Overview
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The 100% owned Wellgreen project hosts a large PGM and Nickel deposit is located in the southwest of Canada’s mining-friendly Yukon Territory and features excellent access and transportation infrastructure. The deposit is readily accessible via an all-weather road from the paved Alaska Highway; a major all-season trucking route leading to deep sea ports at Haines and Skagway, Alaska. Behre Dolbear ranks Canada as the top mining investment jurisdiction globally and the Yukon is ranked ninth in the world by the Fraser Institute. The Territorial government is highly-supportive of the mining industry and the Wellgreen project, as is the local Kluane First Nation with whom we have an Exploration Cooperation & Benefits Agreement.
Wellgreen Platinum is focused on the advancement of the Wellgreen project toward production, with current efforts underway to further evaluate overall project economics, simplify project financing requirements and complete environmental permit applications.
Highlights:
- Large Mineral Resource: 5.5 Moz PGM+Au, 2.9 B lbs Ni+Cu (M&I) with 13.8 Moz PGM+Au, 7.0 B lbs Ni+Cu (Inferred)
- Projected to become one of the largest & lowest cost, open-pit PGM-Nickel producing mines in the world
- Potential to become 2nd largest PGM producer and 3rd largest Nickel sulphide producer outside of Africa or Russia
- Base case avg. annual production of 209,000 ozs PGM+Au (3E) & 128 Mlbs Ni+Cu in concentrate over first 16 years
- All-in sustaining costs: USD$478/oz 3E and USD$5.96/lb Ni Eq. on a co-product basis
- Average annual operating cash flow of CAD$338 million over first 16 years; Total over LOM of CAD$7.5 billion
- Initial capex of CAD$586M with $100M contingency for 25 year base case mine life with opportunity to add 31 years
- Base case pre-tax NPV7.5% CAD$2.1 billion with 32.4% IRR and post-tax NPV7.5% CAD$1.2 billion with 25.3% IRR
- Base case production & economics based on 34% of pit-constrained mineral resource; significant potential for expansion of annual average production and extension of mine life
- Management team with decades of exploration, development & operations expertise with major mining companies and mid-size developer/producers
1GMP Securities Report 18-10-12 Platinum & Palladium Supply/Demand Fundamentals Improving
Wellgreen projections based on the results of the 2015 PEA Technical Report on the Wellgreen project entitled “Preliminary Economic Assessment Technical Report, Wellgreen Project, Yukon Territory, Canada”, which is dated effective February 2, 2015, which is available under the Company’s profile on www.sedar.com. A PEA is preliminary in nature, in that it includes an economic analysis that is based, in part, on Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them which would allow them to be categorized as Mineral Reserves, and there is no certainty that the results will be realized. Mineral Resources are not Mineral Reserves because they do not have demonstrated economic viability. .
Jurisdiction & Infrastructure
- Located in pro-mining Yukon Territory with strong support from government & Kluane First Nation
- Past producing property with paved highway and year-round access to deep sea ports
Environment & Permitting
Environmental baseline studies continue on the Wellgreen Project, including collection of meteorological data, surface water quality and flow data, ground water quality and flow data as well as wildlife and vegetation studies. In addition, socio-economic baseline studies have commenced. These baseline studies are being conducted in collaboration with the Kluane First Nation as part of the exploration cooperation and benefits agreement announced by the Company on August 2, 2012. The Company expects to be in a position to initiate the environmental assessment process in 2015. The Yukon and Federal Government guidelines suggest 18-24 months as a guideline to review mine permit applications. The review consists of evaluating the baseline data, assessing the project/operation influence on the environmental baseline and evaluating the mitigation processes proposed by the Company to enhance environmental due diligence. The environmental assessment process at Wellgreen is expected to proceed in an efficient manner since the project was a former operating mine in an area with historic and current placer mining, and the project Kluane First Nations are assisting Wellgreen Platinum Ltd with compilation of the baseline, assessment and mitigation aspects contained in the YESAB and Water Use Board applications.
Qualified Person under Ni 43-101
John Sagman, P.Eng., Wellgreen Platinum’s Senior Vice President and Chief Operating Officer and a “Qualified Person” as defined in NI 43-101 has reviewed and approved the scientific and technical information contained in our website.
Click here for the Legal Notice, forward-looking information and the cautionary note.
