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

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20.2.3 WILDLIFE AND VEGETATION ............................................................................. 20-4 20.2.4 AQUATIC RESOURCES ..................................................................................... 20-5 20.2.5 PARKS AND PROTECTED AREAS ...................................................................... 20-5 20.3 ENVIRONMENTAL ASSESSMENT AND PERMITTING ............................................................ 20-14 20.3.1 ENVIRONMENTAL ASSESSMENT ..................................................................... 20-14 20.3.2 LICENSING .................................................................................................... 20-15 20.4 MINE CLOSURE AND RECLAMATION PLAN ....................................................................... 20-21 20.5 SOCIAL CONSIDERATIONS .............................................................................................. 20-22 20.5.1 PROJECT LOCATION AND FIRST NATIONS ....................................................... 20-22 20.5.2 NON-ABORIGINAL COMMUNITIES .................................................................... 20-25 20.5.3 RESOURCE HARVEST SECTION...................................................................... 20-25 20.5.4 CONSULTATION WITH LOCAL FIRST NATIONS ................................................. 20-25 21.0 CAPITAL AND OPERATING COSTS ............................................................................ 21-1 21.1 SUMMARY ........................................................................................................................ 21-1 21.2 CAPITAL COSTS ............................................................................................................... 21-2 21.2.1 PRE-PRODUCTION ........................................................................................... 21-2 21.2.2 SUSTAINING .................................................................................................... 21-3 21.2.3 CLOSURE ....................................................................................................... 21-4 21.2.4 CONTINGENCY ................................................................................................ 21-4 21.2.5 PROCESSING EQUIPMENT CAPITAL COSTS ...................................................... 21-5 21.2.6 INITIAL CAPITAL COSTS ................................................................................... 21-6 21.3 OPERATING COSTS ........................................................................................................ 21-11 21.3.1 GENERAL ..................................................................................................... 21-11 21.3.2 MINING ......................................................................................................... 21-11 21.3.3 PROCESS OPERATING COSTS ....................................................................... 21-15 22.0 ECONOMIC ANALYSIS ................................................................................................. 22-1 22.1 INTRODUCTION ................................................................................................................ 22-1 22.2 PRINCIPAL ASSUMPTIONS ................................................................................................. 22-2 22.3 PRE-TAX MODEL .............................................................................................................. 22-2 22.4 METAL PRICE SCENARIOS ................................................................................................ 22-7 22.5 SENSITIVITY ANALYSIS ..................................................................................................... 22-7 23.0 ADJACENT PROPERTIES ............................................................................................ 23-1 24.0 OTHER RELEVANT DATA AND INFORMATION ......................................................... 24-1 24.1 PROJECT EXECUTION PLAN .............................................................................................. 24-1 25.0 INTERPRETATIONS AND CONCLUSIONS .................................................................. 25-1 25.1 GEOLOGY ........................................................................................................................ 25-1 25.2 MINING ............................................................................................................................ 25-2 25.3 MINERAL PROCESSING ..................................................................................................... 25-3 25.4 INFRASTRUCTURE ............................................................................................................ 25-4 26.0 RECOMMENDATIONS .................................................................................................. 26-1 26.1 GEOLOGY ........................................................................................................................ 26-1 26.1.1 PHASE 1 – WELLGREEN EXPANSION ................................................................ 26-1 iv 1193460500-REP-R0001-02
26.1.2 PHASE 2 – QUILL CREEK ULTRAMAFIC DELINEATION ........................................ 26-2 26.1.3 OTHER RECOMMENDATIONS ........................................................................... 26-3 26.2 MINING ............................................................................................................................ 26-4 26.3 METALLURGY ................................................................................................................... 26-5 26.4 INFRASTRUCTURE ............................................................................................................ 26-6 26.5 ENVIRONMENTAL ............................................................................................................. 26-7 26.5.1 SOCIAL CONSIDERATIONS ............................................................................... 26-7 27.0 REFERENCES ............................................................................................................... 27-1 28.0 CERTIFICATES OF QUALIFIED PERSON ................................................................... 28-1 LIST OF APPENDICES APPENDIX A LIST OF CLAIMS APPENDIX B SRM CERTIFICATES APPENDIX C SGS REPORT APPENDIX D MINING LIST OF TABLES Table 1.1 General Project Information ............................................................................... 1-1 Table 1.2 Wellgreen Mineral Resource Summary ............................................................. 1-5 Table 1.3 Resource Model Parameters ............................................................................. 1-6 Table 1.4 Summary of Mining Details ................................................................................ 1-7 Table 1.5 Summary Grade and Recovery Data ................................................................. 1-8 Table 1.6 Capital Cost Summary (US$ billion) ................................................................ 1-11 Table 1.7 Pre-production Capital (US$ million) ................................................................ 1-11 Table 1.8 Sustaining Capital (US$ million)....................................................................... 1-11 Table 1.9 LOM Operating Cost Summary ........................................................................ 1-12 Table 1.10 Summary of Pre-tax Financial Results and Inputs ........................................... 1-12 Table 1.11 Metal Production from the Wellgreen Project .................................................. 1-13 Table 1.12 Wellgreen Project Base Case Metal Prices* .................................................... 1-14 Table 1.13 Sensitivity Parameters and NPV @ 8% (US$ million) ..................................... 1-14 Table 1.14 Sensitivity Parameters and IRRs (%) ............................................................... 1-15 Table 1.15 Cost by Phase .................................................................................................. 1-18 Table 2.1 Summary of QPs ................................................................................................ 2-1 Table 6.1 Wellgreen Historical Activities ............................................................................ 6-1 Table 7.1 Opaque Minerals Observed in the Wellgreen Deposit .................................... 7-10 Table 7.2 PGMs in the Wellgreen Deposit ....................................................................... 7-11 Table 7.3 PGE-Bearing Minerals in the Wellgreen Deposit ............................................. 7-12 v 1193460500-REP-R0001-02
Page 1 and 2: Report to: Wellgreen Project Prelim
Page 3 and 4: TABLE OF CONTENTS 1.0 SUMMARY .....
Page 5: 14.1.8 MINERAL RESOURCE TABULATION
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 and 36: 2.0 INTRODUCTION Tetra Tech was com
Page 37 and 38: 3.0 RELIANCE ON OTHER EXPERTS Tetra
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
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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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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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