Prodigy Drills 261m Grading 1.13 gpt Gold Including 104.6m Grading 2.06 gpt Gold at Magino
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/16/11 -- Prodigy Gold Incorporated (TSX VENTURE: PDG) is pleased to announce initial results its in-fill and resource expansion drilling program at its 100% owned Magino mine gold project in Ontario. Highlights include drill MA11-004 which intercepted 261 metres grading 1.13 gpt gold including 104.6 m grading 2.06 gpt gold. Gold mineralization in MA11-004 begins at a depth of only 80 metres below the surface in an area with little previous drilling (please see cross section and drill hole location map below). Deeper in drill hole MA11-004, a zone of gold mineralization was cut over 103 metres at a grade of 1.03 gpt gold. This zone projects up dip into a previously undrilled part of the system, generating new targets for resource expansion. Similar results were seen in drill holes MA11-001 and MA11-003 (see table below). MA11-002 intercepted a post-mineral diabase dyke and was terminated at 186 metres.
From To Length Grade
Drill Hole (metres) (metres) (metres) (gpt gold)
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MA11-001 151.5 205.0 53.5 1.04
338.2 402.0 63.8 1.02
463.0 486.0 23.0 1.02
MA11-002 none
MA11-003 106.0 244.0 138.0 0.75
Including: 196.0 231.0 35.0 1.41
309.0 330.0 21.0 0.89
MA11-004 122.0 383.0 261.0 1.13
Including: 134.4 239.0 104.6 2.06
600.0 703.0 103.0 1.07
Including: 600.0 623.0 23.0 2.34
The Magino in-fill drilling program is targeting areas for resource expansion within the known Magino resource. The results from drill holes MA11-01, -02 and -03 confirm our ability to grow the resource within the limits of the conceptual pit shell. As previously reported, the Magino deposit currently contains Indicated gold resources of 1,924,200 ounces grading 1.16 gpt gold (51.6M tonnes), and Inferred resources of 587,100 ounces grading 1.04 gpt gold (18.3M tonnes) (News release dated February 28, 2011). To date, Prodigy has completed 1,836 metres of the planned 20,000 metre drill program. When completed, the results of the in-fill drilling program will be used to update the Magino gold resource estimate later this year.
Note: To view 'Cross section 300SW, Magino mine project', please click the following link: http://media3.marketwire.com/docs/pdg0316a.pdf
Cross section 300SW, Magino mine project. Note that gold mineralization in drill hole MA11-004 begins at shallow depth and implicates a large of volume of rock for potential gold resource expansion. The deeper intercept in MA11-004, although below the bottom of the conceptual pit shell (approx. 90m in elevation), project upwards to drill hole S-97-02 and opens a 200 metre vertical section for more drilling and exploration.
Note: To view 'Drill hole location map, Magino mine project', please click the following link: http://media3.marketwire.com/docs/pdg0316b.pdf
Effective March 2, 2011, Prodigy Gold Inc. has terminated its option agreement with CanAlaska Uranium Ltd. covering the McTavish project in northern Saskatchewan.
About Prodigy Gold: Prodigy Gold Incorporated (TSX VENTURE: PDG) is currently evaluating the Magino mine project in Ontario as an open-pit mining opportunity with the potential for deeper, higher grade gold production. The Magino mine project contains Indicated gold resources of 1,924,200 ounces grading 1.16 gpt gold (51.6M tonnes), and 587,100 ounces of Inferred gold resources grading 1.04 gpt gold (18.3M tonnes) (please see Prodigy press release dated February 28, 2011). The Company is producing a Preliminary Economic Analysis (PEA), establishing the economic parameters of an open pit mining operation at Magino. The PEA is expected to lead to a full feasibility study, projected for early 2012. Bringing the Magino Mine project through the feasibility process and towards production, coupled with the exploration potential of our Beardmore-Geraldton exploration properties, are the catalysts to growing Prodigy Gold, building substantial value for Prodigy shareholders: Today's Discovery, Tomorrow's Future.
The geological 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 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 greater than 3.0 gpt gold are automatically re-assayed by the metallic screen method. 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
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.
Contacts:
Prodigy Gold Incorporated
Brian J. Maher
President and Chief Executive Officer
1-604-688-9006
1-604-688-9029 (FAX)
ir@prodigygold.com
www.prodigygold.com