Prodigy Reports Indicated Gold Resources of 1,924,200 Ounces and Inferred Gold Resources of 587,100 Ounces at Magino
28 Februar 2011 - 4:38PM
Marketwired Canada
Prodigy Gold Incorporated (TSX VENTURE:PDG) is pleased to announce the release
of an updated NI 43-101 compliant mineral resource estimate for its flagship
Magino gold mine project in northern Ontario. The updated mineral resource
estimate, reported within a conceptual pit shell, was completed by Snowden
Mining Industry Consultants Inc. (Snowden) of Vancouver, British Columbia. Using
a 0.35 gpt gold cutoff, the Magino deposit contains Indicated gold resources of
1,924,200 ounces grading 1.16 gpt gold (51.6M tonnes), a more than four-fold
increase in Measured and Indicated gold resources over the previous resource
estimate that was focused on higher grade underground mineable zones (InnovExplo
Technical Report issued 28 May, 2009). Using the same cut off grade (0.35 gpt
gold), the Magino deposit is also estimated to contain 587,100 ounces of
Inferred gold resources grading 1.04 gpt gold (18.3M tonnes). A complete
Technical Report will be filed on SEDAR within 45 days. The resource estimate is
set out in the table below and reported at a series of cut off grades.
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Indicated
Cut off Grade
(gpt Gold) Tonnes (gpt Gold) Grams Gold Ounces Gold
2.00 6,991,000 2.86 19,969,200 642,000
1.50 11,635,000 2.41 28,036,500 901,400
1.00 20,192,000 1.90 38,336,900 1,232,600
0.75 31,532,000 1.53 48,105,600 1,546,600
0.50 46,939,000 1.23 57,785,400 1,857,800
0.35 51,633,000 1.16 59,850,000 1,924,200
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Inferred
Cut off Grade
(gpt Gold) Tonnes (gpt Gold) Grams Gold Ounces Gold
2.00 1,807,000 2.79 5,043,900 162,200
1.50 2,711,000 2.43 6,599,300 212,200
1.00 5,854,000 1.77 10,343,100 332,500
0.75 10,113,000 1.39 14,017,800 450,700
0.50 15,579,000 1.12 17,422,900 560,200
0.35 17,494,000 1.04 18,260,400 587,100
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Prodigy believes that the revised Magino resource estimate is significant for
several reasons:
-- Prodigy anticipates that the new resource estimate will have a positive
impact on the planned, upcoming Preliminary Economic Assessment (PEA),
due in April 2011.
-- The Magino project has a good average gold grade by open pit mining
standards and locally exhibits zones of higher grade gold mineralization
that extend to the surface. This geometry should enhance the pit
optimization studies that are part of the ongoing PEA process. The PEA
will examine mining and processing costs in detail and utilize a lower
gold price for the base case economic analysis.
-- Deeper gold mineralization, drilled to a depth of only 600 metres and
completely open, shows that the Magino gold system has the potential to
grow further with additional exploration, not only along strike but at
depth as well. The potential for deeper, high grade gold mineralization,
has not been tested to date.
-- In-fill drilling, guided in part by the results of this resource
estimate, can add additional gold resources to Magino. Data from the on-
going in-fill drilling program will be incorporated into a further
update to the project gold resource estimate as Prodigy moves the Magino
project towards full feasibility.
-- The overall size of the Magino gold system as documented by this updated
resource estimate confirms the growing gold budget of the Goudreau-
Lochalsh district and underscores the exploration upside of the area.
Mineral Resource Estimate:
Information in this News Release that relates to Mineral Resource Estimate has
been reviewed and approved by Andrew F. Ross PGeo, FAusIMM, CPGeo, who is a
Qualified Person under the definitions established by National Instrument
43-101. He is independent of Prodigy Gold and an Associate of Snowden Mining
Industry Consultants Inc., Vancouver, British Columbia.
As previously reported, Prodigy Gold has focused its geological program on
assessment of the wide zones of quartz-pyrite-sericite altered granodiorite that
host the former underground mine workings at Magino. During 2010, Prodigy
relogged existing core, collected samples of previously intact core to provide
fuller coverage of sampling throughout the alteration zones, and updated the
drill hole and sample database accordingly to ensure consistency. Drilling
commenced by Prodigy in 2011 has not been included in the current mineral
resource estimate.
The area of interest covers 1,350 metres of the 075 degree trending Webb Lake
granodiorite stock and alteration zones that aggregate up to 300 metres in
width, and dip steeply to depths of at least 600 metres. At Magino the Webb Lake
stock is covered by up to 30 metres of fluvio-glacial material. The felsic and
mafic volcanic country rock surrounding the stock does contain examples of low
grade mineralization encountered by drilling, however the main focus remains the
broad low-grade alteration zones hosted by granodiorite. A late stage diabase
dyke transects the Webb Lake stock (please see three dimensional geologic model
shown below).
The database used by Snowden contains 386 surface diamond drill holes (total of
76,000 metres; average length 200 metres) and 980 underground diamond drill
holes (total of 60,200 metres; average length 60 metres). Ninety-four surface
drill holes were completed in the period from 1997 to 2009 and comprise HQ and
NQ diameter core. All underground drill holes were completed in the period 1984
to 1991 and are dominated by AQ diameter core with some BQ diameter core,
clearly clustered around the underground workings and, in some cases
subsequently mined out. Since the sample volumes of the underground drill cores
are markedly less than the surface drill cores, Snowden elected to use only the
assays from the surface drill holes in the grade estimates. Geological
information from the underground drill cores however was used to develop the
geological interpretation.
A GEMS block model with cell dimensions of 5 metres (X), 5 metres, (Y) 5 metres
(Z), was coded to reflect the surface topography, base of overburden, Webb Lake
granodiorite contacts, and the late stage diabase dyke. A three dimensional
wireframe model of the underground development and stopes was stored as percent
volumes in the block model to ensure that the reported mineral resource
estimates are depleted for prior mining.
To view the map accompanying this press release please visit the following link:
http://media3.marketwire.com/docs/prodmap228.pdf
A threshold grade of 0.1 gpt gold was found to generally identify the broad
zones of mineralization in the drill cores. This grade threshold was then used
to generate a three dimensional categorical indicator model of the mineralized
zones, after describing the mineralization continuity by indicator variography.
The extents of the mineralized zones were constrained by ensuring any unsampled
drill hole intervals were assigned a "zero" gold grade. Mineralized blocks were
further limited by ensuring that the amount of extrapolation was set to a
maximum of 60 metres from samples and that any blocks not achieving an 80%
probability (of being at least 0.1 gpt gold) were subsequently re-categorized as
"barren".
Gold grades were estimated from one metre length-weighted un-cut composites into
the interpreted mineralized blocks by multiple indicator kriging, using
parameters established from multiple indicator variography. The impact of
clustered high gold grades was controlled by using a combination of "sample per
hole" restrictions, octant search and maximum distance extrapolation
restrictions for grades above 7 gpt and 77 gpt gold. Any target blocks that
remained uninformed after the first pass search were identified as "Inferred".
Grades for these blocks were subsequently estimated using a broader search
ellipse. Minimum and maximum numbers of composites used for estimation were set
to 12 and 40 per block respectively. Discretisation was set to 3 x 3 x 3.
Density factors of 2.87 and 2.77 gm/cc were assigned to granodiorite and mafic -
felsic country rock.
In order to constrain the resource estimate, a conceptual pit shell was
developed using Whittle software to identify those parts of the block model that
have reasonable prospects for eventual economic extraction. Parameters used
were: 50 degree (overall pit slope); $1.25 /tonne mining cost; $1400 per oz gold
price; 95% process recovery; $7 /tonne process cost. A detailed pit model using
more selective criteria will be used for the PEA.
After considering the distribution of composites in the deeper parts of the
deposit through the examination of kriging variance, Snowden has applied an
Inferred classification to all blocks in the mineral resource that lie beyond
depths of 300 metres but within the limit of the conceptual pit shell.
Above a depth of 300 metres, resource blocks that lie within the median
indicator range of continuity and have been estimated by at least 12 samples
have been classified as Indicated resource blocks. Snowden has not classified
any Measured blocks after considering the uncertainty in geological
interpretation, the high nugget environment, short ranges of gold grade
continuity, use of assigned densities and the current drill spacing. Snowden
notes that Prodigy Gold has an ongoing drill program to in-fill the existing
drill pattern.
Mineral resources are not mineral reserves and do not have demonstrated economic
viability. There is no certainty that all or any part of the mineral resource
will be converted into mineral reserves. In the above mineral resource table
there may be inconsistencies due to rounding. Estimates are rounded since the
figures are not precise calculations.
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 a Preliminary Economic Analysis (PEA), establishing the economic
parameters of an open pit mining operation at Magino. The PEA is expected to
lead to a full feasibility study, projected 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, building substantial
value for Prodigy shareholders: Today's Discovery, Tomorrow's Future.
All scientific and technical information in this news release, except for the
section titled "Mineral Resource Estimate", has been reviewed and approved by
Tom Pollock, P. Geo., 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 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 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.
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