Prodigy Drills 143m Grading 1.54 gpt Gold at Magino
14 April 2011 - 4:37PM
Marketwired Canada
Prodigy Gold Incorporated (TSX VENTURE:PDG)(FRANKFURT:KX3) 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. Highlights
include drill MA11-006 which intercepted 143 metres grading 1.54 gpt gold
including 67 metres grading 2.12 gpt gold. Higher grades were intercepted in
drill hole MA11-005: 38 metres grading 2.11 gpt gold including 25 metres grading
3.13 gpt gold. The grades and widths seen in these two drill holes are
consistent with earlier announced in-fill drill holes and continue to expand the
known zone of gold mineralization within the proposed open pit modeled in the
recently announced Preliminary Economic Assessment (PEA) (April 4, 2011).
Prodigy Gold sampling protocol mandates a metallic screen assay for any sample
that produces a fire assay greater than 3 gpt gold. Revision to the sampling
protocol now requires that any sample with visible gold is also subjected to a
metallic screen assay. As a result, Prodigy has received new metallic screen
assays for previously reported drill hole MA11-004 that have resulted in a
recalculation and increase in the composite grade to 261 metres grading 1.32 gpt
gold (previously reported as 261 metres grading 1.13 gpt gold, March 16, 2011).
A table with all assay results including the restated data for hole MA11-004 is
below.
Drill Hole From (metres) To (metres) Length (metres) Grade (gpt gold)
--------------------------------------------------------------------------
MA11-004 122.0 383.0 261.0 1.32
Including: 134.4 239.0 104.6 2.06
Including: 271.9 340.0 68.1 2.69
Including: 308.1 308.9 0.8 40.00(i)
Including: 315.5 316.0 0.5 40.00(i)
600.0 703.0 103.0 1.07
Including: 600.0 623.0 23.0 2.34
MA11-005 131.0 177.0 45.0 0.37
192.0 274.0 82.0 0.90
Including: 199.0 220.0 21.0 2.26
309.0 347.0 38.0 2.11
Including: 321.0 347.0 26.0 3.17
360.0 411.1 51.1 1.38
373.0 393.0 20.0 3.13
MA11-006 123.0 266.0 143.0 1.54
Including: 123.0 190.0 67.0 2.12
295.0 305.0 10.0 1.16
529.0 652.0 123.0 0.36
(i)Note: All gold assays greater than 40 gpt gold are capped at 40 gpt
when calculating composite intervals.
The Magino in-fill drilling program now consists of four diamond drill rigs
targeting areas for resource expansion within the proposed open pit. To date,
Prodigy has completed 18 drill holes totaling 6,901 metres of the planned 20,000
metre drill program. When completed, the results of the in-fill drilling program
will be used to update the Magino gold resource estimate and PEA later this
year. A drill hole location map is shown below.
Note: To view "Magino Drilling map", please click the following link:
http://media3.marketwire.com/docs/Prodigy_map_0414.pdf
Magino mineral resource update: A NI 43-101 compliant technical report entitled
"Prodigy Gold Incorporated: Mineral Resource Estimate, Magino Gold Project, Ste.
Sault Marie Mining District, Ontario" was filed on SEDAR yesterday, April 13th,
and will also be available on the company's web site.
About Prodigy Gold: Prodigy Gold Inc. (TSX VENTURE:PDG)(FRANKFURT:KX3) 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)
(Available on SEDAR or Prodigy's web site). A Preliminary Economic Assessment
(PEA) of the project shows a pre-tax NPV of $351million and an IRR of 49% using
a 5% discount rate (please see Prodigy press release dated April 4, 2011). 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 greater than 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.
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