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

22.0 ECONOMIC A NALYSIS
22.1 I NTRODUCTION
This PEA is preliminary in nature and includes Inferred Mineral Resources that
are considered too speculative geologically, on which to apply economic
considerations to categorize them as mineral reserves. There is no certainty
that this PEA will be realized.
This PEA has been completed to a +/-40% level of accuracy.
An economic evaluation of the Wellgreen project was prepared by Tetra Tech based
on a pre-tax financial model. For the 37-year LOM and 405 Mt Indicated Resources
and Inferred Resources, the pre-tax financial model was based on the following:
• LME three year trailing metal prices, effective date July 6, 2012 (see Table
22.1).
• Cdn$/US$ exchange rate based on a two year forecast, in effect Q2 2012
(Source: Foreign Exchange Consensus Forecasts (FECF) effective date
April 10, 2012) (see Table 22.2).
Table 22.1 Base Case Metal Prices Used in the Financial Model
Ni
(US$/lb)
Cu
(US$/lb)
Co
(US$/lb)
Au
(US$/oz)
Pt
(US$/oz)
Pd
(US$/oz)
9.48 3.56 16.23 1,377.87 1,587.97 581.28
Table 22.2 Foreign Exchange Used in the Study
Currency Exchange Rate
Cdn$1 = US$ 0.9794
Cdn$1 = € 1.2831
Prophecy Platinum Corp. 22-1 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada