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Prodigy Gold Releases 3D Drill Tour, Outstanding Economics

May 19, 2011 8:31 AM ET
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Prodigy Gold: 3D Drill Tour Update for Magino Mine, PEA

The Magino Mine is a past producing gold mine located in southern Ontario, just 50 km northeast of the town of Wawa.

The project has good infrastructure, including direct access to all-season roads, power lines, rail lines and plentiful water supply.

The Magino Mine consists of mining claims totaling 19 sq km that are 100% owned by Prodigy Gold.

Past and present exploration on the project includes more than 1,300 drill holes, completed from the 1970s through 2011.  In February 2011, Prodigy released an updated 43-101 compliant resource estimate that utilized estimation criteria appropriate for potential open-pit mining scenarios. Using a 0.35 gpt gold cutoff, the Magino deposit contains Indicated gold resources of 1.9 million ounces grading 1.16 gpt gold (51.6M tonnes) PLUS 587K ounces of Inferred gold resources grading 1.04 gpt gold (18.3M tonnes).

Gold mineralization at Magino measures 1,400 metres by 700 metres, and presently extends to a depth of greater than 600 metres. Drill hole and surface data demonstrate the potential to expand the size of the gold resource, both within the area already drilled and along strike and down dip from known gold mineralization.

On-going in-fill and exploration drilling at Magino continues to demonstrate the potential for growth: May 2011 results included an astounding 207.4m grading 1.24 gpt Gold. These and other similar results led the company to increase the on-going in-fill and resource expansion drilling program to a total of 45,000 metres!

The limited past mining at the Magino Mine was carried out using underground mining methods only. Prodigy’s Preliminary Economic Assessment, announced in April 2011, examined the potential for an open pit mine at Magino, with a capacity of 15,000 tpd with outstanding economics. The project boasts an NPV of $351 million (5% discount rate) and an Internal Rate of Return of 49% at $1,000 gold. Additionally cash costs are considered low at $521/oz. Gold production is estimated to be 166k ounces per year over nine years, producing a total of 1.5 million ounces of gold.

Calculate the value of the Magino Mine gold project HERE using today’s or any other gold prices.

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