an economic justification to proceed to a pre-feasibility study or directly to a full feasibility study. The Company expects to receive a preliminary pit-shell outline with an indication of strip ratio on its high grade starter pit (Inferred resource of 50.6 million tonnes at 2.20 g/t PGM Au 0.83% Ni, 0.80% Cu, 1.6% NiEq based on 1% NiEq cut off, and an Indicated resource of 8.5 million tons at 2.77 g/t PGM Au 0.91% Ni, 0.80% Cu,) in October, 2011. The completion of the PEA is expected in Q1 of 2012.
John Lee, Chairman of Prophecy Platinum comments: 'The Wellgreen PGM-Ni-Cu project deserves world class status with its superior grades, location, resource base, and expansion potential. Over time, independent studies will demonstrate the quality attributes of this highly unique project.'
Further to the Company's news release dated April 6, 2011, it has completed the acquisition of a 100% interest in the Burwash property (from here-on referred to as 'Wellgreen East') from Strategic Metals Ltd. ('Stategic') by paying to Strategic $1,000,000. The Wellgreen East property comprises 48 square kilometres, adds approximately 7 kilometers of exploration strike length east of the Wellgreen leases. Previous exploration on the fully acquired claims confirms that the geologic stratigraphy and mineralization is similar to the main Wellgreen resource. Past surface exploration has yielded sample grabs of 11.6 g/t Pt, 29.4 g/t Pd and 0.9 g/t Rhodium. These results are historical and should be regarded as unverified and should not be relied upon. Prophecy's land position now spans 17.5 km in strike, covering a majority of the Quill Creek ultramafic Complex.
This news release has been reviewed and approved by Danniel Oosterman, P.Geo., an independent consultant to the Company and a Qualified Person as defined in NI 43-101.
Visit www.prophecyplat.com for the Wellgreen property map and high-grade starter pit zone.
About Wardrop (Tetra Tech)
Wardrop, A Tetra Tech Company (Tetra Tech) is a multi-disciplined engineering and consulting firm that provides innovative solutions for the natural resource management, energy, and infrastructure markets globally. Wardrop is a subsidiary of Tetra Tech (NASDAQ: TTEK), a leading provider of consulting, engineering, program management, construction and technical services. The combined companies have more than 12,000 employees worldwide and capabilities that span the entire project lifecycle.
About SGS Mineral Services
Founded over half-a-century ago to meet the metallurgical needs of Canada's growing mining industry, SGS Minerals Services' metallurgical group has since built upon its unique capabilities in grinding and flotation technologies to emerge as an industry leader in a full range of metallurgical services. With a diversity of technical expertise that is second to none, SGS Minerals Services has carved itself an identity in the rapidly changing world of mineral and mining technology.
About Prophecy Platinum
Prophecy Platinum Corp. is a Canadian based Nickel PGM exploration company with projects in Canada, Argentina and Uruguay. Prophecy Platinum's flagship Wellgreen PGM-Cu-Ni project is in Yukon Territory, Canada and the Lynn Lake project is located in Manitoba, Canada. Further information can be found at www.prophecyplat.com.
ON BEHALF OF THE BOARD OF DIRECTORS of Prophecy Platinum Corp.
John Lee, Chairman
Forward Looking Statements: This news release includes certain statements that may be deemed 'forward-looking statements'. All statements in this release, other than statements of historical facts, including, without limitation, statements potential mineralization, the estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. Although Prophecy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals in respect of the Transaction, 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, 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 companies with securities regulators. 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 the actual events may differ materially from those projected in the forward-looking statements. For more information on Prophecy and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
'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.'
Contacts:
Prophecy Platinum Corp.
Asif Visram
Manager, Investor Relations
1.800.358.5865
avisram@prophecyplat.com
www.prophecyplat.com