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

using the limited information available at the time of pit optimization. The economic
and operating parameters used in the optimization are specified in Table 16.3.
Table 16.3 Economic Parameters of Pit Optimization (Base Case)
Items Units Value Comments
Exchange Rate Cdn$:US$ 1:0.9794 -
Discount Rate % 8 -
Metal
Prices
Metal
Recoveries
Operating
Costs
Platinum US$/troy oz 2,043.50 Quarterly Update of
Palladium
Gold
Nickel
US$/troy oz
US$/troy oz
US$/lb
932.00
1,347.50
10.82
Long Term Metal
Pricing
(April 16, 2012)
Copper US$/lb 3.11
Cobalt US$/lb 16.70
Platinum % 46.0 From Table 13.9
Palladium % 72.9
Gold % 58.9
Nickel % 67.6
Copper % 87.8
Cobalt % 64.4
Mining Cost US$/t mined 2.81 -
Processing Cost US$/t milled 20.79 -
Mining Recovery % 95 -
Mining Dilution % 5 -
Overall Slope Angle degrees 45 -
Mill Throughput t/d 32,000 -
GEOLOGICAL BLOCK MODEL
t/a 11,200,000 -
Tetra Tech prepared the resource geological block model using the Datamine
software program. For optimization purposes, the model was reblocked using a
block size of 40 m x 40 m x 20 m.
Historical production records indicate that between 1972 and 1973 Hudson Yukon
Mining produced 171,652 tons (155,720 t) assaying 2.23% nickel, 1.39% copper,
0.065 oz/ton platinum and 0.073% cobalt. This likely does not include the drifting,
which is both in and out of the mineralized material. Since the tonnage was small
relative to the resource (less than 0.05% of the total resource), it was not considered
to be significant to the overall resource. This will need to be addressed in advanced
studies (prefeasibility and feasibility).
The block model uses a local mine grid coordinate system. The pit optimization and
design were completed using the same coordinate system.
Prophecy Platinum Corp. 16-3 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada