• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Precious Metals Market
    Precious Metals News
    Precious Metals Stocks
    • Precious Metals Market
    • Precious Metals News
    • Precious Metals Stocks
    platinum investing

    Wellgreen Platinum Reaches Milestone with Completion of PEA

    Teresa Matich
    Feb. 02, 2015 02:30PM PST
    Precious Metals

    It’s been a long time coming, but Wellgreen Platinum has finally released results of a PEA for its Wellgreen project in Canada’s Yukon. The project has garnered plenty of attention from market watchers and investors for being a large and potentially open-pittable PGM deposit outside of South Africa and Russia.

    It’s been a long time coming, but Wellgreen Platinum (TSX:WG) has finally released the results of a preliminary economic assessment (PEA) for its Wellgreen project in Canada’s Yukon.

    The project has garnered plenty of attention from market watchers and investors in the platinum-group metals (PGM) space for being a large and potentially open-pittable PGM deposit in a stable jurisdiction.

    Currently, the majority of the world’s platinum is produced in South Africa (about 70 percent), while Russia produces the most palladium (about 40 percent) — end users have seen their fair share of supply disruptions from those countries.

    Based on the results of the PEA, Wellgreen claims that the project “could be one of the two largest platinum producing mines (along with the Stillwater Mine in the United States) outside of South Africa or Russia.”

    The study considers a four-phase, open-pit operation with some selective higher-grade underground mining over a 25-year mine life. Average annual production of 208,880 ounces of PGMs and gold, 73 million pounds of nickel and 55 million pounds of copper is expected over the first 16 years of mining.

    Total life-of-mine production is set at 4.4 million ounces of PGMS and gold, 1.7 billion pounds of nickel and 1.1 billion pounds of copper. Furthermore, the current resource remains open along strike and at depth, and Wellgreen has plans to conduct further drilling this year.

    “Completion of the 2015 PEA for the Wellgreen project is a major milestone in our Company’s development,” said Wellgreen CEO Greg Johnson in a statement. “These results show a robustly economic project at conservative metal prices and an expected base case mine life of 25 years utilizing only one-third of the pit constrained mineral resources.”

    The mine features a low life-of-mine average strip ratio of 0.75:1, and the company has plans to stockpile lower-grade material for processing through years 17 to 25. In terms of production, the mill at Wellgreen will put out a bulk nickel-copper-cobalt-PGM-gold concentrate for shipping to deepwater ports in Alaska.

    Taking a look at the economics of the project, Wellgreen will garner initial capital expenditures of C$586 million and has a base-case, after-tax NPV of C$1.193 billion. Investors would see an IRR of 24.6 percent and a payback period of 3.2 years.

    Admittedly, the base case prices used in the report are a bit higher than current prices, at $1,450 for platinum, $1,250 for gold and $3 for copper.

    To shed more light on that subject, Wellgreen’s PEA includes average base-case price assumptions from its peers — based on data from SEDAR — and Wellgreen’s assumptions are definitely lower in comparison. The report also contains consensus long-term pricing forecasts based on data from Bloomberg, and again, the price assumptions used in Monday’s PEA are lower.

    Beyond that, cash costs for precious metals from Wellgreen are also fairly low, set at US$457 per ounce of PGMs and gold on a co-product basis with base metals at the project. Base metals costs are a bit higher at US$5.78 per pound of nickel equivalent.

    In terms of what’s next, Wellgreen has a lot planned for 2015. The company will conduct drill programs to upgrade its resources at Wellgreen, and expects to complete additional metallurgical testing and advanced engineering work at the project, among other things.

    Wellgreen got a bit of a bump from the market on Monday. Shares of the company were up 4.69 percent as of 12.19 p.m. EST, trading at 0.67.

     

    Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.

    Related video:

    Bright Future for Mining Exploration: Yukon Premier Darrell Pasloski

    platinum investingrussiastrip ratiowellgreen platinumcanadatsx:wgmine lifeunderground miningunited states
    The Conversation (0)

    Go Deeper

    AI Powered
    NYSE:TAHO

    Maria Smirnova: The Silver Market Today and How to Pick Stocks

    Global Energy Metals Reports Very High Recovery Rates for Cobalt, Copper and Gold from The Millennium Project in Queensland, Australia

    Global Energy Metals Reports Very High Recovery Rates for Cobalt, Copper and Gold from The Millennium Project in Queensland, Australia

    Latest News

    Rio Silver arranges $1.3M private placement

    Locksley Resources Adds 249 Additional Claims to Landholding of More than 40 sq km of Highly Prospective Critical Minerals Ground in California's Mojave Region

    Bold Ventures Announces Prospecting and Sampling Results and Mobilizes Crew to Burchell Gold and Copper Project

    Kobo Resources Announces Closing of First Tranche of Non-Brokered Private Placement for Gross Proceeds of over $2.5 Million

    Harvest Gold Announces Non-Brokered Private Placement Of Up To $500,000

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Precious Metals Stocks

    GoldMoney Inc.

    XAU:CA

    Metallica Metals Corp Com

    MM:CNX

    Champion Bear Resources Ltd.

    CBA:CA

    Braveheart Resources Inc.

    BHT:CA

    Mineworx Technologies Ltd.

    MWX:CA

    St-Georges Eco-Mining Corp

    SX:CNX
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES
    ×