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Prophecy Platinum Reports Updated Shakespeare Mine East Zone Mineral Resource
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PDFVancouver, B.C., September 12, 2012 – Prophecy Platinum Corp. (“Prophecy” or the “Company”) (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) is pleased to announce an updated Mineral Resource estimate for the Shakespeare Deposit Underground East Zone prepared by P&E Mining Consultants Inc. (“P&E”) of Brampton, Ontario. The Shakespeare Nickel Deposit is located 70 km west of Sudbury, Ontario. Prophecy acquired Shakespeare through a merger with Ursa Major Minerals (“Ursa”) in July 2012.
At a C$50/tonne NSR cut-off, the Underground East Zone contains an Indicated resource of 3.57 million tonnes grading 0.32% nickel, 0.39% copper, 0.02% cobalt, 0.34 g/t platinum, 0.37 g/t palladium, and 0.2 g/t gold. The East Zone also contains an Inferred resource of 1.87 million tonnes grading 0.32% nickel, 0.36% copper, 0.02% cobalt, 0.34 g/t platinum, 0.36 g/t palladium, and 0.21 g/t gold. This resource update adds approximately 30% to Shakespeare’s global resource.
East Zone Underground Indicated Resource Sensitivity at Various NSR Cut-Offs
Cut-Off | Tonnes | Ni | Cu | Co | Pt | Pd | Au |
NSR C$/Tonne | (000′s) | % | % | % | g/t | g/t | g/t |
Wireframe | 8,169 | 0.227 | 0.282 | 0.016 | 0.247 | 0.271 | 0.149 |
$10 | 7,537 | 0.242 | 0.300 | 0.017 | 0.263 | 0.288 | 0.158 |
$20 | 6,912 | 0.256 | 0.316 | 0.017 | 0.274 | 0.301 | 0.166 |
$30 | 5,996 | 0.274 | 0.336 | 0.018 | 0.290 | 0.318 | 0.175 |
$40 | 4,857 | 0.295 | 0.360 | 0.019 | 0.312 | 0.340 | 0.188 |
$50 | 3,571 | 0.320 | 0.387 | 0.020 | 0.337 | 0.367 | 0.202 |
$60 | 2,284 | 0.350 | 0.415 | 0.022 | 0.366 | 0.396 | 0.217 |
$70 | 1,105 | 0.385 | 0.453 | 0.023 | 0.404 | 0.439 | 0.237 |
$80 | 460 | 0.420 | 0.496 | 0.025 | 0.440 | 0.481 | 0.257 |
$90 | 148 | 0.454 | 0.535 | 0.026 | 0.480 | 0.523 | 0.276 |
East Zone Underground Inferred Resource Sensitivity at Various NSR Cut-Offs
Cut-Off | Tonnes | Ni | Cu | Co | Pt | Pd | Au |
NSR C$/Tonne | (000′s) | % | % | % | g/t | g/t | g/t |
Wireframe | 4,680 | 0.205 | 0.247 | 0.015 | 0.224 | 0.240 | 0.135 |
$10 | 3,803 | 0.244 | 0.291 | 0.017 | 0.265 | 0.284 | 0.159 |
$20 | 3,356 | 0.264 | 0.312 | 0.018 | 0.285 | 0.305 | 0.171 |
$30 | 2,950 | 0.282 | 0.329 | 0.019 | 0.302 | 0.322 | 0.182 |
$40 | 2,544 | 0.298 | 0.344 | 0.020 | 0.316 | 0.336 | 0.193 |
$50 | 1,871 | 0.325 | 0.363 | 0.022 | 0.340 | 0.357 | 0.209 |
$60 | 1,211 | 0.354 | 0.381 | 0.024 | 0.364 | 0.378 | 0.228 |
$70 | 574 | 0.393 | 0.395 | 0.027 | 0.398 | 0.404 | 0.257 |
$80 | 179 | 0.431 | 0.427 | 0.029 | 0.429 | 0.435 | 0.272 |
$90 | 33 | 0.499 | 0.442 | 0.032 | 0.451 | 0.425 | 0.293 |
Notes:
- 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.
A Probable Mineral Reserve of similar grades on the Shakespeare project was last reported in a feasibility study prepared by Micon (available on SEDAR), within the open pit shell to a maximum depth of 250 metres below surface. The feasibility study recommended the on-site mill to produce 4,500 t/d of ore mining and subsequent concentrate for sale.
Fill-in and step-out drilling in the underground portion of the East Zone was carried out in 2010 and 2011, and consisted of 8,024 m in 13 diamond drill holes which represent 35% of the drill hole database for the East Zone. The additional drilling prompted the update to the Mineral Resource estimate for the East Zone.
Small scale open pit mining of the West Zone was carried out from May 2010 to February 2012, however, the East Zone has not been mined. For the twelve months of operation ending January 31, 2012, Ursa delivered a total of 151,910 tonnes of 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/t silver.
John Lee, Chairman of Prophecy Platinum commented: “Prophecy develops Ni-Cu-PGM mining projects in Canada and provides leverage to those metals. The Shakespeare Ni-Cu-PGM project is a fully permitted mine with proven metallurgy. The marked increase in total global resource demonstrates the potential longevity of Shakespeare as a mine” Prophecy is placing Shakespeare on care and maintenance. The Company expects to provide a project update in early 2013 after reviewing the various infrastructure, processing and transportation options.
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Prophecy also announces the departure of Mr. David Patterson from the Board of Directors. David is focusing on his other interests and has been a great board member. His contributions are appreciated and will be remembered.
Both Mr. Richard Routledge, P.Geo and Mr. Eugene Piritch, P.Eng. of P&E Mining Consultants Inc. are Qualified Persons pursuant to NI 43-101, and have both reviewed and approved the contents of this press release.
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 located in Yukon Territory, Canada. Prophecy’s Shakespeare PGM-Cu-Ni project (fully permitted) is located in Ontario, and its 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:
Chris Ackerman
Senior Manager, Investor Relations
1-800-459-5583
[email protected]
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.
