Prodigy Gold Incorporated

Prodigy Gold Incorporated

January 11, 2011 14:38 ET

Prodigy Gold Announces Engineering Team for Updated Magino Resource Estimate and PEA

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 11, 2011) - Prodigy Gold Incorporated (TSX VENTURE:PDG) is pleased to announce that it has retained the services of CWA Engineers, Snowden Group and Knight Piésold as the engineering team to prepare an updated National Instrument 43-101 compliant gold resource estimate and Preliminary Economic Assessment (PEA) of its 100% owned Magino Mine project located in Ontario. CWA will oversee the entire process, concentrating on the PEA, costing and process facilities. Snowden will calculate the resource estimate, conduct pit optimization studies, mine planning and scheduling. Knight Piésold will focus on tailings and waste rock disposal as well as environmental matters. Prodigy Gold and its engineering team are evaluating the Magino Mine project as an open-pit mining opportunity with the potential for deeper, higher grade gold production The resource estimate for Magino will serve as the basis for the PEA, establishing the economic parameters of mining operations. The PEA is anticipated to lead to a full feasibility study, projected for 2012. The updated gold resource estimate is expected in late February, 2011 with the PEA to follow in early April, 2011.

About CWA Engineers Inc.: CWA is a premier consulting engineering and project management firm with a continuous track record of project success for its industry leading clients. CWA has expertise in the planning and design of mine site infrastructure including roads and access, power supply systems, water supply systems, ROM stockpiling and crushing, process plant facilities, storage and reclaim, truck and rail loading facilities, personnel facilities and site wide utilities. CWA staff have managed feasibility studies, engineering, equipment procurement, and construction in various successful mining projects in remote sites in Northern Canada, the Arctic, Untied States, China, Africa and Russia. The CWA head office is located in Burnaby, B.C., and has branch offices in Kamloops, B.C. and Miami, Florida, USA.

About Snowden Group: Snowden is a premium provider of consulting services, technology solutions and technical training to the mining industry and related sectors. Snowden has extensive global experience in resource estimation for gold and other commodities, and in undertaking mining studies from Preliminary Economic Assessments through full Feasibility studies. Snowden's Vancouver office will be group for the Magino Mine project.

About Knight Piésold: Knight Piésold is an international consulting company offering engineering and environmental services in mining, hydropower and water resources industries. Knight Piésold has completed numerous mine waste/water management designs and cost estimates, environmental impact assessments and permitting for mining projects around the world. Knight Piésold Canada has offices in Vancouver, British Columbia and North Bay, Ontario.

About Prodigy Gold: Prodigy Gold Incorporated (TSX VENTURE:PDG) was created by unifying the assets of two Canadian Junior exploration companies: Kodiak Exploration Limited and Golden Goose Resources Inc. Prodigy 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 company is producing a new N.I. 43-101 compliant resource estimate for Magino that will serve as the basis for a Preliminary Economic Analysis (PEA), establishing the economic parameters of an open pit mining operation. The PEA is expected to lead to a full feasibility study, expected in 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 Quentin J. Browne, Prodigy Gold's Magino Project Manager, who is a qualified person under the definitions established by National Instrument 43-101. Prodigy Gold QA/QC procedures are as follows: Prodigy Gold channel samples are 5 cm wide cut perpendicular to the strike of the vein and/or shear zone from mapped alteration in the footwall continuously through the vein and/or shear zone and into mapped alteration in the hanging wall. Channels are cut with a motorized circular saw to a depth of 10 cm and removed with a hammer. Channel sample spacing is nominally every 20m along strike, dependent on outcrop size and geometry. Sample intervals are selected according to geologic contacts and visible mineralization, placed into a sample bag, and shipped to the assay lab for quantitative analysis of select elements. Prodigy Gold drill cores are split down the center with a typical table feed circular rock saw or are split with a hydraulic slitting device. Sample intervals are selected according to geologic contacts, visible mineralization, and alteration, placed into sample bags and shipped to the assay lab where they are quantitatively analyzed for select elements. Drill cores are boxed, covered, and sealed at the drill rig and moved to the Prodigy Gold logging and sample preparation facilities by Prodigy Gold personnel. Prodigy Gold angle core holes are directed perpendicular to the mapped dip of the vein therefore reported drill hole intercepts approximate true thickness of the vein. All Prodigy Goild samples are currently being assayed by Chemex ALS, 2090 Riverside Dr,Timmins, ON P4R 0A2. Blank and standard samples are routinely submitted with all sample batches sent to the lab for assay. Samples are routinely sent to other labs for additional checks.

On behalf of the Board of Directors
Brian J. Maher
President and Chief Executive Officer

This release may contain forward-looking statements or statements that relate to programs that involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

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.

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