www.prophecycoal.com
Prophecy Coal Corporation (TSX: PCY, OTC-QX: PRPCF, Frankfurt: 1P2) is an internationally diversified thermal coal production company that in November 2010 saw its first coal project, Ulaan Ovoo commissioned for production. The company controls over 1.4 billion tonnes of open-pittable thermal coal in Mongolia (839 Mt Measured, 579 Mt Indicated) between 2 distinct deposits with power plant plans for its second deposit (Chandgana's) well under way. Additionally Prophecy Coal Corp holds the Okeover Copper project and the Titan, Vanadium Iron ore & Titanium projects in Canada.
Prophecy Begins 1,000m Drill Program at Wellgreen in Yukon; drills 496.06 meters of 0.596 g/t PGM+A
Prophecy Resource (TSX-V: PCY)(OTCQX: PRPCF)(FSX: 1P2) said Monday that drilling has begun at its 100% owned Wellgreen platinum group metals (PGM) project in the Yukon.
The Wellgreen property, a part of the Kluane Ultramafic Nickel belt which is the second largest behind the Thompson Belt in Canada, is located approximately 35 kilometres northwest of Burwash Landing, Yukon, 15 km from the Alaska Highway and 402 km from Alaska's Haines deep sea port.
Prophecy acquired Wellgreen by its merger with Northern Platinum earlier this month.
At Wellgreen over the years, a total of 701 holes (182 surface, 519 underground), totalling 53,222 metres were drilled by Hudbay, Chevron, All North, Galactic, Archer Cathro, Coronation, and Northern Platinum.
Prophecy is now re-examining the surveys, geology, past drill cores, and economics of Wellgreen for a disseminated sulphide open pit scenario.
In July 2010, Prophecy commissioned a 43-101 report from Wardrop. The consultant on the project wrote that, "The potential within the Quill Creek Ultramafic intrusion on the Wellgreen property is in the range of 77 to 254 million tonnes at 0.26 to 0.38% nickel, 0.26 to 0.36% copper, 0.32 to 0.47 g/t platinum and 0.23 to 0.38 g/t palladium, based on the assumption of a specific gravity of 3.22, strike length of 4000 to 7000 metres, depth of 200 to 250 metres and a width of 30 to 35 metres."
The company now plans to assay 2,112 metres of drill core from Northern Platinum's 2010, six-hole drill program, which focused on expanding the eastern limit of the Wellgreen deposit. Prophecy has so far released results from two of the holes today, which include intersections of 496.06 metres of 0.596g/t PGM+Au, 0.27% Ni, 0.18% Cu, 0.02% Co (0.45% NiEq) from surface.
“These results are very important as they demonstrate continuous disseminated sulphide mineralization. Prophecy is targeting Wellgreen to be a large scale deposit that could be mined by open pit and large tonnages. Such potential has never been seriously thought of in Wellgreen’s 5-decade-long history,” said Prophecy CEO John Lee.
Prophecy has also begun 1,000 metres of step-out surface drilling on 200 metre spacing beyond known mineralization. The company estimates that only 20% of the past drill cores have been assayed with focus on massive sulphide.
The company will as well assay all future and historic drill core for rare earth elements rhodium, rhenium, ruthenium, osmium and iridium from 300 plus drill core samples with combined platinum and palladium grades over 1g/t.
The idea is to identify and re-catalogue disseminated sulphide cores once considered waste, but are now desirable in today's metals markets, the company said.
Prophecy intends to issue an NI 43-101 resource estimate at Wellgreen by early 2011.
The company is currently involved in developing energy, nickel and platinum group metals projects. It controls over 1.4 billion tons of open-pitable thermal coal in Mongolia (839 Mt Measured, 579 Mt Indicated), and in Canada, the company owns the Wellgreen PGM Project in Yukon, the Lynn Lake Nickel Sulphide Project in Manitoba, and a 10% equity stake in Victory Nickel.
