Prophecy Platinum Intersects 756 metres of Continuous PGM-Ni-Cu Mineralization at Wellgreen
November 21, 2013, Vancouver, B.C., Prophecy Platinum Corp. (TSX-V: NKL; OTC-QX: PNIKF) “Prophecy Platinum” or the “Company” is pleased to announce further results from the ongoing 2013 exploration drilling program at its 100%-owned Wellgreen PGM-Ni-Cu project, located in Canada’s Yukon Territory, and to provide an update on additional development initiatives currently underway. Drill hole 215 in the Far East Zone has intercepted 756 metres of continuous mineralization grading 1.92g/t Platinum Equivalent (“Pt Eq.”) or 0.46% Nickel Equivalent (“Ni Eq.”), including 461 metres of continuous mineralization grading 2.31g/t Pt Eq. (0.55% Ni Eq.), which contains a 65.6 metre interval grading 4.19g/t Pt Eq. (1.00% Ni Eq.), comprised of 1.33g/t platinum+palladium+gold (“3E”) with 0.56% nickel and 0.45% copper.
Investors should note that Wellgreen is a polymetallic deposit with mineralization that includes Platinum Group Metals (PGMs), gold, nickel, copper and cobalt. Although the 2012 Wellgreen PEA indicated that nickel was the single largest contributor of value, at current metal prices using anticipated metallurgical recoveries for separate Ni and Cu concentrates, the net economic contribution is anticipated to be largest for the 3E elements (Pt+Pd+Au), followed by nickel and then by copper and cobalt. A platinum equivalent value is intended to reflect total metal equivalent content in platinum for all of the metals using relative prices for each of the metals. Please refer to Table 1 for assay results by individual metal and the metal prices used to calculate Pt Eq. and Ni Eq.
Greg Johnson, Prophecy Platinum’s President and Chief Executive Officer, stated, “At three quarters of a kilometre (or half a mile) of continuous mineralization, or roughly the equivalent of seven football fields in a row, the width of PGM mineralization intercepted by hole 215 is the longest yet at Wellgreen. The Company is not aware of any other ultramafic PGM-containing deposits anywhere in the world with continuous mineralization over comparable widths. This is a massive intercept with a grade thickness value of 1,451 gram per tonne metres Pt Eq. (“g-m”), which demonstrates the significant scale and potential of the Wellgreen system. While South African platinum mines are struggling because they typically mine mineralized seams just a few metres at great depths underground, the mineralization at our Wellgreen property is typically several hundred metres wide and begins at surface, making it amenable to open pit mining and the project is located in one of the Fraser Institutes’ top-ranked mining jurisdictions in the world. Within the broad continuous zone of mineralization in hole 215 is a higher grade portion that includes a 65.6 metre wide zone grading 4.19g/t Pt Eq. (1.00% Ni Eq.) and a second higher grade zone which correlates with the recently announced higher grade zones intercepted in holes 160 and 165 to the west. We believe this material may be suitable for bulk underground extraction early in the anticipated mine plan in conjunction with the higher grade starter pits on the western end of the deposit to potentially increase the overall project economics and accelerate payback. We are very pleased with these results and the potential that is being shown at the eastern end of the known Wellgreen deposit.”
Far East Zone Exploration
The Far East Zone of the Wellgreen deposit is continuing to show significantly wider zones of mineralization than have been tested to date in other parts of the deposit. In addition, higher grade portions within these broad zones are demonstrating bulk mineable underground potential. This has made the Far East Zone a top priority for drilling, re-logging and sampling in 2013. Hole 215 was drilled from surface and targeted mineralization where previous drilling had identified a broad mineralized zone extending beyond the previously recognized main tabular Wellgreen deposit. Drill hole 215 was collared approximately 300 metres south and on the next section east of holes 160 and 165 in the Far East Zone (see news release dated September 13, 2013). The cross section in Figure 1 below shows the 756 metre intercept in hole 215 and its relationship with the mineralization intercepted in holes 154, 205 and 195. As can be seen in the cross section, the broad zone of mineralization these holes intercepted remains open to the south, north, east and at depth. Additional results are anticipated to follow from the re-logging and re-sampling of historic holes to the east and west of hole 215.
Hole 154 intercepted five mineralized intervals totalling 457 metres grading 1.95 g/t Pt Eq. (0.47% Ni Eq.), with a grade thickness of 891 g-m. Above hole 154, hole 205 intercepted 5 intervals totalling 305 metres grading 2.23 g/t Pt Eq. (0.53% Ni Eq.), with a grade thickness of 682 g-m but which ended in higher grade material and did not make it to its full target depth. Hole 195 was a shorter hole only drilled in the upper tabular zone, yet it intercepted three intervals totalling 94 metres grading 2.80 g/t Pt Eq. (0.67% Ni Eq.). Each of these drill holes contained higher grade mineralized zones of 28 to 44 metres grading between 3.8 g/t to 4.8 g/t Pt Eq. (0.92% to 1.16% Ni Eq.) which may be amenable to bulk underground mining methods. Future drilling from surface and underground will focus on extending the mineralization in the Far East Zone as well as delineating the extent and continuity of the higher grade zones with potential for targeting this material early in the anticipated mine plan.
Prophecy Platinum Contacts:
Greg Johnson
President & CEO
1-888-715-7528
Rob Bruggeman
VP Corporate Development
905-278-6801
416-884-3556
Chris Ackerman
Senior Manager, Investor Relations
cackerman@prophecyplatinum.com
604-569-3690
