Wednesday, 11 July 2012

Prophecy Platinum drills 14.2 metres of 2.02% copper equivalent at Wellgreen

Prophecy Platinum Corp. (CVE:NKL)(OTCQX:PNIKF) unveiled Wednesday further drill results from its 2012 underground program on its flagship Wellgreen Platinum group metals (PGM) and Nickel-copper project in the Yukon Territory.

The company said holes WU12-528, WU12-529 and WU12-536 intercepted mineralized widths ranging from 46.8 metres and up to 191.1 metres with composited grades in excess of 0.4% Nickel equivalent.

Highlights include hole WU12-529, which returned assays of 1.16 grams per tonne (g/t) of Platinum+palladium+gold, 0.44% copper, and 0.24% Nickel, or 2.02% copper equivalent, over a core length of 14.2 metres.
Holes WU12-528 and WU12-529 were drilled from Station 1 on the east portion of the Wellgreen resource, while hole WU12-536 was drilled from Station 4 situated toward the centre of east portion of the resource.

The company said all of the holes reported today were stopped due to poor ground conditions, but mineralization occurs to the end of the hole.

As a result, the hanging wall, or south contact, of the host intrusion has yet to be reached by underground drilling, indicating there is "significant mineralization" that is yet to be found at Wellgreen, Prophecy Platinum said.

Six additional holes are yet to be reported on Station 4 and one hole is outstanding for Station 1. Prophecy has also completed two holes from Station 5, further into the adit where higher Nickel-copper-Platinum group metals grades have been modeled.

The surface drilling program, which kicked off in late June, has now completed two holes, with both reaching the footwall contacts and encountering some intercepts of "massive sulphides", the miner said.

Currently, there are three drills, one underground and two surface, on the property, with a fourth drill expected on surface in late July.
Results of infill and exploration drilling will be published monthly throughout the summer, the company said.

Last month, Prophecy announced earlier results from the Wellgreen project, including significant widths of mineralization of 242.6 metres, containing 0.47 g/t of Platinum+palladium+gold, 0.24% Nickel and 0.13% copper, or 0.39% Nickel equivalent.

The news followed Prophecy's unveiling of the NI 43-101 preliminary economic assessment (PEA) of its project, including a whopping $3.0 billion net present value.

The economic report, prepared by Tetra Tech, evaluated a base case open pit mine at an 111,500 tonne per day mining rate, and an onsite concentrator at a 32,000 tonne per day milling rate.

The project is expected to produce 1.959 billion pounds of Nickel in concentrate, 2.058 billion pounds of copper and 7.119 million ounces of Platinum plus palladium plus gold over a 37-year mine life, with an average strip ratio of 2.57.

The company said the Wellgreen economics yield a 38 per cent internal rate of return (IRR), pre tax, as well as a $3.0 billion net present value at an 8 per cent discount rate, with a payback period of just over three and a half years.

Prophecy Platinum Corp. is focused on developing Platinum group metals (PGM) and Nickel sulphide projects. It also holds the Lynn Lake Nickel-copper project in Manitoba, the Las Aguilas Nickel-PGM deposit in Argentina, as well as five prospective claims in Uruguay.

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