Wellgreen Platinum Provides Wellgreen Project and Corporate Update

VANCOUVER, Sept. 13, 2016 /CNW/ - Wellgreen Platinum Ltd. (TSX: WG; OTC-QX: WGPLF) ("Wellgreen Platinum" or the "Company") is pleased to provide an update on the Company's activities.

Over the past several months, the Company has taken significant steps to revitalize the direction of the Company and the development of its flagship, world class asset, the Wellgreen PGM-Ni deposit located in Yukon Canada. 

These steps have included:

• Enhancement of the Board with three new appointees (including CEO Diane R. Garrett) and a fourth proposed nominee, Gillyeard Leathley, who is expected to be elected at the Company's upcoming Annual General Meeting on September 27, 2016. The Board is now comprised of members with significant experience in the areas of Operations, Engineering, Geology, Finance, Legal, Corporate Governance, Capital Markets and Human Resources
  
  
• Completed a cornerstone investment by Electrum Opportunities Fund L.P. ("Electrum"), which now holds approximately 27% of the Company's outstanding shares; another major shareholder, Resource Capital Fund ("RCF"), holds an additional 9% of the Company's outstanding shares
  
  
• New management and streamlined organization optimized for the next stage of development of the Wellgreen Project and enhanced efficiency and effectiveness of project management and Corporate functions
  
  
• A broadened technical team with significant depth of expertise in metallurgy, project development and PGM and Nickel deposits
  
  
• Collectively, a team with proven, successful track records of developing projects and creating value for all stakeholders

Diane Garrett, President and CEO, commented, "The steps taken over the past several months have provided the foundation for the future development of the Wellgreen Project.  With a fortified Board and new management with proven track records of successful project development, a strong technical team specialized in, and having worked on, some of the leading Nickel and PGM deposits in the industry, supported by the solid financial support from Electrum and RCF, we are well positioned to deliver value for our shareholders.  I am pleased to present below the individuals working on our unique asset – one of the world's largest undeveloped PGM-Ni deposits.  Additionally, provided below is an update on the Company's recent activities, as well as its plans over the near and medium term. I am very excited with the team we've assembled and the opportunities before us to unlock value at the Wellgreen Project which is truly unique in both scale and quality.  We will continue to work toward de-risking the Wellgreen Project in order to efficiently and methodically advance the project to realize the full potential of this asset."

CORPORATE UPDATE

During the fourth quarter of 2015 and extending into the first quarter of 2016, the Company's drill program targeted representative samples of the Wellgreen deposit for purposes of a metallurgical test work program.  The Company initiated the metallurgical test work program in April 2016.  The purpose of the program was to further refine the recovery information of the payable metals in the Wellgreen deposit from the earlier work completed as part of the 2015 Preliminary Economic Assessment ("PEA", see press release dated February 2, 2015). 

The objectives of the metallurgical test work program are to (1) further refine the recovery information of the payable metals from the earlier work completed as part of the 2015 Preliminary Economic Assessment ("PEA", see press release dated February 2, 2015) and, (2) to produce a marketable bulk Ni-Cu-PGM concentrate or optionally, separate marketable Nickel and Copper concentrates.  The details of the various testing phases are provided below.

Phase 1A testing is complete and Phase 1B is in progess.  The Company anticipates receiving the final results from Phase 1A and 1B late in the fourth quarter of 2016, on schedule as previously reported, which will be disclosed once the final reports have been received and reviewed.  Following Phase 1, we will commence marketing studies led by our consultant Heida Mani who specializes in this field.

The metallurgical program is being carried out by XPS Consulting and Test Work Services ("XPS") in Falconbridge, Ontario together with Wellgreen's internal metallurgical consulting team led by Heather White who has been appointed Project Engineer. 

The Company is in the process of updating its geologic model with the 2015-2016 drilling program data. This will be integral to the mine planning phase which will be initiated early in 2017.  In parallel to this work, the Company is conducting the necessary environmental baseline studies required for the project and permitting.

TECHNICAL TEAM

The enhanced technical team has extensive experience in the development and operation of Ni-Cu-PGM deposits. The team is comprised of five internal consultants and advisors working in connection with the process and metallurgical team at XPS.  The Company has eliminated the COO position and therefore Mr. John Sagman is no longer with the Company.  The Company would like to express its appreciation to Mr. Sagman for his contributions and services to the Company and wishes him the very best in all his future endeavors.  

The Company's technical team consists of the following individuals:

Gilyeard Leathley –  Sr. Technical Advisor to the Wellgreen Board and CEO

Extensive international experience in Mine Design, Development, Construction & Operations. Has overseen the development of several major operating mines over the past 25 years.  Former COO of NovaGold and Homestake Mining Company. Currently a director of NovaGold Inc.

Heather White – Wellgreen Project Engineer, White Mining Consulting

Over 20 years of senior operations and executive roles nationally and internationally in Mine Evaluation, Project Development, Construction and Mine Operations. Managed the worldwide Nickel supply chain for Vale from 2008-2010.  Former Chief Mine Engineer and later Mine Manager for Voisey's Bay Nickel Company during design build and start up.  Former Mine Engineer at Inco, Ltd. Currently a director of Victoria Gold.

John Eggert – Consultant, NI 43-101 Qualified Person

More than 25 years in operations, commissioning, construction and design.  Expertise in ultrafine grinding circuits.  Former Placer Dome, Amec Engineering Inc. where he worked on Falconbridge's Montcalm Project.  While at Hatch Engineering he was process engineer for the Vale/ Inco Clarabelle Mill Enhancement Recovery Project (CMERP).  As an independent engineer he has worked with Falconbridge (now Glencore's) Strathcona mill, Lakeshore Gold and Kirkland Lake expansion projects and process engineering for Capstone Minerals.

Peter Wells, Ph.D. – Consultant

Independent consultant to the mineral processing industry.  Former Falconbridge, research and development and operations.  Former Inco research and development.

Heida Mani – Consultant

Over 25 years of process mineralogy and concentrate sales.  Technical and commercial specialist in nickel-copper-PGMs.    Independent consultant to private equity firms and mining companies.  Former director of Vale.

XPS Consulting and Testwork Services –

The XPS team is executing process design and metallurgical test work services. 

Mr. John Eggert is the Company's Qualified Person as defined by NI 43-101 and has reviewed and approved 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 Ni-PGM 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,  nickel, copper and gold. The Wellgreen property is accessible from the paved Alaska Highway, which leads to year-round deep sea ports in southern Alaska.

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, is forward-looking information that involves 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.

SOURCE Wellgreen Platinum Ltd.