Prodigy Gold Incorporated

Prodigy Gold Incorporated

February 04, 2011 10:36 ET

Prodigy Gold Incorporated: Magino Mine Gold Project Update, Resource Estimate and PEA Timeline

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 4, 2011) - Prodigy Gold Incorporated (TSX VENTURE:PDG) is pleased to provide the following update and project timeline for its 100% owned Magino Mine gold project located in Ontario. Prodigy is in the process of revising the current gold resource estimate, emphasizing the open pit mining potential of the project. The revised resource estimate is on schedule and is expected to be released by late February 2011. The company has also initiated a previously announced in-fill and resource expansion drill program (please see News Release dated January 13, 2011). Assay results from the first drill holes are expected shortly.

The Magino Mine project currently has Measured and Indicated Resources of over 2 million tonnes grading 6.74 gpt for a total of 453,000 ounces gold. Total Inferred Resources are estimated at 5.8 million tonnes grading 6.29 gpt for a total of 1,178,000 ounces gold at a cutoff of 3 gpt gold (InnovExplo 43-101 compliant Technical Report issued 28 May, 2009, available on the Prodigy Gold web site). The revised resource estimate will use a lower cut off grade, appropriate for open pit mining, and also utilize new drill data not included in the previous resource estimate.

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 demonstrates 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. The geologic database shows significant and continuous lower grade gold mineralization enveloping the higher grade areas. Preliminary modeling of the deposit has identified a large volume of gold mineralization that may be minable using low-cost open pit methods, increasing the size of the resource.

The Preliminary Economic Assessment, expected in early April 2011, will examine the economics of a potential open pit mine at Magino with mill capacities of up to 15,000 tonnes per day which would be capable of producing as much as 150,000 ounces gold per year. The economic assessment will target cash costs of less than $500 per ounce. Underground mining may comprise a separate phase of the mine life. A full feasibility study is due out in the first quarter of 2012. The proposed scope of the PEA is based upon an internal analysis and is not an assessment of the project as defined by NI 43-101. The ultimate scale and scope of the project will be determined during the PEA process.

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. 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 Gold 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.

Contact Information