Prodigy Gold Inc fka PDG (PDG)

[NYBob]

Prodigy Gold Testing Confirms SAG Milling Option for Magino -



Prodigy Gold Testing Confirms SAG Milling Option for Magino -
Vancouver, British Columbia CANADA, November 07, 2011 /FSC/ -

Prodigy Gold Inc.
(PDG - TSX Venture, KX3 - FWB), 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:

http://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

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 press release as a web page, click onto the link below:
http://www.usetdas.com/PR/prodigygold07112011.htm



Source: Prodigy Gold Inc. (TSX-V: PDG) http://www.www.prodigygold.com
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