Tuesday 14th July 2020

Resource Clips

Posts tagged ‘Prophecy Platinum Corp (NKL)’

Looking back at last week

September 21st, 2012

A round-up of exploration and mining news for September 15 to 21, 2012

By Greg Klein

Next Page 1 | 2

The elephant in B.C. boardrooms
On Thursday the long, long process of advancing Taseko Mines’ TSX:TKO $1.1-billion New Prosperity Gold-Copper Project crept forward—or, according to the company, reached a “major milestone”—when Taseko formally filed its Environmental Impact Statement to the Canadian Environmental Assessment Authority. A three-member panel will review the submission and conduct public hearings over the next year.

Although the project passed a British Columbia environmental review, a federal panel rejected it in November 2010, condemning a plan to convert Fish Lake into a tailings dump. Taseko then came up with a $300-million plan to preserve the 118-hectare lake by positioning the tailings two kilometres north.

In a Vancouver Sun op-ed on Friday, Taseko President/CEO Russell Hallbauer sells the project’s economic benefits. But no one in the industry seems willing to speak openly about the previous CEAA decision, which often used subjective and non-environmental reasoning to pan the proposal. The report described Fish Lake as “a place of spiritual power and healing” for the Tsilhqot’in native band, concluding that the mine would have “a significant adverse effect” on established native rights, potential rights, potential title, and traditional and cultural uses.

The controversy highlights the uncertainty resource companies face in B.C. In September 2011 Stewart Phillip, president of the Union of B.C. Indian Chiefs, stated Taseko’s plan “will trigger a province-wide and nation-wide backlash that will severely jeopardize relationships between First Nations and the mining industry for years to come.”

Read more about New Prosperity here, here and here.

Young miners make more than Harvard grads
“Harvard University’s graduates are earning less than those from the South Dakota School of Mines and Technology,” Bloomberg reported on Tuesday. The story adds, “Demand for mining-school graduates is exceptional in the U.S., where the unemployment rate for 20- to 24-year-olds with bachelor’s degrees was 11.8% in July.” The U.S. will need some 78,000 additional mining personnel by 2019 to replace retirees, while Australia will need 1,700 mine engineers, 3,000 geoscientists and 36,000 others by 2015, the report states.

A round-up of exploration and mining news

Last March Aurizon Mines TSX:ARZ President/CEO George Paspalas told ResourceClips, “Recruiting new employees is, I believe, one of the biggest issues facing the industry globally. A lot of development and operational plans hinge on the human resource, not the resource in the ground. There’s a lot of very experienced people coming up to retirement. There’s a gap where people didn’t go into the industry when metal prices were depressed in the mid- and late-1990s. That’s the age group from about 35 or 40 years to about 50 years. The industry was depressed, and the dot-com boom was on, so people wanted to get into the sexy stuff.”

Lack of expertise can subject projects to delays and disappointments. Bloomberg quotes Robin Adams, a managing consultant with research company CRU, who attributes setbacks to “haste, inexperience, lack of properly done mining studies [which reflect] the fact that mining is missing a generation. They are learning though, so that problem is going to go away in a few years.”

Honoured and pleased, despite the misunderstanding
For a few days this week Belo Sun Mining’s TSX:BSX stock hit enough turbulence to induce airsickness. The cause, according to President/CEO Mark Eaton, was a misunderstanding about what Brazilian public prosecutors mean by an “investigation.” As he suggested to the Globe and Mail, it’s more of a routine inquiry. Even if someone just wants to build “a cow shed, the federal prosecutor has to open an ‘investigation’,” Eaton told the G&M.

But when news reports stated that a federal prosecutor was “investigating” the company’s Volta Grande Gold Project, the misunderstanding almost sank a $50-million private placement.

Belo Sun opened at $1.50 on Monday, and that afternoon the company announced a bought deal of 35.72 million shares at $1.40. The stock closed that day at $1.54.

Come Tuesday morning, however, it opened at $1.40 and plummeted to $1.27, before closing at $1.37. That evening the company tried to clear things up: “The federal Public Prosecutor Office in the state of Pará opens an investigation proceeding for each and every environmental licensing process in the state. The investigation proceeding regarding the project does not imply any irregularity or particular concern regarding the environmental licensing process for the project.”

About 28 minutes later, the company cancelled the private placement.

By Wednesday the stock opened a bit higher at $1.40. That afternoon the company re-announced the private placement on the previous terms, including a share price of $1.40. The share closed the day at $1.39.

In his Tuesday statement, Eaton said he was “honoured and pleased with the participation and interest of the Public Prosecutor Office.” Should all go well, Volta Grande will begin its feasibility study in Q1 2013.

Next Page 1 | 2

Prophecy reports Yukon Assays of 0.31 g/t Platinum, 0.29 g/t Palladium, 0.06 g/t Gold, 0.2% Copper, 0.27% Nickel over 304.5m

September 11th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningProphecy Platinum Corp TSXV:NKL announced results from its Wellgreen PGM-Nickel-Copper Project in southwestern Yukon. Highlights include

0.31 g/t platinum, 0.29 g/t palladium, 0.06 g/t gold, 0.2% copper, 0.27% nickel and 0.014% cobalt over 304.5 metres
(including 0.69 g/t platinum, 0.44 g/t palladium, 0.15 g/t gold, 0.62% copper, 0.34% nickel and 0.019% cobalt over 21.03 metres)
0.35 g/t platinum, 0.17 g/t palladium, 0.03 g/t gold, 0.2% copper, 0.26% nickel and 0.016% cobalt over 28.52 metres
0.28 g/t platinum, 0.28 g/t palladium, 0.08 g/t gold, 0.26% copper, 0.27% nickel and 0.017% cobalt over 180.87 metres
(including 0.38 g/t platinum, 0.34 g/t palladium, 0.12 g/t gold, 0.4% copper, 0.31% nickel and 0.02% cobalt over 106.6 metres)
0.16 g/t platinum, 0.21 g/t palladium, 0.02 g/t gold, 0.09% copper, 0.26% nickel and 0.014% cobalt over 459.45 metres
(including 0.09 g/t platinum, 0.15 g/t palladium, 0.01 g/t gold, 0.03% copper, 0.24% nickel and 0.013% cobalt over 52.95 metres)

True widths have yet to be determined. Depths range to 463 metres.

The company also announced it has issued 83,333 bonus shares at a price of $1.50 per share for proceeds of $125,000 to an affiliate of the Kluane First Nation. The securities are subject to a four-month hold and a contractual hold of two years ending September 4, 2014.

Chairman John Lee commented: “Wellgreen is a very large nickel-copper-PGM project with near-surface high-grade zones. High-grade intercepts will be incorporated into resource modelling and mine planning in the prefeasibility study. We expect further positive drill results from Wellgreen shortly.”

View Company Profile

Chris Ackerman
Senior IR Manager

Read feature stories about Prophecy Platinum Corp here and here.

by Greg Klein

Guest Columnist

June 25th, 2012

Market Bottom Only in Hindsight

By John Lee

Read here for a feature story on Prophecy Platinum and its Wellgreen copper-nickel-PGE project.

The last 18 months have been gut-wrenching for mining equity investors.

Image copyright StockCharts.com

As the above chart demonstrates, the TSX Venture Composite Index, a fair representation of the junior mining sector, has come back down to levels seen in 2002, when gold first broke out of $300 an ounce.

While the TSX Venture Composite Index is still well above its 2008 low, the pain is just as pronounced now as it was then, as the TSX Composite Index, relative to the Dow, is now trading below 2009 levels. The following chart indicates a flight out of Canadian markets into the US markets.

Image copyright StockCharts.com

With emerging markets, such as China, struggling and the Eurozone in outright crisis mode, global investors not only have been pouring money into US stocks but have also driven US bonds into an all-time high, ignoring the fact that the bonds are sporting negative real interest.

Image copyright StockCharts.com

While this represents an extreme flight to perceived “safety,” the US dollar index has failed to break out of its 2009 high, indicating the fundamental weakness of the US dollar.

Image copyright StockCharts.com

Focusing back on the gold sector, the severe correction is not just felt by the juniors but senior producers as well. Kinross, for example, is now back to its 2008 low, when gold was below $1,000 an ounce.

Image copyright StockCharts.com

Overall, gold producers, relative to the price of gold, have indeed reverted back to the 2009 level as the following chart indicates.

Image copyright StockCharts.com

Despite the financial crisis worldwide, gold has held up very well in the last 23 months, currently ($1,600 an ounce) trading comfortably above the 2008 crisis level ($900). This clearly shows that gold is gaining momentum as the safe haven and reserve currency in the time of crisis.

Image copyright StockCharts.com

Also notice, post 2008 crisis, that gold doubled from the $800-an-ounce level to peak at more than $1,900 an ounce in less than three years. In 2008, the US Federal Reserve embarked on unprecedented quantitative easing, creating trillions of dollars to revive the banks and the equity and housing markets. Such inflationary measures had a direct positive impact on gold.

Image copyright StockCharts.com

As we seemingly come out of the Euro crisis and with world governments eager to again embark on unlimited monetary easing, there are reasons to be again bullish on gold as it completes the current 18 months’ consolidation.

My conclusion is that the degree of flight to safety today and risk aversion is no less than the case in 2008. The dollar and US bonds were the main beneficiary during the 2008 crisis, and they are in the current crisis.

Post 2008 crisis, gold and gold equities were the big winner, registering triple digit gains. There are preliminary signs of gold and gold equity market bottoms, if one considers the bottoming ratios of TSX to Dow and gold equity to gold and the blowoff of US bonds.

I am reminded of two old famous adages: never catch the falling knife, and a market bottom is only known in hindsight. For me, successful investing means buying 20% from the bottom and selling 20% from the top. If we are not currently 20% from the bottom, I’d say we are darn near.

John Lee, CFA, is Chairman and Interim CEO of Prophecy Platinum Corp TSXV:NKL and Chairman and CEO of Prophecy Coal Corp TSX:PCY. He holds degrees in economics and engineering from Rice University in Houston, Texas. The views expressed above are those of the author and may not reflect those of Prophecy Platinum Corp or Prophecy Coal Corp. Read here for a feature story on Prophecy Platinum and its Wellgreen copper-nickel-PGE project. Prophecy Platinum is a client of OnPage Media.

South of Klondike

May 28th, 2012

Prophecy adds PGEs to its Yukon Nickel-Copper-Gold Project

By Greg Klein

Next Page 1 | 2

Long after the Gold Rush that such inspired characters as Sam McGee, Blasphemous Bill and Dangerous Dan McGrew, Yukon is again coming to international prominence as a new gold play matures. In the territory’s southwest, Prophecy Platinum Corp TSXV:NKL is developing one of the world’s largest undeveloped resources of nickel-copper-platinum group elements towards PEA and prefeasibility.

Unlike Russia and South Africa, producers of 85% of world PGE supply, Robert Service’s old stomping ground has settled into a stable, mining-friendly jurisdiction. That bodes well for Prophecy‘s Wellgreen Project and its newly found potential to host a rare PGE resource in addition to nickel, copper and gold.

Prophecy adds PGEs to its Yukon Nickel-Copper-Gold Project

The company has just released 90 additional assays from a 2011 hole which show an average 28% increase in the full spectrum of six PGEs. Results from the hole released September 26, 2011, reported nickel-copper-gold assays in addition to platinum-palladium, but didn’t include results for the other four PGEs. The September assays showed

0.29% nickel, 0.18% copper, 0.34 g/t platinum, 0.33 g/t palladium and 0.05 g/t gold over 457.4 metres
(including 0.36% nickel, 0.3% copper, 0.63 g/t platinum, 0.54 g/t palladium and 0.08 g/t gold over 120.9 metres)
(and including 1.03% nickel, 0.75% copper, 1.33 g/t platinum, 1.64 g/t palladium and 0.17 g/t gold over 17.8 metres)

The hole started 7.1 metres from surface, extending to 263.8 metres. Ninety sample assays from the same hole released May 25 included the missing PGE quartet. Highlights include

0.023 g/t osmium, 0.019 g/t iridium, 0.054 g/t ruthenium and 0.024 g/t rhodium
0.022 g/t osmium, 0.013 g/t iridium, 0.038 g/t ruthenium and 0.018 g/t rhodium
0.023 g/t osmium, 0.021 g/t iridium, 0.055 g/t ruthenium and 0.025 g/t rhodium
0.05 g/t osmium, 0.03 g/t iridium, 0.078 g/t ruthenium and 0.035 g/t rhodium
0.018 g/t osmium, 0.016 g/t iridium, 0.042 g/t ruthenium and 0.02 g/t rhodium

Rhodium, platinum and palladium are the most important of the six PGEs, with some 80% to 85% going into auto-catalyst manufacture. Prophecy cites a 1997 Geological Survey of Canada bulletin stating that only Russia’s Norilsk ores have nickel-copper cores with comparable values of rhodium. As Prophecy Head Geologist Danniel Oosterman says, “A lot of nickel-copper-PGE deposits around the world don’t have appreciable values of PGEs beyond platinum and palladium.”

Assays are pending for an additional 260 samples from the same hole. Meanwhile, drilling continues. About 30% of a 9,000-metre underground program has been completed so far, with results to come. Surface drilling will resume within the next two weeks, with 7,000 metres planned. The plan is to upgrade the July 2011 resource.

As it stands now, the indicated category shows 220 million pounds nickel, 200 million pounds copper, 15.8 million pounds cobalt, 460,000 ounces platinum, 340,000 ounces palladium and 240,000 ounces gold. The inferred category shows 2.4 billion pounds nickel, 2.2 billion pounds copper, 191.3 million pounds cobalt, 4.9 million ounces platinum, 3.9 million ounces palladium and 2.1 million ounces gold. The estimate uses a 0.4% nickel-equivalent cutoff.

Prophecy‘s timeline calls for a preliminary economic assessment for possible release as early as June and a resource update in 1Q 2013, to be followed by prefeasibility.

Next Page 1 | 2