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

ain, and 106.4 cm of which is snow. The area also experiences sporadic
discontinuous (10 to 50%) permafrost (Yukon Water 2011).
20.2.1 CURRENT AND HISTORICAL A CTIVITY
The Project comprises two major areas: the mine site and the mill site. The mine
site is composed of a lease covering a 69.754 ha parcel of land, located at
approximately Mile 1111 of the Alaska Highway. Various operations have occurred
in the area of the mining lease since the 1950s. Details of the operations are found
in Section 6.0.
The mill site is a 62.56 ha parcel of land located approximately 1 km from the mine
site, adjacent to the Alaska Highway. This area has been previously used as a mill
site, as well as a tailings impoundment area (Section 4.0 and Section 6.0). Recent
activities on the site include the use of the mill as a core shack and access to the
mine site.
Prophecy Platinum and the Government of Yukon are in discussions concerning the
responsibility for the Historic Liabilities identified at the mill site. These include the
historic tailings impoundment, the former mill infrastructure and related alleged
impacts at the mill site. While Prophecy Platinum believes there is a strong legal
basis upon which to deny liability or responsibility in relation to the Historical
Liabilities, it is uncertain whether Prophecy Platinum will be subject to any such
liability or responsibility at this time.
20.2.2 PREVIOUS ENVIRONMENTAL WORK
Various independent environmental studies have been completed on site from 2008
through to 2011 by Access Consulting Group (Access Consulting) of Whitehorse,
Yukon. The investigations include sampling pertaining to water quality, soil quality
and tailings analysis. Reports included “Phase I Environmental Site Assessment,
Wellgreen Mill Site” (Access Consulting 2009a), and “Wellgreen Property –
Reclamation Progress Report” (Access 2011).
PHASE I ENVIRONMENTAL SITE ASSESSMENT
In 2008 and 2009, a Phase I Environmental Site Assessment (ESA) was undertaken
by Access Consulting. As part of the Phase I ESA, environmental sampling to
characterize some areas of concern was completed, water quality, soil quality and
tailings. Soil samples were collected from areas of concern, an area of battery
storage, assorted storage of materials, such as functional and non-functional
machinery and spots of hydrocarbon staining. Localized spots of apparent
hydrocarbon staining were sampled, and indicted that most of the hydrocarbon
staining exceeded the Yukon Contaminated Site Regulations (YCSR). The report
identified four areas of potential environmental concern; the battery scrap area, the
tailings pond, the mill concentrate and the isolated areas of hydrocarbon staining.
Prophecy Platinum Corp. 20-2 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada