Prophecy Platinum Clarifies and Restates Certain Disclosure
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/20/11 -- Prophecy Platinum Corp. ('Prophecy Platinum' or the 'Company') (TSX VENTURE: NKL)(OTCQX: PNIKF)(FRANKFURT: P94P) reports that as a result of a review by the British Columbia Securities Commission (BCSC), it is issuing the following news release to clarify, retract, restate and update certain of its previously issued technical reports, investor relations presentations and disclosures on its website www.prophecyplat.com.Updated Technical Report:
At the request of the BCSC, the Company has obtained a revised technical report concerning the Wellgreen Property from Todd McCracken, P.Geo, of Wardrop Engineering Inc., a TetraTech company, with an effective date of July 21, 2011 (the 'Wardrop Report'), which contains additional information concerning comparisons of the current mineral resource estimate for the Wellgreen property to prior historical estimates.
Per section 14.2 of the Wardrop Report, the author notes that the fundamental difference between the 2008 WGM estimate (the 'WGM Report') and the estimate in the Wardrop Report is that the WGM Report concentrated on the resource material in close proximity to the semi-massive to massive nickel sulphide pods that had been exploited by Hudson Yukon, compared to the estimate in the Wardrop Report which targets a large tonnage open pit geological model. Adopting the new geological model and the inclusion of cobalt, gold, platinum and palladium to the NiEq formula, which was not incorporated in the NiEq value in the WGM Report, the Wardrop report demonstrated a marked increase in the resource estimate.
Other than section 14.2, the content of the Wardrop Report, has not been materially amended and the resource estimate announced on July 14, 2011 by the Company is unchanged. The revised report is available on the Company's SEDAR profile at www.sedar.com and on the Company's website.
Disclosure Review:
The Company's website, presentations and certain interviews contained the following information:
-- tables and information containing total resource numbers which did not
report each category of mineral resources and mineral reserves
separately or which added inferred resources to other categories of
resources in respect of the Wellgreen property.
-- references historic, non-NI 43-101 compliant, resource estimate for the
Wellgreen property completed by Watts Griffis McOuat ('WGM') in 2008 and
a prefeasibility study also completed by WGM in 1989.
-- disclosures of 'gross metal values', 'in-situ values' or 'metals
equivalents' in relation to the Wellgreen property as found in links to
third party newsletters or video interviews.
-- disclosures indicating or implying that the economic viability of the
Wellgreen property has been proven and indicating estimated production
levels.
The content of certain analyst report, third party statements and media articles regarding the Company is deemed as disclosure that the Company had adopted as its own by virtue of its making same available by reference on its website, triggering the application of securities rules and policies, including requirements of National Instrument 43-101 respecting standards of disclosure for mineral projects. The Company has since removed links to third party newsletters and reports, as well as third party interviews from its website and disassociates itself from disclosures by third parties, noting these are independent publications and such disclosures were not made on the Company's behalf or at its request.
Documents and articles removed from the Company's website and social media pages include:
-- A link to a newsletter published by Chen Lin dated July 28, 2011 which
compared gross metal values of the Wellgreen property to Galore Creek.
References to gross metal values and their equivalents are not
appropriate as these may be misleading to investors in the absence of a
feasibility study on the project as they fail to take into consideration
expected operating and capital costs, recoveries, smelter costs and
other factors relating to the potential mining, extraction and recovery
of metals.
-- A link to an interview on BNN dated July 21, 2011 which referred to the
Wellgreen deposit as being 303 million tonnes. Global resource
statements are not 43-101 compliant and are retracted.
-- A link to an interview by Jay Taylor dated August 30, 2011 referring to
the in situ metal value of the Wellgreen deposit as over $50 billion. As
noted above, gross metal values and their equivalents are inappropriate
and misleading. The interview also referred to the Wellgreen property as
being a 'very viable deposit'. This statement is not supported by a
compliant 43-101 technical report demonstrating mineral reserves or
potential economic viability.
While the Company dedicated significant internal resources to verify the information contained above, the disclosure to the public through the Company's website, presentations and certain interviews was not in compliance with National Instrument 43-101 ('NI 43-101'). The board of directors of the Company have since created a disclosure committee and adopted a corporate disclosure policy for the purposes of monitoring its ongoing public disclosure.
The Company wishes to further clarify information as follows:
-- The global resource statements regarding the Wellgreen Property as found
in the Company's website and prior investor relations materials are
grouped resources and non-NI 43-101 compliant. The Company retracts its
disclosure of the global resource numbers for the Wellgreen property and
clarifies that the NI 43-101 compliant resource on the Wellgreen
property is as per the table below, as documented in the report by Todd
McCracken, P.Geo, of Wardrop Engineering Inc., a TetraTech company, with
an effective date of July 21, 2011 entitled Technical Report and
Resource Estimate on the Wellgreen Platinum-Palladium-Nickel-Copper
Project Yukon, Canada:
Table 1. Wellgreen Indicated and Inferred Resource Totals.
---------------------------------------------------------------------------
NiEq% PGM
cut- Cate- Pt Pd Au Au Ni Cu Co
off gory Zone Tonnes NiEq% (g/t) (g/t) (g/t) (g/t) (%) (%) (%)
---------------------------------------------------------------------------
0.400 Indic- East 14,308,000 1.36 0.99 0.74 0.52 2.25 0.69 0.62 0.05
ated
---------------------------------------------------------------------------
NiEq% PGM
cut- Cate- Pt Pd Au Au Ni Cu Co
off gory Zone Tonnes NiEq% (g/t) (g/t) (g/t) (g/t) (%) (%) (%)
---------------------------------------------------------------------------
0.400 Inf- East 219,327,000 0.76 0.54 0.45 0.26 1.25 0.39 0.34 0.03
erred
0.400 Inf- West 69,919,000 0.67 0.50 0.34 0.12 0.96 0.34 0.38 0.02
erred
---------------------------------------------------------------------------
Total 289,246,000 0.74 0.53 0.42 0.23 1.18 0.38 0.35 0.03
Inf-
erred
---------------------------------------------------------------------------
-- The non-NI 43-101 compliant historic resource estimate at the Wellgreen
property, reported at 55.1 million tons grading 0.36% nickel, 0.35%
copper and 0.78 g/t total precious group metals (PGM's), is documented
by Watts, Griffis and McOuat Limited, in their April 21, 1989 report
titled 'Preliminary Feasibility Study of the Wellgreen Project for All-
North Resources Ltd.' A further historical resource estimate was
documented by Watts, Griffis and McOuat Limited, in their July 15, 2008
report titled 'Technical Report and Mineral Resource Estimate for the
Wellgreeen Ni-Cu deposit, Yukon Territory Canada, for Coronation
Minerals Inc.'
-- A qualified person has not completed sufficient work in order to
classify historical resource estimates on the Wellgreen property as
current mineral resources or reserves and the Company is not treating
these historical estimates as prepared by WGM or otherwise as current
mineral resources or reserves but as historical estimates for
informational purposes only that should not be relied upon.
-- A NI 43-101 technical report on the Wellgreen property having an
effective date of July 21, 2011 and entitled 'Technical Report and
Resource Estimate on the Wellgreen Platinum-Palladium-Nickel-Copper
Project Yukon, Canada' was authored by Todd McCracken, P.Geo, of Wardrop
Engineering Inc., a TetraTech company, and is available on the Company's
SEDAR profile. The only current resource calculations that have been
approved by or on behalf of the Company are as stated in this report.
-- The Company retracts its implications of economic viability and notes
that preliminary assessments are preliminary in nature and include
inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that
would enable them to be categorized as mineral reserves and there is no
certainty that any preliminary assessment will be realized or that
inferred resources will be converted to measured and indicated
resources. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The Company has not yet completed an
economic evaluation of the Wellgreen property and any discussions
relating thereto are premature.
In those instances where the Company has retracted, revised, clarified or updated previous disclosure, the Company advises readers not to rely on such statements as they may continue to be found in the public domain.
The Company has engaged Wardrop Engineering Inc. to complete a preliminary economic assessment for the Wellgreen property, which it expects to receive in Q1 of 2012.
Danniel Oosterman, P. Geo., a consultant of the Company, is the Qualified Person under National Instrument 43-101 who has approved the technical content of this news release.
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
This press release does not constitute an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended ('the U.S. Securities Act') or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
'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