Prophecy Platinum Announces Drill Results Demonstrating Broad Zones of Continuous Platinum Group Metals, Nickel and Copper Mineralization at the Wellgreen Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/04/13 -- Prophecy Platinum Corp. ("Prophecy Platinum" or the "Company") (TSX VENTURE: NKL)(OTCQX: PNIKF) is pleased to announce the final results of its US$6.5 million, 11,000 metre 2012 exploration drill program at the Company's 100%-owned Wellgreen PGM-Ni-Cu project, located in the southwest of Canada's Yukon Territory. Fourteen of fifteen drill holes, from across approximately two kilometres of the existing mineral resource area, intercepted significant mineralized widths, including two of the best intercepts drilled at the Wellgreen project to date.
Highlights
Highlighted drill results are summarized below in platinum equivalent (Pt Eq.)(1) and nickel equivalent (Ni Eq.)(1):
-- WS12-214 intersected three mineralized intervals totalling 362.8 metres
of 2.22g/t Pt Eq. or 0.49% Ni Eq. including 37.6m of 5.31g/t Pt Eq. or
1.18% Ni Eq.;
-- WS12-205 intersected five mineralized intervals totalling 314.4 metres
of 2.38g/t Pt Eq. or 0.53% Ni Eq. including 44.1 metres of 4.13g/t Pt
Eq. or 0.92% Ni Eq.;
-- WS12-203 intersected two mineralized intervals totalling 317.2 metres of
1.91g/t Pt Eq. or 0.42% Ni Eq.;
-- WS12-208 was entirely mineralized, totalling 142.5 metres of 4.01g/t Pt
Eq. or 0.89% Ni Eq.;
-- WS12-204 intersected three mineralized intervals totalling 295.0 metres
of 1.92g/t Pt Eq. or 0.43% Ni Eq.;
-- WS12-213 intersected two mineralized intervals totalling 251.9 metres of
2.08g/t Pt Eq. or 0.46% Ni Eq.
Please refer to the tables below for additional details on all drilling results.
Greg Johnson, Prophecy Platinum's recently appointed President and Chief Executive Officer, stated, "We are very pleased by the results from this last round of drilling in the 2012 Wellgreen exploration program and are developing a good understanding of the geologic controls for a large scale, bulk mining approach to the Wellgreen project. These drill holes from four different areas across the main Wellgreen deposit, designed to test representative sections of the deposit, demonstrate wide intervals of impressive mineralization. Two of these drill holes are in the top holes ever drilled on the property to date in terms of width and grade of mineralization and six of these drill holes exceed a grade thickness value of over 500 gram-metres of platinum equivalent. A grade thickness value of 20 gram-metres is considered economically significant and most high quality gold or platinum mines would have a core zone of 100 gram-metres or more. A value of 500 gram-metres is exceptional and two of our holes in the project are nearly 1000 gram-metres highlighting the strength of the Wellgreen system. In addition, most of these zones remain open to further expansion at depth and along trend."
"Over the past several months our Wellgreen team has been compiling all of the historic exploration data on the project and systematically integrating it along with the results from the 2012 program. This work is showing a nearly continuous zone of disseminated PGM, nickel and copper mineralization in ultramafic intrusive rocks of up to 200-500 metres in thickness with a higher grade package of ultramafics lower in the section of up to 150-300 metres with substantially higher PGM content."
Central Zone
The Central Zone, which occurs between the East and West Resource zones, had undergone only limited drilling at the time of the Wellgreen resource estimate, in 2011. Subsequent drilling in this area (see Wellgreen Plan View) has revealed one of the thickest zones of continuous PGM, nickel and copper mineralization found at the project to date. Drill Holes WS12-214 and WS11-188 intersected an upper ultramafic package of up to 200 metres in thickness grading 2g/t Pt Eq. and a lower ultramafic package of 160-248 metres in thickness grading 2.5g/t Pt Eq. Drill Hole WS11-188 intersected four mineralized intervals totaling 434.6 metres at a grade of 2.30g/t Pt Eq. (or 0.51% Ni Eq.). Mineralized samples from part of Drill Hole WS11-188 were also analyzed for rare PGM's rhodium, osmium, iridium and ruthenium. The results of these tests support the historic findings that the Wellgreen deposit contains rare PGM's along with platinum and palladium. Future metallurgical tests will look to quantify the potential economic contribution of these rare PGM's to the project. Drill Hole WS12-214 was an offset hole to WS11-188 and confirmed the continuity of mineralization by intersecting three mineralized intervals totaling 362.8 metres at a grade of 2.22g/t Pt Eq. (or 0.49% Ni Eq.). See Table 1 and Figure 1.
Together, Drill Holes WS11-188 and WS12-214 indicate the existence of a very broad mineralized zone of ultramafic rocks. Drill Hole WS12-214 also intersected a significantly higher grade zone in the lower ultramafic package across a width of 37.6 metres with grades of 5.31g/t Pt Eq. (or 1.18% Ni Eq.) including 0.47% Ni, 0.83% Cu, 0.023% Co, 1.12g/t Pt, 0.65g/t Pd, and 0.27g/t Au. These lower samples occur near the base of the ultramafic package that contains areas of intense disseminated sulphides as well as pods of massive sulphides that were the focus of historic exploration and mining on the project. Less than half of the mapped area of potentially mineralized ultramafics has been drill-tested in this area and the mineralized zone drilled in WS12-214 and WS11-188 remains open to expansion. Drill Holes WS12-214 and WS11-188 were designed to drill across the mineralized horizons with 8 individual intersections averaging 100 metres in width with an average base metal content of 0.40% Ni Eq. and average PGM content of 0.48 g/t Pt Eq., for a total of 2.26 g/t Pt Eq.
Table 1: Central Zone drill hole intercept highlights
----------------------------------------------------------------------------
Downhole Base Metals
Ultramafic From To Width Ni Cu Co Ni Eq.
Drill Hole Unit m m m % % % %
----------------------------------------------------------------------------
WS12-214 Upper 0.0 192.0 192.0 0.30 0.11 0.017 0.37
198.0 208.7 10.7 0.37 0.17 0.018 0.46
2 Total
intervals Upper 202.7 0.31 0.11 0.017 0.38
Total
Lower 219.5 379.5 160.1 0.25 0.35 0.018 0.42
incl 319.4 357.0 37.6 0.47 0.83 0.023 0.82
3 Total
intervals Hole 362.7 0.28 0.22 0.017 0.39
----------------------------------------------------------------------------
(i) Hole WS11-188 listed below for reference purposes (drilled in 2011)
----------------------------------------------------------------------------
WS11-188 Total
Upper 7.9 195.1 187.1 0.29 0.10 0.015 0.36
Lower 195.1 300.5 105.5 0.42 0.26 0.018 0.55
306.6 411.7 105.1 0.22 0.22 0.017 0.33
420.9 443.3 22.3 0.17 0.23 0.016 0.28
450.3 464.9 14.6 0.26 0.49 0.018 0.47
4 Total
intervals Lower 247.5 0.30 0.26 0.017 0.43
5 Total
intervals Hole 434.6 0.30 0.19 0.016 0.40
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Precious Metals Total Metals Pt Eq.-
Ultramafic Pt Pd Au Pt Eq. Pt Eq. Ni Eq. length
Drill Hole Unit g/t g/t g/t g/t g/t % g/t-m
----------------------------------------------------------------------------
WS12-214 Upper 0.17 0.26 0.02 0.28 1.97 0.44 378
0.20 0.34 0.03 0.36 2.46 0.54 26
2 Total
intervals Upper 0.17 0.26 0.02 0.29 1.99 0.44 404
Total
Lower 0.44 0.28 0.12 0.64 2.52 0.56 403
incl 1.12 0.65 0.27 1.59 5.31 1.18 200
3 Total
intervals Hole 0.29 0.27 0.07 0.44 2.22 0.49 806
----------------------------------------------------------------------------
(i) Hole WS11-188 listed below for reference purposes (drilled in 2011)
----------------------------------------------------------------------------
WS11-188 Total
Upper 0.17 0.24 0.02 0.27 1.88 0.42 353
Lower 0.48 0.57 0.07 0.75 3.21 0.71 338
0.48 0.31 0.07 0.65 2.13 0.47 224
0.39 0.19 0.07 0.52 1.79 0.40 40
0.62 0.32 0.14 0.86 3.00 0.66 44
4 Total
intervals Lower 0.48 0.41 0.07 0.69 2.61 0.58 646
5 Total
intervals Hole 0.35 0.34 0.05 0.51 2.30 0.51 999
----------------------------------------------------------------------------
Footnotes to Drill Interval Tables and Figures:
1. Nickel equivalent (Ni Eq. %) and platinum equivalent (Pt Eq. g/t)
calculations reflect total gross metal content using US$ of $7.58/lb
nickel (Ni), $2.85/lb copper (Cu), $12.98/lb cobalt (Co), $1270.38/oz
platinum (Pt), $465.02/oz palladium (Pd) and $1102.30/oz gold (Au) and
have not been adjusted to reflect metallurgical recoveries. The above
metal prices are a 20% reduction of the LME 3-year trailing average
metal prices as presented in the Company's technical report entitled
"Wellgreen Project, Preliminary Economic Assessment, Yukon Canada" dated
August 1, 2012 (the "2012 Wellgreen PEA") and prepared by Andrew Carter,
C.Eng., Pacifico Corpuz, P. Eng., Philip Bridson, P.Eng., and Todd
McCracken, P.Geo., of Tetra Tech Wardrop Inc. The 2012 Wellgreen PEA is
available under the Company's profile on SEDAR at www.sedar.com.
2. Ni Eq. % and Pt Eq. g/t in "Base Metals" and "Precious Metals" columns
only refers to equivalents of base and precious metals respectively, not
total metals. In the "Total Metals" column the Pt Eq. includes both base
and precious metals, as does the Ni Eq.
3. Significant interval defined as a minimum 15 g/t metre Pt Eq. interval,
4. Cutoff grade of 0.2% Ni Eq.
5. Internal dilution up to six continuous metres of less than 0.2% Ni Eq.
6. Some rounding errors may occur.
7. Individual composites of greater than 2.0 g/t Pt Eq. have been bolded.
8. True thicknesses have not been measured.
9. Projected open pit design in Figures is from the 2012 Wellgreen PEA.
See Figure 1: Cross Section of the Central Zone
East Zone
Results from eight new drill holes in the East Zone confirm previously identified zones of broad PGM, nickel and copper mineralization within a package of ultramafic rocks starting from the surface. The summary grade thickness values for all the holes indicated mineralized intervals with grade thickness values at or in excess of 250 gram-metres of platinum equivalent. Three holes exceeded a value of 500 gram-metres.
The East Zone contains many isolated massive sulphide lenses in and around the underground workings that occur near the base of the ultramafic host rocks. Though historic work focused on these massive sulphide bodies, as currently envisioned, these limited but very high grade zones are seen as enrichments in a much broader zone of disseminated material which spans the entire ultramafic body and demonstrates continuous mineralization for at least 400 vertical metres. In this section, the higher grade lower ultramafic package is confined to an area adjacent to the Hasen Creek sediments and seems to follow the contact very closely reaching widths of up to 160 metres. Although confined in the upper 300 metres, this zone appears to be widening with increasing depth and remains open in that direction. Drill holes in the East Zone were designed to drill across the mineralized horizons, with 19 individual intersections averaging 100 metres in width with an average base metal content of 0.35% Ni Eq. and average PGM content of 0.32 g/t Pt Eq. for a total of 1.90 g/t Pt Eq.
Like the Central Zone, less than half of the mapped area of potentially mineralized ultramafics has been drill- tested in this area.
Table 2: East Zone drill hole intercept highlights
----------------------------------------------------------------------------
Downhole Base Metals
Drill Ultramafic From To Width Ni Cu Co Ni Eq.
Hole Unit m m m % % % %
----------------------------------------------------------------------------
WU12-537 0.0 11.1 11.1 0.18 0.47 0.011 0.37
19.0 128.6 109.7 0.31 0.10 0.016 0.37
2 Total
intervals Hole 120.8 0.29 0.14 0.016 0.37
----------------------------------------------------------------------------
WU12-548 0.0 5.3 5.3 0.23 0.50 0.018 0.45
16.8 231.3 214.6 0.26 0.09 0.015 0.32
incl 121.9 189.0 67.1 0.31 0.13 0.017 0.38
2 Total
intervals Hole 219.9 0.26 0.10 0.015 0.32
----------------------------------------------------------------------------
WS12-202 Upper 0.0 106.5 106.5 0.27 0.08 0.015 0.32
141.4 260.5 119.2 0.27 0.09 0.016 0.33
2 Total
intervals Upper 225.7 0.27 0.08 0.015 0.32
----------------------------------------------------------------------------
WS12-203 Total
Upper 0.0 229.5 229.5 0.27 0.10 0.016 0.33
Total
Lower 237.4 325.0 87.6 0.30 0.19 0.017 0.40
2 Total
intervals Hole 317.2 0.28 0.12 0.016 0.35
----------------------------------------------------------------------------
WS12-204 Total
Upper 0.0 122.4 122.4 0.27 0.08 0.015 0.32
Lower 129.9 207.0 77.1 0.26 0.26 0.016 0.39
393.4 489.0 95.6 0.27 0.11 0.017 0.34
2 Total
intervals Lower 172.7 0.26 0.18 0.02 0.36
3 Total
intervals Hole 295.0 0.27 0.14 0.016 0.34
----------------------------------------------------------------------------
WS12-205 Total
Upper 0.0 145.7 145.7 0.27 0.08 0.015 0.32
Lower 158.1 185.0 26.9 0.28 0.36 0.019 0.45
197.0 241.1 44.1 0.35 0.88 0.026 0.73
261.3 269.0 7.7 0.24 0.52 0.017 0.47
365.0 455.0 90.0 0.35 0.16 0.016 0.44
4 Total
intervals Lower 168.7 0.33 0.40 0.02 0.52
5 Total
intervals Hole 314.4 0.30 0.25 0.017 0.43
----------------------------------------------------------------------------
WS12-210 Total
Upper 0.0 101.4 101.4 0.26 0.06 0.015 0.31
Lower 123.2 143.5 20.4 0.29 0.10 0.015 0.35
151.5 187.0 35.5 0.21 0.27 0.015 0.33
incl 185.1 187.0 1.9 0.94 1.67 0.052 1.66
2 Total
intervals Lower 55.9 0.24 0.21 0.015 0.34
3 Total
intervals Hole 157.3 0.25 0.11 0.015 0.32
----------------------------------------------------------------------------
WS12-212 Total
Upper 0.0 174.0 174.0 0.26 0.05 0.015 0.30
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Precious Metals Total Metals Pt Eq.-
Drill Ultramafic Pt Pd Au Pt Eq. Pt Eq. Ni Eq. length
Hole Unit g/t g/t g/t g/t g/t % g/t-m
----------------------------------------------------------------------------
WU12-537 0.55 0.34 0.13 0.78 2.46 0.54 27
0.19 0.27 0.03 0.31 2.00 0.44 219
2 Total
intervals Hole 0.22 0.27 0.04 0.35 2.04 0.45 246
----------------------------------------------------------------------------
WU12-548 0.54 0.32 0.09 0.74 2.75 0.61 15
0.19 0.22 0.03 0.29 1.74 0.39 374
incl 0.28 0.31 0.04 0.43 2.16 0.48 145
2 Total
intervals Hole 0.20 0.22 0.03 0.30 1.77 0.39 388
----------------------------------------------------------------------------
WS12-202 Upper 0.15 0.21 0.02 0.25 1.70 0.38 181
0.15 0.20 0.02 0.24 1.71 0.38 204
2 Total
intervals Upper 0.15 0.21 0.02 0.24 1.71 0.38 386
----------------------------------------------------------------------------
WS12-203 Total
Upper 0.18 0.23 0.04 0.30 1.80 0.40 413
Total
Lower 0.25 0.25 0.07 0.39 2.18 0.48 191
2 Total
intervals Hole 0.20 0.23 0.04 0.32 1.91 0.42 604
----------------------------------------------------------------------------
WS12-204 Total
Upper 0.14 0.20 0.02 0.23 1.68 0.37 206
Lower 0.34 0.28 0.06 0.50 2.25 0.50 174
0.33 0.26 0.02 0.44 1.96 0.43 187
2 Total
intervals Lower 0.34 0.27 0.04 0.47 2.09 0.46 361
3 Total
intervals Hole 0.25 0.24 0.03 0.37 1.92 0.43 567
----------------------------------------------------------------------------
WS12-205 Total
Upper 0.15 0.20 0.02 0.24 1.70 0.38 247
Lower 0.57 0.35 0.16 0.83 2.85 0.63 77
0.56 0.31 0.20 0.85 4.13 0.92 182
0.34 0.16 0.02 0.42 2.54 0.56 20
0.33 0.38 0.03 0.50 2.47 0.55 223
4 Total
intervals Lower 0.43 0.35 0.10 0.64 2.97 0.66 501
5 Total
intervals Hole 0.30 0.28 0.06 0.45 2.38 0.53 748
----------------------------------------------------------------------------
WS12-210 Total
Upper 0.11 0.17 0.01 0.19 1.57 0.35 159
Lower 0.19 0.27 0.03 0.32 1.90 0.42 39
0.19 0.15 0.06 0.29 1.80 0.40 64
incl 0.87 0.64 0.15 1.24 8.71 1.93 17
2 Total
intervals Lower 0.19 0.19 0.05 0.30 1.84 0.41 103
3 Total
intervals Hole 0.14 0.18 0.03 0.23 1.66 0.37 262
----------------------------------------------------------------------------
WS12-212 Total
Upper 0.10 0.16 0.01 0.17 1.52 0.34 264
----------------------------------------------------------------------------
Footnotes to Drill Interval Table: (See footnotes under Table 1 above)
See Figure 2: Cross Section of the East Zone
In addition, a second ultramafic body remains to be tested to the southeast and, based on geophysical data, may contain mineralization similar to the other tested ultramafics. In this section, the higher grade lower ultramafic package is confined to an area adjacent to the Hasen Creek sediments and seems to follow the contact very closely, reaching widths of up to 160 metres. Although confined in the upper 300 metres, this zone appears to be widening with increasing depth and remains open in that direction.
West Zone
The two holes drilled in the West Zone, WS12-211 and WS12-213 (see Figure 3), both intersected mineralized zones similar in grade to those found in the Central Zone. Due to the close proximity of the drill collar locations to the lower footwall contact with Hasen Creek sediments, the zone intercepts in the West Zone are not of the same length.
The upper ultramafic zone in this section is extremely narrow, whereas the higher-grade, lower ultramafic package exists as a more substantial unit and is much closer to surface as compared to other sections. Drill Hole WS12-211 collars directly into the higher-grade zone and appears to widen down-dip, exposing a significant mineralized zone that has been interpreted as grading between 1-3g/t Pt Eq. Although the intervals were shorter in the upper mineralized peridotites, the drill holes confirmed a broad width of continuity of at least 90 metres. The lower mineralized gabbros and clinopyroxenite units were also intersected closer to the surface than in the Central Zone. This lower interval in Drill Hole WS12-211 was intersected across a width of 63.9 metres with grades of 3.82g/t Pt Eq. (or 0.85% Ni Eq.) including 0.39% Ni, 0.57% Cu, 0.024% Co, 0.66g/t Pt, and 0.46g/t Pd. Drill holes in the West Zone were designed to drill across the mineralized horizons with 4 individual intersections averaging 79 metres in width with an average base metal content of 0.41% Ni Eq. and average PGM content of 0.57 g/t Pt Eq. for a total of 2.43 g/t Pt Eq.
Drill Hole WS12-213 intersected two mineralized intervals totaling 251.9 metres at a grade of 2.08g/t Pt Eq. (or 0.46% Ni Eq.). Prophecy Platinum plans to further investigate the extent of this higher-grade material near surface during its 2013 exploration drilling program, as this may represent a target area with higher grade material that could form the basis for an initial starter pit.
Two untested ultramafic bodies occur to the North that have yet to be explored, and the Company believes this zone may potentially contain grades at surface that are similar to those of Drill Hole WS12-211.
Table 3: West Zone drill hole intercept highlights
----------------------------------------------------------------------------
Downhole Base Metals
Drill Ultramafic From To Width Ni Cu Co Ni Eq.
Hole Unit m m m % % % %
----------------------------------------------------------------------------
WS12-211 Total
Lower 1.5 65.4 63.9 0.39 0.57 0.024 0.65
incl 54.0 65.4 11.4 0.92 1.30 0.052 1.50
----------------------------------------------------------------------------
WS12-213 Upper 0.0 60.3 60.3 0.29 0.16 0.016 0.37
67.8 102.0 34.2 0.22 0.10 0.013 0.28
2 Total
intervals Upper 94.6 0.26 0.14 0.015 0.34
Total
Lower 102.0 259.3 157.3 0.26 0.21 0.016 0.36
3 Total
intervals Hole 251.9 0.26 0.18 0.016 0.35
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Precious Metals Total Metals Pt Eq.-
Drill Ultramafic Pt Pd Au Pt Eq. Pt Eq. Ni Eq. length
Hole Unit g/t g/t g/t g/t g/t % g/t-m
----------------------------------------------------------------------------
WS12-211 Total
Lower 0.66 0.46 0.09 0.91 3.82 0.85 244
incl 1.09 0.84 0.08 1.47 8.22 1.82 93
----------------------------------------------------------------------------
WS12-213 Upper 0.16 0.24 0.02 0.27 1.95 0.43 118
0.17 0.21 0.05 0.28 1.53 0.34 52
2 Total
intervals Upper 0.16 0.23 0.03 0.27 1.80 0.40 170
Total
Lower 0.44 0.32 0.07 0.62 2.25 0.50 354
3 Total
intervals Hole 0.33 0.29 0.06 0.49 2.08 0.46 524
----------------------------------------------------------------------------
Footnotes to Drill Interval Table: (See footnotes under Table 1 above)
See Figure 3: Cross Section of the West Zone
Far West Zone
Significant near surface mineralized intervals were encountered in both Drill Holes WS12-208 and WS12-209 (see Figure 4). Drill Hole WS12-208 intersected a mineralized interval totaling 142.5 metres at a grade of 4.01g/t Pt Eq. (or 0.89% Ni Eq.) and Drill Hole WS12-209 intersected a similar near surface mineralized interval totaling 69.5 metres at a grade of 3.84g/t Pt Eq. (or 0.85% Ni Eq.). Both of these intervals start at the drill hole collars. Drill Hole WS12-207 encountered intervals of limited mineralization, while Drill Hole WS12-198 encountered no significant intervals.
The Far West Zone appears to have more faulting than other zones, with a number of areas which appear to have repeated ultramafic units. The zone spans 175 metres at surface, narrowing at depth, with sediments on either side. This ultramafic body is repeated to the south with grades ranging from 0-2g/t Pt Eq. Much of the zone is comprised of the higher grade ultramafic package, with the more moderate grade peridotite confined to the upper 34 metres and pinching moving North. The northern area of this zone has noteably higher-grade mineralization, particularly with respect to PGMs, than those seen at the Central or the East Zones. This lower, enriched package grades on average 2-4g/t Pt Eq. and is open at depth. Drill holes in the Far West Zone were designed to drill across the mineralized horizons with 3 individual intersections averaging 75 metres in width with an average base metal content of 0.65% Ni Eq. and average PGM content of 0.91 g/t Pt Eq. for a total of 3.82 g/t Pt Eq. (see Figure 4).
Table 4: Far West Zone drill hole intercept highlights
----------------------------------------------------------------------------
Downhole Base Metals
Drill Ultramafic From To Width Ni Cu Co Ni Eq.
Hole Unit m m m % % % %
----------------------------------------------------------------------------
WS12-198 No significant intervals
----------------------------------------------------------------------------
WS12-207 Total
Lower 202.0 216.0 14.0 0.15 0.31 0.017 0.30
----------------------------------------------------------------------------
WS12-208 Total
Lower 0 142.5 142.5 0.35 0.68 0.029 0.66
----------------------------------------------------------------------------
WS12-209 Total
Lower 0.0 69.5 69.5 0.47 0.44 0.030 0.69
incl 12.3 27.0 14.8 0.99 0.69 0.046 1.33
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Precious Metals Total Metals Pt Eq.-
Drill Ultramafic Pt Pd Au Pt Eq. Pt Eq. Ni Eq. length
Hole Unit g/t g/t g/t g/t g/t % g/t-m
----------------------------------------------------------------------------
WS12-198 No significant intervals
----------------------------------------------------------------------------
WS12-207 Total
Lower 0.14 0.07 0.08 0.23 1.57 0.35 22
----------------------------------------------------------------------------
WS12-208 Total
Lower 0.74 0.37 0.23 1.07 4.03 0.89 575
----------------------------------------------------------------------------
WS12-209 Total
Lower 0.52 0.32 0.10 0.72 3.84 0.85 267
incl 0.89 0.72 0.11 1.25 7.25 1.61 107
----------------------------------------------------------------------------
Footnotes to Drill Interval Table: (See footnotes under Table 1 above)
See Figure 4: Cross Section of the Far West Zone
2013 Exploration Program
Results from drilling in 2012 and historic data compilation, combined with surface geochemical and geophysical exploration, has assisted in developing our 2013 exploration program, which will focus on:
-- Infill drilling targeting conversion of inferred resources to measured
and indicated resources;
-- Step-out drilling at depth and to the southwest within the Central and
East Zones to determine the extent of higher grade PGM zones occurring
in both the upper and lower ultramafic packages;
-- West and Far West Zone drilling to delineate the extent of the near
surface higher-grade mineralization;
-- Drilling to test the geophysical anomalies immediately southeast of the
existing defined resource;
-- Further exploration of several geophysical anomalies identified south of
the West and Far West Zones, located under an area identified on surface
as younger non-mineralized basalts;
-- Further exploration of the ultramafic units directly adjacent to the
north of the existing resource that have not been drill tested.
Metallurgy
The metallurgical program included in the 2012 Wellgreen PEA determined that a bulk concentrate could be produced at the Wellgreen project. The overall recovery associated with this initial test program was 68% Ni, 88% Cu, 64% Co, 59% Au, 46% Pt, and 73% Pd. A metallurgical report issued by SGS Canada Inc. subsequent to the 2012 Wellgreen PEA on August 7, 2012, and titled "An Investigation into Metallurgical Testwork of Cu/Ni/PGE Samples from the Wellgreen Property" demonstrated that it is feasible to produce separate Ni and Cu sulphide concentrates utilizing a conventional mineral processing design. The master composite sample assay results indicated that 88% of the nickel metal was present in sulphides. In addition, the initial metallurgical testing program relied on samples believed to be representative of the overall deposit. Future work will focus on metallurgical response within individual zones and understanding the variability between zones. The Company believes there may be an opportunity to enhance overall metallurgical performance through processing optimizations targeted toward specific zones in the life of mine plan. In addition, there may be an opportunity to pursue recovery of rare PGM's, which will be further explored.
Engineering Activities
The 2012 Wellgreen PEA indicated that the project has the potential to be developed into a sustainable operation that would generate significant economic benefits over the long term. The report highlighted that the Wellgreen project may have the potential to produce up to 7 million oz. PGM+Au, 2 billion lbs. Ni, 2 billion lbs. Cu over the life of mine. As currently envisioned, the Wellgreen project would be an open pit operation producing separate Ni and Cu sulphide concentrates using a conventional flotation process with a production rate of 32,000 tonnes per day of ore and an overall strip ratio of 2.57:1.
John Sagman, P.Eng., Senior Vice President and Chief Operating Officer, stated, "The 2012 Wellgreen PEA was an important milestone for the project and showed robust economics at 20% below 3 year average metal prices. It also highlighted a number of opportunities that have good potential to improve the economic key performance indicators, including lower cost energy sources such as LNG, mine plan optimization to accelerate extraction of higher grade material earlier in the life of the mine, as well as a number of potential enhancements regarding overall metal recovery that are currently utilized on other PGM-Ni-Cu projects."
2013 metallurgical engineering initiatives will investigate the potential of further optimization of base metal and PGM recoveries, increased concentrate grades and developing a better understanding of the economic contribution of the rare PGM's. Basic engineering will also be required in order to define optimal locations for the mine facilities and surface infrastructure required to support the operation, with the objective of utilizing local resources to the greatest extent possible. The information obtained will be the basis for a number of studies that consider a range of operating scenarios with different throughput and production rates that will maximize the project's overall economic performance. Of particular focus will be a review of potential staged construction approaches that may allow for a smaller initial operation with lower up front capital costs through mining higher grade material with later expansion of the project out of operating cashflow over time.
These studies and an updated 2013 resource model would be incorporated into an updated Economic Assessment targeted for expected release in Q1 2014.
Major expected milestones for the Wellgreen project include:
2013
Q1 - Q4 Ongoing Baseline Environmental and Logistics Studies
Q2 - Q3 Mobilization and commencement of the exploration program
Q2 - Q4 Engineering and Metallurgical Test Work Program
2014
Q1 Updated Resource Estimate and Preliminary Economic Assessment
Q2 - Q4 Pre-Feasibility-level Studies and initiation of Permitting
2015-2016 Feasibility Studies, Permitting and Construction
About Wellgreen
Prophecy Platinum's Wellgreen project is one of the world's largest undeveloped PGM deposits and is currently projected to be one of the largest platinum and palladium producing projects in North America. In addition to the production of platinum metals and gold the project would be a significant producer of nickel and copper which would make Wellgreen a low cost platinum and palladium producer on a co-product basis. Baseline environmental work is underway for the permitting process. Given that the project is a former operating mine within an area of historic and current placer mining, the Company expects that the permitting process will progress on an expedited basis. The Wellgreen project has excellent access infrastructure and is located in Canada's mining-friendly Yukon Territory, just 15 kilometres from the Alaska Highway, leading to sea ports at Haines and Skagway.
The Company will be working in consultation with the First Nation and local communities in the region as part of the exploration and development process. Prophecy Platinum and the Kluane First Nation have entered into a cooperation and benefits agreement which supports the exploration program and environmental studies related to the development of the Wellgreen project. As part of the agreement, an Advisory Committee has been established with representatives from both Prophecy Platinum and Kluane First Nation to proactively address any issues or concerns that may arise during the exploration and feasibility phases of the project.
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-Cu-Ni project, located in the Yukon, is one of the world's largest PGM deposits and one of few significant PGM deposits outside of South Africa or Russia. The Company's Shakespeare PGM-Cu-Ni project is a fully-permitted, production-ready mine located in the Sudbury mine district of Ontario, and its Lynn Lake project is a former operating mine located in Manitoba, Canada. The Company's experienced management team has a track record of successful large scale project discovery, development, operations and financing combined with an entrepreneurial and collaborative approach to working 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, Quality Control
The geological technical information in this news release has been reviewed and approved by Neil Froc, P. Eng., Project Manager of Prophecy Platinum, who oversaw the 2012 exploration program at the Wellgreen project. Mr. Froc is a Qualified Person as defined by National Instrument 43-101. All other technical information in this news release has been reviewed and approved by John Sagman, P.Eng., Senior Vice President and Chief Operating Officer of Prophecy Platinum. Mr. Sagman is a Qualified Person as defined by National Instrument 43-101.
Prophecy Platinum executes a quality control program to ensure data verification using best practices in sampling and analysis. Samples are cut and split for assay with the remaining sample retained for reference. Blanks, Standard Reference Material ("SRM"), and duplicates were inserted into the sample stream every 20th sample. A duplicate sample is taken every 20th sample of core. The selected sample is sawn in half and then sawn in half again. The quartered core is then placed into two different sample bags with different sample numbers and sealed. The SRM material comes from Natural Resources Canada and Analytical Solutions Limited. These were inserted into the sample stream immediately after the second duplicate. The SRMs used are WMS-1, WPR-1 and WGB-1. Sample Blanks are obtained from two sources: granodiorite from a local quarry and garden marble from hardware stores in Whitehorse, Yukon. A Blank sample is inserted into the sample stream after the SRM. Assayed samples are transported in sealed and secured bags for preparation at ALS Chemex Prep Lab located in Whitehorse, Yukon. Pulverized (pulp) samples are shipped for analysis to ALS Chemex Assay Laboratory in Vancouver, B.C. Platinum, palladium and gold were determined by ICP emission spectrometry. Copper, nickel and cobalt were determined by ICP emission spectrometry. Copper, nickel and cobalt over limits were followed by Four Acid digestion and ICP atomic emission spectroscopy. ALS Chemex is an ISO/IEC 17025:2005 accredited laboratory and registered under ISO 9001: 2000. ALS Chemex is independent from the Company.
Quality assurance and quality control are monitored using scatterplots, Thompson-Howarth plots and statistical analysis to ensure duplicates, blanks and standard data are reliable, and indicate robustness of overall results. ALS Chemex quality-assurance procedures are also included in this process.
The 2012 Wellgreen PEA is preliminary in nature, includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty the 2012 Wellgreen PEA will be realized. A mineral reserve has not been estimated for the project as part of the 2012 Wellgreen PEA. A mineral reserve is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a prefeasibility study. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Please refer to the full text of the 2012 Wellgreen PEA which is available on the Company's profile on SEDAR at www.sedar.com for the full details on the Wellgreen project and the underlying assumptions and qualifications.
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 of 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, future production estimates, 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 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 the Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("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. standards, 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.
Contacts:
Prophecy Platinum Corp.
Greg Johnson
President & CEO
1-800-459-5583
Prophecy Platinum Corp.
Chris Ackerman
Senior Manager, Investor Relations
1-800-459-5583
cackerman@prophecyplatinum.com
www.prophecyplatinum.com