NYBob
12 years ago
Argonaut Gold makes friendly $341-million deal to acquire Prodigy Gold
Michael Allan McCrae | October 15, 2012
http://www.mining.com/argonaut-gold-makes-friendly-341-million-deal-to-acquire-prodigy-gold-93626/
Mexican gold miner, Argonaut Gold (TSE:AR), reached a friendly $341-million deal to acquire Prodigy Gold (CVE:PDG), an exploration company that focuses on Eastern Canada.
After announcing the news today Argonaut Gold fell 6.87% to $9.67 a share during mid-day trading; Prodigy Gold was up 50% to 98 cents a share.
Argonaut also announced today that it achieved record gold production of 31,074 ounces during the third quarter, a 43% improvement over last year. The company operates the El Castillo Mine, which is located 100 km north of the city of Durango, Mexico, and the La Colorada Mine, which is located 50 kilometers southeast of Hermosillo, Mexico.
The company's total production guidance is estimated at 101-103,000 ounces of gold.
Argonaut's acquisition, Prodigy Gold, is advancing the Magino project, located northeast of Wawa, Ontario, which contains an Indicated resource of 6,250,990 ounces of gold (223.5 million tonnes grading 0.87 gpt gold and an Inferred resource of 355,190 ounces of gold (13.8 million tonnes grading 0.80 gpt gold) at a cutoff grade of 0.35 gpt gold.
Full news release regarding the acquisition is here.
Argonaut Gold and Prodigy Agree to Friendly Business Combination
TORONTO, ONTARIO and VANCOUVER, BRITISH COLUMBIA–(Marketwire – Oct. 15, 2012) – Argonaut Gold Inc. (TSX:AR) (“Argonaut Gold”) and Prodigy Gold Incorporated (TSX VENTURE:PDG) (“Prodigy “) are pleased to announce that they have entered into an agreement (the “Arrangement Agreement”) pursuant to which Argonaut Gold has agreed to acquire all of the issued and outstanding common shares of Prodigy by way of a Plan of Arrangement (the “Arrangement”). The combined entity will benefit from the strong operating experience and cash flow of Argonaut Gold and its ability to successfully advance Prodigy’s Magino gold project, which has an indicated resource of more than 6 million ounces (223 million tonnes at 0.87 g/t using a cut-off grade of 0.35 g/t).
Pursuant to the terms of the Arrangement announced today, Prodigy shareholders will receive 0.1042 of an Argonaut Gold share and C$0.00001 in cash per Prodigy share, representing C$1.08 per share based on Argonaut Gold’s 20-day volume-weighted average price (“VWAP“) and a premium of 54% based on both companies’ 20-day VWAPs as at October 12, 2012, the last trading day prior to this announcement. The transaction values Prodigy’s equity at approximately C$341 million on a fully diluted in-the-money basis and implies an enterprise value of approximately C$277 million.
Pro forma the transaction, Argonaut Gold will be owned approximately 78% by current Argonaut Gold shareholders and 22% by current Prodigy shareholders (based on fully diluted in-the-money shares outstanding). The terms of the transaction have been unanimously approved by both companies’ Boards of Directors, with the commitment of votes from all directors and officers of Prodigy, representing approximately 3.9% of Prodigy’s shares, having been secured.
Highlights of the Combined Entity:
Current production from two mines in Mexico and a strong pipeline of two developments projects in Canada and Mexico, representing a diversified asset portfolio in two premier jurisdictions for mine development and operation
If both development projects are advanced to production, Argonaut Gold is expected to enter the ranks of the intermediate producers and fulfill its stated goal of 300,000 – 500,000 ounces of gold production per year
In excess of 12 million ounces of measured and indicated gold resource including 1.2 million ounces of proven and probable gold reserve (fully broken out by category and property as described below)
Strong balance sheet with no debt
Current and projected future cash flow generation expected to self-fund future development, mitigating future financing risk
Strong management team and experienced Board of Directors with proven development and operating track record
Pete Dougherty, President and CEO of Argonaut Gold said, “We are very pleased to announce this transaction with Prodigy today. Magino is a highly attractive asset which has shown continued resource growth, and which we believe will provide a longer term production opportunity for Argonaut Gold shareholders. The Magino resource provides substantial flexibility for maximizing value creation using a higher grade cut-off. We believe the project can be “right-sized” for a company like Argonaut Gold to deliver the best returns to our shareholders, while providing further upside should the gold price maintain its strong performance. This transaction is both highly attractive to Prodigy shareholders as well as significantly accretive to Argonaut Gold shareholders on all key financial and operational metrics.”
Brian J. Maher, President and CEO of Prodigy said, “The transaction announcement today is the culmination of the success we have had growing and advancing the Magino project. We believe the price offered by Argonaut Gold is highly attractive for our shareholders, and that in addition to the premium our shareholders receive today, our shareholders now have the opportunity to participate in a company that has current production exposure and can both finance and develop Magino.”
Transaction Benefits for Argonaut Gold Shareholders
Magino represents a significant scale asset in the Argonaut Gold portfolio, and has the potential to allow Argonaut Gold to achieve or exceed its stated goal of 300,000 – 500,000 ounces of gold production
Magino is a multi-million ounce deposit which provides tremendous grade flexibility when considering development alternatives while pursuing the highest returns for Argonaut Gold shareholders
Timeline for Magino development provides for continued growth beyond Argonaut Gold’s existing organic growth projects with anticipated start-up well timed after San Antonio is targeted to start production
Provides geopolitical and asset diversification, and entry into another of the world’s most supportive mining jurisdictions
Fairness opinion received from the financial advisor to Argonaut Gold indicating that the transaction is fair from a financial point of view to Argonaut Gold
Transaction significantly accretive to all of Argonaut Gold’s per share metrics, including net asset value per share, resources per share, longer term cash flow per share, and longer term production per share
In addition to Magino, Argonaut Gold will gain exposure to Prodigy’s portfolio of other exploration stage assets
Transaction Benefits for Prodigy Shareholders
Significant premium of 54% to Prodigy shareholders based on both companies’ 20-day VWAPs as at October 12, 2012
All-share transaction provides Prodigy shareholders with exposure to current production and cash flow in a strong gold price environment and continuing exposure to the advancement of Magino as well as Argonaut Gold’s existing organic growth profile
Substantially decreases the financing risk for the project
Leverages Argonaut Gold’s highly experienced and successful management team
Argonaut Gold’s shares provide improved trading liquidity for Prodigy shareholders
Fairness opinion received from Prodigy’s financial advisor indicating that the transaction is fair, from a financial point of view, to Prodigy shareholders
Arrangement Agreement Summary
The Arrangement includes, among other things, certain standard conditions including receipt of approval of the shareholders of Prodigy and Argonaut Gold by the affirmative vote of no less than 66 2/3% and 50.1% of the shares voted, respectively, and receipt of court and stock exchange approvals. Special shareholder meetings for each company to vote on the transaction are expected to be held in December, 2012 with closing expected shortly thereafter.
The Arrangement Agreement is subject to customary non-solicitation provisions, subject to Prodigy’s right to consider and accept superior proposals. In the event of a superior proposal, Argonaut Gold will have a five business day right to match the superior proposal. If the Arrangement is not completed as a result of a superior proposal or in other certain specified circumstances, a termination fee equal to C$10.25 million will be paid to Argonaut Gold. The Arrangement Agreement also provides for reciprocal expense reimbursement under certain specific circumstances. After closing of the transaction, Prodigy will have the right to appoint one Director to the Argonaut Gold Board of Directors.
The terms and conditions of the Arrangement will be disclosed in more detail in the management information circulars which will be filed and mailed to Argonaut Gold and Prodigy shareholders in November 2012.
Advisors and Legal Counsel
BMO Capital Markets is acting as financial advisor and Fraser Milner Casgrain LLP is acting as legal counsel to Argonaut Gold and its Board of Directors. BMO Capital Markets has provided an opinion that, based upon and subject to the assumptions, limitations, and qualifications in such opinion, the consideration to be received by Prodigy’s shareholders is fair, from a financial point of view, to Argonaut Gold.
National Bank Financial Inc. is acting as financial advisor and DuMoulin Black LLP is acting as legal counsel to Prodigy. National Bank Financial Inc. has provided an opinion that, based upon and subject to the assumptions, limitations, and qualifications in such opinion, the consideration to be received by Prodigy’s shareholders is fair, from a financial point of view, to Prodigy shareholders.
Conference Call Details
Argonaut Gold and Prodigy will host a conference call to investors and analysts to discuss the transaction on October 15, 2012 at 9:00 a.m. EDT (6:00 a.m. PDT).
You will be able to participate in this call using the following details:
Conference Call Information:
Toll Free (North America) 1-877-440-9795
Toronto Local and International 1-416-340-8527
Webcast http://www.gowebcasting.com/3937
Conference Call Replay:
Toll Free Replay Call (North America) 1-800-408-3053
Replay Call 1-905-694-9451
Passcode 3150074
The conference call replay will be available from 12:00 p.m. ET on October 15, 2012 until October 29, 2012. The webcast archive will be available from 11:00 a.m. ET on October 15, 2012 for one year.
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.
NYBob
12 years ago
Prodigy Appoints Ricardo Rojas as General Manager, Magino Mine Project -
Prodigy Appoints Ricardo Rojas as General Manager, Magino Mine Project -
Vancouver, British Columbia CANADA, March 15, 2012 /FSC/ -
Prodigy Gold Inc.
(PDG - TSX Venture, KX3 - FWB), ("Prodigy") is pleased to
announce that it has appointed Mr. Ricardo Rojas as General
Manager of the Magino Mine gold project.
Mr. Rojas brings over 30 years experience in underground and
surface mine operations and construction to Prodigy.
Reporting to the Vice President of Operations, Mr. Fred Mason,
Ricardo will oversee all aspects of the Magino mine development
program from preparing the feasibility study to overseeing the
proposed future construction of the gold mining project.
Ricardo's experience has been acquired at world-class
operations located in Indonesia and North, Central, and South
America holding key positions in the areas of operations,
engineering, and management in both small and large complex
mining operations.
During his career, Ricardo has worked with Corporacion del
Centro in Peru, Petaquilla Gold SA in Panama, Gold Reserve Inc.
in Venezuela, Standard Bank in New York, Kinross Gold in Chile,
Freeport Gold in Indonesia, Cyprus Amax in Chile, Southern Peru
Limited in Peru, Newmont Gold in the United States, Gold Fields
Operating Company in the United States, Cyprus Mineral in the
United States, and the Duval Corporation in the United States.
Ricardo has a Civil Mining Degree from the University of
Santiago in Chile, a Master of Science in Mining Engineering
from the University of Arizona, and a Master in Business
Administration (MBA) from the University of Colorado at Denver.
He will begin his appointment at the Magino Mine gold project immediately.
Mr. Brian J. Maher, President and CEO of Prodigy Gold commented:
"We are delighted to have a gentlemen with Mr. Rojas'
experience and broad mining skills join the Prodigy team as
General Manager of the Magino Mine gold project.
The addition of Mr. Rojas to our technical team emphasizes
Prodigy's commitment to building our technical expertise to
world class levels as the company transitions from explorer to
mine developer."
As part of his employment compensation, Mr. Rojas has been granted options to purchase 350,000 common shares of Prodigy Gold Inc.
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
2,176,000 ounces grading 1.00 gpt gold (67.6 million tonnes),
and 1,721,000 ounces of Inferred gold resources grading 0.99
gpt gold (54.2 million tonnes) at a cut off grade of 0.35 gpt
gold.
A Preliminary Economic Assessment (PEA) shows a pre-tax NPV of
$939 million and an IRR of 36% using a 5% discount rate for the
project (see Press Release dated December 22, 2011 and
technical report available on SEDAR or Prodigy's web site). The
proposed operation would have total gold production of
2,614,000 ounces and an average annual gold output of 249,300
ounces a year during an eleven year project life.
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 2012.
Bringing the Magino mine project through the feasibility process
and towards production, is a catalyst 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
Prodigy Gold Inc. was recognized as a TSX Venture 50(r) company in 2012.
TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.
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.
To view this release as a webpage, please click on the following link:
http://www.usetdas.com/pr/prodigymar152012.htm
Source:
Prodigy Gold Inc. (TSX-V: PDG) http://www.www.prodigygold.com
Source: Prodigy Gold Inc. (TSX-V: PDG) http://www.www.prodigygold.com
http://www.prodigygold.com/_resources/presentations/prodigy_presentation_20120203.pdf
http://www.prodigygold.com/_resources/factsheets/FactSheetjan2012.pdf
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73320122
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73054911
God Bless
NYBob
12 years ago
Prodigy Announces Notice of Exercise of Over-Allotment Option by Underwriters -
Prodigy Announces Notice of Exercise of Over-Allotment Option by Underwriters -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Vancouver, British Columbia CANADA, March 13, 2012 /FSC/ -
Prodigy Gold Inc.
(PDG - TSX Venture, KX3 - FWB), ("Prodigy" or the "Company")
announced that, further to its news release dated March 5,
2012, the syndicate of underwriters led by Casimir Capital Ltd.
and Paradigm Capital Inc., and including National Bank
Financial Inc., Byron Capital Markets Ltd. and PI Financial
Corp. (the "Underwriters") has given notice of exercise of the
over-allotment option (the "Option") in part, to purchase an
additional 1,250,000 common shares of the Company ("Common
Shares") at a price of $0.80 per share for gross proceeds of
$1,000,000.
The Option was granted to the Underwriters in order to cover over-allotments and for market stabilization purposes in connection with Prodigy's public offering of 37,500,000 Common Shares and 13,158,000 flow-through Common Shares completed on March 5, 2012. The issuance of Common Shares pursuant to the exercise of the Option is expected to occur on March 16, 2012.
This news release does not constitute an offer to sell, or the solicitation of an offer to buy, Common Shares in any jurisdiction, including the United States, or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption therefrom, nor shall there be any sale of Common Shares in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The Common Shares being issued will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person, absent U.S. registration or an applicable exemption therefrom.
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
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. This news release contains forward-looking statements regarding the business and operations of Prodigy. Statements regarding the closing of the exercise of the Option are forward-looking statements. 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 Prodigy's plans or expectations include risks relating to legislative and regulatory matters, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by Prodigy with securities regulators. Prodigy 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.
To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/prodigygold03132012.htm
Source: Prodigy Gold Inc. (TSX-V: PDG)
http://www.www.prodigygold.com
Maximum News Dissemination by FSCwire.
http://www.fscwire.com
To view this release as a webpage, please click on the following link:
http://www.usetdas.com/pr/prodigymar132012.htm
Source: Prodigy Gold Inc. (TSX-V: PDG) http://www.www.prodigygold.com
http://www.prodigygold.com/_resources/presentations/prodigy_presentation_20120203.pdf
http://www.prodigygold.com/_resources/factsheets/FactSheetjan2012.pdf
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73320122
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73054911
God Bless
NYBob
12 years ago
Prodigy Discovers New High Grade Zone: 10.0 metres grading 8.55 gpt Gold in Footwall of Main Magino Deposit -
Prodigy Discovers New High Grade Zone: 10.0 metres grading 8.55 gpt Gold in Footwall of Main Magino Deposit -
Vancouver, British Columbia CANADA, March 13, 2012 /FSC/ -
Prodigy Gold Inc.
(PDG - TSX Venture, KX3 - FWB), ("Prodigy")is pleased to
announce that it has discovered a significant thick zone of
high grade gold mineralization in the footwall of the main
Magino deposit:
Drill hole MA11-205 cut 10.0 metres (83.0 - 93.0 metres)
grading 8.55 gpt gold within a thicker zone of 24.0 metres
grading 4.22 gpt gold (82.0 - 106.0 metres, please see cross
section of the "Grif" zone below).
This drill intercept correlates with a district scale zone of higher grade gold mineralization that extends from drill hole MA11-205 through the main Magino deposit and continues to the east to the Island zone being mined by Richmont Mines east of the Magino property (please see map below). This drill hole was targeted to confirm geologic interpretations by the Prodigy geologic staff; the results are significant for several reasons:
* The high grade mineralization seen in MA11-205 defines a distinct high grade structural zone at shallow levels in the Magino system. The gold mineralization in MA11-205 is in the footwall of the main Magino deposit, within the outline of the proposed open pit mining operation, and expands the gold resource potential of the Magino project. The gold zone is open at depth and along strike.
* The structural interpretation that led to the discovery confirms the model developed by the Prodigy geologic team. Deeper drilling along the structure, below the currently proposed open pit mining operation, will focus on the high grade zone cut by MA11-205. The potential for significant volumes of high grade gold mineralization, similar to the deep high grade zones at the adjacent Island mine, has been confirmed by this drill hole.
To view the map referred to above, please click on the following link:
http://www.usetdas.com/pr/prodigymar132012002.jpg
Cross section and plan map of the Grif zone, Magino mine gold project. Drilling by Prodigy has also encountered thick intervals of low grade mineralization below the previously announced gold resource, confirming the potential to expand the proposed opne pit mining operation as the project is advanced to the feasibility stage later in 2012.
To view the map above, please click on the following link:
http://www.usetdas.com/pr/prodigymar132012003.jpg
* Gold mineralization in drill hole MA11-205 is hosted by quartz-carbonate altered mafic metavolcanic rocks and associated iron formation. This is the first significant drill intercept by Prodigy in these host rocks and greatly expands potential target areas for additional high grade metavolcanic rock hosted gold mineralization.
Prodigy has also received the final results from its 2011 drilling program at Magino. Resource expansion drilling on the southwest end of the Magino gold deposit continues to document thick intervals of potentially bulk minable gold mineralization, results are tabulated below. Prodigy expects to release drilling results from early 2012 drilling at Magino shortly.
-***-
----------------------------------------------------------------------
SW and SW Extension
----------------------------------------------------------------------
DRILL FROM TO LENGTH AZIMUTH
HOLE (METRES) (METRES) (METRES) (360 DEG)
----------------------------------------------------------------------
MA11-180 188.0 189.0 1.0 164.1
MA11-184 217.0 239.0 22.0 161.3
MA11-186 nsv nsv nsv 162.7
MA11-188 210.0 214.0 4.0 158.4
MA11-190 nsv nsv nsv 160.9
MA11-197 90.0 92.0 2.0 155.5
124.0 133.0 9.0
MA11-198 324.0 589.0 265.0 161.4
including 331.0 371.0 40.0
MA11-203 62.0 341.0 279.0 160.3
including 62.0 100.0 38.0
MA11-205 82.0 106.0 24.0 162.9
including 83.0 93.0 10.0
271.0 343.0 72.0
325.0 343.0 18.0
MA11-207 262.0 289.0 27.0 161.8
MA11-208 313.0 337.0 24.0 164.3
----------------------------------------------------------------------
-****-
-***-
----------------------------------------------------------------
Dip Est. True From To(Depth Grade 40
(angle Thickness (Depth below gpt
Below (metres) below surface capped
Surface (metres)) (gpt gold)
(metres))
----------------------------------------------------------------
-50.4 0.8 142.9 143.6 2.61
-49.9 16.7 164.9 181.6 0.79
-51.1 na na na nsv
-49.4 3.0 159.6 162.6 10.50
-51.2 na na na nsv
-50.3 1.5 68.4 69.9 2.35
6.8 94.2 101.1 0.74
-48.7 201.4 246.2 447.6 0.42
30.4 251.6 282.0 1.06
-49.1 212.0 47.1 259.2 0.42
28.9 47.1 76.0 1.02
-49.4 18.2 62.3 80.6 4.22
7.6 63.1 70.7 8.35
54.7 206.0 260.7 0.69
13.7 247.0 260.7 1.27
-49.9 20.5 199.1 219.6 0.89
-47.6 18.2 237.9 256.1 0.55
True Thickness is estimated to be 76% of the Length value
----------------------------------------------------------------
-****-
-***-
----------------------------------------------------------------------
In-Fill/Expansion (Deep Holes)
----------------------------------------------------------------------
DRILL FROM TO LENGTH AZIMUTH
HOLE (METRES) (METRES) (METRES) (360 DEG)
----------------------------------------------------------------------
MA11-183 347.0 486.6 139.6 166.8
MA11-191 370.0 525.0 155.0 166.5
including 424.0 469.0 45.0
666.0 702.0 36.0
----------------------------------------------------------------------
-****-
-***-
----------------------------------------------------------------
Dip Est. True From To(Depth Grade 40
(angle Thickness (Depth below gpt
Below (metres) below surface capped
Surface (metres)) (gpt gold)
(metres))
----------------------------------------------------------------
-58.9 106.9 265.8 372.7 0.97
-66.4 118.7 283.4 402.2 0.66
34.5 324.8 359.3 1.22
27.6 510.2 537.7 1.09
True Thickness is estimated to be 76% of the Length value
----------------------------------------------------------------
-****-
-***-
----------------------------------------------------------------------
Condemnation
----------------------------------------------------------------------
DRILL FROM TO LENGTH AZIMUTH
HOLE (METRES) (METRES) (METRES) (360 DEG)
----------------------------------------------------------------------
MA11-185 nsv nsv nsv 92.8
MA11-189 nsv nsv nsv 95.5
MA11-193 nsv nsv nsv 92.7
MA11-194 nsv nsv nsv 164.1
MA11-195 nsv nsv nsv 345.2
MA11-196 nsv nsv nsv 90.7
MA11-199 nsv nsv nsv 344.7
MA11-200 229.0 239.0 10.0 97.0
MA11-201 nsv nsv nsv 165.7
MA11-202 nsv nsv nsv 346.2
MA11-204 nsv nsv nsv 345.3
MA11-206 nsv nsv nsv 96.9
----------------------------------------------------------------------
-****-
-***-
----------------------------------------------------------------
Dip Est. True From To(Depth Grade 40
(angle Thickness (Depth below gpt
Below (metres) below surface capped
Surface (metres)) (gpt gold)
(metres))
----------------------------------------------------------------
-50.2 nsv nsv nsv nsv
-50.0 nsv nsv nsv nsv
-50.7 nsv nsv nsv nsv
-49.8 nsv nsv nsv nsv
-50.9 nsv nsv nsv nsv
-50.5 nsv nsv nsv nsv
-48.7 nsv nsv nsv nsv
-50.0 7.7 175.4 183.1 0.52
-50.5 nsv nsv nsv nsv
-51.2 nsv nsv nsv nsv
-50.2 nsv nsv nsv nsv
-49.6 nsv nsv nsv nsv
True Thickness is estimated to be 76% of the Length value
----------------------------------------------------------------
-****-
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 2,176,000 ounces grading 1.00 gpt gold (67.6 million tonnes), and 1,721,000 ounces of Inferred gold resources grading 0.99 gpt gold (54.2 million tonnes) at a cut off grade of 0.35 gpt gold. A Preliminary Economic Assessment (PEA) shows a pre-tax NPV of $939 million and an IRR of 36% using a 5% discount rate for the project (see Press Release dated December 22, 2011 and technical report available on SEDAR or Prodigy's web site). The proposed operation would have total gold production of 2,614,000 ounces and an average annual gold output of 249,300 ounces a year during an eleven year project life. 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 2012. Bringing the Magino mine project through the feasibility process and towards production, is a catalyst 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.
To view this release as a webpage, please click on the following link:
http://www.usetdas.com/pr/prodigymar132012.htm
Source: Prodigy Gold Inc. (TSX-V: PDG) http://www.www.prodigygold.com
http://www.prodigygold.com/_resources/presentations/prodigy_presentation_20120203.pdf
http://www.prodigygold.com/_resources/factsheets/FactSheetjan2012.pdf
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=73320122
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God Bless
NYBob
12 years ago
Prodigy Provides Update on Permitting, Environmental Baseline Studies and Project Timeline for Magino -
Prodigy Provides Update on Permitting, Environmental
Baseline Studies and Project Timeline for Magino
Vancouver, British Columbia CANADA, February 08, 2012 /FSC/ -
Prodigy Gold Inc.
(PDG - TSX Venture, KX3 - FWB), ("Prodigy") is pleased to
provide the following update on the permitting process,
environmental baseline work and the overall timeline for the
Magino mine gold project in northern Ontario.
Four separate elements form the core of the mine development
process at Magino:
The completion of a mine feasibility study, formal
consultations with the First Nation community, finishing all
required environmental baseline studies and completing the
formal project description for submission to the Ontario
Ministry of Northern Development, Mines, and Forestry (MNDMF or
"the Ministry") and other participating ministries. All of
these activities are progressing concurrently, allowing Prodigy
to expand the scope of the feasibility study to include
additional drilling without delaying the overall project
timeline.
Prodigy plans to submit formal permitting documents to the
Ministry early in 2013, therefore the feasibility study, First
Nations consultations and environmental work are planned to be
completed before the end of 2012.
The company hopes to begin construction at Magino in 2014 and
is targeting 2015 for the resumption of mining operations.
In the fall of 2011 EBA, a consulting engineering and sciences
company in the Tetra Tech group, was contracted by Prodigy Gold
to develop a permitting program for Magino.
EBA's mandate includes completing environmental baseline
studies, identifying and planning for the key milestones
in the permitting process, and coordinating a socio-economic
program which would accommodate local and First Nations
communities interest in the permitting process to insure all
stakeholders have the opportunity to become involved in the
project and help guide Magino mine development.
Significant milestones achieved to date include:
* Water quality, fisheries, aquatics:
Major water bodies in the project area have been sampled and
a baseline data set established. Sampling will be repeated on
a regular basis in 2012.
Biologic studies have also been initiated with to characterize
aquatic flora and fauna.
* Climate and air quality:
A weather station has been established on site and monitoring
areas designated.
* Hydrology:
Seven automated monitoring stations have been installed to
measure surface water movement and flow.
* Initial testing has been completed for mineralogical
definition and possible acid rock drainage and metal leaching
characteristics.
* Preliminary identification of required permits, political
jurisdiction, and regulatory agencies that may be involved in
the permitting process.
* Initial meetings have been held with local First Nations
communities to provide an outline of Prodigy's intended program
and establish direct and open lines of communication.
Prodigy is on schedule to complete its full feasibility study in
late 2012 for Magino.
Prodigy has been drilling at Magino since mid-January will soon
have six diamond drill rigs operating at the project.
The additional drilling equipment will allow Prodigy to
complete its previously announced 60,000 metres resource
definition, resource expansion and condemnation drilling
program by summer, 2012.
When drilling is completed, the company will update its gold
resource estimate for Magino and integrate the results of the
feasibility study into the overall project description for
submission to the Ministry.
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
2,176,000 ounces grading 1.00 gpt gold (67.6 million tonnes),
and 1,721,000 ounces of Inferred gold resources grading 0.99
gpt gold (54.2 million tonnes) at a cut off grade of 0.35 gpt
gold.
A Preliminary Economic Assessment (PEA) shows a pre-tax NPV of
$939 million and an IRR of 36% using a 5% discount rate for
the project (available on SEDAR or Prodigy's web site).
The proposed operation would have total gold production of
2,614,000 ounces and an average annual gold output of 249,300
ounces a year during an eleven year project life.
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 late 2012.
Bringing the Magino mine project through the feasibility
process and towards production, is a catalyst 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.
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:
http://www.prodigygold.com
tel.: 1-604-688-9006 Fax: 1-604-688-9029
http://tmx.quotemedia.com/article.php?newsid=48215912&qm_symbol=PDG
Magino Gold Mines Property -
http://prodigygold.com/projects/gold_division/magino/
http://prodigygold.com/
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NYBob
12 years ago
Prodigy Announces 60,000 metre Drilling Program for Magino -
Prodigy Announces 60,000 metre Drilling Program for Magino -
Vancouver, British Columbia CANADA, January 26, 2012 /FSC/ -
Prodigy Gold Inc.
(PDG - TSX Venture, KX3 - FWB), is pleased to announce a 60,000
metre resource definition, resource expansion and condemnation
drilling program for its Magino mine gold project in Ontario.
The objectives of the program are as follows:
* Resource Definition: 27,000 metres of diamond drilling has been approved for resource definition.
The drilling will take place entirely within the December 2011 PEA pit shell.
The program is designed to insure that all the gold resources identified as potentially minable in the PEA are within the Measured and Indicated resource categories prior to commencing reserve calculations during the feasibility process.
* Resource Expansion: 15,000 metres of diamond drilling are allocated for resource expansion. Recently reported drill results (January 24, 2012) confirm the potential to expand the Magino gold resource adjacent to the proposed open pit and in other areas of the project. This program will target those areas that can augment the minable gold resource and therefore influence the ultimate size of the mill, the proposed gold production rate and mining equipment requirements.
Target areas include the southwest extension of the Magino deposit and the Lovell Lake area.
* Condemnation Drilling: 18,000 metres of condemnation drilling are planned to "sterilize" the areas where process infrastructure, tailings facilities and waste rock disposal may be located.
In addition to the newly announced drilling, results are pending from an additional 29 diamond drill holes completed in late 2011.
Brian J. Maher, President and CEO of Prodigy Gold commented: "Prodigy's recent drill results highlight an opportunity to grow the scope and scale of the Magino Mine project. In order to stay on our timeline for development, Prodigy has had to expand its drilling program to insure that the upcoming feasibility study incorporates the largest and highest quality drill data possible.
Prodigy currently has four drills on site and expects to add another drill rig in the coming weeks.
We are sourcing three additional drill rigs to insure that this program is completed in a timely manner.
The Magino feasibility study is expected to be completed in late 2012, allowing us to begin the formal permitting process early in 2013 and target production in late 2015."
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
2,176,000 ounces grading 1.00 gpt gold (67.6 million tonnes),
and 1,721,000 ounces of Inferred gold resources grading 0.99
gpt gold (54.2 million tonnes) at a cut off grade of 0.35 gpt
gold.
A Preliminary Economic Assessment (PEA) shows a pre-tax NPV of
$939 million and an IRR of 36% using a 5% discount rate for the
project (see Press Release dated December 22, 2011) available
on SEDAR or Prodigy's web site).
The proposed operation would have total gold production of
2,614,000 ounces and an average annual gold output of 249,300
ounces a year during an eleven year project life.
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 late 2012.
Bringing the Magino mine project through the feasibility
process and towards production, is a catalyst 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 Actlabs, 33 Iroquois Road, Timmins, ON, P4N 7C5 , 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 that contain visible gold or that assay > 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:
http://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.
To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/prodigygold01262012.htm
Source: Prodigy Gold Inc. (TSX-V: PDG) http://www.prodigygold.com
Maximum News Dissemination by Filing Services Canada Inc. http://www.usetdas.com
http://www.prodigygold.com/projects/gold_division/magino/
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NYBob
12 years ago
Magino Drilling Expands Gold Zone in Main Deposit: 203 metres grading 1.27 gpt Au; Confirms Southwest Extension to Deposit
Vancouver, British Columbia CANADA, January 24, 2012 /FSC/ -
Prodigy Gold Inc. -
(PDG - TSX Venture),("Prodigy") is pleased to announce
that resource expansion and step out drilling at its
Magino mine gold project in Ontario has intercepted significant
gold mineralization in multiple areas:
* Within and adjacent to the main Magino gold resource,
* The southwest extension of the Magino deposit, and
* The Lovell Lake area 200 metres west of Magino deposit.
Prodigy completed 54 core drill holes totaling 18,077 metres
(including condemnation drilling), augmenting and expanding
the Magino gold resource potential.
http://tmx.quotemedia.com/article.php?newsid=47756112&qm_symbol=PDG
Magino in-fill and resource expansion drilling:
Highlights include 203 metres grading 1.27 gpt gold in drill
hole MA11-177 and 164 metres grading 1.09 gpt gold in drill
hole MA11-136.
These and other drill holes reported below document thick
intervals of gold mineralization that were not included in
previous Magino gold resource estimates.
Drill hole MA11-149 intercepted 19.0 metres grading 3.38 gpt
gold starting at a vertical depth of 227.5 metres,
contiguous to other high grade intercepts.
Deeper, higher grade gold mineralization, documented in resource
estimates, continues to be consistent in the Magino gold deposit.
All of the drill holes reported herein were completed after the recent Magino gold resource estimate (NI 43-101 Technical Report dated November 2, 2011) and subsequent Preliminary Economic Assessment (PEA) outlined in a press release dated December 22, 2011 and have the potential to increase minable gold resources at Magino. Additional drilling is being planned for these areas.
A complete drill hole table for all 28 in-fill and resource
expansion drill holes (10,400 metres) is presented below.
Southwest extension of the Magino gold deposit: In late 2011, Prodigy completed an initial test of the southwest extension of the Magino gold deposit (2,054 metres in seven drill holes). The preliminary results confirm widespread gold mineralization southwest of the main Magino gold deposit: 127 metres grading 0.84 gpt gold in drill hole MA11-160. Drilling in this area was preliminary, six drill holes in three fences spaced 100 metres apart. All of these drill holes intercepted gold mineralization, confirming a 300 metre extension to the main Magino gold deposit. Further drilling is planned for this area and farther to the southwest where the gold deposit is unconstrained by drilling. A complete drill hole table and drill hole location map for the southwest extension drilling program is presented below.
Lovell Lake area: Preliminary drilling in the Lovell Lake area, 200 metres west of the main Magino gold deposit, also intercepted encouraging gold mineralization: 29 metres grading 1.01 gpt gold in drill hole MA11-162. Gold mineralized drill holes at Lovell Lake, as well as historic drilling, are clustered in a gold mineralized zone with at least 300 metres of strike length. Additional drilling is being planned in the area, targeting potential expansion of the overall Magino project resources. Highlights of the 3,846 metre, fourteen hole, Lovell Lake drilling program and a drill hole location map are shown below.
Brian J. Maher, President and CEO of Prodigy Gold Inc. commented "Drilling in the main Magino gold deposit continues to demonstrate the potential to increase the total gold resource. These results, including the confirmation of a southwest extension to the Magino deposit, clearly indicate that the ultimate size of the deposit has yet to be determined. While we continue to grow the gold resource at Magino, we will revise pit optimization studies and evaluate possible expansion of the proposed open pit mining operation. Defining the full scale of the mining operation at Magino is a key step in completing a feasibility study for the project during 2012".
-***-
-------------------------------------------------------------------------
Grade
From To 40
Dip Est. (Depth (Depth gpt
(Angle True Below Below Capped
Drill From To Length Azimuth below Thickness Surface Surface (gpt
Hole metres metres metres(360deg)surface) metres metres) metres) gold)
-------------------------------------------------------------------------
MA11-126 22.0 114.0 92.0 160.0 -50.8 69.9 16.9 87.3 1.06
-------------------------------------------------------------------------
INCL. 56.0 71.0 15.0 11.4 42.9 54.4 4.03
-------------------------------------------------------------------------
MA11-129 251.0 365.0 114.0 167.4 -51.4 86.6 192.3 279.6 0.87
-------------------------------------------------------------------------
INCL. 279.0 365.0 86.0 65.4 213.7 279.6 1.10
-------------------------------------------------------------------------
INCL. 349.0 365.0 16.0 12.2 267.3 279.6 2.34
-------------------------------------------------------------------------
MA11-130 259.0 355.0 96.0 162.2 -50.4 73.0 198.4 271.9 0.75
-------------------------------------------------------------------------
INCL. 330.0 355.0 25.0 19.0 252.8 271.9 1.20
-------------------------------------------------------------------------
MA11-132 193.0 210.0 17.0 164.8 -50.9 12.9 147.8 160.9 1.07
-------------------------------------------------------------------------
320.0 336.0 16.0 12.2 245.1 257.4 1.09
-------------------------------------------------------------------------
MA11-133 228.0 260.0 32.0 164.3 -49.7 24.3 174.6 199.2 0.43
-------------------------------------------------------------------------
MA11-134 284.0 348.0 64.0 161.6 -50.6 48.6 217.5 266.6 1.01
-------------------------------------------------------------------------
MA11-135 135.0 343.0 208.0 164.8 -49.8 158.1 103.4 262.7 0.70
-------------------------------------------------------------------------
INCL. 273.0 343.0 70.0 53.2 209.1 262.7 1.69
-------------------------------------------------------------------------
MA11-136 209.0 352.0 143.0 164.0 -47.9 108.7 160.1 269.6 1.09
-------------------------------------------------------------------------
INCL. 219.0 339.5 120.5 91.6 167.8 260.1 1.23
-------------------------------------------------------------------------
MA11-137 135.0 163.0 28.0 166.5 -50.6 21.3 103.4 124.9 0.75
-------------------------------------------------------------------------
321.0 359.0 38.0 28.9 245.9 275.0 1.01
-------------------------------------------------------------------------
MA11-138 262.0 343.0 81.0 166.4 -52.4 61.6 200.7 262.7 1.10
-------------------------------------------------------------------------
MA11-141 206.0 312.0 106.0 163.0 -50.0 80.6 157.8 239.0 1.01
-------------------------------------------------------------------------
MA11-143 301.0 353.0 52.0 165.2 -49.7 39.5 230.6 270.4 1.10
-------------------------------------------------------------------------
MA11-145 65.0 210.0 145.0 167.0 -48.7 110.2 49.8 160.9 0.55
-------------------------------------------------------------------------
INCL. 159.0 191.0 32.0 24.3 121.8 146.3 1.25
-------------------------------------------------------------------------
INCL. 223.0 249.0 26.0 19.8 170.8 190.7 1.09
-------------------------------------------------------------------------
MA11-149 268.0 395.0 127.0 171.4 -50.9 96.5 205.3 302.6 1.06
-------------------------------------------------------------------------
INCL. 268.0 355.0 87.0 66.1 205.3 271.9 1.34
-------------------------------------------------------------------------
297.0 316.0 19.0 14.4 227.5 242.1 3.38
-------------------------------------------------------------------------
MA11-151 203.0 341.0 138.0 167.7 -50.3 104.9 155.5 261.2 0.70
-------------------------------------------------------------------------
INCL. 280.0 341.0 61.0 46.4 214.5 261.2 1.06
-------------------------------------------------------------------------
INCL. 299.0 341.0 42.0 31.9 229.0 261.2 1.36
-------------------------------------------------------------------------
MA11-154 142.0 174.0 32.0 164.8 -47.4 24.3 108.8 133.3 0.82
-------------------------------------------------------------------------
426.0 452.0 26.0 19.8 326.3 346.2 1.13
-------------------------------------------------------------------------
MA11-156 160.0 185.0 25.0 165.3 -50.0 19.0 122.6 141.7 1.12
-------------------------------------------------------------------------
MA11-163 NSV NSV NSV 163.6 -49.6 NSV NSV NSV NSV
-------------------------------------------------------------------------
MA11-164 304.0 450.0 146.0 162.9 -50.5 111.0 232.9 344.7 0.83
-------------------------------------------------------------------------
INCL. 338.0 440.0 102.0 77.5 258.9 337.0 1.15
-------------------------------------------------------------------------
MA11-166 NSV NSV NSV 162.9 -48.5 NSV NSV NSV NSV
-------------------------------------------------------------------------
MA11-167 302.0 424.0 122.0 162.9 -49.5 92.7 231.3 324.8 0.85
-------------------------------------------------------------------------
INCL. 311.0 391.0 80.0 60.8 238.2 299.5 1.15
-------------------------------------------------------------------------
442.0 472.0 30.0 22.8 338.6 361.6 1.83
-------------------------------------------------------------------------
MA11-168 84.0 110.0 26.0 164.0 -49.2 19.8 64.3 84.3 1.03
-------------------------------------------------------------------------
INCL. 84.0 94.8 10.8 8.2 64.3 72.6 2.08
-------------------------------------------------------------------------
131.0 172.0 41.0 31.2 100.3 131.8 0.96
-------------------------------------------------------------------------
INCL. 146.0 172.0 26.0 19.8 111.8 131.8 1.39
-------------------------------------------------------------------------
INCL. 148.0 164.0 16.0 12.2 113.4 125.6 2.10
-------------------------------------------------------------------------
MA11-169 141.0 147.0 6.0 169.6 -48.9 4.6 108.0 112.6 1.65
-------------------------------------------------------------------------
MA11-170 NSV NSV NSV 166.1 -48.9 NSV NSV NSV NSV
-------------------------------------------------------------------------
MA11-171 61.0 84.0 23.0 164.7 -50.1 17.5 46.7 64.3 0.52
-------------------------------------------------------------------------
MA11-173 126.0 148.0 22.0 164.2 -49.6 16.7 0.0 0.0 2.42
-------------------------------------------------------------------------
MA11-176 NSV NSV NSV 163.9 -47.4 NSV NSV NSV NSV
-------------------------------------------------------------------------
MA11-177 228.0 431.0 203.0 166.7 -49.8 154.3 174.6 330.1 1.27
-------------------------------------------------------------------------
INCL. 257.0 341.0 84.0 63.8 196.9 261.2 2.20
-------------------------------------------------------------------------
-****-
Above, in-fill and resource expansion drilling, main Magino deposit area. NSV = no significant values.
-***-
-------------------------------------------------------------------------
Grade
From To 40
Dip Est. (Depth (Depth gpt
(Angle True Below Below Capped
Drill From To Length Azimuth below Thickness Surface Surface (gpt
Hole metres metres metres(360deg)surface) metres metres) metres) gold)
-------------------------------------------------------------------------
MA11-139 30.0 42.0 12.0 160.8 -52.3 9.1 23.0 32.2 0.64
-------------------------------------------------------------------------
MA11-140 127.0 150.0 23.0 162.4 -49.9 17.5 97.3 114.9 0.77
-------------------------------------------------------------------------
276.0 313.0 37.0 28.1 211.4 239.8 0.54
-------------------------------------------------------------------------
MA11-160 55.0 182.0 127.0 161.7 -50.6 96.5 42.1 139.4 0.84
-------------------------------------------------------------------------
MA11-161 71.0 125.0 54.0 162.1 -50.3 41.0 54.4 95.8 0.75
-------------------------------------------------------------------------
208.0 253.0 45.0 34.2 159.3 193.8 1.05
-------------------------------------------------------------------------
MA11-174 189.0 219.0 30.0 165.7 -47.7 22.8 144.8 167.8 0.55
-------------------------------------------------------------------------
MA11-178 255.0 278.0 23.0 160.0 -45.6 17.5 195.3 212.9 1.10
-------------------------------------------------------------------------
INCL. 387.0 400.0 13.0 9.9 296.4 306.4 0.96
-------------------------------------------------------------------------
MA11-182 NSV NSV NSV 157.6 -50.2 NSV NSV NSV NSV
-------------------------------------------------------------------------
-****-
Above, southwest Magino extension resource expansion drilling. NSV = no significant values.
-***-
-------------------------------------------------------------------------
Grade
From To 40
Dip Est. (Depth (Depth gpt
(Angle True Below Below Capped
Drill From To Length Azimuth below Thickness Surface Surface (gpt
Hole metres metres metres(360deg)surface) metres metres) metres) gold)
-------------------------------------------------------------------------
MA11-142 158.0 162.0 4.0 163.2 -49.1 3.0 121.0 124.1 0.87
-------------------------------------------------------------------------
MA11-144 92.0 111.0 19.0 164.5 -53.0 14.4 70.5 85.0 0.58
-------------------------------------------------------------------------
135.4 150.0 14.6 11.1 103.7 114.9 0.56
-------------------------------------------------------------------------
MA11-155 293.7 301.0 7.3 169.7 -49.7 5.5 225.0 230.6 0.79
-------------------------------------------------------------------------
MA11-159 64.0 75.0 11.0 164.0 -49.6 8.4 49.0 57.5 0.42
-------------------------------------------------------------------------
209.0 220.0 11.0 8.4 160.1 168.5 0.90
-------------------------------------------------------------------------
MA11-162 165.0 194.0 29.0 165.0 -51.6 22.0 126.4 148.6 1.0
-------------------------------------------------------------------------
MA11-165 74.0 90.0 16.0 168.8 -46.9 12.2 56.7 68.9 0.55
-------------------------------------------------------------------------
-****-
Above, highlights of resource expansion drilling, Lovell Lake area. NSV = no significant values.
Drill hole plan map, Magino Mine Project.
To view the drill hole plan map, click onto the link below or copy and paste into your browser:
http://www.usetdas.com/maps/prodigy/pdgjan24002.jpg
Condemnation drilling totaling 1,777 metres in five drill holes was completed in areas being evaluated for possible waste dumps, tailings impoundments and process facilities. This program will continue in the first half of 2012.
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 2,176,000 ounces grading 1.00 gpt gold (67.6 million tonnes), and 1,721,000 ounces of Inferred gold resources grading 0.99 gpt gold (54.2 million tonnes) at a cut off grade of 0.35 gpt gold. A Preliminary Economic Assessment (PEA) shows a pre-tax NPV of $939 million and an IRR of 36% using a 5% discount rate for the project (see Press Release dated December 22, 2011) available on SEDAR or Prodigy's web site). The proposed operation would have total gold production of 2,614,000 ounces and an average annual gold output of 249,300 ounces a year during an eleven year project life. 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 2012. Bringing the Magino mine project through the feasibility process and towards production, is a catalyst 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: http://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.
To view this press release as a web page, click onto the link below:
http://www.usetdas.com/PR/prodigygold24012012.htm
Source: Prodigy Gold Inc. (TSX-V: PDG) http://www.www.prodigygold.com
Maximum News Dissemination by Filing Services Canada Inc. http://www.usetdas.com
Prodigy CEO Brian Maher on updated Magino Project PEA
----
Prodigy Gold Inc TSXV:PDG announced an updated preliminary economic assessment for its Magino Gold Project in northern Ontario. The report assumes a gold price of $1,200 an ounce and estimates resources to be 74.23 million tonnes grading 1.15 g/t gold with a strip ratio of 2.1:1. The pre-production capital cost is estimated at $405.6 million. The mine life is estimated at 11 years averaging 249,300 ounces gold annually, totalling over 2.61 million ounces at an average cash cost of $461 an ounce. At a 5% discount rate, the project is calculated to have a pre-tax net present value of $939 million. At an 8% discount rate, the NPV comes to $709 million. In the base case scenario the internal rate of return is 36% with a payback period of 1.9 years.
Read the rest of this interview. http://bit.ly/vTCyJL
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NYBob
13 years ago
Prodigy Gold Testing Confirms SAG Milling Option for Magino -
Prodigy Gold Testing Confirms SAG Milling Option for Magino -
Vancouver, British Columbia CANADA, November 07, 2011 /FSC/ -
Prodigy Gold Inc.
(PDG - TSX Venture, KX3 - FWB), is pleased to announce the
results of SAG Design test work and SAG Design comminution
analysis preformed by Starkey and Associates ("Starkey";
Oakville, Ontario) on representative samples of gold
mineralized rock from Prodigy's Magino mine gold project in
northern Ontario.
The results of the testing were used to predict grinding
equipment and energy requirements for the proposed mill at
Magino.
Four samples of unsplit HQ core totaling 121.6 kilograms showed
hard competency for SAG milling and moderate-to-hard competency
for ball mill grindability with an average Bond Work Index
(BWI) of 14.81.
Using a design BWI of 15.81, Starkey recommends a conventional
single line grinding circuit with one SAG mill followed by two
ball mills in parallel, with total throughput of 17,500
tonnes/day.
The throughput can be expanded to 20,000 tonnes/day with the
addition of a single cone crusher.
Verifying the SAG milling option is important to the economic
analysis of the Magino mine project as SAG milling circuits
typically have lower unit operating costs than similar sized
all-ball milling circuits.
The grindability data will incorporated into an updated Magino
mine Preliminary Economic Assessment expected later this year.
The test results are shown in tabular form below:
To view the test results graphic, click onto the link below or
copy and paste into your browser:
http://www.usetdas.com/maps/prodigy/pdgnov5.jpg
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
2,176,000 ounces grading 1.00 gpt gold (67.6 million tonnes),
and 1,721,000 ounces of Inferred gold resources grading 0.99
gpt gold (54.2 million tonnes) at a cut off grade of 0.35 gpt
gold.
A Preliminary Economic Assessment (PEA), based on the older
February 28, 2011 resource estimate, shows a pre-tax NPV of
$351million and an IRR of 49% using a 5% discount rate for the
project (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.
The PEA will be updated using the results of the November 2, 2011 resource estimate in the coming weeks. 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, is a catalyst 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, and Dr. John Thomas, P. Eng., who are qualified persons 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:
http://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.
To view this press release as a web page, click onto the link below:
http://www.usetdas.com/PR/prodigygold07112011.htm
Source: Prodigy Gold Inc. (TSX-V: PDG) http://www.www.prodigygold.com
Maximum News Dissemination by Filing Services Canada Inc. http://www.usetdas.com
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68793340
NYBob
13 years ago
Prodigy Expands Magino Indicated Gold Resource to 2,176,000 Ounces and Inferred Gold Resource to 1,721,000 Ounces
http://tmx.quotemedia.com/article.php?newsid=45781564&qm_symbol=PDG
Prodigy Expands Magino Indicated Gold Resource to 2,176,000 Ounces and Inferred Gold Resource to 1,721,000 Ounces
Vancouver, British Columbia CANADA, November 02, 2011 /FSC/ -
Prodigy Gold Inc.
(PDG - TSX Venture, KX3 - FWB), is pleased to announce the release of an updated NI 43-101 compliant mineral resource estimate for its flagship Magino mine gold project in northern Ontario. During 2011, Prodigy Gold has more than doubled the gold resource at Magino. Using a 0.35 gpt gold cutoff, the Magino deposit contains Indicated gold resources of 2,176,000 ounces grading 1.00 gpt gold (67.6M tonnes) and 1,721,000 ounces of Inferred gold resources grading 0.99 gpt gold (54.2M tonnes). The resource estimate was completed by Snowden Mining Industry Consultants Inc. ("Snowden") of Vancouver, British Columbia and is constrained by geologic domains and a conceptual pit shell. The updated mineral resource estimate includes the results from almost 38,000 metres of core drilling completed at the project since January, 2011, in addition to 155,800 metres of previous core drilling. A complete Technical Report will be filed on SEDAR within 45 days. The resource estimate is set out in the table below and reported at a series of cut off grades (Note: Minor inconsistencies are due to rounding).
Prodigy Magino Project Resource Estimation November, 2011
-***-
--------------------------------------------------------------
INDICATED
--------------------------------------------------------------
CUT OFF TONNES GRADE GRAMS GOLD OUNCES GOLD
(GPT GOLD) (GPT GOLD)
--------------------------------------------------------------
2.00 5,562,000 3.36 18,705,000 601,000
1.50 10,345,000 2.60 26,928,000 866,000
1.00 20,779,000 1.91 39,605,000 1,273,000
0.75 31,730,000 1.55 49,086,000 1,578,000
0.50 50,056,000 1.21 60,368,000 1,941,000
0.35 67,555,000 1.00 67,690,000 2,176,000
0.10 99,205,000 0.76 74,297,000 2,421,000
--------------------------------------------------------------
--------------------------------------------------------------
INFERRED
--------------------------------------------------------------
CUT OFF TONNES GRADE GRAMS GOLD OUNCES GOLD
(GPT GOLD) (GPT GOLD)
--------------------------------------------------------------
2.00 4,273,000 3.47 14,836,000 477,000
1.50 7,345,000 2.73 20,096,000 646,000
1.00 15,897,000 1.91 30,411,000 978,000
0.75 25,072,000 1.53 38,335,000 1,233,000
0.50 40,464,000 1.18 47,748,000 1,535,000
0.35 54,242,000 0.99 53,537,000 1,721,000
0.10 73,087,000 0.80 58,250,000 1,873,000
---------------------------------------------------------------
-****-
Prodigy believes that the revised Magino resource estimate is significant for several reasons:
* Using a slightly higher cut off grade of 0.50 gpt gold generates an Indicated resource of 1,941,00 ounces grading 1.21 gpt gold (50.1M tonnes) and an Inferred resource of 1,535,000 ounces grading 1.18 gpt gold (40.5M tonnes). The grade-tonnage distribution suggests that optimizing the grade of the proposed open pit may produce a higher grade operation with a larger production profile than that envisioned in the previous PEA.
* The new resource estimate will be incorporated into an update to the Magino mine gold project Preliminary Economic Assessment (PEA) expected later this year. The increase in gold resources will enable Prodigy to evaluate an expansion of the proposed open-pit mining project modeled in the previous PEA. An expected increase in gold production may have an important positive impact on the project's economics.
* A detailed statistical analysis and comparison between pre-2011 drill hole data and new data from the 2011 drilling program shows that older drill hole data is statistically valid and can be used in the resource estimate (except for short (
* Inspection of the Magino gold resource block model identified multiple areas where additional drilling may further increase the Magino gold resource: Under the north-central portion of the conceptual open pit, along the southeast contact of the Webb Lake granodiorite stock, and a southwest extension of gold mineralization where potentially significant gold resources lie under the southwest high wall of the conceptual pit.
* Drilling in the Lovell Lake area, 400 metres west of the Magino gold deposit, intercepted a zone of gold mineralization similar in grade and geologic setting to the main Magino gold deposit. Although not included in the current Magino gold resource estimate, Prodigy believes further exploration in this area can augment the Magino gold deposit and potentially become a source for additional minable resources for the project.
* The block model will be utilized by Prodigy to design a drilling program with the goal of converting mineral resource to minable reserves as part of the planned full feasibility study.
Mineral Resource Estimate:
Information in this News Release that relates to Mineral Resource Estimate has been reviewed and approved by Andrew F. Ross PGeo, FAusIMM, CPGeo, who is a Qualified Person under the definitions established by National Instrument 43-101. He is independent of Prodigy Gold and an Associate of Snowden Mining Industry Consultants Inc., Vancouver, British Columbia.
As previously reported, Prodigy Gold has focused its geological program on assessment of the wide zones of quartz-pyrite-sericite altered granodiorite that host the former underground mine workings at Magino. During 2010, Prodigy relogged existing core, collected samples of previously intact core to provide fuller coverage of sampling throughout the alteration zones, and updated the drill hole and sample database accordingly to ensure consistency. The latest drilling commenced by Prodigy in 2011 has been included in the current mineral resource estimate.
The area of interest covers 1,350 metres of the 075 degree trending Webb Lake granodiorite stock and alteration zones that aggregate up to 300 metres in width, and dip steeply to depths of at least 600 metres. At Magino the Webb Lake stock is covered by up to 30 metres of fluvio-glacial material. The felsic and mafic volcanic country rock surrounding the stock contain areas of low grade gold mineralization encountered by drilling, however the main focus remains the broad low-grade alteration zones hosted by granodiorite. A late stage diabase dyke transects the Webb Lake stock.
The database used by Snowden contains 550 surface diamond drill holes (total of 104,941 metres; average length 190 metres) and 484 underground diamond drill holes (total of 48,896 metres; average length 100 metres). One hundred twenty seven surface drill holes were completed in the period from January 2011 to September 2011 and comprise HQ and NQ diameter core. All underground drill holes were completed in the period 1984 to 1991 and are dominated by AQ diameter core with some BQ diameter core, clearly clustered around the underground workings and, in some cases subsequently mined out. Since the sample volumes of many of the underground drill cores are markedly less than the surface drill cores and because of potential bias contained within some samples, Snowden elected to use only the assays from the surface drill holes and those underground drill holes relatively unbiased for the grade estimates. Geological information from all drill cores was used to develop the geological interpretation.
A Vulcan block model with cell dimensions of 10 metres (X), 10 metres, (Y) 5 metres (Z), was coded to reflect the surface topography, base of overburden, Webb Lake granodiorite contacts, domain solids, and the late stage diabase dyke. A three dimensional wireframe model of the underground development, stopes, and unmineralized diabase dyke was stored as percent volumes in the block model to ensure that the reported mineral resource estimates are depleted for prior mining and unmineralized zones are excluded from estimation. The geologists at Prodigy have interpreted 17 structural domains to identify the zones of mineralization in the drill cores. These 17 domains within the Webb Lake granodiorite define the mineralized zones.
Gold grades were estimated from five metre length-weighted un-cut composites into the interpreted mineralized blocks by ordinary kriging using parameters established from analysis of the variography within each domain. The impact of clustered high gold grades was controlled by using a combination of "sample per hole" restrictions, octant search and maximum distance extrapolation restrictions for grades above 22 gpt gold. Minimum and maximum numbers of composites used for estimation were set to 3 and 14 per block respectively. Discretisation was set to 2 x 2 x 1. Density factors of 2.72 gm/cc were assigned to mineralized zones based on approximately 500 measurements of specific gravity performed by Prodigy.
In order to identify mineralized blocks that can be reported as a Mineral Resource, a conceptual pit shell was developed using Whittle software to identify those parts of the block model that have reasonable prospects for eventual economic extraction. Parameters used were: 52 degree (overall pit slope); $1.25 /tonne mining cost; $1,500 per oz gold price; 95% process recovery; $7 /tonne process cost. A detailed pit model using more selective criteria and lower gold price will be used for the update to the PEA. Mineralized blocks that lie within the conceptual pit shell have been classified as either Indicated or Inferred Mineral Resource estimates. Geostatistical parameters from the kriging system were used to identify regions of better confidence estimates.
Snowden has applied an Inferred classification to blocks in the mineral resource that lie within low confidence regions and between a depth from the surface of 150 metres and within the limit of the conceptual pit shell.
Above a depth from the surface of 150 metres, resource blocks that have been estimated by at least 14 samples have been classified as Indicated resource blocks. Snowden has not classified any Measured blocks after considering the uncertainty in geological interpretation and extent of the underground workings, the high nugget environment, short ranges of gold grade continuity, use of assigned densities and the current drill spacing. Snowden notes that Prodigy Gold has an ongoing drill program to in-fill the existing drill pattern.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves. In the above mineral resource table there may be inconsistencies due to rounding. Estimates are rounded since the figures are not precise calculations.
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 2,176,000 ounces grading 1.00 gpt gold (67.6 million tonnes), and 1,721,000 ounces of Inferred gold resources grading 0.99 gpt gold (54.2 million tonnes) at a cut off grade of 0.35 gpt gold. A Preliminary Economic Assessment (PEA), based on the older February 28, 2011 resource estimate, shows a pre-tax NPV of $351million and an IRR of 49% using a 5% discount rate for the project (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. The PEA will be updated using the results of the November 2, 2011 resource estimate in the coming weeks. 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, is a catalyst 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, except the section labelled "Mineral Resource Estimate", 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: http://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.
To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/prodigy11022011.htm
Source: Prodigy Gold Inc. (TSX-V: PDG) http://www.prodigygold.com
Maximum News Dissemination by Filing Services Canada Inc. http://www.usetdas.com
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