About
Prodigy Gold’s lead project is the advanced Magino mine project, located northeast of Wawa, Ontario. Prodigy is currently evaluating the development of Magino 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 (67.6 million tonnes), and 1,721,000 ounces of inferred gold resources grading 0.99 gpt gold (54.2 million tonnes). A Preliminary Economic Assessment (PEA) of the project shows a pre tax NPV of $939 million and an IRR of 36% using a 5% discount rate and a US$1,200 gold price (please see Prodigy press release dated December 22, 2011). The proposed operation would have an average annual gold output of over 249,000 ounces a year during an eleven-year project life. Total gold production is estimated to be 2.61 million ounces at cash costs of approximately US$461 (Cdn$496) per ounce. Please note: mineral resources that are not mineral reserves do not have demonstrated economic viability. 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.
