Prodigy Gold Inc fka PDG (PDG)

[NYBob]

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: [e-mail]
Website:
http://www.prodigygold.com
tel.: [phone]
Fax: [phone]


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
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