Prophecy Platinum Reports 1.04 Million Oz PGM+Gold Indicated And 10.97 Million Oz PGM+Gold Inferred For The Wellgreen Project, Yukon Territory, Canada
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.
| NiEq% cutoff | Category | Zone | Tonnes | NiEq% | Pt (g/t) | Pd (g/t | Au (g/t) | PGM+Au (g/t) | Ni (%) | Cu (%) | Co (%) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 0.400 | Indicated | East | 14,308,000 | 1.36 | 0.99 | 0.74 | 0.52 | 2.25 | 0.69 | 0.62 | 0.05 |
| NiEq% cutoff | Category | Zone | Tonnes | NiEq% | Pt (g/t) | Pd (g/t | Au (g/t) | PGM+Au (g/t) | Ni (%) | Cu (%) | Co (%) |
| 0.400 | Inferred | East | 219,327,000 | 0.76 | 0.54 | 0.45 | 0.26 | 1.25 | 0.39 | 0.34 | 0.03 |
| 0.400 |
Inferred
| West | 69,919,000 | 0.67 | 0.50 | 0.34 | 0.12 | 0.96 | 0.34 | 0.38 | 0.02 |
| Total inferred | 289,246,000 | 0.74 | 0.53 | 0.42 | 0.23 | 1.18 | 0.38 | 0.35 | 0.03 |
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*
| Metal | Indicated Resource | Inferred Resource |
|---|---|---|
| Nickel (Ni) | 0.22 Billion lbs. | 2.42 Billion lbs. |
| Copper (Cu) | 0.20 Billion lbs. | 2.23 Billion lbs. |
| Cobalt (Co) | 15.77 Million lbs. | 191.30 Million lbs. |
| Platinum (Pt) | 0.46 Million oz. | 4.93 Million oz. |
| Palladium (Pd) | 0.34 Million oz. | 3.91 Million oz. |
| Gold (Au) | 0.24 Million oz. | 2.14 Million oz. |
| PGM+Gold | 1.04 Million oz. | 10.97 Million oz. |
* Based on resource estimated at 0.4% NEq cut-off, and 100% metals recoveries.
