Prodigy Receives Geotechnical Report on Magino: Steeper Pit Walls Possible
Prodigy Gold Incorporated (PDG: TSX.V) is pleased to announce that it
has received a preliminary report from Golder Associates that summarizes
their geotechnical analysis of the proposed Magino open pit gold mining
project. The report concludes that the inter-ramp bench angles can be
increased to between 48 and 54 degrees from an original 45 degrees used
in the project Preliminary Economic Assessment (PEA) released in April
2011. This steepening of the pit slopes will reduce the waste to ore
strip ratio, allowing mineralization from the lower mine sections to be
accessed and incorporated into the mine design. Brian J. Maher,
President and CEO of Prodigy Gold commented: 'Prodigy is excited about
the results of this study. The steeper walls should increase the
recoverable resource and decrease the strip ratio with attendant mining
cost reduction. These combined factors should positively impact the Net
Present Value (NPV) analysis and valuation of the project.'
Other work in progress includes in-fill drilling which will be
incorporated into a revised resource estimate in late September,
followed by a PEA update scheduled for November. Results from
metallurgical test work are also expected within the next few weeks.
The proposed open pit in the April, 2011 PEA was designed using a 45
degree overall pit slope as there was no geotechnical assessment
available when the PEA was prepared. Golder Associates was contracted to
provide a conceptual pit slope design for the Magino mine using samples
of core and a review of information culled from project literature. The
pit slopes are comprised of a top layer of overburden, rock from a
slightly weathered zone and massive zones of volcanic, meta-volcanic,
granodiorite and felsic type rocks. Samples of the massive granodiorite
and mafic volcanic rocks were sent to Queen′s University labs for
strength testing. RQD analysis was done on the core samples. The results
show that the altered granodiorite that hosts gold mineralization are
competent units and capable of standing at angles steeper than 45
degrees. There are localized zones within crystal tuff and healed shears
that have lower RQD and strength characteristics. After reviewing all
the available data and the results of the present studies, the pit walls
were divided into four distinct zones, Northwest, Northeast, Southeast
and Southwest. These were analyzed for rock type, planar movement,
toppling, wedge failures and influence of weaker rock types.
Additional geotechnical work is planned and will include drilling
geotechnical holes into the walls to test for geomechanical and
hydrogeological rock mass qualities. Additional core samples will be
tested using uniaxial, triaxial and Brazilian test methods to complement
results from the initial program. Hydrogeological studies on overburden
are required as all designs were based on dry conditions.
About Prodigy Gold:Prodigy Gold Inc. (PDG: TSX.V)
is currently evaluating the development of the Magino mine gold project
in Ontario as an open-pit mining opportunity with the potential for
deeper, higher grade gold production. The Magino project contains
Indicated gold resources of 1,924,200 ounces grading 1.16 gpt gold (51.6
million tonnes), and 587,100 ounces of Inferred gold resources grading
1.04 gpt gold (17.5 million tonnes). A Preliminary Economic Assessment
(PEA) of the project shows a pre-tax NPV of $351million and an IRR of
49% using a 5% discount rate (available on SEDAR or Prodigy's web site).
The proposed operation would have an average annual gold output of over
166,000 ounces a year during a nine year project life. Total gold
production is estimated to be 1.50 million ounces at cash costs of
approximately US$496 (Cdn$521) per ounce. Please note: mineral resources
that are not mineral reserves do not have demonstrated economic
viability.
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 in this
press release 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
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 mineproperty 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.
Prodigy Gold Incorporated
Brian J. Maher, 1-604-688-9006
Fax:
1-604-688-9029
ir@prodigygold.com
www.prodigygold.com