Prodigy mentioned in Cannacord's Morning CoffeeProdigy Gold* (PDG : TSX-V :
.85), Net Change: -0.01, % Change: -1.16%, Volume: 761,688I'm a Prodigy. Canaccord Genuity Mining Analyst Wendell Zerb added Prodigy Gold to the Canaccord Genuity Focus List onFriday. The exploration and development company is focused on its 100%-owned Magino gold project, located in northwesternOntario. He views Magino as an above average, bulk mineable Au project with solid economic potential in an elevated Auenvironment. Sound project characteristics, including metallurgy, infrastructure, and the socio-political jurisdiction, allcontribute to the future potential for Magino's development. Further, Zerb believes the updated PEA for Magino (released inDecember 2011) validates a superior mine plan and project valuation. The Magino PEA, released in December 2011, was led byTetra Tech (Wardrop) and examines a 20,000-tonne-per-day, open-pit, conventional CIL operation with annual productionestimated at 249,000 oz Au per year at average LOM cash operating costs of US$461/oz Au over an 11-year mine life(producing a total 2.75 million ounces of gold). All costs are based on the assumption of contract mining which has the neteffect of lower capex and higher operating costs. Overall this PEA, as expected, was far superior to an April 2011 PEA forMagino that outlined a 15,000 tpd open pit, conventional CIL operation with average annual production estimated at 166,500 ozAu per year at average LOM cash operating costs of US$496/oz Au over a nine-year operating life (1.50 million ounces of goldtotal). Zerb notes it is also superior to his previous assumptions that were based on a 20,000 t/d throughput driving a 190,000ounce Au per year (peak Au production 227,000 oz Au) operation (a conceptual 2.6 million ounce gold-equivalent, mineralresource, 12-year mine life) at US$660/oz cash costs. Based on his revised valuation and comparative analysis, Zerb believesPDG shares are undervalued and open to upside re-rating.