Hi Sid welcome to Kodiak Exploration L (TSX:KXL)(USD)$0.35 UP $0.02 +6.06% :-) Bid 0.35 Ask 0.36 Volume 532,250 Days Range 0.33 - 0.38 Last Trade 9/24/2010 12:04:22 PM Detailed KXL Stock Quote
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<< Innovexplo resource estimate targets new area, supplements previously known resource >> MONTREAL, May 29 /CNW Telbec/ - Golden Goose Resources Inc. (TSX-V: GGR - News; the "Company") is pleased to report a new resource estimate for its wholly-owned Magino Mine property, located 1.5 km southwest of the Richmont/Patricia Island Gold Mine, near Wawa, Ontario. The estimate complies with National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Prepared by Innovexplo, an independent mining and exploration consulting firm based in Val-d'Or, Quebec, the new estimate shows an inferred resource of 3.75 million tonnes grading 5.94 g/t Au at a cut-off grade of 3 g/t Au, representing over 700,000 ounces of gold. The resource lies in the area below the old Magino mine workings, at a depth of from 200 to 600 metres. The estimate is mainly based on drilling carried out since the beginning of 2006 that identified some 76 separate mineralized zones, all of which remain open at depth and along strike. The estimation method used was polygons on longitudinal section for each zone, designed based on the future underground mining potential.
"We knew our drill results were excellent, but we are still extremely impressed by the size of the resource," said Jean-Marc Lacoste, President and Chief Executive Officer of Golden Goose. "These numbers clearly demonstrate the excellent potential of the property. We will now begin work on upgrading this Inferred Resource to the Indicated category in preparation for prefeasibility."
Depending on the cut-off grade used, the new estimate shows an inferred resource below the 200-metre level as follows:
Magino Project Innovexplo Inferred Mineral Resource
The Independent and Qualified Persons for the Mineral Resource estimates as defined by Regulation 43-101 are Carl Pelletier, B.Sc., P.Geo. and Bruno Turcotte, M.Sc., P.Geo. (InnovExplo Inc.), and the effective date of the estimate is May 23, 2008.
Notes:
- Mineral Resources are not Mineral Reserves having demonstrated economic viability. - Results are presented undiluted and in situ. The estimate included 76 gold-bearing zones and covers the Magino project area over 840 m E-W, 400 m N-S and from elevation -200m to -600m - The resources were compiled using a cut-off grade of 3.0 g/t Au. This cut-off must be re-evaluated in the light of the present market conditions: gold price, exchange rate and mining cost. A fixed density of 2.87 g/cm3 was used. A minimum of 1.6 m true width was applied, using the grade of the adjacent material when assayed, or a value of zero when not assayed. High grade capping was done on the raw data and established at 40.0 g/t Au. No drill hole compositing was done. Resources were evaluated from drill hole results using a polygonal on longitudinal approach. - Calculations used metric units (meter, tonnes and g/t Au). - The company is not aware of any known environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues that could materially affect the Mineral Resource estimates.
The new resource is in addition to a near-surface resource estimated by Snowden Mining Industry Consultants Inc. in April 2004. Snowden estimated measured and indicated resources of 7.3 million tons grading 2.33 g/t Au for a total of 544,000 ounces and an inferred resource of 1.2 million tons at 2.21 g/t or 84,625 ounces. All these ounces of gold lie between surface and a depth of 200 metres. These near-surface resources were based on a cut-off grade of 1.24 g/t Au. Snowden's mineral resource estimate was designed for low-grade, large-volume, open-pit potential. The estimation method used was a block model with a block size of 7.6 m x 7.6 m x 3 m. Grade models were estimated with multiple indicator kriging and ordinary kriging. The Snowden and Innovexplo estimates stands as follows as at May 23, 2008:
Magino Project Resources
Innovexplo resource estimate - May 2008: ---------------------------------------- Area targeted: -200 to -600 metres
Gilles Provost, P.Geo., a Qualified Person under NI 43-101, plans and supervises the exploration work on the Magino property and has approved the contents of this press release.
ABOUT GOLDEN GOOSE RESOURCES
Golden Goose Resources Inc. is a Canadian public company listed on the TSX Venture Exchange under the symbol GGR. The Company is principally engaged in mineral exploration and acquisition and has a portfolio of gold, platinum group metals, and nickel properties in Ontario and Quebec.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For further information
Golden Goose Resources Inc.: Jean-Marc Lacoste, President, 1-888-928-4667, Fax: 1-888-494-5371, lacoste@goldengooseres.com Renmark Financial Communications Inc.: Barry Mire: bmire@renmarkfinancial.com James Buchanan: jbuchanan@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com Qualified Persons under NI 43-101: Carl Pelletier, B.Sc., P.Geo., Bruno Turcotte, M.Sc., P.Geo., InnovExplo Inc., (886) 749-8140, Fax: (819) 874-0379, www.innovexplo.com Gilles Provost, M.Sc.A., P.Geo., Golden Goose Resources Inc., (888) 928-4667, Fax: (888) 494-5471, www.goldengooseres.com
Prodigy Receives Positive PEA For Magino: NPV of $351M and IRR of 49% Apr. 4, 2011 (Marketwire Canada) -- VANCOUVER, BRITISH COLUMBIA --
Prodigy Gold Incorporated (TSX VENTURE:PDG) is pleased to announce the results from a NI 43-101 compliant Preliminary Economic Assessment (PEA) of its 100% owned Magino mine gold project in northern Ontario. The PEA, completed by CWA Engineers Inc., in a consortium including Snowden Mining Industry Consultants Inc. (Snowden) and Knight Piésold Canada, has established strong economics for the proposed open pit gold mining project at Magino. (All figures are in Canadian dollars except where noted).
Highlights of the PEA (base case using US$1,000/oz gold):
Pre-tax Net Present Value (NPV) of $351 million at a 5% discount rate generating an Internal Rate of Return (IRR) of 49%; payback period is 1.8 years At a US$1,300/oz gold price, the project generates a pre-tax NPV of $691 million and an IRR of 80% Pre-tax cash flow from operations over the proposed Life of Mine (LOM) is estimated to be $796 million, net cash is projected to be $520 million LOM Start-up capital costs are estimated to be $242 million with an additional $34 million in sustaining capital Average annual gold production is estimated to be 166,500 ounces per year over a nine year operating life producing 1.50 million ounces of gold, recovery is estimated to be 95% Average LOM cash operating costs (exclusive of sustaining capital) are estimated to be US$496 (Cdn$521) per ounce During the first two years of proposed mine operations, the average grade processed will be 1.60 gpt gold Total minable resources of 41.8 million tonnes grading 1.18 gpt gold with a strip ratio of 2.8:1 Ongoing in-fill drilling to date is targeted at increasing the gold resource by converting internal waste to resources; the PEA to be updated upon completion of the drilling
Brian Maher, President and CEO of Prodigy Gold stated: "The completion of the Magino mine PEA by the engineering consortium is a major milestone for Prodigy Gold, demonstrating the robust economics of our proposed open pit gold mine at Magino. With a projected mine life of nine years, cash costs of US$496 (Cdn$521) per ounce and rapid payback of capital, Magino is developing into one of the leading undeveloped gold projects in eastern Canada. The on-going in-fill drilling program, which is targeting gold mineralization within the proposed open pit, may enhance project economics as we convert internal waste into resources, simultaneously increasing contained ounces and lowering costs. We view this PEA as a first pass analysis and look forward to fine-tuning the operating and milling plan with a focus on lowering costs and increasing the resource base prior to completing a full feasibility study."
Project Assumptions and Parameters: Assumptions: Base gold price (US$/oz) 1,000 Exchange Rate (Cdn$/US$) 1.05 Milling rate (tpd) 15,000 --No royalty --No sunk costs --Total capital costs include initial and sustaining capital --100% equity financing --Costs are estimated in 2011 first quarter dollars
Mine and Mill Parameters: Total resource milled (million tonnes) 41.82 Waste moved (million tonnes) 115.55 LOM strip ratio 2.76:1 Average gold grade (gpt) 1.18 Total contained gold (million oz) 1.57 Estimated gold recovery (%) 95 Total recovered gold (million oz) 1.50 Project life (years) 9 Average annual production (oz) 166,500
Costs and Capital Requirements: Mining costs ($/tonne) 2.25 Transportation costs ($/tonne) 0.50 Milling costs ($/tonne) 9.17 G and A ($/tonne) 1.13 Pre-production capital ($ million) 242 Sustaining capital ($ million) 34 Average cash cost (US$/oz) 496 (Cdn$521)
The Magino mine resources used in the PEA were previously reported in a Prodigy Gold press release dated February 28, 2011. The resource estimate, completed by Snowden, contained 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) using a 0.35 gpt cut off grade. The complete resource estimate table is included below: Indicated Inferred
Potentially open-pit minable resources were calculated by Snowden using Snowden's resource model (as reported in a press release dated February 28, 2011). This resource model as well as the cost parameters mentioned above, and an average pit wall slope assumption of 45° were used to develop an optimum final pit shell using Whittle 4D. After determining the optimal pit shell Snowden then used lower revenue factor shells to select appropriate push backs to assist in scheduling the operation. Snowden then developed a life of project schedule for the resource which utilizes an extensive low grade stockpile to increase the average mill feed grade, maximizing value in the early years of the project's life. The schedule developed supports an average mill feed rate of 15,000 tonnes per day, for about nine years. To support this mill feed, total material movement from the open pit peaks at about 62,500 tonnes per day in year three with a typical material movement requirement of about 55,000 tonnes per day of combined waste and process feed.
Using the final pit shell from Whittle, Snowden designed a conceptual final pit design as well as associated waste dumps, low grade stockpile, and ramps. Mining is assumed to be undertaken by a contractor. The financial analysis includes a mobilization allowance of $5 million for the contractor.
Mining and Production
The pit design, optimization and production schedule prepared by Snowden resulted in a potential production schedule containing 41.82 million tonnes grading 1.18 gpt gold. Total gold recovered over a nine year project life is 1.50 million ounces, averaging 166,500 ounces per year. The LOM average strip ratio is estimated to be less than 2.8 to 1. A summary of the annual mine production is outlined below.
The PEA contemplates using a conventional carbon-in-leach (CIL) processing facility operating at 15,000 tpd with 95% availability. The crushing consists of a three stage crushing plant and a fine ore stockpile. The fine ore will be reclaimed to feed two ball mills in parallel. Each ball mill will be in a closed circuit with cyclones.
The cyclone overflow from each ball mill will be fed to a train of leach tanks with sodium cyanide and carbon (carbon-in-leach process) for 48 hours to extract 95% of the contained gold. The loaded carbon will be washed and stripped in a hot caustic solution at an elevated temperature and pressure. The pregnant solution exiting from the stripping circuit will be cooled and pumped to a set of electrowinning cells where the gold will be plated out on steel wool. The gold laden steel wool will be smelted on site to produce dore.
The stripped carbon will be reactivated and returned to the CIL circuit. The residual cyanide in the tailings from the leach will be destroyed using sulphur dioxide, copper sulphate and lime before the tailings are pumped to the storage area. The supernatant from the tailings will be reclaimed and re-used in the process plant.
Operating Costs
Operating cash costs, excluding sustaining capital, over LOM are projected to average US$496/oz (Cdn$521). Costs are summarized below: $/tonne milled $/tonne mined $/oz gold Average mining costs 8.31 2.25 232 (US$221) Stockpile reclaim 0.50 - 2 (US$2) Processing cost 9.17 - 256 (US$244) G and A 1.13 - 31 (US$29) Total: 19.11 - 521 (US$496)
Capital Cost Estimates
The PEA is based upon capital pricing as of the first quarter of 2011. The level of accuracy of the capital cost estimate is ± 40% for this PEA. Pre-production capital costs are estimated at $242 million. Because mining is assumed to be undertaken by a contractor, the mining fleet capital is limited to $5 million for the contractor mobilization. Sustaining capital, principally staged additions to the capacity of the tailings pond, is estimated to be $34 million. The cost breakdown for pre-production capital expenditures, assuming contract mining, is shown below. Description Pre-production Capital ($ million) Sustaining Capital ($ million) Mining 5 Process Plant 142 Tailings 17 34 Infrastructure 4 Total direct costs 168 34 Other Indirect 2 EPCM 16 Contingency (30%) 56 Total indirect costs 74 Total 242 34
Financial Analysis
The financial analysis for the Base Case evaluation utilizing a gold price of US$ 1,000 per ounce indicates a pre-tax NPV at a 5% discount rate of $351 million with an IRR of 49% and a payback period of 1.8 years. On an after tax basis, the NPV at a 5% discount rate is $259 million with an IRR of 41% at a gold price of US$1000 per ounce. The project generates an undiscounted pre-tax cash flow from operations of $796 million over the LOM. The table below outlines NPV and IRR at a variety of gold prices and discount rates (DR) on a pre-tax basis. Gold Price (USD$) 1,000 900 1,200 1,300 Cash flow from operations ($ million) 796 638 1,112 1,269 NPV 0% DR ($ million) 520 362 835 993 NPV 5% DR ($ million) 351 237 578 691 NPV 7.5% DR ($million) 289 192 484 581 IRR Base Case (%) 49 38 70 80
Note on Mineral Resources
Mineral resources that are not mineral reserves do not have demonstrated economic viability. This assessment is preliminary in nature as it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable to them to be categorized as mineral reserves. At this time there is no certainty that the preliminary assessment and economics will be realized.
Qualified Persons for the PEA
The PEA was prepared by leading independent industry consultants, all Qualified Persons (QP) under National Instrument 43-101. The QPs have reviewed and approved the content of this news release. The following consultants and QPs participated in the PEA:
CWA Engineers Inc, under the direction of Frank Yu, P. Eng. Mr. Frank Yu is the Technical Director, Mining of CWA Engineers Inc. He supervised and reviewed the process design and infrastructure update requirement, capital and mill operating cost estimate and financial analysis of this project. Snowden Mining Industry Consultants Inc., under the direction of Anthony Finch, MAusIMM. Mr. Anthony Finch is the Divisional Manager Mining Engineering and Principal Consultant at Snowden Mining Industry Consultants Inc. He supervised and reviewed all the mining design aspects of this project. Knight Piésold Canada, under the direction of Daniel Y. Yang, P. Eng. Mr. Daniel Yang is a Senior Engineer of Knight Piésold Canada. He supervised and reviewed the tailings storage facility for this project.
A NI 43-101 compliant technical report will be filed on SEDAR within 45 days of the date of this press release.
About Prodigy Gold: Prodigy Gold Inc. (TSX VENTURE:PDG) 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) (please see Prodigy press release dated February 28, 2011). 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 (please see Prodigy press release dated April 4, 2011). 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. A full feasibility study for the proposed open pit mining project 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 in this news release, except as noted above, 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. Drill holes are directed as much as possible perpendicular to the strike and dip of the mineralization at Magino.
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 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, 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 President and Chief Executive Officer 1-604-688-9006 1-604-688-9029 (FAX) ir@prodigygold.com http://www.prodigygold.com
Boy Mr. Maher, along with his BOD are working very hard to get to the production phase of MAGINO AND MORE...It is certainly fascinating, from a Geologic view, how they have discovered not only the existing Gold within these infill drilling, which show great amounts, like that 281 Ms an that 100Ms +of proven Economic Gold, at a cost of #496 per ounce, and they have yet to release the vast majority of these in fill drills, but I feel after a carefull review of this report , that PDG is actually finding much more gold, as they are able to identify many more Gold Areas, even within the envisioned Open Pit....
In my view , they will not be leaving this area anytime soon, and so we may have assay results due out, in a couple of months or so, but as I say much more drilling here will be necessary, because of the current drilling is showing many more Gold areas I would reasonably say that this PDG open PIT, will at least this year rack up over 4 Million ounces, just in the outlined pit...And I would also that outside said open Pit area, there will also find large areas masses of similar grades...One very interesting point made at least 3 times, is that they only have drilled down to 600 Ms , and are very exited indeed about drilling down there, since it appears that the deeper thy drill, the higher the grade... As for their other properties, It seemed to me that 2 smaller drilling programs will be undertaken this summer, however, my interpretation was that MAGINO would be for NOW, the main area of work. After reviewing this report I have come to the conclusion that MAGINO and it surrounding 20 square KMS, will hold some real surprises, as evidenced by the fact that they intend to study and acquire more land besides/adjacent to Magino...
I am sure next year when they are ready to open up the pit, that the 200 Millions $$ required will be easily available as a Bankable report will be done, up to that time...Mr. Maher intends to continue feasible take overs with known deposits of Gold, and continue building shareholder Values$$ for our PDG here in good old safe CANADA........
Thank you Mr. Maher and BOD , you now have the bull by it,s horns...well done...
Prodigy Drills 143m Grading 1.54 gpt Gold at Magino Apr. 14, 2011 (Marketwire Canada) -- VANCOUVER, BRITISH COLUMBIA --
Prodigy Gold Incorporated (TSX VENTURE:PDG)(FRANKFURT:KX3) is pleased to announce additional results from its in-fill and resource expansion drilling program at its 100% owned Magino mine gold project in Ontario.
Highlights include drill MA11-006 which intercepted 143 metres grading 1.54 gpt gold including 67 metres grading 2.12 gpt gold. Higher grades were intercepted in drill hole MA11-005: 38 metres grading 2.11 gpt gold including 25 metres grading 3.13 gpt gold.
The grades and widths seen in these two drill holes are consistent with earlier announced in-fill drill holes and continue to expand the known zone of gold mineralization within the proposed open pit modeled in the recently announced Preliminary Economic Assessment (PEA) (April 4, 2011).
Prodigy Gold sampling protocol mandates a metallic screen assay for any sample that produces a fire assay greater than 3 gpt gold. Revision to the sampling protocol now requires that any sample with visible gold is also subjected to a metallic screen assay. As a result, Prodigy has received new metallic screen assays for previously reported drill hole MA11-004 that have resulted in a recalculation and increase in the composite grade to 261 metres grading 1.32 gpt gold (previously reported as 261 metres grading 1.13 gpt gold, March 16, 2011). A table with all assay results including the restated data for hole MA11-004 is below. Drill Hole From (metres) To (metres) Length (metres) Grade (gpt gold) MA11-004 122.0 383.0 261.0 1.32 Including: 134.4 239.0 104.6 2.06 Including: 271.9 340.0 68.1 2.69 Including: 308.1 308.9 0.8 40.00* Including: 315.5 316.0 0.5 40.00* 600.0 703.0 103.0 1.07 Including: 600.0 623.0 23.0 2.34 MA11-005 131.0 177.0 45.0 0.37 192.0 274.0 82.0 0.90 Including: 199.0 220.0 21.0 2.26 309.0 347.0 38.0 2.11 Including: 321.0 347.0 26.0 3.17 360.0 411.1 51.1 1.38 373.0 393.0 20.0 3.13 MA11-006 123.0 266.0 143.0 1.54 Including: 123.0 190.0 67.0 2.12 295.0 305.0 10.0 1.16 529.0 652.0 123.0 0.36 *Note: All gold assays greater than 40 gpt gold are capped at 40 gpt when calculating composite intervals.
The Magino in-fill drilling program now consists of four diamond drill rigs targeting areas for resource expansion within the proposed open pit. To date, Prodigy has completed 18 drill holes totaling 6,901 metres of the planned 20,000 metre drill program. When completed, the results of the in-fill drilling program will be used to update the Magino gold resource estimate and PEA later this year. A drill hole location map is shown below.
Magino mineral resource update: A NI 43-101 compliant technical report entitled "Prodigy Gold Incorporated: Mineral Resource Estimate, Magino Gold Project, Ste. Sault Marie Mining District, Ontario" was filed on SEDAR yesterday, April 13th, and will also be available on the company's web site.
About Prodigy Gold: Prodigy Gold Inc. (TSX VENTURE:PDG)(FRANKFURT:KX3) 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) (Available on SEDAR or Prodigy's web site). 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 (please see Prodigy press release dated April 4, 2011). 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 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 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.
Prodigy Gold Incorporated President and Chief Executive Officer 1-604-688-9006 1-604-688-9029 (FAX) ir@prodigygold.com http://www.prodigygold.com
Prodigy Doubles In-Fill Drilling Program at Magino to More Than 40,000 Metres May 19, 2011 (Business Wire) --
Prodigy Gold Incorporated (PDG: TSX.V) is pleased to announce that it is doubling the scope of its on-going in-fill and resource expansion drilling program to a total of 45,000 metres at its 100% owned Magino mine gold project in Ontario.
Results to date have been very encouraging as all targets defined during the analysis of the Magino block model have been successfully tested.
These results have defined new targets for resource expansion prompting the expansion of the scope of the drilling program.
Four drill rigs are currently operating on the property with approximately 17,000 metres of drilling completed to date.
Drill holes will be prioritized so that those holes which have the biggest potential impact on the block model and gold resource are drilled first.
The Magino mine gold project Preliminary Economic Assessment has been posted on SEDAR and is also available on the company's web site.
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 $351 million 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 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 -- --the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
PDG presentaiion, for your review...Incredible proof of the MAGINO Mine...read carefully.... ...enjoy, all you PDG Shareholders....here is the link to this complete Report issued today... May 24....
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