VANCOUVER, British Columbia--(BUSINESS WIRE)--Prodigy Gold Incorporated (PDG: TSX.V) is pleased to announce additional results from its in-fill and resource expansion drilling program at its 100% owned Magino mine gold project in Ontario. Drilling during the last month has focused on three areas: The northeastern higher grade portion of the Magino deposit and two lower grade areas in the central and southwest parts of the deposit. In the northeast target area, drilling intercepted thick intervals of gold mineralization including substantial thicknesses of higher grade gold mineralization: 104 metres grading 1.01 gpt gold including 36 metres grading 2.33 gpt gold in drill hole MA11-056, 168 metres grading 1.00 gpt gold and a deeper zone grading 3.88 gpt gold over 8 metres in drill hole MA11-083, and 182 metres grading 0.82 gpt gold including 20 metres grading 2.66 gpt gold in drill hole MA11-081. These results, when combined with previous drill results in the area, indicate that the Magino gold resource can be expanded in this important higher grade portion of the deposit (please see drill hole location map associated with this release at the following link: http://www.usetdas.com/maps/prodigy/prodigy08042011002.jpg).
Brian J. Maher, President and CEO of Prodigy Gold comments: "The continuing success of our 45,000 metre in-fill drilling program confirms our expectations: identifying areas for gold resource expansion and defining the extents of this large gold deposit. We are on schedule for releasing an updated resource estimate for Magino in late September and a revised PEA in October, paving the way for a full feasibility study in early 2012. With the recent addition of Fred Mason as our VP Operations, we now have the complete technical team in place to lead the company through the development process at Magino. Detailed metallurgical test work is underway, geotechnical drilling is largely completed and we will soon transition from in-fill drilling to exploratory drilling at Magino, seeking to identify the ultimate size of this robust gold system. With this rapid progress, the next several months promise to be exciting times for our company."
Drilling in the central (e.g. drill holes MA11-070, 071, 075 etc.) and southwest portions (e.g. drill holes MA11-046 through MA11-049) of the Magino gold deposit was designed to identify the margins of the system and to complete the drill hole database in areas not previously drilled. This program has been a success and will allow the completion of a revised resource estimate for this portion of the deposit. Given the average grade of the Magino deposit documented in the NI43-101 technical report, the results to date are as expected, bracketing the average grade of the deposit and identifying areas for significant resource expansion.
| Drill Hole |
From |
To |
Length |
Azimuth |
Dip (angle |
Est. True |
From (Depth |
To (Depth |
Grade 40 |
|||||||||||||||||||||||||||
| MA11-023 | 238.0 | 255.0 | 17.0 | 166 | -50 | 12.9 | 182.3 | 195.3 | 0.62 | |||||||||||||||||||||||||||
| 277.0 | 294.0 | 17.0 | 12.9 | 212.2 | 225.2 | 0.66 | ||||||||||||||||||||||||||||||
| MA11-024 | 15.0 | 124.0 | 109.0 | 167 | -49 | 82.8 | 11.5 | 95.0 | 0.63 | |||||||||||||||||||||||||||
| MA11-025 | 14.0 | 151.0 | 137.0 | 166 | -50 | 104.1 | 10.7 | 115.7 | 0.53 | |||||||||||||||||||||||||||
| including | 104.0 | 135.0 | 31.0 | 23.6 | 79.7 | 103.4 | 1.20 | |||||||||||||||||||||||||||||
| MA11-046 | 18.0 | 146.0 | 128.0 | 165 | -50 | 97.3 | 13.8 | 111.8 | 0.39 | |||||||||||||||||||||||||||
| MA11-047 | 12.4 | 59.0 | 46.6 | 164 | -48 | 35.5 | 9.5 | 45.2 | 0.36 | |||||||||||||||||||||||||||
| MA11-048 | 14.0 | 92.0 | 78.0 | 154 | -47 | 59.3 | 10.7 | 70.5 | 0.37 | |||||||||||||||||||||||||||
| MA11-049 | 69.0 | 150.0 | 81.0 | 164 | -50 | 61.6 | 52.9 | 114.9 | 1.11 | |||||||||||||||||||||||||||
| MA11-050 | 276.0 | 299.0 | 23.0 | 165 | -51 | 17.5 | 211.4 | 229.0 | 1.20 | |||||||||||||||||||||||||||
| MA11-051 | 201.0 | 221.0 | 20.0 | 172 | -49 | 15.2 | 154.0 | 169.3 | 1.19 | |||||||||||||||||||||||||||
| MA11-055 | 53.0 | 229.0 | 176.0 | 167 | -49 | 40.6 | 175.4 | 0.74 | ||||||||||||||||||||||||||||
| 245.0 | 280.0 | 35.0 | 187.7 | 214.5 | 1.84 | |||||||||||||||||||||||||||||||
| MA11-056 | 30.0 | 134.0 | 104.0 | 167 | -50 | 79.0 | 23.0 | 102.6 | 1.01 | |||||||||||||||||||||||||||
| including | 43.0 | 79.0 | 36.0 | 27.4 | 32.9 | 60.5 | 2.33 | |||||||||||||||||||||||||||||
| MA11-057 | 172.5 | 294.0 | 121.5 | 164 | -49 | 92.3 | 132.1 | 225.2 | 0.85 | |||||||||||||||||||||||||||
| including | 256.0 | 294.0 | 38.0 | 28.9 | 196.1 | 225.2 | 1.48 | |||||||||||||||||||||||||||||
| MA11-058 | 5.0 | 21.0 | 16.0 | 167 | -50 | 12.2 | 3.8 | 16.1 | 1.18 | |||||||||||||||||||||||||||
| MA11-059 | 52.0 | 79.4 | 27.4 | 166 | -50 | 20.8 | 39.8 | 60.8 | 1.06 | |||||||||||||||||||||||||||
| MA11-061 | 7.6 | 172.0 | 164.4 | 165 | -49 | 124.9 | 5.8 | 131.8 | 0.52 | |||||||||||||||||||||||||||
| including | 101.0 | 151.0 | 50.0 | 38.0 | 77.4 | 115.7 | 1.07 | |||||||||||||||||||||||||||||
| MA11-062 | 18.4 | 116.0 | 97.7 | 165 | -50 | 74.2 | 14.1 | 88.9 | 0.36 | |||||||||||||||||||||||||||
| MA11-063 | 17.2 | 52.0 | 34.8 | 165 | -48 | 26.4 | 13.2 | 39.8 | 1.34 | |||||||||||||||||||||||||||
| 107.0 | 191.0 | 84.0 | 63.8 | 82.0 | 146.3 | 0.71 | ||||||||||||||||||||||||||||||
| MA11-064 | 139.0 | 191.0 | 52.0 | 165 | -52 | 39.5 | 106.5 | 146.3 | 0.94 | |||||||||||||||||||||||||||
| including | 179.0 | 190.0 | 11.0 | 8.4 | 137.1 | 145.5 | 3.87 | |||||||||||||||||||||||||||||
| MA11-065 | 31.0 | 82.0 | 51.0 | 165 | -50 | 38.8 | 23.7 | 62.8 | 0.42 | |||||||||||||||||||||||||||
| MA11-066 | 29.0 | 50.0 | 21.0 | 166 | -52 | 16.0 | 22.2 | 38.3 | 0.74 | |||||||||||||||||||||||||||
| MA11-067 | NSV | NSV | NSV | 162 | -48 | NSV | NSV | NSV | NSV | |||||||||||||||||||||||||||
| MA11-068 | 60.0 | 98.0 | 38.0 | 163 | -48 | 28.9 | 46.0 | 75.1 | 1.39 | |||||||||||||||||||||||||||
| MA11-069 | 0.0 | 87.9 | 87.9 | 172 | -50 | 66.8 | 0.0 | 67.3 | 0.42 | |||||||||||||||||||||||||||
| 94.0 | 103.0 | 9.0 | 6.8 | 72.0 | 78.9 | 1.83 | ||||||||||||||||||||||||||||||
| MA11-070 | 6.9 | 123.8 | 116.9 | 167 | -50 | 88.8 | 5.3 | 94.8 | 0.42 | |||||||||||||||||||||||||||
| MA11-071 | 22.0 | 74.0 | 52.0 | 166 | -46 | 39.5 | 16.9 | 56.7 | 0.47 | |||||||||||||||||||||||||||
| MA11-072 | 28.6 | 35.0 | 6.4 | 163 | -50 | 4.9 | 21.9 | 26.8 | 0.93 | |||||||||||||||||||||||||||
| 109.0 | 137.0 | 28.0 | 21.3 | 83.5 | 104.9 | 0.76 | ||||||||||||||||||||||||||||||
| MA11-073 | 190.0 | 285.0 | 95.0 | 163 | -50 | 72.2 | 145.5 | 218.3 | 0.88 | |||||||||||||||||||||||||||
| including | 219.0 | 285.0 | 66.0 | 50.2 | 167.8 | 218.3 | 1.05 | |||||||||||||||||||||||||||||
| MA11-074 | 131.0 | 184.0 | 53.0 | 165 | -48 | 40.3 | 100.3 | 140.9 | 1.09 | |||||||||||||||||||||||||||
| MA11-075 | 33.3 | 84.0 | 50.7 | 166 | -48 | 38.5 | 25.5 | 64.3 | 0.48 | |||||||||||||||||||||||||||
| MA11-076 | NSV | NSV | NSV | 166 | -51 | NSV | NSV | NSV | NSV | |||||||||||||||||||||||||||
| MA11-077 | 134.0 | 201.0 | 67.0 | 165 | -48 | 50.9 | 102.6 | 154.0 | 1.14 | |||||||||||||||||||||||||||
| MA11-078 | 53.0 | 106.0 | 53.0 | 161 | -50 | 40.3 | 40.6 | 81.2 | 1.27 | |||||||||||||||||||||||||||
| 188.0 | 203.0 | 15.0 | 11.4 | 144.0 | 155.5 | 1.35 | ||||||||||||||||||||||||||||||
| MA11-079 | 29.0 | 69.0 | 40.0 | 169 | -50 | 30.4 | 22.2 | 52.9 | 0.68 | |||||||||||||||||||||||||||
| MA11-080 | 14.0 | 56.0 | 42.0 | 161 | -46 | 31.9 | 10.7 | 42.9 | 1.35 | |||||||||||||||||||||||||||
| MA11-081 | 154.0 | 336.0 | 182.0 | 162 | -48 | 138.3 | 118.0 | 257.4 | 0.82 | |||||||||||||||||||||||||||
| including | 316.0 | 336.0 | 20.0 | 15.2 | 242.1 | 257.4 | 2.66 | |||||||||||||||||||||||||||||
| MA11-082 | 165.0 | 236.0 | 71.0 | 159 | -47 | 54.0 | 126.4 | 180.8 | 1.04 | |||||||||||||||||||||||||||
| MA11-083 | 158.0 | 326.0 | 168.0 | 163 | -48 | 127.7 | 121.0 | 249.7 | 1.00 | |||||||||||||||||||||||||||
| 374.0 | 382.0 | 8.0 | 6.1 | 286.5 | 292.6 | 3.88 | ||||||||||||||||||||||||||||||
| 433.0 | 455.0 | 22.0 | 16.7 | 331.7 | 348.5 | 1.16 | ||||||||||||||||||||||||||||||
| MA11-084 | 65.0 | 137.0 | 72.0 | 166 | -69 | 54.7 | 49.8 | 104.9 | 0.72 | |||||||||||||||||||||||||||
| MA11-085 | 31.0 | 53.0 | 22.0 | 153 | -79 | 16.7 | 23.7 | 40.6 | 0.32 | |||||||||||||||||||||||||||
About Prodigy Gold: Prodigy Gold Inc. (PDG: TSX.V) is currently evaluating the development of the Magino mine gold project in Ontario as an open-pit mining opportunity with the potential for deeper, higher grade gold production. The Magino project contains Indicated gold resources of 1,924,200 ounces grading 1.16 gpt gold (51.6 million tonnes), and 587,100 ounces of Inferred gold resources grading 1.04 gpt gold (17.5 million tonnes). A Preliminary Economic Assessment (PEA) of the project shows a pre-tax NPV of $351 million and an IRR of 49% using a 5% discount rate (available on SEDAR or Prodigy's web site). The proposed operation would have an average annual gold output of over 166,000 ounces a year during a nine year project life. Total gold production is estimated to be 1.50 million ounces at cash costs of approximately US$496 (Cdn$521) per ounce. Please note: mineral resources that are not mineral reserves do not have demonstrated economic viability.
A full feasibility study for the proposed open pit mining project at Magino is scheduled for early 2012. Bringing the Magino mine project through the feasibility process and towards production, coupled with the exploration potential of our Beardmore-Geraldton exploration properties, are the catalysts to growing Prodigy Gold and building substantial value for Prodigy shareholders: Today's Discovery, Tomorrow's Future.
All scientific and technical information for the Magino project has been reviewed and approved by Tom Pollock, P.Geo., Prodigy Gold’s Vice President – Exploration, who is a qualified person under the definitions established by National Instrument 43-101. Drill core at Magino is boxed, covered, and sealed at the drill rig and moved to the Prodigy logging and sample preparation facilities by Prodigy Gold personnel. The core is then split down the centre using a typical table fed circular rock saw normally at one metre intervals. One half of the core is sent for assay to ALS Chemex, 2090 Riverside Dr., Timmins, ON, P4R 0A2, while the other half is returned to the core box and stored at Prodigy’s sampling facility in a secure, fenced off, area. Prodigy QA/QC procedures include the regular use of blanks, standards and duplicate samples in addition to sending 10% of the samples off to a second lab for check assays. Samples assaying > 3.0 gpt gold are automatically re-assayed by the metallic screen method. Gold assays greater than 40 gpt are capped at 40 gpt when calculating composite intervals in drill holes. Drill holes are directed as much as possible perpendicular to the strike and dip of the mineralization at Magino. As a rough estimate the true thickness of the above intercepts is approximately 76%.
On behalf of the Board of Directors
Brian J. Maher
President
and Chief Executive Officer
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Magino mine property and other future plans, objectives or expectations of Prodigy Gold Incorporated (the "Company") are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation. Neither 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.