Vancouver, British Columbia CANADA, January 24, 2012 /FSC/ - Prodigy Gold Inc. (PDG - TSX Venture),("Prodigy") is pleased to announce that resource expansion and step out drilling at its Magino mine gold project in Ontario has intercepted significant gold mineralization in multiple areas:
* Within and adjacent to the main Magino gold resource,
* The southwest extension of the Magino deposit, and
* The Lovell Lake area 200 metres west of Magino deposit.
Prodigy completed 54 core drill holes totaling 18,077 metres (including condemnation drilling), augmenting and expanding the Magino gold resource potential.
Magino in-fill and resource expansion drilling: Highlights include 203 metres grading 1.27 gpt gold in drill hole MA11-177 and 164 metres grading 1.09 gpt gold in drill hole MA11-136. These and other drill holes reported below document thick intervals of gold mineralization that were not included in previous Magino gold resource estimates. Drill hole MA11-149 intercepted 19.0 metres grading 3.38 gpt gold starting at a vertical depth of 227.5 metres, contiguous to other high grade intercepts. Deeper, higher grade gold mineralization, documented in resource estimates, continues to be consistent in the Magino gold deposit. All of the drill holes reported herein were completed after the recent Magino gold resource estimate (NI 43-101 Technical Report dated November 2, 2011) and subsequent Preliminary Economic Assessment (PEA) outlined in a press release dated December 22, 2011 and have the potential to increase minable gold resources at Magino. Additional drilling is being planned for these areas. A complete drill hole table for all 28 in-fill and resource expansion drill holes (10,400 metres) is presented below.
Southwest extension of the Magino gold deposit: In late 2011, Prodigy completed an initial test of the southwest extension of the Magino gold deposit (2,054 metres in seven drill holes). The preliminary results confirm widespread gold mineralization southwest of the main Magino gold deposit: 127 metres grading 0.84 gpt gold in drill hole MA11-160. Drilling in this area was preliminary, six drill holes in three fences spaced 100 metres apart. All of these drill holes intercepted gold mineralization, confirming a 300 metre extension to the main Magino gold deposit. Further drilling is planned for this area and farther to the southwest where the gold deposit is unconstrained by drilling. A complete drill hole table and drill hole location map for the southwest extension drilling program is presented below.
Lovell Lake area: Preliminary drilling in the Lovell Lake area, 200 metres west of the main Magino gold deposit, also intercepted encouraging gold mineralization: 29 metres grading 1.01 gpt gold in drill hole MA11-162. Gold mineralized drill holes at Lovell Lake, as well as historic drilling, are clustered in a gold mineralized zone with at least 300 metres of strike length. Additional drilling is being planned in the area, targeting potential expansion of the overall Magino project resources. Highlights of the 3,846 metre, fourteen hole, Lovell Lake drilling program and a drill hole location map are shown below.
Brian J. Maher, President and CEO of Prodigy Gold Inc. commented "Drilling in the main Magino gold deposit continues to demonstrate the potential to increase the total gold resource. These results, including the confirmation of a southwest extension to the Magino deposit, clearly indicate that the ultimate size of the deposit has yet to be determined. While we continue to grow the gold resource at Magino, we will revise pit optimization studies and evaluate possible expansion of the proposed open pit mining operation. Defining the full scale of the mining operation at Magino is a key step in completing a feasibility study for the project during 2012".
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Grade
From To 40
Dip Est. (Depth (Depth gpt
(Angle True Below Below Capped
Drill From To Length Azimuth below Thickness Surface Surface (gpt
Hole metres metres metres(360deg)surface) metres metres) metres) gold)
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MA11-126 22.0 114.0 92.0 160.0 -50.8 69.9 16.9 87.3 1.06
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INCL. 56.0 71.0 15.0 11.4 42.9 54.4 4.03
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MA11-129 251.0 365.0 114.0 167.4 -51.4 86.6 192.3 279.6 0.87
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INCL. 279.0 365.0 86.0 65.4 213.7 279.6 1.10
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INCL. 349.0 365.0 16.0 12.2 267.3 279.6 2.34
-------------------------------------------------------------------------
MA11-130 259.0 355.0 96.0 162.2 -50.4 73.0 198.4 271.9 0.75
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INCL. 330.0 355.0 25.0 19.0 252.8 271.9 1.20
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MA11-132 193.0 210.0 17.0 164.8 -50.9 12.9 147.8 160.9 1.07
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320.0 336.0 16.0 12.2 245.1 257.4 1.09
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MA11-133 228.0 260.0 32.0 164.3 -49.7 24.3 174.6 199.2 0.43
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MA11-134 284.0 348.0 64.0 161.6 -50.6 48.6 217.5 266.6 1.01
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MA11-135 135.0 343.0 208.0 164.8 -49.8 158.1 103.4 262.7 0.70
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INCL. 273.0 343.0 70.0 53.2 209.1 262.7 1.69
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MA11-136 209.0 352.0 143.0 164.0 -47.9 108.7 160.1 269.6 1.09
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INCL. 219.0 339.5 120.5 91.6 167.8 260.1 1.23
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MA11-137 135.0 163.0 28.0 166.5 -50.6 21.3 103.4 124.9 0.75
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321.0 359.0 38.0 28.9 245.9 275.0 1.01
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MA11-138 262.0 343.0 81.0 166.4 -52.4 61.6 200.7 262.7 1.10
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MA11-141 206.0 312.0 106.0 163.0 -50.0 80.6 157.8 239.0 1.01
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MA11-143 301.0 353.0 52.0 165.2 -49.7 39.5 230.6 270.4 1.10
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MA11-145 65.0 210.0 145.0 167.0 -48.7 110.2 49.8 160.9 0.55
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INCL. 159.0 191.0 32.0 24.3 121.8 146.3 1.25
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INCL. 223.0 249.0 26.0 19.8 170.8 190.7 1.09
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MA11-149 268.0 395.0 127.0 171.4 -50.9 96.5 205.3 302.6 1.06
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INCL. 268.0 355.0 87.0 66.1 205.3 271.9 1.34
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297.0 316.0 19.0 14.4 227.5 242.1 3.38
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MA11-151 203.0 341.0 138.0 167.7 -50.3 104.9 155.5 261.2 0.70
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INCL. 280.0 341.0 61.0 46.4 214.5 261.2 1.06
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INCL. 299.0 341.0 42.0 31.9 229.0 261.2 1.36
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MA11-154 142.0 174.0 32.0 164.8 -47.4 24.3 108.8 133.3 0.82
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426.0 452.0 26.0 19.8 326.3 346.2 1.13
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MA11-156 160.0 185.0 25.0 165.3 -50.0 19.0 122.6 141.7 1.12
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MA11-163 NSV NSV NSV 163.6 -49.6 NSV NSV NSV NSV
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MA11-164 304.0 450.0 146.0 162.9 -50.5 111.0 232.9 344.7 0.83
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INCL. 338.0 440.0 102.0 77.5 258.9 337.0 1.15
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MA11-166 NSV NSV NSV 162.9 -48.5 NSV NSV NSV NSV
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MA11-167 302.0 424.0 122.0 162.9 -49.5 92.7 231.3 324.8 0.85
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INCL. 311.0 391.0 80.0 60.8 238.2 299.5 1.15
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442.0 472.0 30.0 22.8 338.6 361.6 1.83
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MA11-168 84.0 110.0 26.0 164.0 -49.2 19.8 64.3 84.3 1.03
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INCL. 84.0 94.8 10.8 8.2 64.3 72.6 2.08
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131.0 172.0 41.0 31.2 100.3 131.8 0.96
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INCL. 146.0 172.0 26.0 19.8 111.8 131.8 1.39
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INCL. 148.0 164.0 16.0 12.2 113.4 125.6 2.10
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MA11-169 141.0 147.0 6.0 169.6 -48.9 4.6 108.0 112.6 1.65
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MA11-170 NSV NSV NSV 166.1 -48.9 NSV NSV NSV NSV
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MA11-171 61.0 84.0 23.0 164.7 -50.1 17.5 46.7 64.3 0.52
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MA11-173 126.0 148.0 22.0 164.2 -49.6 16.7 0.0 0.0 2.42
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MA11-176 NSV NSV NSV 163.9 -47.4 NSV NSV NSV NSV
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MA11-177 228.0 431.0 203.0 166.7 -49.8 154.3 174.6 330.1 1.27
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INCL. 257.0 341.0 84.0 63.8 196.9 261.2 2.20
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Above, in-fill and resource expansion drilling, main Magino deposit area. NSV = no significant values.
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Grade
From To 40
Dip Est. (Depth (Depth gpt
(Angle True Below Below Capped
Drill From To Length Azimuth below Thickness Surface Surface (gpt
Hole metres metres metres(360deg)surface) metres metres) metres) gold)
-------------------------------------------------------------------------
MA11-139 30.0 42.0 12.0 160.8 -52.3 9.1 23.0 32.2 0.64
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MA11-140 127.0 150.0 23.0 162.4 -49.9 17.5 97.3 114.9 0.77
-------------------------------------------------------------------------
276.0 313.0 37.0 28.1 211.4 239.8 0.54
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MA11-160 55.0 182.0 127.0 161.7 -50.6 96.5 42.1 139.4 0.84
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MA11-161 71.0 125.0 54.0 162.1 -50.3 41.0 54.4 95.8 0.75
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208.0 253.0 45.0 34.2 159.3 193.8 1.05
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MA11-174 189.0 219.0 30.0 165.7 -47.7 22.8 144.8 167.8 0.55
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MA11-178 255.0 278.0 23.0 160.0 -45.6 17.5 195.3 212.9 1.10
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INCL. 387.0 400.0 13.0 9.9 296.4 306.4 0.96
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MA11-182 NSV NSV NSV 157.6 -50.2 NSV NSV NSV NSV
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Above, southwest Magino extension resource expansion drilling. NSV = no significant values.
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Grade
From To 40
Dip Est. (Depth (Depth gpt
(Angle True Below Below Capped
Drill From To Length Azimuth below Thickness Surface Surface (gpt
Hole metres metres metres(360deg)surface) metres metres) metres) gold)
-------------------------------------------------------------------------
MA11-142 158.0 162.0 4.0 163.2 -49.1 3.0 121.0 124.1 0.87
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MA11-144 92.0 111.0 19.0 164.5 -53.0 14.4 70.5 85.0 0.58
-------------------------------------------------------------------------
135.4 150.0 14.6 11.1 103.7 114.9 0.56
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MA11-155 293.7 301.0 7.3 169.7 -49.7 5.5 225.0 230.6 0.79
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MA11-159 64.0 75.0 11.0 164.0 -49.6 8.4 49.0 57.5 0.42
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209.0 220.0 11.0 8.4 160.1 168.5 0.90
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MA11-162 165.0 194.0 29.0 165.0 -51.6 22.0 126.4 148.6 1.0
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MA11-165 74.0 90.0 16.0 168.8 -46.9 12.2 56.7 68.9 0.55
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Above, highlights of resource expansion drilling, Lovell Lake area. NSV = no significant values.
Drill hole plan map, Magino Mine Project.
To view the drill hole plan map, click onto the link below or copy and paste into your browser:
www.usetdas.com/maps/prodigy/pdgjan24002.jpg
Condemnation drilling totaling 1,777 metres in five drill holes was completed in areas being evaluated for possible waste dumps, tailings impoundments and process facilities. This program will continue in the first half of 2012.
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 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 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: www.prodigygold.com
tel.: 1-604-688-9006 Fax: 1-604-688-9029
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:
www.usetdas.com/PR/prodigygold24012012.htm
Source: Prodigy Gold Inc. (TSX-V: PDG.V - News) http://www.www.prodigygold.com
Maximum News Dissemination by Filing Services Canada Inc. http://www.usetdas.com
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