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

1.0 S UMMARY
1.1 I NTRODUCTION
Tetra Tech Wardrop (Tetra Tech) was retained by Prophecy Platinum Corp.
(Prophecy Platinum) to prepare a National Instrument 43 101 (NI 43-101) compliant
preliminary economic assessment (PEA) for the Wellgreen Project (the Project)
located in Yukon, Canada. The Wellgreen Property (the Property) is being
investigated as a potential source of platinum group metals (PGMs), nickel and
copper, and is located approximately 317 km northwest of Whitehorse in south
western Yukon (Figure 1.1). The Project will be a 32,000 t/d open pit operation with
ore processed using a Mill and Float Twice (MF2) circuit.
Table 1.1 outlines general information of the Project.
Table 1.1 General Project Information
Description Unit Amount
Estimated Pittable Mineral Resources
(Measured + Indicated)
Mt 14.5
Estimated Pittable Mineral Resources (Inferred) Mt 390.8
Mine Life years 37
Milling Rate t/d 32,000
Strip Ratio t waste:t mineralized material 2.57:1
Total Project Capital Cost US$ million 863.1
Average Overall Operating Cost US$/t milled 29.74
Net Present Value (NPV) at 8% Discount Rate US$ million 2,396
Internal Rate of Return (IRR) % 32
All dollar figures presented in this PEA are stated in US dollars, unless otherwise
specified. The London Metal Exchange (LME) three-year trailing metal prices,
effective date of July 6, 2012, with an exchange rate of Cdn$1.00 to US$0.9794 has
been used, unless otherwise specified.
Prophecy Platinum Corp. 1-1 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada