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Prophecy Coal (TSX VENTURE:PCY)

 

Prophecy Coal Corp. (TSX-V: PCY) ... update : NKL / updated 22 July 2011

PCY.gif.jpg

 

Q1-2011 Results - (Comments from Dale Choi at Frontier Securities)

Highlights:

· spinout of the Company's nickel and PGM assets :Pacific Coast Nickel Corp will acquire Prophecy's Nickel PGM projects (Lynn Lake and Wellgreen) by issuing 450 million common shares to the Company. The transaction closed on June 13, 2011. After a stock dividend to Prophecy shareholders and the placement of other shares in escrow for current option and warrant holders, Prophecy will own 44.5% of outstanding common shares and 42.5% of fully diluted common shares of PCNC. Shareholders of Prophecy also approved a change of name to "Prophecy Coal Corp.", and shareholders of PCNC also approved a 10:1 share consolidation. Prophecy Coal also owns equity stakes in Prophecy Platinum Corp., Victory Nickel Inc.,Compliance Energy Corp, Okeover copper project and the Titan vanadium iron ore & titanium projects in Canada.

 

We view that the spinout of nickel and PGM assets, as expected by analysts, will allow Prophecy to purely focus its valuable resources on its Mongolian coal assets and developing its energy projects, which is to increase investor awareness. Furthermore, we view that Prophecy-controlled Canadian assets, in particular its flagship Wellgreen asset, are tremendously undervalued compared to its peers.

Ulaan Ovoo coal mine in preproduction : In June 2011, the Company announced it had secured port allocation at the Port of Sovgavan, Russia of 300,000 tonnes per year, with the potential to grow to 600,000 tonnes per year, for shipping coal from the Ulaan Ovoo mine to potential offshore customers in China, South Korea and Japan. Since the mine commenced operations November 2011, it has removed over 1.5 million bank-cubic-metres of waste in producing nearly 230,000 tonnes of thermal coal. The Company also trucked approximately 20,000 tonnes of coal to the stock yard at the Sukhbataar rail station, ready for export shipping. The Company is working with Leighton to optimize mine plans for 2011

Mongolian mining experts and analysts share consensus view on high significance for Mongolia of Prophecy’s secured Russian Eastern seaboard port allocation due to Russian port access expected to be difficult.

 

Frontier Securities makes regular trips to the mine and most recently came back couple weeks ago. We evaluate progress at Ulaan Ovoo mine positively and view that the mine is at an EXTREMELY advanced stage . Furthermore, we view that as Prophecy has brought in experienced mining operations team, things definitely will go faster now.

We view active discussions on the mine's coal off-take agreements positively given that Prophecy’s stockpile is already at the border and that the company is actively negotiating the Russian Railway rates. Frontier Securities is aware that Japanese are interested and we expect Prophecy’s off-take to be signed shortly.

 

According to Frontier Research, as of June 15,2011 mathematical average price of Mongolia coal exported to China jumped 3.20% in 15 days and 94% yoy

 

· Mathematical average price of Mongolian coal in 2011YTD is 93.49USD compared to 90.59USD as of 06/01/2011 compared to 75.06 USD per ton as of 04/15/2011 and compared to 69.04USD 2.5 months ago and 65.86 USD 3.5 months ago and 60.04USD 4.5 months ago and compared yoy to 48.08 USD per ton yoy. Math average price for Mongolian coal for 2010 was 52.75USD, in crisis 2009 it was 43.05USD, in pre-crisis 2008 it was 44.29USD, in 2007 it was 35.55USD.

 

We expect that that Prophecy will sell to Japan through Russia, will have Japanese connection and thus will show they are the only company exporting coal to a different market than China, and thus, in line, with Mongolia’s official exports destination markets diversification policy. In this regard, Prophecy has significant advantage benefitting from State Railway Policy approved the Mongolian Parliament that approved a gage same standard as Russian gage as the mine is only 18 km from Russian border and 120 km from Mongolian-Russian border rail crossing.

 

· flagship operation - the Chandgana Power Plant: submitted a formal request and feasibility study to the Ministry of Natural Resources and Energy of Mongolia to build the Chandgana Power Plant and obtained from the Mongolian government a full mining license for its 141M tonne coal deposit on its Chandgana Tal coal property in Mongolia. The Company expects to receive approval for the power plant permit late in the third quarter and Frontier Securities views that the approval for the Power Plant would be significant stock price catalyst.The company is close to engaging an investment bank to help the company seek project financing to build the Chandgana Power Plant in Mongolia.Some of these banks have visited the site in Mongolia. Raising the project financing for this power plant is about a nine to 12 month process and will not be finalized until Prophecy receives the construction license and a power purchasing agreement (PPA) from the Mongolian government. Total capex for the plant is about USD 1bn and it will be split into 30% equity and 70% debt. This capital will be raised in two phases with the first phase being about USD 400m to USD 500m. Prophecy intends to build four blocks that will generate 150 megawatts (MW) each of electricity and it will build two blocks in the first phase and the other two in the second phase. The company is also looking at the possibility of listing in Hong Kong viewed as founded by Frontier Securities, as in our opinion, the company is significantly undervalued on the Toronto Stock Exchange, Prophecy controls over 1.4bn tonnes of thermal coal in Mongolia but only has a market cap of CAD 125m (USD 129.1m). In comparison, Singapore-listed Straits Asia Resources controls only 983m tonnes of coal in Indonesia but has a market cap of SGD 3.5bn (USD 2.8bn). However, initial phase of capital requirements of Prophecy is being fulfilled on the Toronto Stock Exchange, the center for resource investing. In the future, we view that Hong Kong Stock Exchange would be ideal platform for Prophecy to raise funds for its energy projects such as the power plant. Frontier Securities is aware of potential cornerstone investors for a Prophecy’s listing in Hong Kong.

 

According to Frontier Research, Prophecy is significantly advantageously positioned in dynamically developing power and energy sector of Mongolia

 

· Minister of Mines and Energy recently participated in the opening of Taishir hydropower plant in far western Gobi-Altai province.The plant started supplying power to 110 kV and 35kV high voltage lines in Zavkhan and Gobi-Altai provinces

· In June, foundation is to be laid to start construction of Mogoi Coal TPP based on Mogoi Gol coal deposit. Construction is to take 1.8 years. It is the first of its kind approved foreign invested BOT scheme in the country

· Recent Cabinet meeting has assigned to the Minister of Mines and Energy to resolve issue of building major Thermal Power Plant (TPP) to resolve power supply in Gobi within June 2011 and start work within 2011 in order to stick to schedule of OT construction, begin extraction in nearest future

· Not much news lately on major TPP project at Shivee Ovoo strategic deposit

· Mongolia is estimated to have 100B tons of lignite. Frontier Securities estimates in-ground value of lignite at 5USD per ton for total of 500B USD.

· Frontier Securities views that lignite TPP sector for export to China could be potentially attractive investment in view of significant lignite resources of Mongolia, proximity to China, encouraging messages from GOM on coal power sector liberalization and progress on Mogoi Gol BOT TPP scheme.

· Mining expert Dr.Graeme Hancock has commented to Frontier Securities-

” Chinese demand for electricity is continuing to grow, even if their growth drops to below 5% they will still need to keep either building new power stations or import power from Mongolia. Lignite based power is readily exportable. The only blockage at the moment is the price at the border.”

 

Frontier Securities Investment Strategies views that energy/power sector and infrastructure is attractive Mongolian asset class .

 

· In 2010, PM visited and supported transparent, just foreign investment including Mogoi Gol Thermal Power Plant based on Mogoi Gol coal deposit(EPCM by Mongolia-China joint venture YUANDA GROUP to construct a 60MW TPP in northwestern Hovsgol Province)

 

According to Media Office of the Government of Mongolia on September 7,2010 Prime Minister has assigned duty to Minister of Mineral Resources and Energy D.Zorigt to prepare proposal regarding construction of Mogoi Gol Thermal Power Plant based on Mogoi Gol coal deposit and introduce to Government within September.”

 

Earlier , according to major Mongolian daily “ Unen” on August 11, 2010, “Prime Minister S.Batbold has stressed in a speech in Uliastai soum/village :

 

“ Some MPs say that Mogoi Gol Thermal Power Plant (TPP) cannot be built. This time after visiting, talking and hearing local citizens of northern part of Zavkhan and Khuvsgul province, making conclusion from what I saw myself I view it is correct to have Mogoi Gol Thermal Power Plant (TPP) start its full operation in November of 2011 as planned” and have informed residents of Zavkhan province that Government will work for that.

 

 

On December 29, 2009, Mongolia-China joint venture YUANDA GROUP announced that it and its partner NEW ASIA MINING GROUP have signed an Engineering, Procurement, Construction and Management contract (EPCM) with the Ministry of Mineral Resources and Energy, Mongolia, to construct a 60MW coal-fired Power Plant, based on Mogoin gol Coal Mine in northwestern Hovsgol Province in order to provide two provinces without reliable energy source namely Zavkhan and Gobi-Altai in western Mongolia.

 

It is first ever Mongolian EPCM Contract to build a Thermal Power Plant with private investment in BOO terms in country’s energy industry.

 

In collaboration with its Chinese partner, the project company will construct an eco-friendly Power Plant with minimum capacity of 60 MW and up-to-date technology within 20 months and it is expected be commissioned in the end of 2011. Commercial operation of the Power Plant is expected to begin in early 2012. Estimated investment for the project is USD110 million.

 

The electricity, generated by the Power Plant will be mainly utilized by customers in two provinces: Zavkhan and Gobi-Altai and then customers in western region of Mongolia in future.

 

Company officials said that Mongolia-China joint ventures: YUANDA GROUP and NEW ASIA MINING GROUP will work diligently with Energy Authority of Mongolia to build and then operate and maintain this plant in a manner that is in the best interests of all parties.

 

Company said that the contract is also a significant step in helping to build infrastructure in these provinces with poor infrastructure: "We are proud to build the PP in helping to rebuild our nation's infrastructure and sustain economic growth. In addition to generating electricity cleanly and safely, reducing our reliance on foreign imports, the construction of new power plant will create numerous opportunities for employment. YUANDA GROUP and NEW ASIA MINING GROUP are proud to be part of one of the most important industrial undertakings of this century."

 

They also pointed out that new power plant construction has the ability to help reinvigorate local economies. "Once operational, new Power Plant will require the services of 400 to 500 skilled, full-time employees while creating more indirect jobs," they said.

 

The project will create development gate or numerous business opportunities in these poorly-developed remote provinces of the country.“

· Selected financial information: repaid its $5 million debt facility, currently debt free, completed the quarter with $19.7 million in cash and net working capital of $26.5 million

 

C$ 000's

========== : Mar. 31 '11 : Dec 31 '10

Working cap : $ 26,462 k : $ 35,812 k / = current assets less current liabilities

Total Assets : $107,220 k : $110,184 k

Total Equity : $105,918 k : $102,739 k

 

The company ends the quarter with over $100 million in total assets on the balance sheet.

 

(thanks to: Dale Choi, Frontier Securities*)

 

*About Frontier Securities

==============

Frontier Securities, operating from frontier market of Mongolia is a pioneer boutique international investment bank with aggressive growth strategy and a seat on Mongolian Stock Exchange working to provide clients with best of both worlds: investment bank with on-the-ground presence and expertise in frontier markets with full cross border service capabilities and international financial markets experience/know-how with particular strengths in Asian financial capitals of Hong Kong, Tokyo, Singapore and Seoul. Information about the firm is available at www.frontier.

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Prophecy Makes Landmark Shipment of Coal to Buryatia Province of Russia from Mongolia

 

VANCOUVER, BRITISH COLUMBIA - (June 29, 2011) - Prophecy Coal Corp. ("Prophecy") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) (the "Company") announces today it has exported a shipment of 650 tonnes of thermal coal, which is the equivalent of ten wagons from the Company's Ulaan Ovoo mine in Mongolia. The coal was loaded on to rail at Sukhbartaar rail station and crossed the border into the Republic of Buryatia in Russia via Naushki. The coal was sold to Energy LLC, a company registered in the Buryatia Republic of Russian Federation, which was then consumed in local Buryat power stations and boilers.

 

Mr. J. Batuyev, Minister of Buryat Government and Official Representative of Buryat Government to Mongolia comments, "This is a historic event, as this is the first ever shipment of Mongolian coal to Buryatia, Russia, and we believe that Ulaan Ovoo coal will become a significant source to feed the energy sector of this region".

 

This export to the Republic of Buryatia was a valuable trade for Prophecy as it helps the Company determine local sales logistics, wagon loading times, export requirements and customs procedures to ensure smooth operations for future coal export of larger quantities.

 

To further facilitate trade between Mongolia's Selenge province and Russia's Buryatia province, Prophecy is collaborating with a number of government and private entities towards opening of the Zeltura border post, which is 15 km from the Ulaan Ovoo mine. The opening of Zeltura would enable Prophecy to sell Ulaan Ovoo coal at mine gate to Russian industrial consumers and translate into significant transportation savings for Prophecy.

 

Prophecy is preparing and ordering wagons for the next shipment in July 2011, destined for the port of Sovetskaya Gavani, of which the company has secured annual capacity of 300,000+ tonnes.

 

Prophecy's Ulaan Ovoo coal mine commenced production in 2011 and has produced over 200,000 tonnes of coal of domestic and export quality. The export quality coal registers (as-received basis) NCV 5,200 kcal/kg with 5% ash and 0.5% sulphur.

 

- Dale Choi, Frontier Securities

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  • 4 weeks later...

BIG MOVE ... in Prophecy Coal (PCY.v) .. PCY-chart

 

PCY : 0.96 / Change: +0.12

Open: 0.85 / High: 0.99 / Low: 0.83

Volume: 4,870,202 / Percent Change: +14.29%

 

Take a look:

 

Mostly on the bank of soaring Prophecy Platinum / NKL-chart

 

NKL : 5.32 / Change: +0.97

Open: 4.38 / High: 5.63 / Low: 4.38

Volume: 3,510,256 / Percent Change: +22.30%

 

Intraday NKL chart

 

Up 5X in less than 10 days !

 

NKL is 45% owned by PCY

 

Mkt Cap:

PCY : at $0.96 = $ 183.2 Mn (190.83 Mn shares)

NKL : at $5.32 = $ 269.2 Mn (50.6mn / PCY owns 45%)

NKL : x 45% == $ 121.1 Mn (PCY's share)

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  • 1 month later...

Prophecy Secures Coal Offtake Agreements for 2011

 

VANCOUVER, BRITISH COLUMBIA, August 29, 2011 - Prophecy Coal Corp. ("Prophecy") (TSX-V: PCY)(OTC-QX: PRPCF)(Frankfurt: 1P2) (the "Company") announces today that it has signed coal sales agreements with Mongolian and Russian buyers totalling 92,000 tonnes.

 

In particular, 22,000 tonnes of coal have been sold to Energy LLC, a company registered in the Buryatia Republic of the Russian Federation. This coal will be consumed in local Buryat power stations and boilers. During the next 60 days, the coal stockpiled at Sukhbataar rail station will be loaded and railed cross-border into the Republic of Buryatia in Russia via Naushki. Energy LLC had imported a landmark trial shipment from Prophecy in June.

 

The remaining four coal purchasers are two local Mongolian companies and two Mongolian government power plants, committing to buy a minimum of 70,000 tonnes to be delivered in 2011. Prophecy expects to deplete its coal stockpile and operate continually to meet the off take commitments.

 

John Lee, CEO and Chairman of Prophecy Coal states: “Ulaan Ovoo's clean coal with its low ash (8%) and sulphur (0.5%) is highly desired. We are making steady and solid progress to establish Ulaan Ovoo as a recognized coal supplier in local and international markets.”

 

Ulaan Ovoo is now operating on 100% Company owned new mining fleet and coal transportation trucks. The Company would like to thank the Mongolian local community and government in helping turn Ulaan Ovoo into a successful mine and reaffirm its commitment to supply coal to local power plants this coming winter.

=== ===

 

 

Hmm. The price wasn't mentioned.

I suppose they are still not 100% happy with the price, and will be aiming to work it higher.

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Prophecy Coal Corp. (TSX-V: PCY, OTC-QX: PRPCF, Frankfurt: 1P2, last close 0.74, market cap 140M CAD,1day+ 7.25%, 5d +20.97%,52 week 0.42 - 1.27, Vol / Avg. 1.92M/1.86M)

 

a graph showing share price performance of NKL and PCY (on the same graph) for the last few days

 

http://www.google.com//finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=1&chfdeh=0&chdet=1314693195527&chddm=48875&chls=IntervalBasedLine&cmpto=CVE:NKL&cmptdms=0&q=CVE:PCY&ntsp=0

 

Market cap for PCY is 140M CAD. If one deducts 45% of NKL's market cap of 293M CAD, then all Mongolian assets of PCY are valued at only 8M USD which we view are tremendously undervalued as the company had

 

As at ...

========== : Mar. 31 '11 : Dec 31 '10

Working cap : $ 26,462 k : $ 35,812 k / = current assets less current liabilities

Total Assets : $107,220 k : $110,184 k

Total Equity : $105,918 k : $102,739 k

 

Therefore, we view that PCY indeed is STRONG BUY as it is significantly undervalued in respect to valuation of NKL and is lagging behind, from July 11, 2011, PCY has increased only 12.11% vs. 419.08% for NKL

 

Other PCY developments as of 08/30/2011:

 

· Prophecy Coal Corp. signed coal sales agreements with Mongolian and Russian buyers totalling 92,000 tonnes.

·

· 22,000 tonnes of coal have been sold to Energy LLC, a company registered in the Buryatia Republic of the Russian Federation. This coal will be consumed in local Buryat power stations and boilers. During the next 60 days, the coal stockpiled at Sukhbataar rail station will be loaded and railed cross-border into the Republic of Buryatia in Russia via Naushki. Energy LLC had imported a landmark trial shipment from Prophecy in June.

 

· The remaining four coal purchasers are two local Mongolian companies and two Mongolian government power plants, committing to buy a minimum of 70,000 tonnes to be delivered in 2011. Prophecy expects to deplete its coal stockpile and operate continually to meet the off take commitments.

 

· Ulaan Ovoo has clean coal with its low ash (8%) and sulphur (0.5%) is highly desired. PCY is making steady and solid progress to establish Ulaan Ovoo as a recognized coal supplier in local and international markets.

 

· Ulaan Ovoo is now operating on 100% Company owned new mining fleet and coal transportation trucks.

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  • 2 weeks later...

Junior sold for 800% more 18 months after IPO as coal miners go mad for Mongolia

 

Frik Els | September 13

.

 

Strong interest in the Mongolian resource sector has provided shareholders in Hunnu Coal a 800% gain in only 18 months. Thailand’s Banpu announced Tuesday it is taking over the ASX-listed junior for $400 million or $1.80/share – Hunnu went public in February 2010 at 20c.

 

Hunnu may be the first of many firms with Mongolian coal assets to attract bidders with Ivanhoe Mines’ SouthGobi and TSX-V junior Prophecy Coal talked about as likely targets and a way in for smaller investors who are not be able to participate in Tavan Tolgoi’s $3 billion IPO slated for next year.

 

Business Day reports Hunnu (ASX:HUN) claims to have interests in as many as 15 potential deposits in the country, the largest being the Unst Khudag prospect, which may have 676 million tonnes of coal.

 

The FT reports Banpu hopes to exploit the hunger for energy in neighbouring China, which still relies on coal for 70% of its energy needs. Among Hunnu’s assets are prized reserves of coking coal to feed China’s steel-making industry.

 

Seeking Alpha makes the case for a takeover by Canadian heavyweight Teck of Ivanhoe Mine’s (NYSE:IVN) 57%-owned SouthGobi Resources (TSE:SGQ) which is already producing coal at an annual rate of 5.3mm metric tonnes and production continues to ramp up. Combined, Teck Resources (NYSE:TCK, TSE:TCK.B) and SGQ would be producing greater than 40mm tonnes of coking coal, keeping Teck comfortably in second place behind the BHP-Mitsubishi Alliance.

 

Another potential target is Prophecy Coal Corp. (TSX-V: PCY).

The company announced at the end of August coal sales agreements with Russian and Mongolian buyers, totalling 92,000 tonnes from its 100%-owned Ulaan Ovoo coal deposit, located 430 kilometres from the the capital Ulaanbatar, and 17 kilometres from the Russian border. The mine has a measured and indicated resource estimate of approximately 209 million tonnes of low-ash, low-sulphur coal. It’s worth some $130 million on the Toronto venture exchange.

 

MINING.com reported last week Mongolia is likely to sell a stake in its Erdenes Tavan Tolgoi coal-mining company to the public next year, raising more than $3 billion. The Tavan Tolgoi deposit – mined since the 60s – in the South Gobi desert is the world’s largest with a 6 billion tonne resource of high-quality coking coal used in steelmaking. Metallurgical coal has been trading at record levels of $330/tonne this year. Tavan Tolgoi is the second largest mining investment in Mongolia behind the Oyu Tolgoi gold-copper mine being built by Canada’s Ivanhoe Mines.

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PROPHECY COAL(TSX-V: PCY)'S 90M USD MONGOLIAN ASSETS OF EQUITY AND CASH ARE VALUED ONLY AT 31M USD

EVEN AFTER ITS POWER PLANT HAS BEEN OFFICIALLY ENDORSED BY MINISTRY OF ENERGY

 

 

Prophecy Platinum Corp(TSX-V: NKL, US-PINK: PNIKD, Frankfurt: P94P, last close 4.39, market cap 229M CAD, 1d + 3.29%,5d + 0.69%,1m +20.6%, 3m +387%, 52wk 0.08-5.86, Vol / Avg. 173,669.00/406,736.00) Prophecy Coal is major shareholder and owns 45% of shares outstanding of Prophecy Platinum.

 

Prophecy Coal Corp. (TSX-V: PCY, OTC-QX: PRPCF, Frankfurt: 1P2, last close 0.68, market cap 133M CAD,1day+ 3.03%, 5d +1.56%,1m +9.68%,3m + 7.94%, 52 week 0.42 - 1.27, Vol / Avg. 912,793.00/834,989.00)

 

a graph showing share price performance of NKL and PCY (on the same graph)

 

http://www.google.com//finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=1&chfdeh=0&chdet=1314693195527&chddm=48875&chls=IntervalBasedLine&cmpto=CVE:NKL&cmptdms=0&q=CVE:PCY&ntsp=0

 

Market cap for PCY is 133M CAD. If one deducts 45% of NKL's market cap of 229M CAD, then all Mongolian assets of PCY even in view of today’s endorsement of power plant project by Ministry of Eneregy are valued at only 31M USD which we view are tremendously undervalued as the company had cash position and equity holdings total over US $90million as of September 1

 

Also the company had

 

 

=========================== Dec. 31, 2010

======= at March 31, 2011

Working capital-: $26,462 : $35,812

Total Assets ---: 107,220 : 110,184

Total Equity ---: 105,918 : 102,739

 

(1)

Working capital = current assets less current liabilities

 

Therefore, we view that PCY indeed continues to be STRONG BUY as it is significantly undervalued in respect to valuation of NKL and is lagging behind, from June 16, 2011, PCY has increased only 7.94% vs. 387.77% for NKL

 

Other PCY developments as of 09/15/2011:

 

· its Chandgana Power Plant Project ("Project") has been officially endorsed by the Mongolian Ministry of Natural Resources and Energy. The Mongolian Energy Regulatory Authority (“ERA”), in charge of power plant license issuance, has received the endorsement and is expected to issue a final response to Prophecy's license application in Q4, 2011.

 

· The request for licensing of “Construction of Energy Buildings and Installations”, submitted by East Energy Development LLC, a wholly-owned Mongolian subsidiary of Prophecy, in April, 2011, was determined to be in full conformity with Clause 2 of Article 12, Energy Law. The company has undergone a rigorous power plant permitting process, which included Environmental Impact Assessment approval by The Mongolian Ministry of Nature and Environment, and support from the Mongolian Scientific and Technical Council. The power plant will be built right next to Prophecy’s permitted Chandgana Tal Coal Project.

 

· Results from the Power Plant Feasibility Study by Evonik Industries and the Chandgana Tal Mine Study by Leighton Asia are expected in Q4 2011. In parallel, Prophecy has been in discussion with a number of potential Engineering, Procurement and Construction (EPC) contractors with the goal of finalizing EPC selection expeditiously after the power plant license is obtained.

· Prophecy’s cash position and equity holdings total over US $90million as of September 1, and the company expects to fully fund the Chandgana project studies through to project financing.

 

Other NKL developments as of 09/06/2011:

 

· has prepared and shipped 150kg samples to SGS Minerals Services ("SGS") to initiate a metallurgical and mineralogy study on the Wellgreen deposit. The study will focus on optimizing recoveries through conventional flotation to produce a PGM Nickel Copper concentrate. The mineralogy study will facilitate flowsheet conceptualization while closed circuit locked-cycle testing will be conducted to potentially enhance recoveries. The second part of the study will examine downstream treatment options involving pressure oxidation and leaching using the Platsol process, with which companies exploring in the Minnesota Duluth complex have demonstrated success. Results from the flotation study are expected in the first quarter (Q1) of 2012.

 

· The Company has also engaged Wardrop, A Tetra Tech Company (Tetra Tech) to conduct a preliminary economic assessment (PEA) for the Wellgreen deposit. This study will investigate all aspects of the future development of Wellgreen including updating the mineral resources, the open-pit design, determining the optimum mining rate, a review of metallurgical studies and the design of the processing plant, the selection of equipment and manpower needs, estimates of capital and operating costs, financial modeling and risk analysis. The study will, if appropriate, give an economic justification to proceed to a pre-feasibility study or directly to a full feasibility study. The Company expects to receive a preliminary pit-shell outline with an indication of strip ratio on its high grade starter pit (Inferred resource of 50.6 million tonnes at 2.20 g/t PGM+Au 0.83% Ni, 0.80% Cu, 1.6% NiEq based on 1% NiEq cut off, and an Indicated resource of 8.5 million tons at 2.77 g/t PGM+Au 0.91% Ni, 0.80% Cu,) in October, 2011. The completion of the PEA is expected in Q1 of 2012.

 

· Further to the Company's news release dated April 6, 2011, it has completed the acquisition of a 100% interest in the Burwash property (from here-on referred to as "Wellgreen East") from Strategic Metals Ltd. ("Stategic") by paying to Strategic $1,000,000. The Wellgreen East property comprises 48 square kilometres, adds approximately 7 kilometers of exploration strike length east of the Wellgreen leases. Previous exploration on the fully acquired claims confirms that the geologic stratigraphy and mineralization is similar to the main Wellgreen resource. Past surface exploration has yielded sample grabs of 11.6 g/t Pt, 29.4 g/t Pd and 0.9 g/t Rhodium. These results are historical and should be regarded as unverified and should not be relied upon. Prophecy's land position now spans 17.5 km in strike, covering a majority of the Quill Creek ultramafic Complex.

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  • 1 month later...

Looks like I may be meeting CEO (John Lee) tomorrow.

 

Any questions for him ?

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  • 1 year later...

Vancouver, B.C., November 5, 2012: Prophecy Platinum Corp. ("Prophecy" or the “Company”) (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) is pleased to announce the appointment of Greg Johnson, as President and Chief Executive Officer. Mr. Johnson has over twenty-five years of experience in the exploration and development of large scale projects in the mining industry and, through his global network of contacts, has been involved in raising over $650 million in project financing.

 

Mr. John Lee, Chairman of the Board and founder of the Company through the initial spin-out from Prophecy Resource Corp, stated, “We are excited to welcome Mr. Greg Johnson to lead the executive management team at Prophecy Platinum Corp. and to take the Company through the next stages of development. Mr. Johnson has the demonstrated experience, expertise and vision that we believe will allow the Company to successfully advance its projects and maximize shareholder value going forward. Along with the recent addition of John Sagman as Chief Operating Officer, we are putting in place a recognized executive management team to lead technical, financial and developmental aspects of the world class Wellgreen PGM-Cu-Ni project in the Yukon.”

 

Prior to joining Prophecy, Mr. Johnson held the position of President and CEO at South American Silver, where he lead the significant advancement and expansion of the Company’s two development stage projects in South America - including a world class silver deposit and a major new copper-gold discovery. During this time, South American Silver’s market capitalization increased from $20 million to a peak of $350 million.

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