WELLGREEN
Overview: Wellgreen Central
Prophecy Platinum's 100% owned Wellgreen property is one of the world’s largest undeveloped nickel-sulphide projects with a very unique platinum and palladium resource that creates very compelling economics. Conveniently located in Canada’s mining-friendly Yukon Territory - ranked in the top ten in the Fraser Institute’s 2011/2012 Survey of Mining Companies - Wellgreen is just 15km by all-weather road from the Alaska Highway leading to Alaska's Haines deep sea port and the Far East markets beyond.
In July 2012, Prophecy released the results of a preliminary economic assessment which yielded the following financial model, resource estimate and contained metal.
Financial Model Results
| Wellgreen PEA Base Economics | Wellgreen Conservative Economics | ||
|---|---|---|---|
| Metal price assumptions (LME trailing 3-year average) |
Ni $9.48/lb Cu $3.56/lb Co $16.23/lb Pt $1,587.97/oz Pd $581.28/oz Au $1,377.87/oz |
Metal price assumptions | Ni $7.00/lb Cu $3.00/lb Co $11.00/lb Pt $1,400/oz Pd $500.00/oz Au $1,300/oz |
| Pre-tax NPV (8% discount rate) | $2.4B | Pre-tax NPV (8% discount rate) | $1.2B |
| Pre-tax IRR (100% equity) | 32% | Pre-tax IRR (100% equity) | 22% |
| Average annual pre-tax cash flow | $293M | Average annual pre-tax cash flow | $152M |
Production Projections
| Wellgreen August 2012 PEA Production Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Mill throughput | 32,000 tpd | Mine Life | 37 years | ||||
| Initial capital expenditures | $863M | Average strip ratio | 2.57:1 | ||||
| Ni (Mlbs) |
Cu (Mlbs) |
Co (Mlbs) |
Pt (koz) |
Pd (koz) |
Au (koz) |
Pt Eq (koz) |
|
| Annual Metals Payable | 47.7 | 54.5 | 3.3 | 63.9 | 85.6 | 35.2 | 125.8 |
| Life of mine metals payable | 1,763 | 2,017 | 120 | 2,365 | 3,167 | 1,302 | 4,653 |
Resource Estimate and Contained Metals*
| Tonnes (t) | NiEq (%) | Ni (%) | Cu (%) | Co (%) | Au (g/t) | Pt (g/t) | Pd (g/t) | |
|---|---|---|---|---|---|---|---|---|
| Indicated Pitshell | 14.4 Million | 1.4 | 0.68 | 0.62 | 0.05 | 0.51 | 0.99 | 0.73 |
| Inferred Pitshell | 446.6 Million | 0.6 | 0.31 | 0.25 | 0.02 | 0.16 | 0.38 | 0.33 |
Based on resource estimated at 0.20% NiEq cut-off
Pitshell
Metal |
Indicated |
Inferred |
|---|---|---|
Nickel (Ni) |
0.15 Billion lbs. |
2.06 Billion lbs. |
Copper (Cu) |
0.18 Billion lbs. |
2.16 Billion lbs. |
Cobalt (Co) |
10.24 Million lbs. |
126.83 Million lbs. |
Platinum (Pt) |
0.23 Million oz. |
2.76 Million oz. |
Palladium (Pd) |
0.27 Million oz. |
3.79 Million oz. |
Gold (Au) |
0.15 Million oz. |
1.48 Million oz. |
PGM+Gold |
0.65 Million oz. |
8.03 Million oz. |
Based on resource estimated at 0.2% NiEq cut-off, and the following metal recoveries from the July PEA by Wardrop: 67.6% for Ni, 87.8% for Cu, 64.4% for Co, 46% for Pt, 72.9% for Pd, and 58.9% for Au. Detailed Resource/Grade Table
In spring 2012, Prophecy embarked on the first phase of an extensive infill drill program expected to upgrade a significant portion of Wellgreen's NI 43-101 inferred resource into the measured and indicated category. Comprised of both surface and underground drilling, the 2012 program exceeded 11,000m, with assay results expected to be announced throughout the latter portion of the year. The deposit is large, near surface and open along strike and at depth. The current target area represents a mere fraction of the overall 17.5km strike zone that comprises the Wellgreen Property as a whole.
Platinum is a precious metal with a diverse range of uses from industrial (primarily as an auto catalyst) to jewelry to investment. While international demand for platinum continues to grow, serious supply disruptions have resulted from the recent and ongoing, highly-publicized labour strife in major South African mines. Anglo American, Impala, Atlatsa and other regional producers have begun large scale layoffs, with outright operational suspensions at Aquarius and Xstrata mines. With South Africa the dominant global production region, many industry experts foresee this turmoil resulting in further significant increases in the price of platinum. New sources from stable regions like Canada will come to be heavily relied upon in the near future.
In an August 2012 news release, Prophecy Platinum announced the results of ongoing metallurgical testing for its Wellgreen Project. Metallurgical tests completed at SGS Laboratories under the direction of metallurgist Mr. Mike Ounpuu indicate separate nickel-PGE-cobalt concentrates grading up to 12.9% nickel and copper-PGE-gold concentrates grading up to 23.2% copper can be produced from Wellgreen’s disseminated PGE-Ni-Cu mineralization. The results are preliminary with grade and recovery optimizations planned on both precious and base metals in phase 2 of the metallurgical program in the fall.
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Preliminary Economic Assessment
Preliminary metallurgical results were announced in May 2012 with test results to be incorporated into a high level scoping study by Wardrop Engineering which was released on June 18, 2012 and updated July 25, 2012.
- 2012 - Wellgreen PEA Report
- 2012 - Wellgreen Metallurgical Report
- 2012 - Wellgreen PEA Summary Sheet - Additional Informatiion Relating to PEA
Section View
The Wellgreen sections below show the year to date completed drillings, some with assays pending. Click on the drill stations to view relevant news releases. Or click on the image to view enlarge version.
Station 5 
Station 4 
Station 1
Plan View
Wellgreen East Zone Pierce Point Cross Section View
Highlights:
- 447 million tonnes of inferred resource with grades 0.31% Ni, 0.25% Cu, 0.87 g/t PGM+Au and 14 million tonnes of indicated resource at 0.68% Ni, 0.62% Cu, 2.23 g/t PGM+Au (Based on resource estimate at 0.2%NiEq cut-off)
- Exploration upside - Current strike length is 2.6km but geophysical anomaly extends additional 2.3kms with further exploration potential
- Yukon is one of the most mining friendly jurisdictions
- Ideal location - Wellgreen is highly accessible to main roads, great infrastructure, electricity and water
- One of only a few deposits of PGM outside South Africa
- Presence of exotic PGM elements, including Rhodium, Iridium, Osmium and Ruthenium
Technical Reports:
- August 2012 - Wellgreen PEA (File size: 18mb)
- August 2012 - Wellgreen Metallurgical Report (File size: 6.5mb)
- July 2012 - Wellgreen PEA Summary Sheet (File size: 193kb)
- Jul. 2011, 43-101 Technical Report On Wellgreen (File size: 16.8mb)
- Apr. 2011, 43-101 Technical Report On Wellgreen (File size: 3.8mb)
- Nov. 2010, 250 Underground Rhodium Assays (File size: 55kb)
- 2006, Dr. Hulbert's Wellgreen Report (File size: 360kb)
- 2005 Yukon Exploration and Geology Report (File size: 2.25kb)
- 2004 Preliminary Geology of the Quill Creek Map Area (File size: 8.63mb)
- 1998 Yukon Minfile: Yukon Geological Survey (File size: 12kb)
- 1997, Geological Survey of Canada on Wellgreen by Dr. Hulbert (File size: 25.8mb)
- 1976, Campbell Report: Nickel Copper Sulphide Deposits in the Kluane Range (File size: 1.25kb)
Maps, Models, and Diagrams:
Maps
Wellgreen West 
Wellgreen Claims 
Properties Map 
Exploration Map 
Yukon Area Map
Cross sections
Drill Holes & Logs
Expression at Surface 
Plan View of Wellgreen 
Section View of Wellgreen 
Underground Drill Holes 
Wellgreen High Grade Zone (Ni+Cu) 
Wellgreen High Grade Zone (PGM+Gold) 
Wellgreen 707 Drill Logs 
Wellgreen 707 Drill Logs Sorted by Platinum Grade
Geological Model Videos:
3D Geological Block Model - Long Section
-
3D Geological Block Model - Long Section -
3D Geological Block Model - Plan View -
Wellgreen Drillholes Wireframe - Plan View -
Wellgreen Drillholes Wireframe - Section View
Photo Gallery
Yukon Government Site Tour (Fall 2012) 
Yukon Government Site Tour (Fall 2012) 
Wellgreen Surface Drilling
(Aug 2012)
First Nation Meeting
(Aug 2012)
Underground Drilling
(Aug 2012)
Wellgreen Camp
(Aug 2012)
Wellgreen Surface Drilling
(June 2012)
News Release:
- 11Sep Prophecy Platinum Intercepts Best Pt+Pd+Au Grades (5.36 g/t) at Wellgreen To Date, Other Highlights Include 106.6 Metres of 0.4% Cu, 0.31% Ni, & 0.84 g/t Pt+Pd+Au (Diagrams Included)
- 15Aug August 15, 2012 - Prophecy Platinum Reports Multiple Ni-Cu-PGM Long-Range Intercepts Highlighted by 51.5 Metres of 0.69% NiEq (1.11g/t PGM+Au, 0.5% Cu, 0.31% Ni)
- 09Aug August 9, 2012 - Prophecy Platinum Reports 12.9% Nickel Concentrate and Separate 23% Copper Concentrate with PGE's At Wellgreen From SGS Lab
- 02Aug August 2, 2012 - Prophecy Reaches Agreement with Kluane First Nation
- 25July July 25, 2012 - Prophecy Platinum Provides Additional Information Relating to Preliminary Economic Assessment
- 11July July 11, 2012 -Prophecy Platinum Drills 14.2 Metres Of 2.02% CuEq (1.16g/t PGM+Au, 0.44% Cu, 0.24% Ni) Within 173.9 Metres of Mineralization at the Wellgreen Project (Diagrams Included)
- 19June June 19, 2012 - Prophecy Platinum Drills 50.9 Metres Of 0.6% NiEq (0.74g/t PGM+Au, 0.38% Ni, 0.23% Cu) Within 242 Metres of Mineralization at the Wellgreen Project (Diagrams Included)
- 18June June 18, 2012 - Prophecy Platinum Announces Results of Wellgreen Preliminary Economic Assessment - 38% Pre-tax IRR, $3.0 Billion NPV, 37 Year Mine Life
- 04June June 4, 2012 - Prophecy Platinum Drills 10.4 metres of 0.98% Cu, 1.18g/t PGM+Au, 0.24% Ni (2.54% CuEq) within 129 metres of mineralization at the Wellgreen Project (Diagrams Included)
- 28May Prophecy Platinum Intercepts Wide Ni-Cu-PGE Mineralization in First 7 Holes of Its 2012 Drill Program at the Wellgreen Project (Diagrams Included)
- 25May May 25, 2012 - Prophecy Announces Highly Encouraging Rhodium, Ruthenium, Osmium & Iridium Assays from WS11-188 of Wellgreen Project (Assay Table Included)
- 10May May 10, 2012 - Prophecy Platinum Announces Successful Metallurgical Recovery Results of up to 88% Copper and 73% Nickel from Wellgreen Project
- 03Jan January 3, 2012 - Prophecy Platinum Starts Wellgreen Underground Drilling, 20,000 Meters Planned in 2012 (Maps Included)
- 11Dec December 8, 2011 - Prophecy Drills 384.9 Meters Grading 0.623 g/t PGM+Au, 0.3% Ni, 0.15% Cu (0.45% NiEq) from Surface at Yukon Wellgreen Project (Maps Included)
- 26Sept September 26, 2011 - Prophecy Drills 120.9 Meters Grading 1.26 g/t PGM+Au, 0.36% Ni, 0.30% Cu within 457 Meters Grading 0.47% NiEq at Yukon Wellgreen Project (Maps Included)
- 06Sept September 6, 2011 - Prophecy Commences Wellgreen Metallurgical and PEA Studies With SGS and Wardrop
- 06Sept August 22, 2011 - Prophecy Drills 49.5 Meters Grading 1.27 g/t PGM+Au, 0.71% Ni, 0.45% Cu within 472 Meters Grading 0.43% NiEq at Yukon Wellgreen Project (Photo and Map Included)
- 10Aug August 10, 2011 - Prophecy Platinum Lists on OTCQX Market
- 21July July 21, 2011 - Prophecy Platinum Files Wellgreen Mineral Resource Technical Report and Sets Investor Conference Call for Monday, July 25 at 1:30 pm EST
- 14July July 14, 2011 - Prophecy Platinum Reports 1.04 million oz PGM+Gold Indicated and 10.97 million oz PGM+Gold Inferred for the Wellgreen Project, Yukon Territory, Canada
- 13June June 13, 2011 - Pacific Coast Nickel Completes Acquisition of Nickel Assets
- 02June June 2, 2011 - Prophecy and Pacific Coast Nickel Commence 8,000 Meter Drilling Program on its PGM-Ni-Cu Wellgreen Project
- 18Jan January 18, 2011 - Pacific Coast Nickel Corp. Purchases Wellgreen PGM and Lynn Lake Nickel Projects From Prophecy Resource Corp.
- 06April April 6, 2011 - Pacific Coast to Acquire the Burwash Property Next to Prophecy's Wellgreen
- 08March March 8, 2010 - Pacific Coast Announces Renegotiation of Burwash Option Agreement
- 09Dec December 9, 2008 - Pacific Coast Announces Renegotiation of Burwash Option Agreement
WELLGREEN RELATED ARTICLES
- 29Nov November 9, 2010 - Prophecy Drills 71.17 Metres of 0.52% NiEq (0.310 % Nickel
- 09Nov November 3, 2010 - Prophecy Reports Multiple 1g/t Rhodium and 10g/t Platinum Group Metals Chip Samples from Extensive 2.5km Tunnel Sampling (Assay Files Included)
- 27Sept September 27, 2010 - Prophecy Drills 496.06 meters of 0.596 g/t PGM+Au, 0.27% Ni, 0.18% Cu, 0.02% Co (0.45% NiEq*) from Surface at Wellgreen, Yukon. (Maps Included)
- 27Sept September 27, 2010 - Prophecy Initiates 1,000-meter Step-Out Drill Program at Wellgreen PGM-Ni-Cu Resource Property, Yukon Canada (Report and Map Included)
- 21Sept September 21, 2010 - Northern and Prophecy Complete Plan of Arrangement, Prophecy Consolidates 100% Wellgreen PGM deposit.
- 30April April 30,2010 - northern platinum provides update on exploration activities and grants incentive stock options.
- 30April April 30,2010 - northern platinum discovers new mineralized zone at the wellgreen mine
- 22Jan January 22, 2010 - northern platinum discovers new mineralized zone at the wellgreen mine
- 09Sept September 9, 2009 - Wellgreen Drill Results
- 30May May 30, 2007 - Coronation starts Wellgreen mine drilling
- 23Mar March 23, 2007 - Coronation drills 46.94 m of 0.36% Cu, 0.19% Ni
- 21Dec December 21, 2005 - Wellgreen Copper Nickel PGM Deposit Yukon Territory Assay Results
- 15Dec December 15, 2005 - Wellgreen Copper Nickel PGM Deposit Yukon Territory
- 24Nov November 24, 2005 - Wellgreen Copper Nickel PGM Deposit Yukon Territory Assay Results
- 11Aug August 11, 2005 - wellgreen deposit yukon territory wellgreen deposit yukon
- 10Aug August 10, 2005 - wellgreen deposit yukon territory wellgreen deposit yukon
- 29June June 29, 2005 - wellgreen deposit yukon territory platinum palladium gold results
- 21Oct October 21, 2004 - wellgreen deposit yukon territories north zone 2004 results
- 17Jan January 17, 2002 - drill results wellgreen area yukon
- 12Dec December 12, 2001 - drill results and surface results from arch claims wellgreen area yukon
- 13Nov November 13, 2001 - drill and surface results from arch claims, wellgreen area yukon
- 11Sept September 11, 2001 - wellgreen area, yukon results from new find
- 05July July 5, 2001 - wellgreen project preliminary sample results
- 11June June 11, 2001 - wellgreen deposit, yukon
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*Resource estimates are from the July, 2012 independent NI 43-101 compliant Preliminary Economic Assessment prepared by Tetra Tech Wardrop. Todd McCracken, P.Geo., Andrew Carter, C.Eng., Pacifico Corpuz, P.Eng., Philip Bridson, P.Eng and Wayne Stoyko, P.Eng are the Qualified Persons, as defined under National Instrument 43-101, who supervised and are responsible for the Preliminary Economic Assessment for the Wellgreen Project and have reviewed the scientific, technical and financial content of this release. Mine life according to PEA.
Wellgreen resource based on the July 2011 NI 43-101 Technical Report by Wardrop Engineering. NiEq% cutoff at 0.40%. 14.4 mt of Indicated at 0.99 g/t Pt, 0.74 g/t Pd, 0.52 g/t Au, 0.69% Ni, and 0.62% Cu. 289.2 mt of Inferred at 0.53 g/t Pt, 0.42 g/t Pd, 0.23 g/t Au, 0.38% Ni, and 0.35% Cu. Consults PEA NR by NKL June 2012. The PEA is based on its July 2011 resource estimate completed by Tetra Tech WEA. A 0.2% Nickel Equivalent cut-off is adopted as constrained by an optimized open pit design. At this cutoff the Wellgreen Project is estimated to contain an Indicated Resource of 14.4 million tonnes at 0.69% Nickel, 0.62% Copper, and 2.23 grams per ton Platinum, palladium and gold grade (0.99g/t Pt, 0.73 g/t Pd, and 0.51 g/t Au). In addition, the Wellgreen Project is estimated to contain an Inferred Resource of 446.6 million tonnes at 0.31% Nickel, 0.25% Copper, and 0.87 grams per ton Platinum, palladium and gold grade (0.38g/t Pt, 0.33g/t Pd, 0.16g/t Au).
A PEA should not be considered to be a pre-feasibility or feasibility study, as the economics and technical viability of the project has not been demonstrated at this time. The PEA is preliminary in nature and includes 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. Furthermore, there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserve do not have demonstrated economic viability.
Qualified Person under NI 43-101
John Sagman, P.Eng. PMP, Senior Vice President and Chief Operating Officer, is the qualified persons responsible for the technical information on this website.
Cautionary Note Regarding Mineral Resources and Mineral Reserves
Readers should refer to the Company's current technical reports and other continuous disclosure documents filed by the Company available on Sedar at www.sedar.com for further information on the mineral resource estimates of the Company's projects, which are subject to the qualifications and notes set forth therein, as well as for additional information relating to the Company more generally. Mineral resources which are not mineral reserves, do not have demonstrated economic viability. Inferred mineral resources have insufficient confidence to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability suitable for public disclosure. Neither the Company nor readers can assume that all or any part of an inferred mineral resource will be upgraded to indicated or measured mineral resource. Most projects at the inferred mineral resource stage do not ever achieve successful commercial production. Each stage of a project is contingent on the positive results of the previous stage and that there is a significant risk that the results may not support or justify moving to the next stage.
Quality Control and Quality Assurance
Prophecy Platinum executes a quality control program to ensure best practice 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-1a, 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. ALS Chemex is an ISO/IEC 17025:2005 accredited laboratory and registered under ISO 9001:2000.
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."
Click here for the Qualified Person information, forward-looking statements and the cautionary note.
