Prophecy Reports Multiple Massive Sulphide Intercepts, Best Hole Includes 44 Metres Grading 0.47% Cu, 0.24% Ni, & 1.03 g/t PGM+Au Within 268 Metres of 0.52% NiEq
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/24/12 -- Prophecy Platinum Corp. ("Prophecy" or the "Company") (TSX VENTURE: NKL)(OTCQX: PNIKF)(FRANKFURT: P94P) is pleased to announce further results of its 2012 drill program on the Company's 100% owned Wellgreen PGM-Ni-Cu Project, located in the southwestern part of Yukon, Canada. Five surface (WS12-195, 196, 197, 200, & 206) and four underground holes (WU12-541, 543, 546, & 547) all intercepted significant mineralized widths highlighted by 268 metres of 0.52% NiEq including 44.04 metres grading 0.47% Cu, 0.24% Ni, and 1.03 g/t PGM+Au (WU12-541).
Results are tabulated below:
----------------------------------------------------------------------------
BHID PGM+Au
From To Length (m) Cu% Ni% Co% g/t NiEQ %
----------------------------------------------------------------------------
WS12-195 0.00 190.01 190.01 0.15 0.30 0.016 0.43 0.45
including 0.00 183.99 183.99 0.11 0.23 0.013 0.36 0.35
And 183.99 190.01 6.02 1.55 2.25 0.103 2.68 3.44
WS12-196 0.00 195.00 195.00 0.14 0.24 0.014 0.43 0.38
Including 0.00 181.58 181.58 0.09 0.22 0.013 0.35 0.33
And 181.58 195.00 13.42 0.77 0.48 0.032 1.57 1.10
WS12-197 0.00 184.40 184.40 0.13 0.27 0.014 0.50 0.42
Including 0.00 175.50 175.50 0.08 0.26 0.013 0.41 0.38
And 175.50 184.40 8.90 1.11 0.45 0.030 2.38 1.31
WS12-200 0.00 195.55 195.55 0.24 0.23 0.015 0.61 0.45
including 0.00 84.52 84.52 0.10 0.25 0.014 0.41 0.37
And 84.52 110.34 25.82 0.02 0.01 0.004 0.03 0.03
And 110.34 179.50 69.16 0.31 0.23 0.016 0.80 0.51
And 179.50 195.55 16.05 1.10 0.49 0.035 1.77 1.27
WS12-206 25.82 94.67 68.85 0.07 0.07 0.005 0.16 0.13
including 25.82 39.30 13.48 0.05 0.22 0.014 0.27 0.30
And 39.30 89.71 50.41 0.02 0.02 0.002 0.03 0.03
And 89.71 94.67 4.96 0.58 0.26 0.014 1.11 0.71
WU12-541 0.00 268.22 268.22 0.19 0.32 0.016 0.66 0.52
including 0.00 44.04 44.04 0.47 0.24 0.015 1.03 0.62
And 44.04 268.22 224.18 0.14 0.33 0.016 0.59 0.50
WU12-543 0.00 158.11 158.11 0.10 0.25 0.015 0.39 0.37
WU12-546 0.00 156.67 156.67 0.09 0.25 0.014 0.37 0.36
WU12-547 0.00 75.59 75.59 0.12 0.25 0.014 0.47 0.39
Notes:
1. NiEq calculations are based London Metals Exchange 3 year trailing
average metal prices as of July 6, 2012 at US$ 9.48/lb nickel, US$
3.56/lb copper, US$ 16.23/lb cobalt, US$ 1377.87/troy oz gold, US$
1587.97/troy oz platinum, and US$ 581.28/troy oz palladium. The equation
for NiEq value is as follows: NiEq = ((Ni grade x Ni price x 22.04622) +
(Cu grade x Cu price x 22.04622) + (Co grade x Co price x 22.04622) +
(Au grade x Au price x 0.02916) + (Pt grade x Pt price x 0.02916) + (Pd
grade x Pd price x 0.02916)) / (Ni price x 22.04622)
2. (i)CuEq = NiEq (i) $9.48 / $3.56, calculated as those intercepts display
substantial copper grades compared to nickel and PGE
3. Reported widths are intersected widths and not true widths.
4. "Central-East" and "Central-West" zones refer to "East Zone" and "West
Zone", respectively, as reported in the Company's July 2011 NI43-101
compliant resource announcement for the Wellgreen Property.
PGM+Au Composites are tabulated below:
------------------------------------------------------------------------
BHID PGM+Au
From To Length (m) Pt g/t Pd g/t Au g/t g/t
------------------------------------------------------------------------
WS12-195 0.00 190.01 190.01 0.19 0.21 0.03 0.43
including 0.00 183.99 183.99 0.15 0.18 0.03 0.36
And 183.99 190.01 6.02 1.37 1.11 0.20 2.68
WS12-196 0.00 195.00 195.00 0.20 0.20 0.04 0.43
Including 0.00 181.58 181.58 0.14 0.18 0.03 0.35
And 181.58 195.00 13.42 0.87 0.47 0.22 1.57
WS12-197 0.00 184.40 184.40 0.21 0.23 0.07 0.50
Including 0.00 175.50 175.50 0.15 0.20 0.06 0.41
And 175.50 184.40 8.90 1.29 0.88 0.21 2.38
WS12-200 0.00 195.55 195.55 0.29 0.24 0.08 0.61
including 0.00 84.52 84.52 0.14 0.21 0.05 0.41
And 84.52 110.34 25.82 0.00 0.02 0.01 0.03
And 110.34 179.50 69.16 0.43 0.27 0.10 0.80
And 179.50 195.55 16.05 0.95 0.58 0.25 1.77
WS12-206 25.82 94.67 68.85 0.07 0.05 0.03 0.16
including 25.82 39.30 13.48 0.11 0.15 0.01 0.27
And 39.30 89.71 50.41 0.01 0.01 0.00 0.03
And 89.71 94.67 4.96 0.53 0.20 0.39 1.11
WU12-541 0.00 268.22 268.22 0.28 0.33 0.05 0.66
including 0.00 44.04 44.04 0.58 0.33 0.12 1.03
And 44.04 268.22 224.18 0.22 0.33 0.03 0.59
WU12-543 0.00 158.11 158.11 0.15 0.21 0.03 0.39
WU12-546 0.00 156.67 156.67 0.14 0.19 0.03 0.37
WU12-547 0.00 75.59 75.59 0.19 0.24 0.04 0.47
The header information, indicating dips and azimuths, is tabulated below:
Wellgreen Surface Holes
-----------------------------------------------------------------------
BHID Easting Northing Elevation Azimuth Dip Length (m)
-----------------------------------------------------------------------
WS12-195 3209 15109 1443 30 -45 201.2
WS12-196 3209 15109 1443 30 -55 223.5
WS12-197 3209 15109 1443 0 -47 196.5
WS12-200 3250 15080 1438 0 -65 208.0
WS12-206 1525 15580 1500 0 -63 161.5
Wellgreen Underground Holes
--------------------------------------------------------------------------
BHID Easting Northing Elevation Azimuth Dip Length (m)
--------------------------------------------------------------------------
WU12-541 3077 15260 1302.74 167 -60 268.2
WU12-543 3077 15260 1302.74 167 0 158.5
WU12-546 3077 15260 1302.74 225 -2 156.7
WU12-547 3077 15260 1302.74 225 25 75.6
Notes:
1. "Easting" and "Northing" coordinates are in local non-earth mine grid
coordinates. Elevations reported are above mean sea level. All
coordinates are reported in metres.
2. Azimuths reported here are with respect to local mine grid.
The style and occurrence of mineralization reported here are predominantly consistent with the geological model adopted by the Company for the Wellgreen deposit. Higher grade portions are noted nearer to the footwall contact that represents the paleo-basal portion of the intrusion.
Surface holes drilled on Central East (WS12-195, 196, 197, & 200) all ended in massive sulphide, and stopped upon entering the footwall lithologies outside of the Wellgreen intrusion, which hosts significant massive sulphide sections modeled from historic underground drill results. WS12-206 was drilled on the western end of Central West (1525E), and intercepted 5 metres of 0.71% NiEq outside of the resource model.
Underground holes with the exception of WU12-541 were stopped short of target width due to difficult ground conditions. All underground holes reported here were from station 5, located at Central East Wellgreen (3077E). The underground drill program this year didn't manage to set up station 6 at 2800E, where the highest historic underground drill results were recorded.
To date, 27 underground holes have been reported with assays pending from one remaining hole drilled at station 5. The surface drill program has completed 19 holes to date and is continuing at steady pace with two active rigs and assays pending for 10 holes. The Central East and Central West zones span over 2.3 km end to end (1600E to 3900E). One rig is drilling from Central West and the other from Central East with the goal of converging at 2600E.
Please visit drill cross sections, and project plain and long views at www.prophecyplat.com.
John Lee, Chairman of Prophecy commented: "This year's drilling has just passed the 10,000 metre mark. Results so far have demonstrated mineralisation of significant strike and width, with several high-grade intercepts. We are bullish on PGM and nickel prices going forward. The price of nickel appears to be embarking on a stealthy run recently (up 10% at $8.2/lb in September). We expect further positive drill results from Wellgreen shortly."
Wellgreen, based on the PEA(i) production profile, is rated as one of the world's largest undeveloped nickel sulphide deposits. The project has significant PGM credits and features low second quartile C1 cost of $2.18/lb nickel (net of PGM and Cu credits). The project is situated at 1,300 metre altitude and merely 15 km from the two-lane paved Alaska Highway. Those factors significantly minimize the project's indirect costs. Please refer to the recently released project PEA highlights at www.prophecyplat.com.
This news release has been reviewed and approved by Rory Calhoun, P.Geo., a Qualified Person as defined in NI 43-101.
(i)Preliminary Economic Assessment on Wellgreen prepared by Tetratech dated July 6, 2012. A PEA should not be considered to be a pre-feasibility or feasibility study, as the economics and technical viability of the project has not been demonstrated at this time. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserve do not have demonstrated economic viability.
Quality Control and Quality Assurance
Prophecy Platinum executes a quality control program to ensure best practice in sampling and analysis. Samples are cut and split for assay with the remaining sample retained for reference. Blanks, Standard Reference Material (SRM), and duplicates were inserted into the sample stream every 20th sample. A duplicate sample is taken every 20th sample of core. The selected sample is sawn in half and then sawn in half again. The quartered core is then placed into two different sample bags with different sample numbers and sealed. The SRM material comes from Natural Resources Canada and Analytical Solutions Limited. These were inserted into the sample stream immediately after the second duplicate. The SRMs used are WMS-1, WPR-1 and WGB-1. Sample Blanks are obtained from two sources: granodiorite from a local quarry and garden marble from hardware stores in Whitehorse, Yukon. A Blank sample is inserted into the sample stream after the SRM. Assayed samples are transported in sealed and secured bags for preparation at ALS Chemex Prep Lab located in Whitehorse, Yukon. Pulverized (pulp) samples are shipped for analysis to ALS Chemex Assay Laboratory in Vancouver, B.C. Platinum, palladium and gold were determined by ICP emission spectrometry. Copper, nickel and cobalt were determined by ICP emission spectrometry. Copper, nickel and cobalt over limits were followed by Four Acid digestion and ICP atomic emission spectroscopy. ALS Chemex is an ISO/IEC 17025:2005 accredited laboratory and registered under ISO 9001:2000.
Quality assurance and quality control are monitored using scatterplots, Thompson-Howarth plots and statistical analysis to ensure duplicates, blanks and standard data are reliable, and indicate robustness of overall results. ALS Chemex quality-assurance procedures are also included in this process.
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
John Lee, Chairman
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 of 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 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."
Contacts:
Prophecy Platinum Corp.
Chris Ackerman
Senior Manager, Investor Relations
1-800-459-5583
cackerman@prophecyplat.com
www.prophecyplat.com
