The 100% owned Wellgreen project hosts a large PGM-Ni-Cu deposit located in the southwest of Canada’s mining-friendly Yukon Territory and features excellent access and transportation infrastructure. The deposit is readily accessible via an all-weather road from the paved Alaska Highway; a major all-season trucking route leading to deep sea ports at Haines and Skagway, Alaska. Ranked in the top 20 mining jurisdictions globally in the 2013/2014 Fraser Institute Survey of Mining Companies, the Yukon has a rich mining heritage that dates back to the Klondike gold rush of the late 1800s. The Territorial government is highly-supportive of the mining industry and the Wellgreen project, as is the local Kluane First Nation with whom we have an Exploration Cooperation & Benefits Agreement.
Wellgreen Platinum is focused on the advancement of the Wellgreen project toward production, with current efforts underway designed to evaluate overall project economics, simplify project financing requirements and complete environmental permit applications.
- One of the largest undeveloped PGM deposits in the first world1 with significant additional upside potential
- Mineral Resource Estimate shows 5.5 million ounces platinum group metals (PGM) + gold (Au) Measured & Indicated (M&I) and 13.8Moz PGM+Au (Inferred); 1.9 billion pounds nickel (M&I) and 4.4B pounds (Inferred); 1.0 billion pounds copper (M&I) and 2.6 billion pounds (Inferred) 2
- “Porphyry scale” PGM-nickel-copper system amenable to year-round open-pit mining
- Liquefied natural gas available from Alaska and northwest BC/Alberta; MOU signed for supply & infrastructure
- Executive management team with track record of success in large scale project development, operations and financing; specific PGM, Yukon and Sudbury District experience
- PGM supply risk as approximately 80% of production is from politically unstable jurisdictions
- PGM demand has grown at 4-5% per year for the last 30 years and continues to grow with global vehicle sales and as emission standards are tightened, especially in developing countries
1GMP Securities Report 18-10-12 Platinum & Palladium Supply/Demand Fundamentals Improving
2The Wellgreen PGM-Ni-Cu project resource estimate was prepared by Ron Simpson, P.Geo., of GeoSim Services Inc., an independent Qualified Person, and by John Sagman, P.Eng., Wellgreen Platinum’s Senior Vice President and Chief Operating Officer, a Qualified Person, in accordance with the guidelines of the Canadian Securities Administrators’ National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). A Mineral Reserve has not been estimated for the project. Mineral resources that are not mineral reserves do not have demonstrated economic viability. A Mineral Reserve is the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a prefeasibility study. The mineralization at Wellgreen includes the platinum group metals (PGMs) platinum, palladium, rhodium and other rare PGM metals along with gold, nickel, copper and cobalt. At recent metal prices using anticipated metallurgical recoveries and proportionally allocated costs for each of the metals, the net economic contribution is anticipated to be largest for platinum, palladium and gold (3E elements), followed by nickel and then by copper and cobalt. These values may be different than gross in-situ metal values which do not factor in the costs for mining, processing, recovery, transportation, smelting or refining costs.
2014 Preliminary Economic Assessment
The new resource estimate, together with the updated metallurgical testing results anticipated to follow in August, will be incorporated into the 2014 Preliminary Economic Assessment (PEA) for the Wellgreen Project targeted for completion in Q4 2014. The Company is fully-funded through completion of the PEA update and initiation of Pre-feasibility level studies.
Environment & Permitting
Environmental baseline studies continue on the Wellgreen Project, including collection of meteorological data, surface water quality and flow data, ground water quality and flow data as well as wildlife and vegetation studies. In addition, socio-economic baseline studies have commenced. These baseline studies are being conducted in collaboration with the Kluane First Nation as part of the exploration cooperation and benefits agreement announced by the Company on August 2, 2012. The Company expects to be in a position to initiate the environmental assessment process in 2015. The Yukon and Federal Government guidelines suggest 18-24 months as a guideline to review mine permit applications. The review consists of evaluating the baseline data, assessing the project/operation influence on the environmental baseline and evaluating the mitigation processes proposed by the Company to enhance environmental due diligence. The environmental assessment process at Wellgreen is expected to proceed in an efficient manner since the project was a former operating mine in an area with historic and current placer mining, and the project Kluane First Nations are assisting Wellgreen Platinum Ltd with compilation of the baseline, assessment and mitigation aspects contained in the YESAB and Water Use Board applications.
Qualified Person under Ni 43-101
John Sagman, P.Eng., Wellgreen Platinum’s Senior Vice President and Chief Operating Officer and a “Qualified Person” as defined in NI 43-101 has reviewed and approved the scientific and technical information contained in our website.