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Message: We're expanding: Prodigy To Acquire Over 73 km2 Adjacent to Magino

Prodigy To Acquire Over 73 km2 Adjacent to Magino; Consolidates Majority of District

Vancouver, British Columbia, April 17, 2012 - Prodigy Gold Incorporated (PDG: TSX.V) and its wholly-owned subsidiary, Golden Goose Resources Inc. (collectively referred to as "the company" or "Prodigy") are pleased to announce that they have agreed with Pele Mountain Resources Inc. ("Pele Mountain") and Pele Mountain's wholly-owned subsidiary, Pele Gold Inc. ("Pele Gold") to acquire from Pele Gold certain crown leases, patented and unpatented mining claims and an interest in a license agreement which together comprise Pele Gold's 73 km2 Highland Gold Project, for a total purchase price of $1,800,000. The Highland Project covers on-strike extensions of the principal structures that control the extensive gold mineralization found at Prodigy's Magino Mine gold project. The assets also include claims and crown leases that extend from numerous current and past producing gold mines including the Island Gold Mine (producing > 48,000 oz. gold/year), the Edwards Gold Mine (currently being prepared to resume production), and the Cline Gold Mine in the eastern portion of the district and the Murphy Gold Mine in the western portion of the district (Please see map below).

To view the map, click onto the link below or cut and paste into your browser:
www.usetdas.com/maps/prodigy/FSCTem5.jpg

Brian J. Maher, President and CEO of Prodigy Gold Inc., commented: "The purchase of Pele Gold's Highland Projects establishes Prodigy as the dominant force in district consolidation, centered on our flagship Magino Mine Project. With this acquisition, Prodigy becomes the largest claim holder in the district, with significant up-side gold exploration potential, both at Magino and on the newly acquired lands. The Highland Project contains numerous high quality gold exploration targets that can augment the Magino Mine Gold Project in the months and years ahead. While Prodigy continues to focus on the development of the Magino gold project, acquisition of Highland assures long term exploration opportunities in the same district. Any discoveries on the newly acquired lands can take advantage of the proposed large scale milling infrastructure at Magino."

The purchase price to Pele Gold is payable by Prodigy in cash; completion of the purchase and sale transactions are subject to standard closing conditions for transactions of this nature, including obtaining all necessary third party and governmental consents and approvals. In addition to the purchase price, Pele Gold will retain certain net smelter return royalties in respect to parts of the Highland Gold Project. Prodigy will also assume royalty and other obligations under existing agreements and arrangements affecting the Highland Gold Project arising from and after the closing date.


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.



All scientific and technical 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 Gold 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 Actlabs, 33 Iroquois Road, Timmins, ON, P4N 7C5, 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 > 3.0 gpt gold are automatically re-assayed by the metallic screen method. Gold assays greater than 40 gpt are capped at 40 gpt when calculating composite intervals in drill holes. 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


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