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

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Prophecy Platinum Corporation – Wellgreen Property – Project 50149-001 Table 31: Multi-element Analysis Results for LCT-4 ANALYTE Au Pt Pd As Se Te F Al As Ba UNITS ppb ppb ppb ppm ppm ppm ppm % ppm ppm LCT-4 Bulk Cln 2 Con D, E, F Combined 65 1480 637 22 74 9.54 70 0.7
Prophecy Platinum Corporation – Wellgreen Property – Project 50149-001 Conclusions and Recommendations A test program was completed on a master composite and a high Ni composite sample from the Wellgreen property in Yukon Territory, Canada. SGS Vancouver Metallurgy received multiple shipments, a total of 300 kg to prepare the master composite, and later on a third shipment of 120 kg to prepare the high Ni composite. The material shipped was originally three sub-composites (massive sulphide, gabbro, and peridotite) and was used to prepare a Master Composite and a High Ni Composite for metallurgical testing. A mineralogy investigation on feed sample was completed by QEMSCAN (quantitative mineralogy) on the master composite to identify mineral liberations and associations and develop grade limiting/recovery relationships for the sample. The results showed that the sulphide minerals dominated by chalcopyrite, pentlandite, and pyrrhotite. Copper and nickel contents combined approximately 2% of the sample mass. Chalcopyrite and pentlandite accounted for most of the Cu and Ni in the sample, respectively. The master composite is non pyritic and contains high levels of chlorite/serpentine. It also contains pyroxene, amphibole, mica and talc. Main copper sulphide (chalcopyrite) mineral association for the overall sample exist with complex gangue minerals (16.5%), pentlandrite (0.7%), and pyrrhotite (3.6%). Nickel sulphide association for the overall sample shows complex gangue minerals (6.6%), chalcopyrite (1.5%) and pyrrhotite (5%). Pyrhotite association for the overall sample shows complex gangue minerals (4.8%), chalcopyrite (0.9%) and pentlandite (0.7%). Overall, the liberations of chalcopyrite, pentlandite, and pyrrhotite were adequate to produce good metallurgical performance in a bulk rougher circuit. Regrinding of rougher concentrates is recommended to improve liberation of chalcopyrite and pentlandite in order to produce optimum cleaner circuit performance. Standard Bond grindability test (BWI) for ball mill grinding and abrasion index test were conducted. The BWI was determined to be 19.7 kWh/t for the Wellgreen master composite ore. This is considered to be a hard ore in the context of the SGS BWI database. The abrasion index fell in the soft range of abrasiveness with a Bond abrasion index of 0.088. A preliminary flotation testwork was conducted on the master composite. The key variables tested were the effect of grind, collector, talc pre-float and CMC on rougher kinetics. Due to the lack of any positive effect of talc pre-float and CMC addition, the base case (70 g/t SIPX) was shown to be the preferred one. A primary grind size of 90 microns was identified as optimum. Further cleaner flotation tests were followed based on the rougher flotation conditions of the base case. Open circuit cleaner testing was conducted to test the effect of the regrind and dispersants/depressants on circuit recovery and bulk Cu/Ni concentrate grade. Overall, the preliminary cleaner flotation test results showed a 18% Cu+Ni concentrate grade at the average Cu and Ni recoveries of 79% and 50%, respectively would be expected. At the same test conditions the combined Pt, Pd and Au grade of 14 g/t at 22%, 53% and 53% recoveries respectively, is achieved. SGS Minerals Services 55
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Report to: Wellgreen Project Prelim
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TABLE OF CONTENTS 1.0 SUMMARY .....
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14.1.8 MINERAL RESOURCE TABULATION
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26.1.2 PHASE 2 - QUILL CREEK ULTRAM
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Table 19.2 Palladium Demand and Sup
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Figure 19.3 London Metals Exchange
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litres per minute .................
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International All-North Resources L
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1.0 S UMMARY 1.1 I NTRODUCTION Tetr
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This PEA has been prepared by Tetra
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Numerous operators have worked on t
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1.6 M INING M ETHODS The Project is
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Figure 1.2 Wellgreen Project Overal
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Table 1.6 Capital Cost Summary (US$
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The following financial results wer
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Figure 1.3 illustrates that the Pro
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Figure 1.5 Project Execution Plan P
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2.0 INTRODUCTION Tetra Tech was com
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3.0 RELIANCE ON OTHER EXPERTS Tetra
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Figure 4.1 Location Map Prophecy Pl
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All work undertaken on the surface
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Figure 4.3 Wellgreen Surface Lease
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Other than those liabilities set fo
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5.3 C LIMATE The climate is alpine,
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Year Company Activities 1970 Hudson
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Year Company Activities 2008 Corona
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6.2.3 NORTHERN P LATINUM 2009 PROGR
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Figure 7.1 Regional Geology Map Pro
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Figure 7.3 Property Geology Prophec
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Longitudinal faults and/or shears a
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Figure 7.4 Wellgreen Plan View Prop
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7.2.3 NORTH ZONE The North Zone is
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Table 7.3 PGE-Bearing Minerals in t
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Gabbroid-associated Nickel, Copper,
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10.0 DRILLING 10.1 H ISTORICAL D RI
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Figure 10.1 Prophecy Platinum Drill
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Table 10.4 Prophecy Platinum 2011 D
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• The course rejects returned fro
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Figure 10.4 Core Storage Facility P
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11.0 SAMPLE PREPARATION, ANALYSES,
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12.0 DATA VERIFICATION Tetra Tech
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Table 12.2 Check Assays Prophecy Pl
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13.0 MINERAL PROCESSING AND METALLU
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An elemental analysis of typical co
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Minerals Peridotite Composite 1 Min
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Ni Deposits” shows that the grade
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13.3 SGS V ANCOUVER - J UNE 2012 A
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14.0 MINERAL RESOURCE ESTIMATES 14.
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Table 14.3 summarizes the grade cap
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The NiEq value was assigned to all
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Table 14.7 Wellgreen Variogram Summ
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Table 14.9 Estimation Criteria Zone
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Table 14.10 Search Parameters Zone
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NiEq Cut-off Tonnes NiEq (%) Ni (%)
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Figure 14.2 Wellgreen Platinum, Pal
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Figure 14.4 Wellgreen Platinum, Pal
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Figure 14.6 Wellgreen Pit Resource
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14.1.9 VALIDATION The Wellgreen mod
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Figure 14.9 East Zone Cross Section
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Figure 14.10 Wellgreen Nickel Secti
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Figure 14.14 Wellgreen Platinum Sec
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Figure 14.18 Wellgreen Cobalt Eleva
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14.2 P REVIOUS E STIMATES Table 14.
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15.0 MINERAL RESERVE ESTIMATES A mi
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The selected base case pit contains
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OVERALL O PEN P IT SLOPE ANGLE Tetr
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Table 16.4 Pit Optimization Results
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The pit optimization process includ
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16.4 P RODUCTION S CHDULE Using Pit
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Year Waste (t) Total (t) Strip Rati
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Figure 16.5 Sequence of Development
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PHASE III During Phase III, the pit
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16.5.4 EXPLOSIVES A contractor will
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Table 16.9 Pit Design Criteria Item
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Equipment Fleet Size Units Crew Bus
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Figure 17.1 Overall Wellgreen Proce
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17.2 P ROCESS D ESIGN C RITERIA The
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17.5 P ROCESS P LANT The process pl
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Figure 18.1 Wellgreen Project Overa
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ultimate impoundment surface area o
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Table 19.2 Palladium Demand and Sup
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Figure 19.3 London Metals Exchange
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Figure 19.5 Nickel Demand (2009 to
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20.0 ENVIRONMENTAL STUDIES, PERMITT
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Tailings and mill concentrate sampl
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20.2.4 AQUATIC RESOURCES The Proper
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Figure 20.2 Wildlife Ranges-Woodlan
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Figure 20.4 Wildlife Ranges-Mountai
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Figure 20.6 Wildlife Ranges-Grizzly
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Figure 20.8 Aquatic Resources Proph
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20.3.2 LICENSING The Project will b
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(Transport Canada 2010). New constr
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Table 20.1 Applicable Legislation,
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20.4 M I NE C LOSURE AND R ECLAMATI
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Umbrella Final Agreement, the White
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20.5.2 NON-ABORIGINAL COMMUNITIES T
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21.0 C APITAL AND O PERATING C OSTS
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Mine Equipment 21.2.2 SUSTAINING 20
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Table 21.7 Contingency (US$ million
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• mobilization and demobilization
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Spares • safety including safety
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21.3 O PERATING C OSTS 21.3.1 GENER
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Table 21.11 Summary of Mining Opera
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Mine Operations Position No. Annual
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22.0 ECONOMIC A NALYSIS 22.1 I NTRO
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Table 22.3 Metal Production from th
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Table 22.4 Summary of Pre-tax Finan
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22.4 M ETAL P RICE S CENARIOS The L
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Figure 22.3 IRR Sensitivity Analysi
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Figure 23.1 Adjacent Properties Pro
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Figure 24.1 Wellgreen Project Execu
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25.2 M INING Table 25.1 Wellgreen R
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Table 25.4 Process Capital Cost Sum
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Table 26.1 Wellgreen Expansion Budg
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26.2 M INING sample selection shoul
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Trade-off studies should be complet
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• develop a negotiation strategy
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METALLURGY Davis, David and Bruwer,
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Yukon Environmental and Socio-econo
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TODD MCCRACKEN, P.GEO. I, Todd McCr
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PHILIP BRIDSON, P.ENG. I, Philip Br
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APPENDIX A L IST OF C LAIMS
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District GrantNumber RegType ClaimN
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Certificate of Analysis First issue
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Hf µg/g 0.5 4 / 20 Ho µg/g 0.2 3
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assess laboratory results, users ar
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Constituent Unit Mean Table 2 - Pro
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Table 3 - Informational Values Cons
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CERTIFYING OFFICER ________________
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An Investigation into METALLURGICAL
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Prophecy Platinum Corporation - Wel
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Page 278 and 279: Prophecy Platinum Corporation - Wel
Page 280 and 281: Sample Fraction Mass Size Distribut
Page 282 and 283: Mass (% Chalcopyrite) Prophecy Plat
Page 284 and 285: Mass (% Pentlandite) Prophecy Plati
Page 286 and 287: Mass (% Pyrrhotite) Prophecy Platin
Page 290 and 291: Pyrrhotite Recovery % Prophecy Plat
Page 298 and 299: Cu Rec, % Ni Rec, % Gng Rec, % 100
Page 310 and 311: Grade (%) Cu + Ni Grade (g/t) PGE G
Page 342 and 343: Prophecy, Wellgreen samples 50149-0
Page 344 and 345: OnLine LIMS SGS Lakefield Research
Page 348 and 349: Certificate of Analysis Work Order:
Page 350 and 351: Final : VC120756 Revision REVISED O
Page 354 and 355: Final : VC120590A Revision REVISED
Page 364 and 365: SGS Minerals Services Standard Bond
Page 366 and 367: Project No.: 50149-001 Test No.: MC
Page 368 and 369: SGS Minerals Services STANDARD BOND
Page 370 and 371: SGS Minerals Services Project No. D
Page 376 and 377: Test No.: F1 Project No.: 50149-001
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Test No.: F3 Project No.: 50149-001
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Test No.: Sep-F1 Project No.: 50149
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Test: F30 Project: 11603-005 50149-
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Test: F32 Project: 11603-005 50149-
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Test: F34 Project: 11603-005 50149-
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Test: F36 Project: 11603-005 50149-
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Test: F38 Project: 11603-005 50149-
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Test No.: HNI-F1 Project No.: 50149
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Test: HNI-F3 Project: 11603-005 501
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Test: HNI-F5 Project: 11603-005 501
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Test: LCT-1 Project: 50149-001 Date
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Test: LCT-1 Overall Stability Total
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Test: LCT-2 Metallurgical Predictio
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Test: LCT-4 Project: 50149-001 Date
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Test: LCT-4 Overall Stability Total
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Prophecy Platinum Corp 50149-101 MI
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Mineral Abundance (wt.%) 100 90 80
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CAVM-50149-101 MI7018-MAR12 Sample
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CAVM-50149-101 MI7018-MAR12 Sample
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erra Mineralogical Services Inc. Mi
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TerraMS-12JUL-001 Wellgreen - Pt-Pd
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APPENDIX D M INING
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LG Phase Revenue Factor (%) Mineral
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Figure 3 Overall Ultimate Pit Produ
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Table 3 Penetration and Drilling Ra
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HAULAGE General Hauling Conditions
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Year Mechanical Availability (%) Us
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