Monday, 4 June 2012

Prophecy Platinum hits 10.4 metres of 2.54% copper equivalent at Wellgreen

Prophecy Platinum Corp. (CVE:NKL)(OTCQX:PNIKF) unveiled Monday more results of its 2012 underground drill program from its Wellgreen platinum group metals-nickel-copper project in the Yukon Territory.

The company said that "wide and continuous" mineralization continues to be intercepted, with results from two drill holes.

Hole WU12-533 returned 10.4 metres of 0.98% copper, 1.18 grams per tonne (g/t) platinum + palladium + gold, and 0.24% nickel, or 2.54% copper equivalent.

In addition, 19.51 metres of 0.36% copper, 0.89 g/t platinum + palladium + gold, and 0.19% nickel, or 1.54% copper equivalent, were intersected in hole WU12-534.

These sub-intervals occured within appreciable widths of 129.2 metres and 117.0 metres respectively, Prophecy said.

"Our early metallurgical results demonstrated excellent copper recovery, therefore these copper intercepts should bode well to the project economics," said chairman John Lee.

"Further, the positive copper to PGM correlation serves well as a guide for our summer drilling, as we have identified a number of Cu soil-rich targets and will continue to systematically explore the 17.5 km belt."

So far, all of the completed holes for the 2012 drilling program were mineralized at their end-of-hole lengths, with mineralized intercepts in excess of 100 metres.

Mineralization is likely to continue, the company said, but drilling was interrupted on account of poor ground conditions.

Both holes announced Monday were drilled from Station 4 near the centre of the Central-East Zone of the Wellgreen resource.

The underground drilling program, which kicked off in February, is the first phase of an extensive infill drilling campaign designed to upgrade a significant portion of Wellgreen's NI 43-101 inferred resource into the measured and indicated category.

The company said there are additional holes to be reported on Station 4, with the mineral explorer planning to soon move its drill rig to Station 5 where higher nickel-copper-platinum group elements mineralization has been modeled.

A surface program, designed to supplement the underground phase, is anticipated to start early this month.

The flagship Wellgreen project has more than 10 million ounces of platinum-palladium-gold inferred resource, with a pending preliminary economic assessment study in June.

The company also has a portfolio of platinum-nickel projects, including the fully-permitted open pit Shakespeare mine in Ontario and Manitoba's Lynn Lake project with more than 262 million pounds of nickel and 138 million pounds of copper in the measured and indicated category.

Prophecy's further holdings include the Las Aguilas nickel-platinum group metals deposit in Argentina, and prospective claims in Uruguay.

Last week, the company said Ursa Major Minerals (TSE:UMJ) shareholders approved the previously announced merger between the two parties, creating a mid-tier resource company.
Prophecy will issue one common share in exchange for every 25 outstanding shares of Ursa. Based on the 79.7 million Ursa shares, Prophecy is expected to issue 3.19 million shares.
The two companies said last Thursday that they expect the deal to be completed shortly.

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