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

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Report Section Company QP 11.0 Sample Preparation, Analyses and Security Tetra Tech Todd McCracken, P.Geo. 12.0 Data Verification Tetra Tech Todd McCracken, P.Geo. 13.0 Mineral Processing and Metallurgical Testing Tetra Tech Andrew Carter, C.Eng. 14.0 Mineral Resource Estimate Tetra Tech Todd McCracken, P.Geo. 15.0 Mineral Reserve Estimate Tetra Tech Pacifico Corpuz, P.Eng. 16.0 Mining Methods Tetra Tech Pacifico Corpuz, P.Eng. 17.0 Recovery Methods Tetra Tech Andrew Carter, C.Eng. 18.0 Project Infrastructure Tetra Tech Andrew Carter, C.Eng. 19.0 Market Studies and Contracts Tetra Tech Andrew Carter, C.Eng. 20.0 Environmental Studies, Permitting, and Social or Community Impact Tetra Tech Andrew Carter, C.Eng. 21.0 Capital and Operating Costs Tetra Tech Philip Bridson, P.Eng. 22.0 Economic Analysis Tetra Tech Philip Bridson, P.Eng. 23.0 Adjacent Properties Tetra Tech Todd McCracken, P.Geo. 24.0 Other Relevant Data Tetra Tech Andrew Carter, C.Eng. 25.0 Interpretations and Conclusions Tetra Tech Sign off by Section 26.0 Recommendations Tetra Tech Sign off by Section 27.0 References Tetra Tech Sign off by Section Mr. Pacifico Corpuz, P.Eng. and Mr. Todd McCracken, P.Geo. conducted a one day site visit on October 12, 2011. The team observed surface drilling activities, the open pit area, the access road route, the process plant area, and old Hudson Yukon underground and surface operations during the visit. Prophecy Platinum Corp, 2-2 1193460500-REP-R0001-02 Wellgreen Project Preliminary Economic Assessment, Yukon, Canada
3.0 RELIANCE ON OTHER EXPERTS Tetra Tech has reviewed and analyzed data and reports provided by Prophecy Platinum, together with publicly available data, and has drawn its own conclusions augmented by direct field examination. Tetra Tech is not qualified to provide extensive comment on legal issues including status of tenure associated with the Property referred to in this report. A description of the Property and ownership is provided in Section 4.0. The list of claims included in Appendix A was provided by Prophecy Platinum for general information purpose only and has not been independently verified by Tetra Tech. The land tenture provided by Prophecy Platinum is sourced from the Government of Yukon Energy, Mines, and Resources website (http://www.yukonminingrecorder.ca/). The QPs who prepared this report relied on information provided by the following experts who are not QPs: • Mr. Doug Ramsey, R.P. Bio (BC), for matters relating to environmental studies, permitting and social or community impact in Sections 1.0, 20.0, 25.0, 26.0, and 27.0. • LME three-year trailing metal prices, effective date of July 6, 2012, for matters relating to metal pricing and economic analysis in Sections 1.0 and 22.0. • Ms. Michelle Pockley of Fasken Martineau DuMoulin LLP for matters relating to the old mill site in Sections 4.0 and 20.0. Prophecy Platinum Corp. 3-1 1193460500-REP-R0001-02 Wellgreen Project Preliminary Economic Assessment, Yukon, Canada
Page 1 and 2: Report to: Wellgreen Project Prelim
Page 3 and 4: TABLE OF CONTENTS 1.0 SUMMARY .....
Page 5 and 6: 14.1.8 MINERAL RESOURCE TABULATION
Page 7 and 8: 26.1.2 PHASE 2 - QUILL CREEK ULTRAM
Page 9 and 10: Table 19.2 Palladium Demand and Sup
Page 11 and 12: Figure 19.3 London Metals Exchange
Page 13 and 14: litres per minute .................
Page 15 and 16: International All-North Resources L
Page 17 and 18: 1.0 S UMMARY 1.1 I NTRODUCTION Tetr
Page 19 and 20: This PEA has been prepared by Tetra
Page 21 and 22: Numerous operators have worked on t
Page 23 and 24: 1.6 M INING M ETHODS The Project is
Page 25 and 26: Figure 1.2 Wellgreen Project Overal
Page 27 and 28: Table 1.6 Capital Cost Summary (US$
Page 29 and 30: The following financial results wer
Page 31 and 32: Figure 1.3 illustrates that the Pro
Page 33 and 34: Figure 1.5 Project Execution Plan P
Page 35: 2.0 INTRODUCTION Tetra Tech was com
Page 39 and 40: Figure 4.1 Location Map Prophecy Pl
Page 41 and 42: All work undertaken on the surface
Page 43 and 44: Figure 4.3 Wellgreen Surface Lease
Page 45 and 46: Other than those liabilities set fo
Page 47 and 48: 5.3 C LIMATE The climate is alpine,
Page 49 and 50: Year Company Activities 1970 Hudson
Page 51 and 52: Year Company Activities 2008 Corona
Page 53 and 54: 6.2.3 NORTHERN P LATINUM 2009 PROGR
Page 55 and 56: Figure 7.1 Regional Geology Map Pro
Page 57 and 58: Figure 7.3 Property Geology Prophec
Page 59 and 60: Longitudinal faults and/or shears a
Page 61 and 62: Figure 7.4 Wellgreen Plan View Prop
Page 63 and 64: 7.2.3 NORTH ZONE The North Zone is
Page 65 and 66: Table 7.3 PGE-Bearing Minerals in t
Page 67 and 68: Gabbroid-associated Nickel, Copper,
Page 69 and 70: 10.0 DRILLING 10.1 H ISTORICAL D RI
Page 71 and 72: Figure 10.1 Prophecy Platinum Drill
Page 73 and 74: Table 10.4 Prophecy Platinum 2011 D
Page 75 and 76: • The course rejects returned fro
Page 77 and 78: Figure 10.4 Core Storage Facility P
Page 79 and 80: 11.0 SAMPLE PREPARATION, ANALYSES,
Page 81 and 82: 12.0 DATA VERIFICATION Tetra Tech
Page 83 and 84: Table 12.2 Check Assays Prophecy Pl
Page 85 and 86: 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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Sample Fraction Mass Size Distribut
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Mass (% Chalcopyrite) Prophecy Plat
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Mass (% Pentlandite) Prophecy Plati
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Mass (% Pyrrhotite) Prophecy Platin
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Pyrrhotite Recovery % Prophecy Plat
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Cu Rec, % Ni Rec, % Gng Rec, % 100
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Grade (%) Cu + Ni Grade (g/t) PGE G
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Prophecy, Wellgreen samples 50149-0
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OnLine LIMS SGS Lakefield Research
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Certificate of Analysis Work Order:
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Final : VC120756 Revision REVISED O
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Final : VC120590A Revision REVISED
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SGS Minerals Services Standard Bond
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Project No.: 50149-001 Test No.: MC
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SGS Minerals Services STANDARD BOND
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SGS Minerals Services Project No. D
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Test No.: F1 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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