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

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11.2 Q UALITY A SSURANCE/QUALITY C ONTROL P ROGRAM The same QA/QC program was in place for Coronation Minerals, Northern Platinum and Prophecy Platinum as described below. Blanks, Standard Reference Material (SRM), and duplicates were inserted into the sample stream every 20 th sample. A duplicate sample was taken with every 20 th sampling of core. The selected sample was sawn in half and both resulting pieces were also sawn in half. This quartered core was then placed into two different sample bags with different sample numbers and sealed. The SRMs came from Natural Resources Canada and Analytical Solutions Limited. These were inserted into the sample stream immediately after the second duplicate. The SRMs are WMS-1a, WPR-1 and WGB-1. The certificates for the SRMs are found in Appendix B. Sample blanks were obtained from two sources: granodiorite from a local road metal quarry, and garden marble from hardware stores in Whitehorse, Yukon. A blank sample was inserted into the sample stream after the SRM. Tetra Tech has not compiled or reviewed the results of the QA/QC programs for either the Coronation Minerals or Northern Platinum drilling programs and cannot comment on the validity of the result. In addition to the field-inserted QA/QC program, the laboratories operate their own laboratory QA/QC system. The labs insert quality control materials, blanks and duplicates on each analytical run. No secondary laboratory check assaying was completed on the recent drilling programs. Tetra Tech believes the sampling practices of Prophecy Platinum meet current industry standards. Tetra Tech provided Prophecy Platinum with recommendations on ways to improve the current QA/QC program to make it more effective. These recommendations include: • The results of the field-inserted QA/QC data should be reviewed by the company geologist and it is also good practice for the geologist to review the laboratory-internal QA/QC data. • A selection of course rejects or pulps samples up to 10% of the data set should be sent to a second laboratory as part of the QA/QC program. • The insertion rate of one blank, one duplicate and one SRM should be maintained for every 20 samples. Prophecy Platinum Corp. 11-2 1193460500-REP-R0001-02 Wellgreen Project Preliminary Economic Assessment, Yukon, Canada
12.0 DATA VERIFICATION Tetra Tech’s Mr. Todd McCracken, P.Geo., Principal Geologist and Mr. Pacifico Corpuz, P.Eng., Senior Mining Engineer, visited the Property from October 12 to October 13, 2011. The Tetra Tech team was accompanied by Mr. Rory Calhoun, P.Geo., Project Geologist with Prophecy Platinum. Tetra Tech reviewed the project, explored the underground and surface exposures, and reviewed numerous geological logs, assays and core from the storage facility. Tetra Tech was able to observe the core handling, logging and sampling procedures being done by Northern Platinum and concludes that the procedures meet industry standards. Tetra Tech has confirmed the locations of four surface borehole collars during the previous the site visit. Tetra Tech collected the collar locations using a Garmin GPSMAP 60Cx handheld GPS unit. Tetra Tech also observed the position of four underground boreholes. All collar locations were located within the acceptable error limit of the GPS unit (Table 12.1). The drillhole data is in a local mine grid and all drill logs prior to 2009 do not contain Universal Transverse Mercator (UTM) coordinates. Table 12.1 Borehole Collar Validation Borehole ID Northern Platinum Tetra Tech Easting Northing Elevation (m) Easting Northing Elevation (m) WS06-144 - - 1,490 576873 6815846 1,492 WS06-145 - - 1,517 576968 6815846 1,520 WS08-155 - - 1,510 576938 6815850 1,512 WS09-170 578321 6815453 1,457 578319 6815453 1,444 Eight independent samples of mineralized split drill core (¼ core) representing different styles of mineralization, were collected for check assaying during Tetra Tech’s previous site visit. The samples were bagged, sealed on site and transported personally by Mr. McCracken by air, to Tetra Tech’s Sudbury office. On arrival at the office, the bag was opened for verification purposes, re-sealed and personally delivered to the ALS Minerals preparation facility in Sudbury, Ontario. The pulps were then sent by courier to the ALS Minerals laboratory facility in Vancouver, BC, which is accredited to ISO/IEC 17025 for independent assaying. The samples were analyzed for nickel, copper, cobalt, platinum, palladium and gold, using analysis packages PGM-ICP23 (30 g fire assay, with ICP finish) for the precious metals and ME-OG62 (four-acid digestion ICP-AES) for nickel, copper and cobalt. Prophecy Platinum Corp. 12-1 1193460500-REP-R0001-02 Wellgreen Project Preliminary Economic Assessment, Yukon, Canada
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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$
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
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: 11.0 SAMPLE PREPARATION, ANALYSES,
Page 83 and 84: Table 12.2 Check Assays Prophecy Pl
Page 85 and 86: 13.0 MINERAL PROCESSING AND METALLU
Page 87 and 88: An elemental analysis of typical co
Page 89 and 90: Minerals Peridotite Composite 1 Min
Page 91 and 92: Ni Deposits” shows that the grade
Page 93 and 94: 13.3 SGS V ANCOUVER - J UNE 2012 A
Page 95 and 96: 14.0 MINERAL RESOURCE ESTIMATES 14.
Page 97 and 98: Table 14.3 summarizes the grade cap
Page 99 and 100: The NiEq value was assigned to all
Page 101 and 102: Table 14.7 Wellgreen Variogram Summ
Page 103 and 104: Table 14.9 Estimation Criteria Zone
Page 105 and 106: Table 14.10 Search Parameters Zone
Page 107 and 108: NiEq Cut-off Tonnes NiEq (%) Ni (%)
Page 109 and 110: Figure 14.2 Wellgreen Platinum, Pal
Page 111 and 112: Figure 14.4 Wellgreen Platinum, Pal
Page 113 and 114: Figure 14.6 Wellgreen Pit Resource
Page 115 and 116: 14.1.9 VALIDATION The Wellgreen mod
Page 117 and 118: Figure 14.9 East Zone Cross Section
Page 119 and 120: Figure 14.10 Wellgreen Nickel Secti
Page 121 and 122: Figure 14.14 Wellgreen Platinum Sec
Page 123 and 124: Figure 14.18 Wellgreen Cobalt Eleva
Page 125 and 126: 14.2 P REVIOUS E STIMATES Table 14.
Page 127 and 128: 15.0 MINERAL RESERVE ESTIMATES A mi
Page 129 and 130: 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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