Prodigy CEO Brian Maher on updated Magino Project PEA

Prodigy Gold Inc TSXV:PDG announced an updated preliminary economic assessment for its Magino Gold Project in northern Ontario. The report assumes a gold price of $1,200 an ounce and estimates resources to be 74.23 million tonnes grading 1.15 g/t gold with a strip ratio of 2.1:1. The pre-production capital cost is estimated at $405.6 million. The mine life is estimated at 11 years averaging 249,300 ounces gold annually, totalling over 2.61 million ounces at an average cash cost of $461 an ounce. At a 5% discount rate, the project is calculated to have a pre-tax net present value of $939 million. At an 8% discount rate, the NPV comes to $709 million. In the base case scenario the internal rate of return is 36% with a payback period of 1.9 years.

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