Magino Drilling Extends Gold Zone South of Resource, Defines Higher Grade Zones: 147 metres grading 1.24 gpt Au, 47 metres grading 3.05 gpt Au
Magino Drilling Extends Gold Zone South of Resource, Defines Higher Grade Zones: 147 metres grading 1.24 gpt Au, 47 metres grading 3.05 gpt Au
Vancouver, British Columbia CANADA, September 27, 2011 /FSC/ - Prodigy Gold Inc. (PDG - TSX Venture, KX3 - FWB), is pleased to announce that recent resource expansion drilling from its 100% owned Magino mine gold project in Ontario has intercepted significant gold mineralization in two areas: Southwest of the known gold resource and multiple zones of higher grade gold mineralization including the northeast portion of the Magino gold deposit. In the northeast area, drill hole MA11-125 cut 147 metres grading 1.24 gpt gold including 47 metres grading 3.05 gpt gold which also includes 7.8 metres grading 13.50 gpt gold (see plan map below and drill results table below). This gold mineralization is within the footprint of the known Magino gold resource and proposed open pit. As part of the in-fill drilling program, this drill hole will help augment and upgrade the known Magino resource while identifying promising targets for deeper exploration below the proposed open pit. A complete table of drill results is shown below.
Resource expansion drilling has been successful at the southwest edge of the Magino gold deposit. Drill hole MA11-122 intercepted 140 metres grading 0.82 gpt gold including 21 metres grading 3.08 gpt gold. This drill hole, when combined with other drilling, defines a zone of gold mineralization over a vertical range of 300 metres (please see cross section and plan map below). Located at the southwest edge of the known gold resource, the drilling suggests that the deposit can be expanded to the southwest and that significant volumes of gold mineralization may be present in this direction. The higher grades seen in drill hole MA11-122, at vertical depths between 200 and 300 metres, also suggest that a new zone of higher grade gold mineralization may be present southwest of the deposit, within the range of the open pit mining. Nearby drill hole MA11-106, also intercepted higher grades including 21 metres grading 3.46 gpt gold is within the proposed pit shell. These drill results at the southwest end of the Magino gold deposit are generating new drilling targets, both shallow and deep, for Prodigy Gold.
Completion of the updated resource estimate will be deferred until October to enable us to incorporate these recent, material results. The revised resource estimate will be followed by an update to the Magino Preliminary Economic Assessment (PEA) in November/December.
To view the map associated with this release, click on the link below:
https://www.usetdas.com/pr/prodigymap09272011.jpg
Cross Section 1375SW, Magino Mine Project. Please note that this section is at the extreme southwest end of the existing resource model as shown by the limited number of resource blocks in the section. Also, only a tiny portion of the proposed open pit, less than 30 metres in depth, cuts through the section. Virtually the entire 300 metre vertical extent of gold mineralization identified in drilling is higher grade than the resource cut off grade and is highlighted by thick intervals of good grade gold mineralization in drill hole MA11-122. The Magino gold deposit is open at depth and along strike southwest of this section.
To view the map associated with this release, click on the link below:
https://www.usetdas.com/pr/prodigymap09272011-2.jpg
Drill hole plan map, Magino Mine Project. Note the three areas of concentrated drilling including the "fence" of drill holes located at the southwest edge of the proposed open pit that includes drill hole MA11-122.
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Drill From To Length Azimuth Dip Est. From To Grade
Hole (m) (m) (m) (360deg)(angle True (Depth (Depth 40
below Thick Below Below gpt
surface) ness Surface Surface Capped
(metres)(metres))(metres)) (gpt
gold)
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MA11-
092 48.0 110.0 62.0 162 -48 47.1 36.8 84.3 0.68
170.0 271.0 101.0 * * 76.8 130.2 207.6 0.54
MA11-
106 12.1 32.0 19.9 166 -49 15.1 9.3 24.5 0.38
81.0 102.0 21.0 * * 16.0 62.0 78.1 3.46
113.0 231.0 118.0 * * 89.7 86.6 176.9 0.57
MA11-
114 75.0 83.0 8.0 165 -49 6.1 57.5 63.6 0.85
100.0 147.0 47.0 * * 35.7 76.6 112.6 0.84
173.0 184.0 11.0 * * 8.4 132.5 140.9 0.55
MA11-
118 105.0 127.0 22.0 167 -50 16.7 80.4 97.3 0.56
220.0 272.0 52.0 * * 39.5 168.5 208.4 0.42
MA11-
119 167.0 280.6 113.6 161 -49 86.3 127.9 214.9 0.75
MA11-
120 209.0 515.0 306.0 163 -49 232.6 160.1 394.5 0.63
includes237.0 265.0 28.0 * * 21.3 181.5 203.0 1.23
includes271.0 306.0 35.0 * * 26.6 207.6 234.4 1.03
includes340.0 432.0 92.0 * * 69.9 260.4 330.9 0.99
MA11-
122 261.0 401.0 140.0 162 -48 106.4 199.9 307.2 0.82
includes272.0 289.0 17.0 * * 12.9 208.4 221.4 1.53
includes359.0 380.0 21.0 * * 16.0 275.0 291.1 3.08
MA11-
123 248.0 370.0 122.0 159 -50 92.7 190.0 283.4 0.45
includes324.0 334.0 10.0 * * 7.6 248.2 255.8 2.12
MA11-
125 184.0 331.0 147.0 170 -49 111.7 140.9 253.5 1.24
includes341.0 388.0 47.0 * * 35.7 261.2 297.2 3.05
also includes
350.0 360.2 10.2 * * 7.8 268.1 275.9 13.50
MA11-
127 76.0 125.0 49.0 162 -51 37.2 58.2 95.8 0.46
223.0 322.0 99.0 * * 75.2 170.8 246.7 0.54
includes293.0 298.0 5.0 * * 3.8 224.4 228.3 3.52
includes317.0 322.0 5.0 * * 3.8 242.8 246.7 2.61
336.0 364.0 28.0 * * 21.3 257.4 278.8 2.12
includes350.0 357.0 7.0 * * 5.3 268.1 273.5 7.62
MA11-
128 316.0 346.0 30.0 163 -49 22.8 242.1 265.0 0.83
MA11-
131 72.0 274.0 202.0 166 -51 153.5 55.2 209.9 0.49
includes218.0 231.0 13.0 * * 9.9 167.0 176.9 2.45
310.0 361.0 51.0 * * 38.8 237.5 276.5 0.85
includes325.0 358.0 33.0 * * 25.1 249.0 274.2 1.19
445.0 479.0 34.0 * * 25.8 340.9 366.9 0.44
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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. The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary assessment will be realized.
A full feasibility study for the proposed open pit mining project at Magino is scheduled for completion in mid 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
FOR FURTHER INFORMATION, PLEASE CONTACT:
Prodigy Gold Incorporated
Email: ir@prodigygold.com
Website:
www.prodigygold.com
tel.: 1-604-688-9006
Fax: 1-604-688-9029
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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Source: Prodigy Gold Inc. (TSX-V: PDG)
https://www.www.prodigygold.com
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