Wellgreen Project Preliminary Economic Assessment ... - OTCIQ.com

The selected base case pit contains mineralized material at the average diluted
tonnes and grades shown in Table 16.2. Tetra Tech assumed an overall mining
recovery of 95% and a waste rock dilution of 5%.
Table 16.2 Mineable Diluted Tonnes and Grade of Mineralized Material
Contained in Base Case Pit
Mineralized
Material
Tonnage
(Mt)
Ni
(%)
Cu
(%)
Co
(%)
Prophecy Platinum Corp. 16-2 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada
Au
(g/t)
Pt
(g/t)
Pd
(g/t)
Indicated 14.5 0.65 0.59 0.05 0.489 0.942 0.698
Inferred 390.8 0.31 0.25 0.02 0.165 0.391 0.334
Total 405.3 0.32 0.26 0.02 0.177 0.411 0.347
The LOM plan was developed using Gemcom Whittle software.
The mining equipment fleet will comprise three 251 mm diameter rotary blasthole drill
rigs for all rock material, four 21 m 3 (bucket capacity) hydraulic face shovels and an
initial fleet of 25 haul trucks, each with a 225 t capacity. These will be supplemented
with support equipment consisting of loaders, graders, bulldozers and a backhoe
excavator. (Table 16.11 outlines the major mine equipment fleet peak requirements
for the Project.)
16.3 P IT O PTIMIZATION
16.3.1 PIT O PTIMIZATION PROCEDURES
Tetra Tech performed pit optimization to determine the economic pit limits and
evaluate the mineralized material contained within the pit at the highest present value
(PV). Tetra Tech used the 3D LG algorithm of the Gemcom Whittle commercial
software package to perform the pit optimization.
A 3D geological block model and other required economic and operational variables
were used as input parameters for the LG algorithm. These variables include overall
pit slope angle, mining cost, milling cost, metal prices, concentrate treatment costs
and other parameters as discussed in Section 16.3.2.
The LG algorithm progressively identifies economic blocks, taking into account waste
stripping, resulting in a highest possible total value mined within the open pit shell,
subject to the specified pit slope angles.
16.3.2 PIT O PTIMIZATION P ARAMETERS
Tetra Tech and Prophecy Platinum jointly selected the required optimization
parameters to determine the most economic open pit profile. Although these
parameters are not necessarily final, a reasonable degree of caution was applied