Prophecy Platinum Reports Updated Shakespeare Mine East Zone Mineral Resource
Sep 12, 2012
OTC Disclosure News Service
Vancouver, BC, Canada –
ProphecyPlatinum Corp. (“Prophecy” or the “Company”) (TSX-V: NKL, OTC-QX:PNIKF, Frankfurt: P94P) is pleased to announce an updated Mineral Resource estimate for theShakespeare Deposit Underground East Zone prepared by PE MiningConsultants Inc. (“PE”) of Brampton, Ontario. TheShakespeare Nickel Deposit is located 70 km west of Sudbury, Ontario. Prophecyacquired Shakespeare through a merger with Ursa Major Minerals(“Ursa”) in July 2012.
At a C$50/tonne NSR cut-off, the Underground East Zone contains an Indicatedresource of 3.57 million tonnes grading 0.32% nickel, 0.39% copper, 0.02%cobalt, 0.34 g/t platinum, 0.37 g/t palladium, and 0.2 g/t gold. The EastZone also contains an Inferred resource of 1.87 million tonnes grading 0.32%nickel, 0.36% copper, 0.02% cobalt, 0.34 g/t platinum, 0.36 g/t palladium, and0.21 g/t gold. This resource update adds approximately 30% toShakespeare’s global resource.
East Zone Underground Indicated ResourceSensitivity at Various NSR Cut-Offs
East Zone Underground Indicated ResourceSensitivity at Various NSR Cut-Offs
- CIM definitions were followed for Mineral Resources.
- The Qualified Persons for this Mineral Resource estimate are: Richard Routledge, M.Sc. (Applied), P.Geo., Eugene Puritch, P.Eng, and Antoine Yassa, P. Geo.
- Mineral Resources are estimated by conventional 3D block modeling based on wireframing at a $50/tonne NSR cut-off and ordinary kriging grade interpolation.
- Metal prices for the estimate are: US$3.69/lb Cu, US$9.46/lb Ni, US$1,595/oz Pt, US$590/oz Pd, US$1,396/oz Au and US$18.50/lb Co based on a three-year trailing average as of July 31, 2012.
- A uniform bulk density of 3.01 tonnes/m3 has been applied for volume to tonnes conversion.
- Underground Mineral Resources are estimated beneath the bottom of the 2006 feasibility study pit at approximately 80 m elevation (258 m depth) to the -294 m elevation (632 m depth).
- Mineral Resources are classified as Indicated and Inferred based on drill hole spacing and geologic continuity.
- Overall revenue contribution expected from payable metals in the NSR calculation is 30% Cu, 52% Ni and 18% for combined Co, Au, Pt and Pd.
- Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
AProbable Mineral Reserve of similar grades on the Shakespeare project was lastreported in a feasibility study prepared by Micon (available on SEDAR), withinthe open pit shell to a maximum depth of 250 metres below surface. Thefeasibility study recommended the on-site mill to produce 4,500 t/d of oremining and subsequent concentrate for sale.
Fill-inand step-out drilling in the underground portion of the East Zone was carriedout in 2010 and 2011, and consisted of 8,024 m in 13 diamond drill holes whichrepresent 35% of the drill hole database for the East Zone. The additionaldrilling prompted the update to the Mineral Resource estimate for the EastZone.
Smallscale open pit mining of the West Zone was carried out from May 2010 toFebruary 2012, however, the East Zone has not been mined. For the twelve monthsof operation ending January 31, 2012, Ursa delivered a total of 151,910 tonnesof ore to the Strathcona Mill at a grade of 0.314% nickel, 0.368% copper, 0.019%cobalt, 0.348 g/t platinum, 0.389 g/t palladium, 0.203 g/t gold and 2.164 g/tsilver.
John Lee,Chairman of Prophecy Platinum commented: “Prophecy develops Ni-Cu-PGM miningprojects in Canada and provides leverage to those metals. The ShakespeareNi-Cu-PGM project is a fully permitted mine with proven metallurgy. The markedincrease in total global resource demonstrates the potential longevity ofShakespeare as a mine” Prophecy is placing Shakespeare on care and maintenance.The Company expects to provide a project update in early 2013 after reviewingthe various infrastructure, processing and transportation options.
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Prophecyalso announces the departure of Mr. David Patterson from the Board ofDirectors. David is focusing on his other interests and has been a great boardmember. His contributions are appreciated and will be remembered.
Both Mr.Richard Routledge, P.Geo and Mr. Eugene Piritch, P.Eng. of PE MiningConsultants Inc. are Qualified Persons pursuant to NI 43-101, and have bothreviewed and approved the contents of this press release.
ProphecyPlatinum Corp. is a Canadian based Nickel PGM exploration company with projectsin Canada, Argentina and Uruguay. Prophecy Platinum’s flagship WellgreenPGM-Cu-Ni project is located in Yukon Territory, Canada. Prophecy’s ShakespearePGM-Cu-Ni project (fully permitted) is located in Ontario, and its Lynn Lakeproject is located in Manitoba, Canada. Further information can be found atwww.prophecyplat.com.
ON BEHALFOF THE BOARD OF DIRECTORS of
ProphecyPlatinum Corp. “John Lee”
Senior Manager, Investor Relations
Mineral resources that are not mineral reserves do not have demonstratedeconomic viability. Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSX VentureExchange) accepts responsibility for the adequacy or accuracy of this release.
ForwardLooking Statements: This news release includes certain statements that may bedeemed “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, therealization of mineral resource estimates, interpretation of prior explorationand potential exploration results, the timing and success of explorationactivities generally, the timing and results of future resource estimates,permitting time lines, metal prices and currency exchange rates, availabilityof capital, government regulation of exploration operations, environmentalrisks, reclamation, title, and future plans and objectives of the company areforward-looking statements that involve various risks and uncertainties. .Although Prophecy believes the expectations expressed in such forward-lookingstatements are based on reasonable assumptions, such statements are notguarantees of future performance and actual results or developments may differmaterially from those in the forward-looking statements. Forward-lookingstatements are based on a number of material factors andassumptions. Factors that could cause actual results to differ materiallyfrom those in forward-looking statements include failure to obtain necessaryapprovals in respect of the Transaction, unsuccessful exploration results,changes in project parameters as plans continue to be refined, results offuture resource estimates, future metal prices, availability of capital andfinancing 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 andequipment on a timely basis, accidents or equipment breakdowns, delays inreceiving government approvals, unanticipated environmental impacts onoperations and costs to remedy same, and other exploration or other risksdetailed herein and from time to time in the filings made by the companies withsecurities regulators. Readers are cautioned that mineral resources that are notmineral reserves do not have demonstrated economic viability. Mineralexploration and development of mines is an inherently risky business.Accordingly the actual events may differ materially from those projected in theforward-looking statements. For more information on Prophecy and the risks andchallenges of their businesses, investors should review their annual filingsthat are available at www.sedar.com.
“Neither the TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.”
This press release does not constitute an offer to sell or a solicitation tobuy any of the securities in the United States. The securities have notbeen and will not be registered under the United States Securities Act of 1933,as amended (“the U.S. Securities Act”) or any state securities lawand may not be offered or sold in the United States or to U.S. Persons unlessregistered under the U.S. Securities Act and applicable state securities lawsor an exemption from such registration is available.
The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.