The Conversation (0)
Prophecy Platinum Corp. (TSXV:NKL,OTCQX:PNIKF) reported its annual audited consolidated financial statements for the twelve month period ended March 31, 2013 and the related annual Management’s Discussion and Analysis. The Company also provided an update on its Wellgreen PGM-Nickel-Copper project in the Yukon Territory and its Shakespeare PGM-Nickel-Copper project in Ontario. Highlights include the results of a Preliminary Economic Assessment (PEA) on its Wellgreen project, the addition of its Shakespeare property through the acquisition of Ursa Major Minerals Inc., and the Company raising approximately $11.5 million in equity financing.
As quoted in the press release:
On July 17, 2013, we announced that our 2013 field program had commenced at Wellgreen with the primary objectives being to upgrade Inferred category resources to Measured and Indicated and test priority expansion targets that have potential to add near surface higher grade material to the life of mine plan. In addition to drilling, we are currently re-sampling up to 12,000 metres of historic Wellgreen drill core. This historic core was previously only selectively sampled for very high grade massive sulphide material. These historic holes are now being assessed from a bulk mineability perspective and the results will be incorporated in the next mineral resource update and PEA. In essence, this re-sampling program is equivalent to a greater than 10,000 metre drill program across the Wellgreen property without the expense, in terms of time and money, associated with new drilling.
Our ongoing metallurgical test work will focus on optimizing metal recoveries of disseminated mineralization, particularly in the PGMs, enhancing concentrate grades and determining the economic contribution of the rare PGMs that are present in the Wellgreen deposit. The program will test optimization of the flotation recovery of the metals using variations of grind size, flotation methods, magnetic separation and other techniques to enhance overall recovery of PGMs.
Engineering studies are also underway that will evaluate a staged development approach with an initial smaller scale start-up operation at Wellgreen. Staging production will require less initial CAPEX, currently targeted at between $300 and 400 million, and allow for an accelerated timeline to production. Over time, production could be expanded to match the very large resource size out of operating cash flow.
At our fully permitted Shakespeare PGM-Nickel-Copper project in the Sudbury mining district of Ontario, we continue to conduct a comprehensive review of metal prices and costs required to allow a sustainable, profitable restart to operations. This includes participation with the Sagamok Anishnawbek First Nation in accordance with our Impact Benefit Agreement. In operation, we expect the Shakespeare project to produce 25,000 ounces of PGM+Au, 8 million pounds of nickel and 10 million pounds of copper on an annual basis.
Click here to read the Prophecy Platinum Corp. (TSXV:NKL,OTCQX:PNIKF) press release
Click here to see the Prophecy Platinum Corp. (TSXV:NKL,OTCQX:PNIKF) profile