Prodigy Gold soars after PEA results from Magino indicate 49% IRR Mon 1:41 pm by Deborah Sterescu
Prodigy Gold soars after PEA results from Magino indicate 49% IRR
Prodigy Gold's (CVE:PDG) shares rose as high as 19% on Monday after the company announced an estimated 49% internal rate of return from its Magino gold project in northern Ontario, with cash costs of just US$496 per ounce.
Following the release of the comany's preliminary economic assessment (PEA) on the Magino mine today, its shares soared to $0.50 as of 11:46am EST - up nearly 15%.
The NI 43-101 compliant report, led by CWA Engineers, also estimated that using a US$1,000 per ounce gold price, the open pit gold project would generate a pre-tax net present value of $351 million at a 5% discount rate.
Average annual gold production for Magino is projected at 166,500 ounces per year over a nine-year operating life, for 1.50 million total ounces of recovered gold. The recovery rate is estimated at a whopping 95%, with the average grade processed during the first two years of operations expected to be 1.6 g/t gold.
Prodigy said that start up capital costs were calculated at $242 million, with an additional $34 million in sustaining capital, and a payback period of 1.8 years.
"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," said president and CEO Brian Maher.
"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."
The company said it plans on updating the preliminary economic report once this drilling is completed. Based on the pit design and production schedule used for the study, Magino has total mineable resources of 41.8 million tonnes, grading 1.18 g/t gold.
A full feasibility study for the proposed open pit mining project is scheduled for early 2012.
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
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....
Prodigy Announces $20.0 Million Financing May 25, 2011 (Filing Services Canada) --
Prodigy Gold Inc. (PDG - TSX Venture, KX3 - FWB), (the "Company" or "Prodigy") is pleased to announce that it has entered into an agreement with a syndicate of brokers led by Casimir Capital Ltd. and including National Bank Financial Inc., Paradigm Capital Inc. and Byron Capital Markets Ltd. (the "Agents") to act as agents in connection with a private placement on a best efforts agency basis of 23,076,923 common shares at a price of $0.65 per share plus 6,666,667 flow-through common shares at a price of $0.75 per flow-through common share for aggregate gross proceeds of approximately $20,000,000.
Under the agreement, the number of flow through common shares sold in the offering may not exceed the lesser of (i) 25% of the aggregate number of non flow-through common shares and flow-through common shares sold in the offering and (ii) that number of flow through shares that represent proceeds of $5 million.
As consideration for acting as agents, the Agents will be paid a commission of 6% of the total proceeds raised upon closing and issued agents' warrants ("Agents' Warrants") equal to 3% of the common shares issued pursuant to this offering.
Each Agents' Warrant will be exercisable to acquire one common share at $0.70 expiring 24 months after the closing date.
The Company has also granted the Agents an over-allotment option to solicit an additional $5 million in non flow-through shares, exercisable 48 hours prior to closing.
All securities issued in conjunction with the private placement will be subject to a four month hold period. The private placement is subject to acceptance of a filing to be made in respect of same by the TSX Venture Exchange.
The offering expected to close on or about June 8, 2011.
The proceeds from the private placement will be used to fund the Company's ongoing exploration and development at the Magino mine project and general corporate purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state securities laws, or unless an exemption from such registration is available.
About Prodigy Gold: Prodigy 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 production.
The Magino Gold mine 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 166,666 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 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'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 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: ir@prodigygold.com Website: http://www.prodigygold.com
tel.: 1-604-688-9006 Fax: 1-604-688-9029
This news release includes certain forward-looking statements or information---- the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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