Prodigy Gold Testing Confirms SAG Milling Option for Magino
Prodigy Gold Incorporated 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: 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
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. NeitherTSX 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 Maher, 1-604-688-9006
Fax:
1-604-688-9029
ir@prodigygold.com
www.prodigygold.com