GREY:KXLAF - Post by User
Post by
bil40on Nov 04, 2011 8:01pm
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Post# 19211457
Expert Analysis
Expert AnalysisExpert Analysis
Tara Hassan, National Bank Financial (11/3/11) "Prodigy Gold Inc. issued an updated global resource estimate for its flagship Magino project (Ontario), posting a notable and larger-than-expected increase. Total resources (Indicated and Inferred) have increased to 3.9 Moz Au, up 55.2% over the February 2011 estimate. . .given the substantial increase in resources, we expect the company will evaluate an expansion of the proposed open-pit project. . .despite the sizable boost in resources, additional growth is likely; Prodigy has outlined a number of areas of upside within and around the pit as well as the Lovell Lake area as potential areas for resource additions. . .we reiterate our Outperform rating."
Joe Mazumdar, Haywood Securities (11/1/11) Prodigy Gold Inc. presents the investor with an opportunity to invest in a "local" play (Magino gold project in northwestern Ontario) leveraged to the global events that we believe will return gold to its long-term positive trend into the future; the opportunities exist to rerate the project through derisking and adding resource. We have modeled a ~200-Koz-per-year gold production profile at a cash cost of $510–515/oz over an 8-year mine life at the Magino gold project. Life of mine payable gold production of 1.63 Moz will be sourced from an owner-operated, open-pit operation. . .we estimate commissioning in Q315."