Prodigy Gold rallies on latest drill results from Magino gold project

Fri 5:49 pm by Deborah Sterescu

Prodigy Gold (CVE:PDG) reported Thursday additional drill results from its Magino mine in Ontario, expanding the known zones of gold mineralization.

The company's shares rose more than 8% today to trade at
.67 as of 12:02pm EST.

Highlights from the infill and resource expansion drilling program include 143 metres grading 1.54 g/t gold, including 67 metres grading 2.12 g/t gold in hole MA11-006.

Higher grades were also intercepted in drill hole MA11-005, with 38 metres at 2.11 g/t gold, including 25 metres grading 3.13 g/t gold.

The company also said today that due to a revision in its sampling protocol, it has received new assays for previously reported drill hole MA11-004, which has resulted in a recalculation and increase in the composite grade to 261 metres at 1.32 g/t gold, up from 261 metres at 1.13 g/t gold. Sampling now requires that any sample with visible gold be subjected to a metallic screen assay.

There are currently four diamond drill rigs at Magino, 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 infill drilling campaign will be used to update the property's gold resource estimate and preliminary economic assessment (PEA) later this year.

Currently, the Magino project contains indicated gold resources of 1.9 million ounces grading 1.16 g/t gold (51.6 million tonnes), and 587,100 ounces of inferred gold resources grading 1.04 g/t gold (17.5 million tonnes).

The latest PEA on the project calculated a pre-tax net present value of $351 million, and a 49% internal rate of return, using a 5% discount rate. The report was modeled on an operation with an annual gold output of 166,000 ounces over a nine year life, at cash costs of US$496 per ounce.


http://www.proactiveinvestors.co.uk/companies/news/27419/prodigy-gold-rallies-on-latest-drill-results-from-magino-gold-project-27419.html