Greg Johnson, President and CEO, states, "With our $5.9-million financing completed, we have the working capital to carry out the next phase of work at our Wellgreen project. During the past six months, our technical team has undertaken a comprehensive review of the project, including a compilation of all historic information on the deposit back to the 1950s. We are excited about key new observations on the controls to the disseminated PGM, nickel and copper mineralization that have come out of new geologic modelling work. Wellgreen shares many geologic characteristics with such world-class PGM deposits as Norilsk and Voisey's Bay. However, the width of continuous significant PGM mineralization starting at surface, which includes zones up to 500 metres in thickness, makes Wellgreen unique among these other major PGM systems. In addition, several of these broad, higher-grade zones have been identified that have the potential to be optimized early in the mining of the project and that should further improve the already positive existing economics described in the 2012 PEA."
Mr Johnson continues, "Concurrent with the work on targeting new higher-grade bulk mineable zones, a metallurgical program is underway to optimize metal recoveries, particularly in the PGMs. Engineering studies are also investigating a number of opportunities to lower operating and capital costs to further boost project returns. As part of an updated PEA planned for the first half of 2014, management is targeting an initial start-up capital expenditure in the range of $300 to $400 million with phased expansion to the ultimate project capacity to occur over time. We believe this flexible approach to the project will allow development to accelerate, while also demonstrating the project's larger-scale potential production levels. Wellgreen is one of the largest PGM resources outside of southern Africa and Russia and, with the sector confronting protracted global supply issues, we are looking at a number of opportunities to expedite this important project's path to production."
Wellgreen 2013 Field and Engineering Activities
The grade thickness plan view below shows the grade-thickness results for the drilling to date on the Wellgreen project and indicates that, although the deposit remains open, the currently defined system is at least 2.5 kilometres long and 1.5 kilometres wide. Please refer to the Company's news release dated February 4, 2013 for details on our most recent drill results.
The current model for the Wellgreen deposit, as outlined in the technical report entitled "Wellgreen Project Preliminary Economic Assessment, Yukon, Canada" dated effective August 1, 2012 (the "2012 PEA") prepared by Andrew Carter, P.Eng., Pacifico Corpuz, P.Geo.,Philip Bridson, P.Eng. and Todd McCracken, P.Geo., is as a bulk mineable system which would principally use open pit mining, potentially supplemented with large-scale underground methods. Mineralization is hosted in a tabular ultramafic body that begins at surface to at least 700 metres depth with typical widths of 75-100 metres with zones up to 300-500 metres of continuous mineralization.
To view the 'Grade Thickness Plan View', please visit the following link: http://media3.marketwire.com/docs/pgrade0717.pdf
Mineralization generally grades 1.5-4.5 g/t platinum equivalent (Pt Eq.) with typical grade thickness (grade x width) values of 100 - 300 gram-metres Pt Eq. and the occurrence of zones exceeding 1,000 gram-metres Pt Eq. The open pit cut-off grade is anticipated to be 0.70 g/t Pt Eq., while a bulk underground cut-off grade would be anticipated to be approximately 1.5 g/t Pt Eq.
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