Welcome!

News Feed Item

Wellgreen Platinum Issues Clarifying News Release

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/08/14 -- Wellgreen Platinum Ltd. (TSX VENTURE:WG)(OTCQX:WGPLF)

As a result of a review of the Company's disclosure record by the British Columbia Securities Commission (the "BCSC"), the Company is issuing this news release to clarify and retract certain previous disclosure made by the Company concerning its Wellgreen and Shakespeare projects.

Clarification of Wellgreen Project Technical Disclosure

Non-Compliant Disclosure of Alternate Scenarios based on the 2012 Wellgreen Preliminary Economic Assessment ("2012 Wellgreen PEA")

The Company has previously, in certain of its investor presentation materials and on its website, made disclosure relating to metal price, production summaries and net present value scenarios relating to the Wellgreen project which are not contemplated in the 2012 Wellgreen PEA (a technical report in respect of the 2012 Wellgreen PEA was filed on SEDAR by the Company on August 9, 2012). The Company acknowledges that this prior disclosure was contained in the Company's corporate presentation and investor fact sheet that were posted to the Company's website as recently as April 2014. The Company further acknowledges that such disclosure used factors that reduced certain metal price assumptions to 30% below the base case scenario contemplated in the 2012 Wellgreen PEA, which resulted in a significantly lower net present value (NPV) figure than the base case. In addition to not being based solely on the 2012 Wellgreen PEA, such disclosure was not supported by the sensitivity analysis contained in the 2012 Wellgreen PEA, and therefore effectively amounted to the disclosure of a new PEA result. This disclosure was an internal re-interpretation, partly based on the 2012 Wellgreen PEA, but was not prepared to the standard of a preliminary economic assessment and was not suitable for disclosure because it was not supported by a technical report. The Company acknowledges that such prior disclosure was contrary to National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The Company retracts all such disclosure, and cautions investors not to rely on any economic assessments outside of those expressly contained in the 2012 Wellgreen PEA.

The Company also clarifies that the 2012 Wellgreen PEA remains current, valid and relevant. In particular, the Company directs investors to the Base Case LME 3 year average metal prices minus 20% scenario for the project in the 2012 Wellgreen PEA as being reflective of the current metal price environment. The 2012 Wellgreen PEA technical report is available under the Company's SEDAR profile at www.sedar.com, and is also available on the Company's website: http://www.wellgreenplatinum.com/pdf/2012_Wellgreen_PEA.pdf.

Investors should note that the 2012 Wellgreen PEA is preliminary in nature, in that it includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the 2012 Wellgreen PEA will be realized. A mineral reserve has not been estimated for the project as part of the 2012 Wellgreen PEA. A mineral reserve is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a pre-feasibility study. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The foregoing statements were reviewed and approved by John Sagman, P.Eng., the Company's Senior Vice President and Chief Operating Officer, and a "Qualified Person" as defined in NI 43-101.

Absence of Post-Tax Analysis in the 2012 Wellgreen PEA

The Company notes that the 2012 Wellgreen PEA did not include an analysis of after-tax economics as required under NI 43-101. Accordingly, the Company provides the following summary of the tax environment in the Yukon for the Wellgreen project. Generally speaking, applicable taxes for mining in the Yukon Territory currently include a 15% federal income tax rate and a 15% territorial income tax rate. Under the Quartz Mining Act, a royalty of up to 12% of profits from mining may also be payable to the Yukon government. Generally speaking, income taxes are applicable to pre-tax cash flow from operations less royalties, capital cost allowance, interest expenses, non-capital carry forward losses and Canadian exploration expenses and Canadian development expenses. Generally speaking, royalties are based on profits minus a number of deductions, including development allowance, depreciation allowance, community and economic development expense allowance, plus other incentives for mining exploration activity.

Non-Compliant Disclosure of Potential Exploration Targets

On page 10 of the 2013 Annual MD&A the following was stated regarding the Company's Wellgreen project:

"Future drilling and metallurgical testing will evaluate the potential of these mineralized areas as near surface starter pits designed to provide higher grade mill feed early in the life of the mine."

The Company notes that this statement may be interpreted as an economic analysis of exploration targets, and that such disclosure is restricted under NI 43-101 and is also deficient in that it was not accompanied by the cautionary language required under section 2.3(2)(a) of NI 43-101. Accordingly, the Company retracts this statement from the 2013 Annual MD&A and cautions investors not to rely on this statement.

Disclosure of Potential Metallurgical Recovery Targets

The Company notes that it has previously disclosed, in its investor presentation materials and on its website, metallurgical recovery targets for its Wellgreen project that are objectives for the project and have not yet been achieved. The Company cautions investors that such information is forward-looking and should not be interpreted to mean that any such targets have actually been, or will ever be, achieved. Metallurgical test work is on-going and includes studies designed to optimize the grinding requirements, flotation reagents, and the process flow sheet including a magnetic separation process for the relevant metallurgical domains. An important focus of this work has been to assess the potential to improve recovery levels, particularly for platinum, palladium and gold versus the levels in the 2012 PEA. This work is still in progress and, upon completion of the current metallurgical sample test work, the results will be used to generate recovery and concentrate grade assumptions for the key metallurgical domains in the updated Preliminary Economic Assessment for the Wellgreen project.

Timing for updated PEA on the Wellgreen Project

The Company notes that it is continuing its work on completing an updated PEA on the Wellgreen project, and anticipates completing the updated PEA by July 2014.

Retraction of Shakespeare Feasibility Study and Mineral Reserves

The Company has determined that the January 2006 feasibility study ("2006 Feasibility Study") in respect of the Shakespeare project, and the information contained therein with respect to mineral reserve estimates, is no longer valid, and that investors should not rely on the viability of economic or production estimates based on the 2006 Feasibility Study because the operating and capital expenditures estimated therein are outdated and no longer reliable. Accordingly, the Company retracts the 2006 Feasibility Study and announces that the Shakespeare project does not currently contain any mineral reserves, as such term is defined for the purposes of NI 43-101.

Shakespeare Mineral Resources

The Shakespeare project currently has Indicated and Inferred resources, as summarized in the following table. The Indicated (Pit) resource is prior to mining depletion from historic production, which totaled approximately 0.4 million tonnes from 2007 to 2011:


                                             In Situ Grade                  
                           -------------------------------------------------
Resource       Tonnes            Ni      Cu      Co      Au      Pt      Pd 
Category       (Millions)       (%)     (%)     (%)   (g/t)   (g/t)   (g/t) 
--------------------------------------------------------------------------- 
Indicated                                                                   
(Pit)          12.430          0.35    0.37    0.02   0.199   0.351   0.386 
Indicated                                                                   
(UG)           3.571           0.32   0.387    0.02   0.202   0.337   0.367 
--------------------------------------------------------------------------- 
Total                                                                       
Indicated      16.001         0.343   0.374   0.020   0.200   0.348   0.382 
----------------------------------------------------------------------------

                                         Total Contained Metals             
                           -------------------------------------------------
Resource       Tonnes          Mlbs    Mlbs    Mlbs     Moz     Moz      Moz
Category       (Millions)        Ni      Cu      Co      Au      Pt       Pd
----------------------------------------------------------------------------
Indicated                                                                   
(Pit)          12.430          95.9   101.4     5.5    0.08    0.14     0.15
Indicated                                                                   
(UG)           3.571           25.2    30.5     1.6    0.02    0.04     0.04
----------------------------------------------------------------------------
Total                                                                       
Indicated      16.001         121.1   131.9     7.1   0.103   0.179    0.196
----------------------------------------------------------------------------

The Shakespeare project also has an Inferred resource of 1.9 million tonnes, as summarized in the following table:


                                             In Situ Grade                  
                           -------------------------------------------------
Resource       Tonnes            Ni      Cu      Co      Au      Pt      Pd 
Category       (Millions)       (%)     (%)     (%)   (g/t)   (g/t)   (g/t) 
--------------------------------------------------------------------------- 
Inferred                                                                    
(UG)           1.871          0.325   0.363   0.022   0.209    0.34   0.357 
----------------------------------------------------------------------------

                                         Total Contained Metals             
                           -------------------------------------------------
Resource       Tonnes          Mlbs    Mlbs    Mlbs     Moz     Moz      Moz
Category       (Millions)        Ni      Cu      Co      Au      Pt       Pd
----------------------------------------------------------------------------
Inferred                                                                    
(UG)           1.871           13.4    15.0     0.9   0.013   0.020    0.021
----------------------------------------------------------------------------

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Non-Material Status of Shakespeare Project

The Company has determined that the Shakespeare project is not a material property of the Company for a number of reasons, including, but not limited to, the fact that the 2006 Feasibility Study is no longer reliable, and the project's significantly smaller scale as compared with the Company's core Wellgreen PGM-Ni-Cu project. The Company notes that the Shakespeare project has not been a significant focus of the Company and has remained on care and maintenance since the Company acquired the project in July 2012, with minimal expenditures. Indeed, during the period from the Company's acquisition of the Shakespeare project up to December 31, 2013, the Company has spent a total of $677,642 on the project, which includes $474,409 in project expenditures and $203,333 in care and maintenance expenditures. By contrast, during the period from the Company's acquisition of its flagship Wellgreen project in June 2011 up to December 31, 2013, it has spent approximately $15.3 million on the Wellgreen project.

The Company accordingly confirms that it has no mine development or production plans with respect to the Shakespeare project over the near term. Furthermore, there are no studies or work being carried on at this time on the project. The Wellgreen project has been and remains the Company's core focus, and is currently the only material property of the Company.

Other Clarification

Reporting Gross In-Situ Metal Value

On March 6, 2013, the Company issued a news release (the "March 6, 2013 News Release") reporting the release of its unaudited interim consolidated financial statements for the three and nine months ended December 31, 2012 and an update on the Company's projects. Certain disclosure in the March 6, 2013 News Release included the gross combined dollar value of contained platinum, palladium and gold expressed as US$/share, which amounted to disclosure by the Company of gross in-situ metal value. The Company notes that such disclosure may be misleading because it fails to take into consideration operating and capital costs, recoveries, smelter costs and other factors relating to the potential mining, extraction and recovery of metals. Accordingly, the Company retracts this disclosure from the March 6, 2013 News Release, and cautions investors not to rely on such disclosure.

Qualified Person: All scientific and technical information disclosed herein was reviewed and approved by John Sagman, P.Eng., Wellgreen Platinum's Senior Vice President and Chief Operating Officer, and a "Qualified Person" as defined in NI 43-101.

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. All information in this release, other than information of historical facts, including, without limitation, the potential of the Wellgreen project, information regarding the timing of future technical reports and general future plans and objectives for the Wellgreen 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 unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, 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 project, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulatory authorities in Canada. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. 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 risks and challenges of our business, investors should review our annual filings which are available at www.sedar.com. The Company does not undertake to update any forward looking information, except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which i...
SYS-CON Events announced today that Twistlock, the leading provider of cloud container security solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Twistlock is the industry's first enterprise security suite for container security. Twistlock's technology addresses risks on the host and within the application of the container, enabling enterprises to consistently enforce security policies, monitor...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to ov...
This talk centers around how to automate best practices in a multi-/hybrid-cloud world based on our work with customers like GE, Discovery Communications and Fannie Mae. Today’s enterprises are reaping the benefits of cloud computing, but also discovering many risks and challenges. In the age of DevOps and the decentralization of IT, it’s easy to over-provision resources, forget that instances are running, or unintentionally expose vulnerabilities.
In his session at 20th Cloud Expo, Brad Winett, Senior Technologist for DDN Storage, will present several current, end-user environments that are using object storage at scale for cloud deployments including private cloud and cloud providers. Details on the top considerations of features and functions for selecting object storage will be included. Brad will also touch on recent developments in tiering technologies that deliver single solution and an end-user view of data across files and objects...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...