Prodigy and MPH Resources Sign Option Agreement on Magino Extension
09 Februar 2011 - 4:23PM
Marketwired
Prodigy Gold Incorporated (TSX VENTURE: PDG) is pleased to announce
that it has signed an option agreement with MPH Resources Corp.
that allows Prodigy to earn up to a 100% interest in the 112 ha
Gould Gold property (the "Property") located adjacent to the Magino
Mine gold property in the Township of Finan, Ontario. The Magino
property is held by Prodigy's wholly-owned subsidiary, Golden Goose
Resources Inc. The Gould Gold property covers an extensive sequence
of gabbroic intrusive and metavolcanic rocks along a prospective
structural trend that is parallel to the Magino gold deposit. In
addition to the gold exploration potential, the property also gives
Prodigy greater flexibility in locating infrastructure related to
the possible future development of the Magino Mine.
The principal terms of the option agreement, subject to TSXV
approval, are as follows:
-- Prodigy will pay MPH $10,000 and issue to MPH 50,000 common shares of
Prodigy ("Shares") following acceptance by the TSXV of this transaction;
-- Prodigy can earn a 60% interest in the Property within two years of TSXV
approval by paying MPH an additional $35,000, issuing MPH an additional
150,000 Shares and incurring expenditures of $250,000;
-- Prodigy can earn a 100% interest in the Property within three years of
TSXV approval by paying MPH an additional $25,000 ($70,000 in
aggregate), issuing MPH an additional 200,000 Shares (400,000 Shares in
aggregate), incurring additional expenditures of $500,000 ($750,000 in
aggregate) and granting MPH a net smelter returns royalty of 1%, which
may be repurchased for $1,000,000;
-- The Property is subject to an additional 2% net smelter returns royalty
held by prior owners, half of which may be acquired for $1,000,000.
About Prodigy Gold: Prodigy Gold Incorporated (TSX VENTURE: PDG)
was created by unifying the assets of two Canadian Junior
exploration companies: Kodiak Exploration Limited and Golden Goose
Resources Inc. Prodigy is currently evaluating the Magino Mine
project in Ontario as an open-pit mining opportunity with the
potential for deeper, higher grade gold production The company is
producing an updated N.I. 43-101 compliant resource estimate for
Magino that will serve as the basis for a Preliminary Economic
Analysis (PEA), establishing the economic parameters of an open pit
mining operation. The PEA is expected to lead to a full feasibility
study, projected for early in 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,
building substantial value for Prodigy shareholders: Today's
Discovery, Tomorrow's Future.
The geological information for the Magino project has been
reviewed and approved by Tom Pollock, Prodigy Gold's Vice President
of Exploration, who is a qualified person under the definitions
established by National Instrument 43-101. Prodigy Gold QA/QC
procedures are as follows: Prodigy Gold channel samples are 5 cm
wide cut perpendicular to the strike of the vein and/or shear zone
from mapped alteration in the footwall continuously through the
vein and/or shear zone and into mapped alteration in the hanging
wall. Channels are cut with a motorized circular saw to a depth of
10 cm and removed with a hammer. Channel sample spacing is
nominally every 20m along strike, dependent on outcrop size and
geometry. Sample intervals are selected according to geologic
contacts and visible mineralization, placed into a sample bag, and
shipped to the assay lab for quantitative analysis of select
elements. Prodigy Gold drill cores are split down the center with a
typical table feed circular rock saw or are split with a hydraulic
slitting device. Sample intervals are selected according to
geologic contacts, visible mineralization, and alteration, placed
into sample bags and shipped to the assay lab where they are
quantitatively analyzed for select elements. Drill cores are boxed,
covered, and sealed at the drill rig and moved to the Prodigy Gold
logging and sample preparation facilities by Prodigy Gold
personnel. Prodigy Gold angle core holes are directed perpendicular
to the mapped dip of the vein therefore reported drill hole
intercepts approximate true thickness of the vein. All Prodigy Gold
samples are currently being assayed by Chemex ALS, 2090 Riverside
Dr, Timmins, ON P4R 0A2. Blank and standard samples are routinely
submitted with all sample batches sent to the lab for assay.
Samples are routinely sent to other labs for additional checks.
On behalf of the Board of Directors
Brian J. Maher, President and Chief Executive Officer
This release may contain forward-looking statements or
statements that relate to programs that involve a number of risks
and uncertainties. Actual events or results could differ materially
from the Company's expectations and projections.
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.
Contacts: Prodigy Gold Incorporated Brian J. Maher President and
Chief Executive Officer 1-604-688-9006 1-604-688-9029 (FAX)
ir@prodigygold.com www.prodigygold.com
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