Prodigy Drilling Identifies Areas for Open Pit Expansion at Magino: 128 metres grading 1.37 gpt Gold
Prodigy Drilling Identifies Areas for Open Pit Expansion at Magino: 128 metres grading 1.37 gpt Gold
Jun. 20, 2011 (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 in the western portion of the proposed open pit gold mine (Prodigy Magino PEA, March 31, 2011) has identified specific areas where the proposed open pit can be redesigned to capture additional newly identified gold mineralization. Drill hole MA11-042 cut 128 metres grading 1.37 gpt gold (section 1180SW) including 77 metres grading 1.90 gpt gold, in an area where the proposed open pit was designed to depths of only 150 metres (please see cross section below). The new drilling suggests that the open pit can be deepened and enlarged to exploit additional gold mineralization. The gold grade in drill hole MA11-042 is up to 35% higher than that shown in the resource model, demonstrating that in-fill drilling can locally increase the grade of portions of the known mineral resource (cross section location is shown on the accompanying drill hole location map).
To view the drill hole map, click on the link below or paste the link into your browser:
https://www.usetdas.com/maps/prodigy/pdgjune20002.jpg
Brian J. Maher, President and CEO of Prodigy Gold comments: "These drill results validate the premise of our in-fill drilling program: Expand the gold resource at Magino, increase the scale and scope of the proposed open pit mining operation and increase the quality and grade of the Magino gold resource. Results to date are achieving these goals and we look forward to completing the entire 45,000 metre resource expansion drilling program this summer".
Most of the drill results reported here are from shallower portions of the deposit but nonetheless perform the crucial role of filling in gaps in the drill database, setting the stage for a resource update latter this year. A complete table of drill results and a drill hole location map are shown below:
| Drill Hole |
|
From
(metres)
|
|
To
(metres)
|
|
Length
(metres)
|
|
Azimuth
(360 deg)
|
|
Dip
(angle below
surface)
|
|
Est. True
Thickness
(metres)
|
|
From
(Depth Below
Surface (metres))
|
|
To
(Depth Below
Surface (metres))
|
|
Grade
(gpt gold)
|
|
| MA11-011* |
|
37.0 |
|
62.0 |
|
25.0 |
|
164 |
|
-50.6 |
|
19.0 |
|
28.3 |
|
47.5 |
|
0.32 |
|
| MA11-020* |
|
188.0 |
|
201.0 |
|
13.0 |
|
167 |
|
-50.1 |
|
9.9 |
|
144.0 |
|
154.0 |
|
0.54 |
|
|
|
213.0 |
|
308.0 |
|
95.0 |
|
|
|
|
|
72.2 |
|
163.2 |
|
235.9 |
|
0.53 |
|
| MA11-026* |
|
19.0 |
|
89.0 |
|
70.0 |
|
171 |
|
-50.3 |
|
53.2 |
|
14.6 |
|
68.2 |
|
0.83 |
|
| MA11-027 |
|
98.0 |
|
129.0 |
|
31.0 |
|
164 |
|
-47.9 |
|
23.6 |
|
75.1 |
|
98.8 |
|
0.98 |
|
| MA11-028* |
|
76.0 |
|
97.0 |
|
21.0 |
|
165 |
|
-50.0 |
|
16.0 |
|
58.2 |
|
74.3 |
|
0.62 |
|
|
|
170.0 |
|
192.0 |
|
22.0 |
|
|
|
|
|
16.7 |
|
130.2 |
|
147.1 |
|
0.94 |
|
| MA11-029 |
|
nsv |
|
nsv |
|
nsv |
|
168 |
|
-49.5 |
|
nsv |
|
nsv |
|
nsv |
|
nsv |
|
| MA11-030* |
|
142.0 |
|
219.0 |
|
77.0 |
|
166 |
|
-50.9 |
|
58.5 |
|
108.8 |
|
167.8 |
|
0.77 |
|
| including |
|
163.0 |
|
208.0 |
|
45.0 |
|
|
|
|
|
34.2 |
|
124.9 |
|
159.3 |
|
1.25 |
|
| MA11-031 |
|
46.7 |
|
103.0 |
|
56.3 |
|
172 |
|
-48.4 |
|
nsv |
|
nsv |
|
nsv |
|
nsv |
|
| MA11-032* |
|
24.0 |
|
72.0 |
|
45.0 |
|
167 |
|
-50.2 |
|
34.2 |
|
18.4 |
|
55.2 |
|
0.73 |
|
| MA11-033 |
|
35.0 |
|
40.0 |
|
5.0 |
|
170 |
|
-50.6 |
|
3.8 |
|
26.8 |
|
30.6 |
|
0.50 |
|
| MA11-034* |
|
83.0 |
|
167.0 |
|
84.0 |
|
165 |
|
-50.3 |
|
63.8 |
|
63.6 |
|
127.9 |
|
0.62 |
|
| including |
|
105.0 |
|
138.0 |
|
33.0 |
|
|
|
|
|
25.1 |
|
80.4 |
|
105.7 |
|
1.17 |
|
| MA11-035 |
|
52.0 |
|
101.0 |
|
49.0 |
|
158 |
|
-49.4 |
|
37.2 |
|
39.8 |
|
77.4 |
|
0.50 |
|
| MA11-036* |
|
159.0 |
|
200.0 |
|
41.0 |
|
167 |
|
-49.7 |
|
31.2 |
|
121.8 |
|
153.2 |
|
0.64 |
|
| including |
|
174.0 |
|
194.0 |
|
20.0 |
|
|
|
|
|
15.2 |
|
133.3 |
|
148.6 |
|
1.00 |
|
| MA11-037* |
|
13.1 |
|
34.8 |
|
21.7 |
|
163 |
|
-48.8 |
|
16.5 |
|
10.0 |
|
26.7 |
|
0.63 |
|
|
|
56.0 |
|
94.0 |
|
38.0 |
|
|
|
|
|
28.9 |
|
42.9 |
|
72.0 |
|
1.15 |
|
| MA11-038* |
|
89.5 |
|
103.0 |
|
13.5 |
|
165 |
|
-49.1 |
|
10.3 |
|
68.5 |
|
78.9 |
|
1.54 |
|
| MA11-039 |
|
12.7 |
|
233.0 |
|
220.3 |
|
159 |
|
-49.6 |
|
167.4 |
|
9.7 |
|
178.5 |
|
0.28 |
|
| MA11-040* |
|
180.0 |
|
215.0 |
|
35.0 |
|
165 |
|
-50.1 |
|
26.6 |
|
137.9 |
|
164.7 |
|
1.18 |
|
| MA11-041* |
|
40.0 |
|
96.0 |
|
56.0 |
|
160 |
|
-51.5 |
|
42.6 |
|
30.6 |
|
73.5 |
|
0.65 |
|
| MA11-042* |
|
6.0 |
|
134.0 |
|
128.0 |
|
167 |
|
-47.5 |
|
97.3 |
|
4.6 |
|
102.6 |
|
1.37 |
|
| including |
|
53.0 |
|
130.0 |
|
77.0 |
|
|
|
|
|
58.5 |
|
40.6 |
|
99.6 |
|
1.90 |
|
| MA11-043* |
|
25.0 |
|
300.0 |
|
275.0 |
|
169 |
|
-50.3 |
|
209.0 |
|
19.2 |
|
229.8 |
|
0.32 |
|
| including |
|
197.0 |
|
255.0 |
|
58.0 |
|
|
|
|
|
44.1 |
|
150.9 |
|
195.3 |
|
0.69 |
|
| MA11-044* |
|
10.0 |
|
55.0 |
|
45.0 |
|
161 |
|
-48.0 |
|
34.2 |
|
7.7 |
|
42.1 |
|
0.50 |
|
| MA11-045* |
|
61.0 |
|
100.0 |
|
39.0 |
|
165 |
|
-50.2 |
|
29.6 |
|
46.7 |
|
76.6 |
|
1.03 |
|
| MA11-052* |
|
23.0 |
|
45.0 |
|
22.0 |
|
166 |
|
-48.4 |
|
16.7 |
|
17.6 |
|
34.5 |
|
1.04 |
|
| MA11-053 |
|
28.0 |
|
104.0 |
|
76.0 |
|
165 |
|
-46.6 |
|
57.8 |
|
21.4 |
|
79.7 |
|
0.32 |
|
| MA11-054* |
|
15.0 |
|
68.0 |
|
53.0 |
|
169 |
|
-55.2 |
|
40.3 |
|
11.5 |
|
52.1 |
|
1.00 |
|
"*" indicates that metallic screen assays are pending. Assays for drill hole MA11-023 to 025, MA11-046 to 051 and the remaining holes shown on the attached map are pending.
To view the drill hole map referred to above, click on the link below or paste the link into your browser:
https://www.usetdas.com/maps/prodigy/pdgjune20003.jpg
Pagwachuan Lake Property. The Pagwachuan Lake Property consists of 57 claims totaling approximately 11,500 hectares located 45 kilometres east of Geraldton, Ontario. The property was optioned from 52/86 Northwest Company Ltd. in an agreement dated 27 May, 2011. The property is located adjacent to Prodigy's Milestone project and contains numerous gold showings and potential drill targets. Prodigy has an option to earn a 70%interest in the property by making cash payments totalling $180,000 (on or before the 3rd anniversary of signing the agreement) and by incurring expenditures totalling $1,500,000 on or before the 4th anniversary of the effective date. Following completion of the 70% earn-in, a joint venture will be formed with each party contributing its proportional interest. If either party declines to participate, its interest will be reduced on a pro-rata basis. Should either party's interest be reduced to 10% or less, their interest will be reduced to a 5% Net Profits Interest (NPI); at this point the joint venture will terminate and the other party will become sole owner of the joint venture's assets subject to the NPI. Either party can withdraw from the joint venture at any time upon which the withdrawing party’s joint venture interest will be converted to a 3% Net Smelter Royalty (NSR). The remaining party assumes 100% of the withdrawing party’s interest in the joint venture and can buy back 2/3 of the NSR for $1,000,000 per percentage interest.
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 $351million 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 mineproperty 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.
Prodigy Gold Incorporated
Brian J. Maher
tel.: 1-604-688-9006
Fax: 1-604-688-9029
Email: ir@prodigygold.com
Website: www.prodigygold.com