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Message: NEWS RELEASE TSX.V PDG
NEWS RELEASE TSX.V PDG
Prodigy Signs Option Agreement on Akweska Lake Property
Vancouver, British Columbia, July 6, 2012.
Prodigy Gold Inc. ("Prodigy") is pleased to announce that it has signed an option agreement with four individuals (the "Optionors") that allows Prodigy to earn up to a 100% interest in the 10.7 square kilometre Akweska Lake property (the "Property") located 50 kilometres southwest of Timmins, Ontario. The principal terms of the option agreement, which is subject to acceptance by the TSX Venture Exchange, are as follows:
Prodigy will pay the Optionors $20,000;
Prodigy can exercise its option to acquire the Property within four years by paying the Optionors an additional $180,000 and issuing to the Optionors 200,000 common shares of Prodigy;
In the event of exercise of the option, the Property will be subject to a royalty of 2% of net smelter returns in favour of the Optionors, half of which may be acquired by Prodigy for $1,000,000.
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 and technical report 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.
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