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Prophecy Platinum Hits 50.9 Metres Of 0.6% Nickel Equivalent At Wellgreen

Prophecy Platinum Corp. (CVE:NKL)(OTCQX:PNIKF) announced Tuesday further results from its 2012 underground drill program on the company's Wellgreen Platinum group metals (NYSEARCA:PGM)-Nickel-copper project in the Yukon.

Hole WU12-523 hit significant widths of mineralization of 242.6 metres, the company said, containing 0.47 grams per tonne (g/t) of Platinum+palladium+gold, 0.24% Nickel and 0.13% copper, or 0.39% Nickel equivalent.

This included 18.1 metres of 1.05 g/t Platinum+palladium+gold, 0.5% Nickel and 0.27% copper, or 0.78% Nickel equivalent, nested within 50.9 metres of 0.74 g/t Platinum+palladium+gold, 0.38% Nickel and 0.23% copper - or 0.6% Nickel equivalent.

The news follows Prophecy's announcement yesterday, when it unveiled the results of an NI 43-101 preliminary economic assessment (PEA) of its flagship Wellgreen project, including a whopping $3.0 billion net present value.

The economic report, prepared by Tetra Tech, evaluated a base case open pit mine at an 111,500 tonne per day mining rate, and an onsite concentrator at a 32,000 tonne per day milling rate.

The project is expected to produce 1.959 billion pounds of Nickel in concentrate, 2.058 billion pounds of copper and 7.119 million ounces of Platinum plus palladium plus gold over a 37-year mine life, with an average strip ratio of 2.57.

The company said the Wellgreen economics yield a 38 per cent internal rate of return (NYSE:IRR), pre tax, as well as a $3.0 billion net present value at an 8 per cent discount rate, with a payback period of just over three and a half years.

All of the completed holes so far as part of the 2012 drilling program are mineralized, Prophecy said.

Aside from the hole announced today, there are additional holes to be reported on in station 4. The company has now moved the drill rig to station 5, further into the adit where higher Nickel-copper and Platinum group element grades have been modeled.

"These infill drill results of significant widths and grades continue to define and enhance Wellgreen's resource model," said chairman John Lee.

"Production has been great and additional rigs have arrived on site. We have started to drill several exciting surface soil-anomalies to expand Wellgreen's strike."

Results of infill and exploration drillings will be published monthly throughout the summer, the company said.

Separately, Prophecy said it has agreed to extend the time to complete its proposed acquisition of Ursa Major Minerals (TSE:UMJ), to July 15, 2012.

The merger, which was announced in March, will create a mid-tier resource company with a pipeline of Platinum and Nickel projects, with Prophecy to take hold of the Shakespeare Nickel-copper mine in Sudbury.

Shakespeare has a probable reserve of 11.82 million tonnes grading 0.33% Nickel, 0.35% copper and 0.02% cobalt with 0.33 grams per tonne (g/t) Platinum. This includes 0.36 g/t palladium and 0.18 g/t gold.

Prophecy's further holdings include the Lynn Lake project in Manitoba, the Las Aguilas Nickel-PGM deposit in Argentina, as well as five prospective claims in Uruguay.