VANCOUVER, July 11, 2016 /CNW/ - Wellgreen Platinum Ltd. (TSX: WG; OTC-QX: WGPLF) ("Wellgreen Platinum" or the "Company") is pleased to announce commencement of a drill program and field work (the "2016 Program") at its 100% owned Wellgreen PGM-Nickel Project, located 317 km northwest of Whitehorse, Yukon.
The 2016 Program will consist of approximately 2,500 meters of drilling designed to (See Figure 1):
- test resource expansion potential along the North Arm and the Middle Arm of the deposit, some of which was unclassified in the 2014 resource model and, therefore, categorized as waste in the Company's 2015 Wellgreen PEA1 (the "2015 PEA")
- test for the potential conversion of a portion of Inferred Mineral Resources in the Central Zone into the Measured & Indicated categories and assess expansion of the starter pit detailed in the 2015 PEA; and
- continue testing of the continuity of higher grade intercepts in the Central Zone in the lower portion of the 2015 PEA Base Case pit.
A successful limited borehole electromagnetic ("EM") survey conducted at the Wellgreen Project in the fourth quarter of 2015 identified previously drilled massive sulphides several tens of metres off-hole. Therefore, the Company plans to conduct additional borehole EM surveys in the 2016 Program to assist with targeting potential massive sulphides in the North Arm and Middle Arm.
In parallel with the 2016 Program and metallurgical review program, the Company is continuing environmental baseline, assessment and mitigation studies.
Diane R. Garrett, President and CEO, commented, "Over the past several months the Company has taken significant steps to putting in place a strong platform for advancing the Wellgreen Project. The addition of new directors with significant technical expertise and the cornerstone investment by Electrum Strategic Opportunities Fund L.P. are tremendous assets to all Wellgreen stakeholders. The metallurgical test work initiated earlier this year and the 2016 field program will continue to de-risk the project in order to efficiently realize the full potential of this unique asset."
1 2015 PEA Technical Report on the Wellgreen project entitled "Preliminary Economic Assessment Technical Report, Wellgreen Project, Yukon Territory, Canada", which is dated effective 2/2/2015 and available under the Company's profile on www.sedar.com. A PEA is preliminary in nature, in that it includes an economic analysis that is based, in part, on Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them which would allow them to be categorized as Mineral Reserves, and there is no certainty that the results will be realized. Mineral Resources are not Mineral Reserves because they do not have demonstrated economic viability.
2016 Metallurgical Testing Update
In a news release dated February 23, 2016, the Company announced commencement of a metallurgical review program. The study is utilizing drill core samples from the 2014 and 2015 drill programs. During the 4th quarter of 2015, the Company drilled a series of holes designed to gather representative samples of material from geometallurgical domains across the deposit. Testing is focused on representative samples from mineralized material from the geological domains that accounted for over 85% of the mill feed in the initial 16 years of mine operations in the 2015 PEA, using conventional sulphide flotation. The metallurgical testing program is progressing well and remains on schedule for completion in Q4 2016.
The metallurgical test program is being led by XPS Consulting and Testwork Services and is being overseen by Eggert Engineering Inc.
Quality Assurance, Quality Control
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). The Wellgreen Project technical information disclosed herein was prepared under the supervision of John Sagman, P.Eng., Wellgreen Platinum's Senior Vice President and Chief Operating Officer and a "Qualified Person" as defined in NI 43-101. In addition, Mr. Sagman has reviewed and approved the technical information contained in this news release.
About Wellgreen Platinum
Wellgreen Platinum is a Canadian mining exploration and development company focused on the active advancement of its 100% owned Wellgreen PGM-Nickel Project located in the Yukon Territory of Canada. The 2015 PEA demonstrated that the Wellgreen Project has the potential to become a large, low cost, open pit producer of platinum, palladium, gold, nickel, and copper. The Wellgreen property is accessible from the paved Alaska Highway, which leads to year-round deep sea ports in southern Alaska.
The Company is led by a management team with a track record of successful large-scale project discovery, development, financing and operation. Our vision is to create value for our shareholders through development of the Wellgreen deposit into a leading North American PGM and nickel producer.
Cautionary Note Regarding Forward Looking Information: This news release includes certain information that may be deemed "forward-looking information". Forward-looking information can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology, or negative connotations thereof. All information in this release, other than information of historical facts, including, without limitation, results of the 2015 PEA, the size and scale of the Wellgreen deposit, future exploration and development of the Wellgreen PGM and nickel project, the potential conversion of any inferred resources to the measured and indicated categories, the undertaking of future activities and work programs at the Wellgreen PGM and nickel project, realization of the potential of the Wellgreen deposit, the active advancement of the Wellgreen PGM and nickel project, and general future plans and objectives for the Company and the Wellgreen PGM and nickel project are forward-looking information that involve various risks and uncertainties. Although the Company believes that the expectations expressed in such forward-looking information are based on reasonable assumptions, such expectations are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information. Forward-looking information is based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from the forward-looking information include changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, the Company's ability to maintain the support of stakeholders necessary to develop the Wellgreen PGM and nickel project, unanticipated environmental impacts on operations and costs to remedy same, and other risks detailed herein and from time to time in the filings made by the Company with securities regulatory authorities in Canada. Mineral exploration and development of mines is an inherently risky business. Accordingly, actual events may differ materially from those projected in the forward-looking information. For more information on the Company and the key assumptions, risks and challenges with respect to the forward looking information discussed herein, and about our business in general, investors should review the 2015 PEA technical report on the Wellgreen PGM and nickel project, our most recently filed annual information form, and other continuous disclosure filings which are available at www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking information. The Company does not undertake to update any forward looking information, except in accordance with applicable securities laws.
Cautionary Note regarding Mineral Resources. This press release uses the terms "Measured", "Indicated" and "Inferred" Resources in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards. United States investors are advised that while such terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission does not recognize these terms. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category of resource, such as "Indicated" or "Measured", as a result of continued exploration, or that all or any part of "Measured" or "Indicated Mineral Resources" will ever be converted into "Mineral Reserves" (the economically mineable part of an "Indicated" or "Measured Mineral Resource"). United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.
SOURCE Wellgreen Platinum Ltd.
Image with caption: "Figure 1 - Plan Map of Wellgreen Deposit with 2016 Drilling Target Areas (CNW Group/Wellgreen Platinum Ltd.)". Image available at: http://photos.newswire.ca/images/download/20160711_C1303_PHOTO_EN_731386.jpg
For further information: Wellgreen Platinum Contacts: Diane Garrett, President & Chief Executive Officer, 1-604-569-3690, email@example.com, firstname.lastname@example.org