Vancouver, British Columbia, July 14, 2011: Prophecy Platinum Corp. ("Prophecy Platinum" or the “Company”) (TSX-V: NKL, US-PINK: PNIKD, Frankfurt: P94P) is pleased to announce the receipt of an independent National Instrument (NI) 43-101 compliant report and mineral resource estimate for its Wellgreen PGE-Ni-Cu property located in the Yukon Territory, Canada. The report is authored by Todd McCracken, P. Geo. of Wardrop Engineering Inc., a Tetra Tech Company, who is an independent Qualified Person under NI 43-101.
The independent study incorporated drill data from 701 diamond drill holes (182 surface and 519 underground) totalling over 53,222 metres. Using a 0.4% NiEq (nickel equivalent) cut-off grade, the Wellgreen deposit now contains a total inferred resource of 289.2 million tonnes at an average grade of 0.53 g/t platinum, 0.42 g/t palladium, 0.23 g/t gold (1.18g/t PGM+Gold), 0.38% nickel, and 0.35% copper. Separately, the deposit also contains an indicated resource of 14.3 million tonnes at an average grade of 0.99 g/t platinum, 0.74 g/t palladium, 0.52 g/t gold (2.25 g/t PGM+Gold), 0.69% nickel, and 0.69% copper. The resource includes both the East Zone and the West Zone of the Wellgreen project, which are tabulated in Table 1 showing respective metal grades which are also expressed as nickel equivalent (NiEq) values:
Table 1. Wellgreen Indicated and Inferred Resource Totals.
Several parameters were used in calculating the reported resource:
* NiEq =((Ni%*$Ni*22.0462)+(Cu%*$Cu*22.0462)+(Co%*$Co*22.0462)+(Au grade*$Au*0.029167)+(Pt grade*$Pt*0.029167)+(Pd grade*$Pd*0.029167))/($Ni*22.0462);
* Long term average metal prices in $USD of $9.52/lb nickel (NiEq prices based on this amount), $2.96/lb copper, $15.78/lb cobalt, $1085/troy ounce gold, $1776/troy ounce platinum, $689/troy ounce palladium;
* Visual comparison of colour-coded block model grades with composite grades on section and plan;
* Comparison of the global mean block grades for ordinary kriging (OK), inverse distance squared (ID2), nearest neighbour (NN) and composites;
* Swath Plots comparing NN estimates and OK estimates;
* 701 drillhole database used compiling over 12,000 assays.
Contained Metals at Wellgreen*
"This initial independent resource report confirms Wellgreen as one of the largest Platinum Group Metals projects in Canada, and one of few outside of South Africa’s Bushveld complex. We intend to aggressively expand total resource at Wellgreen in Yukon, Canada." stated John Lee, Chairman of Prophecy Platinum.
Prophecy Platinum has adopted a 0.4% nickel equivalent cut-off pending further work on the economics regarding the deposit. The Company believes that this represents a conservative cut-off value with a demonstrated NiEq value 0.74% for the inferred resource and 1.36% NiEq for the indicated resource. Additional payable metals such as rhodium, iridium, osmium and ruthenium are not figured into the current resource estimate. Resource numbers at their various cut-off values are tabulated below on a zone-by-zone basis (i.e. East Zone and West Zone):
Table 2. East Zone Indicated Resource Tonnage at Various NiEq Cut-Offs
Table 3. East Zone Inferred Resource Tonnage at Various NiEq Cut-Offs
Table 4. West Zone Inferred Resource Tonnage at Various NiEq Cut-Offs
Historic production focused on the massive sulphide pods/embayments. Recent exploration by Prophecy Platinum has concentrated on the evaluation of the Wellgreen property to host larger, lower grade, tonnages of PGM-enriched Ni-Cu mineralization. The modeled resource in this press release demonstrates that the disseminated material extends from surface to at least 800 meters depth, making a large volume of this material amenable to a low cost-bulk tonnage open pit mining scenario.
Higher-grade pockets of semimassive sulphides (>1% Cu and Ni and >2 g/t Pt), as historically mined by Hudson Yukon, are expected to continue to be located through exploration efforts. These higher grade pockets, although not continuous, could be targeted in a potential open pit operation in order to accelerate the project’s pay back.
The ongoing 2011 diamond drill program announced in the Company's June 2, 2011 press release has been designed to augment this reported resource in recognition of the significant tonnage that was overlooked by previous operators on the property. There are two diamond rigs operating on the property since May, with drill results expected in the summer.
Overview of Wellgreen:
* Wellgreen is part of Kluane Ultramafic Nickel belt, which is the second largest behind the Thompson Belt in Canada and remains vastly unexplored.
* The Wellgreen property is located approximately 35 kilometres northwest of Burwash Landing, Yukon,15 km from the paved 2 lane Alaska Highway and 402 km from Alaska’s Haines deep sea port. Prophecy Coal Corp. acquired 100% of Wellgreen by merger with Northern Platinum on September 23, 2010. Prophecy Platinum acquired 100% of Wellgreen from Prophecy Coal Corp. on June 13, 2011.
* Wellgreen was discovered in 1952 and optioned to Hudson Bay Mining and Smelting Ltd. (now Hudbay Minerals Inc.). Over a 20 year period, Hudbay sank 4 shafts and developed over 4 km of underground workings.
* A total of 701 holes (182 surface, 519 underground) totalling 53,222 meters (28,303 meters surface, 24,919 meters underground) were drilled by the following mining and exploration companies: Hudbay, Chevron, All North, Galactic, Archer Cathro, Coronation, and Northern Platinum.
* Prophecy Platinum holds 91 claims in two groups under renewable 21-year mining leases totaling approximately 22.1 square km.
* A shear zone was discovered in 2005 with rock samples yielding up to 70.1 g/t Palladium, and 77.3 g/t Platinum and 1.37 g/t Rhodium over a 3 km strike.
* A Fugro helicopter-borne Mag and EM survey conducted in 2008 demonstrated that the magnetic signature of the peridotite extends approximately 6 km on Prophecy Platinum’s ground.
* Past exploration and production focused on high-grade underground massive sulphide.
* Prophecy Platinum is re-examining the surveys, geology, past drill cores, and economics of Wellgreen for a disseminated sulphide open pit scenario.
* The 2010 drill program has extended the 2008 resource to the east with widths as evidenced by hole WS10-177 (with 525.90 m of 0.17% Cu, 0.26% Ni and 0.550 g/t PGMs+Au) and WS10-178 (566.78m of 0.16% Cu, 0.23% Ni and 0.517 g/t PGMs+Au) which were drilled on the eastern edge of the resource envelope. The results from these two holes are highly encouraging as they demonstrate a potentially new mineralization trend starting and extending to the east across Arid Creek.
This news release has been reviewed and approved by Danniel Oosterman, P.Geo., and a Qualified Person as defined in NI 43-101.
About Prophecy Platinum
Prophecy Platinum Corp. is a Canadian based Nickel PGM exploration company with projects in Canada, Argentina and Uruguay. Prophecy Platinum’s flagship Wellgreen PGM-Cu-Ni project is in Yukon Territory, Canada and the Lynn Lake project is located in Manitoba, Canada. Further information can be found at www.prophecyplat.com
ON BEHALF OF THE BOARD OF DIRECTORS of
Prophecy Platinum Corp.
"John Lee"
John Lee
Chairman
For further information:
Joseph Li
Telephone 1.800.362.7366
Email: jli@prophecyplat.com
www.prophecyplat.com
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including, without limitation, statements potential mineralization, the estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. . Although Prophecy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals in respect of the Transaction, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with operating in foreign jurisdictions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on Prophecy and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
This press release does not constitute an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (“the U.S. Securities Act”) or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. |
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