Prodigy Drills 143m Grading 1.54 gpt Gold at Magino
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/14/11 -- Prodigy Gold Incorporated (TSX VENTURE: PDG)(FRANKFURT: KX3) is pleased to announce additional results from its in-fill and resource expansion drilling program at its 100% owned Magino mine gold project in Ontario. Highlights include drill MA11-006 which intercepted 143 metres grading 1.54 gpt gold including 67 metres grading 2.12 gpt gold. Higher grades were intercepted in drill hole MA11-005: 38 metres grading 2.11 gpt gold including 25 metres grading 3.13 gpt gold. The grades and widths seen in these two drill holes are consistent with earlier announced in-fill drill holes and continue to expand the known zone of gold mineralization within the proposed open pit modeled in the recently announced Preliminary Economic Assessment (PEA) (April 4, 2011).
Prodigy Gold sampling protocol mandates a metallic screen assay for any sample that produces a fire assay greater than 3 gpt gold. Revision to the sampling protocol now requires that any sample with visible gold is also subjected to a metallic screen assay. As a result, Prodigy has received new metallic screen assays for previously reported drill hole MA11-004 that have resulted in a recalculation and increase in the composite grade to 261 metres grading 1.32 gpt gold (previously reported as 261 metres grading 1.13 gpt gold, March 16, 2011). A table with all assay results including the restated data for hole MA11-004 is below.
Drill Hole From (metres) To (metres) Length (metres) Grade (gpt gold)
--------------------------------------------------------------------------
MA11-004 122.0 383.0 261.0 1.32
Including: 134.4 239.0 104.6 2.06
Including: 271.9 340.0 68.1 2.69
Including: 308.1 308.9 0.8 40.00(i)
Including: 315.5 316.0 0.5 40.00(i)
600.0 703.0 103.0 1.07
Including: 600.0 623.0 23.0 2.34
MA11-005 131.0 177.0 45.0 0.37
192.0 274.0 82.0 0.90
Including: 199.0 220.0 21.0 2.26
309.0 347.0 38.0 2.11
Including: 321.0 347.0 26.0 3.17
360.0 411.1 51.1 1.38
373.0 393.0 20.0 3.13
MA11-006 123.0 266.0 143.0 1.54
Including: 123.0 190.0 67.0 2.12
295.0 305.0 10.0 1.16
529.0 652.0 123.0 0.36
(i)Note: All gold assays greater than 40 gpt gold are capped at 40 gpt
when calculating composite intervals.
The Magino in-fill drilling program now consists of four diamond drill rigs targeting areas for resource expansion within the proposed open pit. To date, Prodigy has completed 18 drill holes totaling 6,901 metres of the planned 20,000 metre drill program. When completed, the results of the in-fill drilling program will be used to update the Magino gold resource estimate and PEA later this year. A drill hole location map is shown below.
Note: To view 'Magino Drilling map', please click the following link: http://media3.marketwire.com/docs/Prodigy_map_0414.pdf
Magino mineral resource update: A NI 43-101 compliant technical report entitled 'Prodigy Gold Incorporated: Mineral Resource Estimate, Magino Gold Project, Ste. Sault Marie Mining District, Ontario' was filed on SEDAR yesterday, April 13th, and will also be available on the company's web site.
About Prodigy Gold: Prodigy Gold Inc. (TSX VENTURE: PDG)(FRANKFURT: KX3) is currently evaluating the development of the Magino mine gold project in Ontario as an open-pit mining opportunity with the potential for deeper, higher grade gold production. The Magino project contains Indicated gold resources of 1,924,200 ounces grading 1.16 gpt gold (51.6 million tonnes), and 587,100 ounces of Inferred gold resources grading 1.04 gpt gold (17.5 million tonnes) (Available on SEDAR or Prodigy's web site). A Preliminary Economic Assessment (PEA) of the project shows a pre-tax NPV of $351million and an IRR of 49% using a 5% discount rate (please see Prodigy press release dated April 4, 2011). The proposed operation would have an average annual gold output of over 166,000 ounces a year during a nine year project life. Total gold production is estimated to be 1.50 million ounces at cash costs of approximately US$496 (Cdn$521) per ounce. Please note: mineral resources that are not mineral reserves do not have demonstrated economic viability.
A full feasibility study for the proposed open pit mining project at Magino is scheduled for early 2012. Bringing the Magino mine project through the feasibility process and towards production, coupled with the exploration potential of our Beardmore-Geraldton exploration properties, are the catalysts to growing Prodigy Gold and building substantial value for Prodigy shareholders: Today's Discovery, Tomorrow's Future.
All scientific and technical information for the Magino project has been reviewed and approved by Tom Pollock, P.Geo., Prodigy Gold's Vice President - Exploration, who is a qualified person under the definitions established by National Instrument 43-101. Drill core at Magino is boxed, covered, and sealed at the drill rig and moved to the Prodigy logging and sample preparation facilities by Prodigy Gold personnel. The core is then split down the centre using a typical table fed circular rock saw normally at one metre intervals. One half of the core is sent for assay to ALS Chemex, 2090 Riverside Dr., Timmins, ON, P4R 0A2, while the other half is returned to the core box and stored at Prodigy's sampling facility in a secure, fenced off, area. Prodigy QA/QC procedures include the regular use of blanks, standards and duplicate samples in addition to sending 10% of the samples off to a second lab for check assays. Samples assaying greater than 3.0 gpt gold are automatically re-assayed by the metallic screen method. Gold assays greater than 40 gpt are capped at 40 gpt when calculating composite intervals in drill holes. Drill holes are directed as much as possible perpendicular to the strike and dip of the mineralization at Magino. As a rough estimate the true thickness of the above intercepts is approximately 76%.
On behalf of the Board of Directors
Brian J. Maher, President and Chief Executive Officer
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Magino 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.
Contacts:
Prodigy Gold Incorporated
Brian J. Maher
President and Chief Executive Officer
1-604-688-9006
1-604-688-9029 (FAX)
ir@prodigygold.com
www.prodigygold.com