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 Resource achieves over 95% nickel recovery rates from Lynn Lake resource
Prophecy Resource Corp. (CVE:PCY)(OTCQX:PRPCF) said Friday that it has achieved nickel recovery rates of more than 95% from its ongoing Lynn Lake resource studies.
In July of last year, Prophecy collected 3.7 million tonnes of ore from Lynn Lake in Manitoba and sent it to South Africa's Mintek for study. The test was designed to see how amenable the resources are to the bioleach process, which is less expensive and a greener alternative to smelting. The process will also allow for the production of pure nickel onsite without transporting it elsewhere.
The company said that preliminary results show that nickel recoveries in excess of 95% can be achieved using only a moderate grind and leach temperature, whereas high copper recoveries require finer grinding and higher temperatures.
Continuous pilot flotation tests produced a bulk concentrate containing 5.3% nickel and 3.4% copper at 89% recovery for both metals.
Prophecy said the results show a marked improvement in nickel recoveries by as much as 6.5% compared to a previous bioleach study done by PRA Associates in 2008.
The current nine-month long study is expected to be completed by June this year, from which full results will be included in a feasibility study in late 2011.
The Lynn Lake mine, which was operated by Sherritt-Gordon from 1953 to 1976, ranked as the third largest nickel producer in North America, after only the Sudbury and Thompson mining camps. As of May last year, it was estimated to contain a measured and indicated resource of 22.9 million tons at 0.57% nickel and 0.3% copper, and an inferred resource of 8.1 million tons at 0.51% nickel and 0.28% copper.
Aside from the Lynn Lake project, Prophecy controls more than 1.4 billion tons of open-pittable thermal coal in Mongolia, as well as the Wellgreen nickel-copper project in the Yukon, Canada.
The company rallied nearly 3% on Friday to trade at $1.04 as of 1:00pm EST.
