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

The pit optimization process included Inferred geological resources that are
considered too speculative geologically to be considered reserves and there is no
certainty that the PVs as determined by the PV analysis will be realized.
NICKEL E QUIVALENT CALCULATION
There are six different metal values in this deposit. For ease of understanding and
reporting, an equivalent grade was calculated for each block in the model. Tetra
Tech applied the following NiEq:
Where:
• is the copper price minus selling cost (all prices in $/lb)
• is the copper processing recovery (in percent)
• Ni is the grade of nickel (all grades in percent)
• NiEq is the nickel equivalent (in percent).
CUT-OFF GRADE
The milling cut-off grade is the grade above the mineralized rock sent to the mill and
below what is sent to the waste dump the input parameters in Table 16.3, the milling
cut-off grade for NiEq was calculated at 0.215%. The calculation for the cut-off grade
is as follows:
Where:
• G&A costs (by $/t milled)
• processing operating cost (by $/t milled)
• dilution (by percent)
• recovery (by percent)
• metal price and selling cost (by $/lb)
• 22.046 is the conversion factor ($/lb to $/%)
• cut-off grade (in percent).
Figure 16.3 shows a perspective view of the optimum pit shell and the mineralized
body above cut-off grade. The legend on the figure shows the grade for NiEq.
Prophecy Platinum Corp. 16-8 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada