Wellgreen Project Overview

Location and Ownership

Location Map
Click to enlarge

Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) is a mineral exploration company focusing on developing platinum palladium group metals (PGM) and nickel sulphide projects. The company's flagship project is the Wellgreen PGM Nickel deposit in the Yukon Territory, as well as the Lynn Lake Nickel Copper project in Manitoba. The 100% owned Wellgreen flagship property located in south-western Yukon Territory is a platinum group metal (platinum, palladium and rhodium)-rich, nickel (Ni)-copper (Cu.). Ideally located as a positive mining destination, approximately 15 km from the paved 2 lane Alaska Highway and 402 km from Alaska's Haines deep sea port. With an indicated resource of 1.04 million oz PGM+Gold and inferred resource of 10.97 million oz PGM+Gold. Prophecy Coal Corp. acquired 100% of Wellgreen by merger with Northern Platinum on September 21, 2010. Prophecy Platinum acquired 100% of Wellgreen from Prophecy Coal Corp. on June 13, 2011.

Management is focussed on advancing the project, with most recent efforts centering around an underground drilling program initiated in January 2012 that is intended to further define the Wellgreen resource. A more comprehensive surface drilling operation will commence later in the spring. In addition, a high level scoping study by Wardrop Engineering is expected to be completed by early Q1-2012. Prophecy intends to utilize the results of the 2012 drill program to update the current resource estimate.

History

The Wellgreen deposit was discovered in 1952 by the Yukon Mining Corporation Limited and optioned to Hudson Bay Mining and Smelting Ltd. From 1952 to 1955, Hudson Bay explored with 4,267 m of drifting and raising from four levels, two internal shafts and 19,815 m of surface and underground drilling.

The property was transferred in 1955 to Hudson-Yukon Mining Company Ltd. It conducted a Turam survey in 1968, drilled 762 m, prepared a feasibility study in 1969, and arranged a marketing agreement with Sumitomo in 1970. Due to underground problems, initial production from the 544 tonne/day mill was delayed from September, 1971 to May, 1972, and was suspended in July, 1973 after treating only 171,652 tonnes. Total production was 33,853 tonnes of concentrate, grading 7.4% nickel and 6.6% Cu.

Under the direction of the consultants Archer Cathro, extensive surface (10,909 m) and underground drilling (5,568 m) were conducted. The potential for low grade open pittable ore was recognized and planning for an open pit was initiated.

The property was optioned in June, 1986 by the Kluane Joint Venture (All-North Resources Ltd. and Chevron Minerals Ltd.) which carried out grid soil sampling, mapping, prospecting, bulldozer trenching and geophysical surveying. Hudson-Yukon was purchased by Galactic Resources Ltd. in June, 1986 and merged with All-North Resource Ltd. in November, 1986.

In 1987, additional soil sampling, bulldozer trenching, geophysical surveys, underground rehabilitation, and 4,932 m of diamond drilling in 45 holes were carried out. In 1988, the 4,250 level was rehabilitated, and 34 underground holes were drilled totaling 5,500 m. On surface, bulldozer trenching, and 37 holes totaling 6,073 m were drilled. Metallurgical tests and a preliminary feasibility study were carried out in 1988 and 1989 respectively.

J.P. Sheridan and Northern Platinum optioned the property in June, 1994 from All-North Resources and Sheridan, in turn, assigned the option to Northern Platinum, retaining back-in rights for half of that company's interest at the feasibility stage. Northern Platinum carried out reserve evaluation drilling and underground sampling.

In the summer of 1999, Northern Platinum Ltd. received Vancouver Stock Exchange approval to purchase Kaieteur Resource Corp. (formerly named All-North Resources Ltd.) and J.P. Sheridan's 20% interest in the Wellgreen property.

In 2004, the property was optioned to Coronation Minerals Inc. Coronation rehabilitated the two upper levels underground, and conducted sampling and both underground (577 m) and surface (6,671 m) diamond drilling. A Fugro helicopter-borne Mag and EM survey was conducted. The survey showed that the magnetic signature of the peridotite extended approximately 6 km on Northern Platinum's ground. A new resource estimate was calculated by Watts Griffis McOuat in 2008.

Wellgreen History (April 2011Technical Report by Wardrop Engineering p15)
Click to enlarge

Geology and Mineralogy

Mineralized rock on the Wellgreen property occurs within a variably serpentinized, 20-km-long Triassic ultramafic body, known as the Quill Creek Complex that intrudes Permian sedimentary and volcanic rocks. Three main zones of platinum, palladium and rhodium-enriched copper-nickel mineralized rock have been outlined on the Wellgreen property: the East zone, the West zone and the North zone.

Mineralized Zones
Click to enlarge

During the 1996 program, Northern Platinum drilled a total of 57 holes. During the 1996 program, a total of 57 holes were drilled. The drill results confirmed previous tonnage and grade calculations, and several zones of higher grade material were indicated. A mining plant, complete with compressors, generators, office facilities, bunk house and cook house facilities were established near the portal of the adit.

During the summer of 1997, drilling took place on the Linda claims, southeast of the Wellgreen deposit. Assays over 1.3 m of massive sulphide minerals returned average grades of 4.12% Ni, 0.89% Cu, 0.06 oz./ton (2 g/t) Pt and 0.043 oz./ton (1.5 g/t) Pd. The lower showing is disseminated to semi-massive-sulphide minerals over a width of 20 feet (6 m) of broken rock ranging from 2.94% Cu and 3.02% Ni, with platinum and palladium assays as high as 0.13 oz./ton (4.5 g/t) Pt and 0.40 oz./ton (14 g/t) Pd. Drilling in the vicinity of the lower showing intersected sulphide mineralized rock grading 0.175% Cu and 0.187% Ni over 20 feet (6 m).

Northern Platinum conducted a program during 2001 of geology, geochemistry, geophysics, underground rehabilitation, trenching and diamond drilling on the Wellgreen property. A significant new showing was discovered, the SP, which highlights the potential of the entire Kluane Mafic-Ultramafic Belt.

In 2004, relatively high surface values of platinum and palladium were located in the new North Ultramafic zone, a 40-m-long zone parallel to, and 500 m north of, the main Wellgreen deposit.

Percussion-drilling was undertaken at the newly discovered platinum shear on the Wellgreen property in 2005. Four holes were completed from two sites: 1 and 2 from a site 70 m east of the Discovery Pit and 3 and 4 from a site 5 m west of the Discovery Pit. The Discovery Pit is located about 650 m north and 1,135 m west of the main portal.

Wellgreen Field Magnetic Map
Click to enlarge

Disclaimer:

The potential grade and tonnage of potential exploration targets for the Wellgreen property is conceptual in nature, and there has been insufficient exploration to define a mineral resource on the Wellgreen Property. It is uncertain if further exploration will result in all or any portion of the Wellgreen property being delineated as a mineral resource. The basis on which the disclosed potential grade and tonnage of potential exploration targets for the Wellgreen property has been determined is based on the presence of mineralized drill holes, known mineralized zones open along strike and/or laterally or at depth for exploration, known trends that are favourable for mineralization not fully explored, lowering the cut-off grades for known mineralization, geochemically and/or geophysically anomalous areas indicating potential mineralization not previously drill tested, size of favourable land holdings, and potential acquisitions immediately adjoining the Company’s properties.