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

Numerous operators have worked on the Project since the initial discovery in 1952.
Completed work includes 183 diamond surface drillholes, underground development
and 519 holes underground diamond drillholes, together with mapping, trenching and
geophysics. The majority of the work focused on the East Zone, which has
underground development on six levels.
1.5 M INERAL R ESOURCE E STIMATE
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 the estimates
contained in this PEA will be realized.
The resource estimation at a 0.2% nickel equivalent (NiEq) cut-off resulted in an
Indicated Resource of 14.4 Mt at grades of 0.68% nickel, 0.62% copper, and 2.23 g/t
platinum+palladium+gold. An additional Inferred Resource of 446.6 Mt at grades of
0.31% nickel, 0.25% copper, and 0.87 g/t platinum+palladium+gold. Table 1.2
summarizes the results of the resource estimate from within the optimized open pit.
Table 1.2 Wellgreen Mineral Resource Summary
NiEq
Cut-off Category Zone Tonnes NiEq%
Prophecy Platinum Corp. 1-5 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada
Ni
(%)
Cu
(%)
Co
(%)
Au
(g/t)
Pt
(g/t)
Pd
(g/t)
0.2 Indicated Pitshell 14,432,900 1.4 0.68 0.62 0.05 0.51 0.99 0.73
0.2 Inferred Pitshell 446,649,000 0.6 0.31 0.25 0.02 0.16 0.38 0.33
The fundamental difference between the 2011 Tetra Tech resource and the 2012
Tetra Tech resource is that the new metal pricing allowed for a greater amount of the
PGE material to be included with the potential pit, resulting in the application of a
lower NiEq cut-off. In addition, the application of engineering design at a PEA level
supports the low mining cost per unit tonnes processed.
Tonnes
Ni
(%)
Cu
(%)
Co
(%)
Au
(g/t)
Pt
(g/t)
Pd
(g/t)
2012 Tetra Tech PEA Model
Indicated Resource @ 0.2% NiEq cut-off 14,423,900 0.68 0.62 0.05 0.51 0.99 0.73
Inferred Resources @ 0.2% NiEq cut-off
2011 Tetra Tech Resource Model
446,649,000 0.31 0.25 0.02 0.16 0.38 0.33
Indicated Resource @ 0.4% NiEq cut-off 14,308,000 0.69 0.62 0.05 0.52 0.99 0.74
Inferred Resources @ 0.4% NiEq cut-off 289,246,000 0.38 0.35 0.03 0.23 0.53 0.42
Previous exploration has concentrated on the lower gabbroic section of the ultramafic
body for semi-massive nickel sulphides. Recent exploration has concentrated on the