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

evaluation of the Property’s potential to host larger, but lower grade, tonnages of
PGM-enriched nickel-copper mineralization for potential open pit extraction. Highergrade
pockets of semi-massive sulphides (more than 1% copper and nickel and
more than 2 g/t platinum), as historically mined by Hudson Yukon Mining Company
(Hudson Yukon Mining), are expected to be continually located through exploration
efforts. These higher grade pockets, although not continuous, could be targeted in a
potential open pit operation to accelerate the Project’s pay back.
The Project database is relatively up-to-date, and includes the results of the 2011
drilling program. Coronation Minerals Inc. (Coronation Minerals), a previous owner,
carried out the most recent twin-hole drilling program and this was generally
successful in confirming historic results. As a result, Tetra Tech is of the opinion that
using the historic drilling is appropriate for any future resource estimates, although
additional analysis will be required before a definitive conclusion can be reached.
The Prophecy Platinum drilling confirmed the presence of a substantial mineralized
system located in the hanging wall of the semi-massive sulphide pods previously
targeted as the Wellgreen deposit, thus defining a new geological target previously
untested at Wellgreen. Table 1.3 summarizes the parameters used to generate the
resource block model.
Table 1.3 Resource Model Parameters
2012 Tetra Tech PEA Model
Number of Drillholes 702 (55,000 m used)
Grade Capping Parrish Analysis
East Zone - 4.14% Cu, 2.05 g/t Au, 5.15 g/t Pd, 5.72 g/t Pt
West Zone - 2.29 g/t Au
Composite Length East Zone - 2.5 m
West Zone - 2.5 m
Cut-off Grade 0.2% NiEq
Number of Mineral Zones 2
Block Size 20 x 10 x 20 (4,000 m 3 )
Resource Summary All blocks above cut-off within optimized pitshell
Estimation Method Ordinary kriging (OK) with inverse distance (ID) and nearest
neighbour (NN) validation
Note: *Obtained from the Energy & Metals Consensus Forecasts (EMCF) of metal prices, in
effect for Q2 2012. The EMCF is a long term metal consensus amongst 20 international
financial institutions and represents an average of the long-term (five to ten years)
forecasts in nominal 2012 dollars. The estimate of metal prices used in the geological
model was assumed to best represent the project economics.
A large portion of the drill data set does not include platinum and palladium assays or
rhodium, ruthenium, rhenium, iridium, or osmium, which would potentially enhance
an economic evaluation of the Property. Specific gravity (SG) measurements are
also lacking with in the data set.
Prophecy Platinum Corp. 1-6 1193460500-REP-R0001-02
Wellgreen Project Preliminary Economic Assessment,
Yukon, Canada