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 © 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."
Contacts: Prophecy Platinum Corp. Greg Johnson President &
CEO 1-800-459-5583info@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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