Prodigy Gold Inc fka PDG (PDG)

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

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Magino Gold Mines Property -

http://prodigygold.com/projects/gold_division/magino/

http://prodigygold.com/

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