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

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erra Mineralogical Services Inc. Mineralogical Report MINERALOGICAL INVESTIGATION OF THE DEPORTMENT OF PLATINUM AND PALLADIUM MINERALS IN TWO LOCKED CYCLE TEST TAILS FROM THE WELLGREEN METALLURGICAL TEST PROGRAM Prepared for Mike Ounpuu and Danniel Oosterman For: Prophecy Platinum Corp. By Giovanni Di Prisco July 9, 2012 Project : TerraMS- 12JUL-001 – Wellgreen –LCT Tail Platinum-Palladium Minerals Deportment Note This report refers to the samples as received. Reproduction of this report by the recipient is allowed for internal purposes only. The recipient of this report is required to request written consent from Terra Mineralogical Services Inc. to publish or release to the public this report or any part of it. Neither Terra Mineralogical Services Inc nor Giovanni Di Prisco,.nor its subcontractors, or employees shall be held responsible for any loss or damage resulting directly or indirectly from any mistake, defect, negligence, error or omission. The liability of Terra Mineralogical Services Inc. or Giovanni Di Prisco, if any, shall be limited in total to the invoiced value of this project. Terra Mineralogical Services Inc. – 1565 Champlain Drive, Peterborough, Ontario – K9L 1N5 Tel: 705 – 743-2915, Fax: 705 – 749-6985, E-mail: diprisco@cogeco.ca
SUMMARY TerraMS-12JUL-001 Wellgreen - Pt-Pd Minerals Deportment – LCT01 Tails The present document reports information concerning the deportment of Platinum- and Palladium-bearing particles encountered in two tail products (Test LCT-1) generated from the Wellgreen ore from the Prophecy Platinum Yukon project metallurgical test program. The main scope of the present mineralogy examination was to determine the PGE mineral mode of occurrence and gangue associations, with a secondary objective of outlining the broad PGE mineral families observed. A total of ninety- four and nineteen PGE particles were identified in the Nickel 1 st Cleaner tail and Nickel Scavenger Tail samples, respectively. Two broad categories of PGE minerals were identified. Platinum was identified only in sperrylite (PtAs2, abbreviation Pt-As), whereas Palladium was encountered in a series of Palladium-Antimonite and Palladium (+/- Sb, Ni) telluride. Finally one grain of auro-cuprite (?) was also observed in the Ni 1 st Cleaner tail sample. PGE minerals predominately occur as liberated particles in the Nickel 1 st Cleaner tail. In contrast, only minor amounts of liberated grains (all of them sperrylite) are deported to the Nickel Scavenger tail, whereas the bulk of PGE minerals reports to this tail sample as inclusions or intergrown with gangue minerals. Most of the non-liberated PGE minerals occurring in the Nickel 1 st Cleaner Tail are intergrown with pyrrhotite and only minor amounts are associated with magnetite or silicate gangue. In the Nickel Scavenger tail, two-thirds of the PGE minerals are also intergrown with sulphide (chiefly pyrrhotite), yet approximately 21% are also associated with silicate gangue. The entire group of identified PGE mineral grains present re-calculated diameters that can be best described as extremely fine grained. Most grains are less than 3 µm in diameter with an average diameter not exceeding 1.5 µm. Terra Mineralogical Services Inc. July 9, 2011 Giovanni Di Prisco, Ph.D., P.Geo. Consulting Geologist – Mineralogist 1
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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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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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Page 446 and 447: Prophecy Platinum Corp 50149-101 MI
Page 472 and 473: Mineral Abundance (wt.%) 100 90 80
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Page 492 and 493: CAVM-50149-101 MI7018-MAR12 Sample
Page 494 and 495: CAVM-50149-101 MI7018-MAR12 Sample
Page 498 and 499: TerraMS-12JUL-001 Wellgreen - Pt-Pd
Page 514 and 515: APPENDIX D M INING
Page 516 and 517: LG Phase Revenue Factor (%) Mineral
Page 518 and 519: Figure 3 Overall Ultimate Pit Produ
Page 520 and 521: Table 3 Penetration and Drilling Ra
Page 522 and 523: HAULAGE General Hauling Conditions
Page 524: Year Mechanical Availability (%) Us
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