Prodigy Gold Incorporated
TSX VENTURE : PDG

Prodigy Gold Incorporated

January 05, 2011 10:18 ET

Prodigy Gold Reports New Core Assays From Magino: 169 Metres Grading 1.02 gpt Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 5, 2011) - Prodigy Gold Incorporated (TSX VENTURE:PDG) is pleased to announce additional assay results from its core sampling program at its 100% owned Magino Mine project located in Ontario. Prodigy Gold (formerly Kodiak Exploration) has been systematically sampling previously unassayed sections of core from the 2006 drilling campaign, concentrating on thick intervals of disseminated gold mineralization adjacent to higher grade structures. Prodigy has split and sampled over 2,800 metres of core and is utilizing the new data in to update the gold resource estimate for the Magino Mine project. Highlights from drill holes 06-01 through 06-10 include:

  • 169.3 metres grading 1.02 gpt gold in drill hole 06-10
  • 93.0 metres grading 0.74 gpt gold in drill hole 06-09
  • 53.0 metres grading 1.04 gpt gold in drill hole 06-08
  • 50.0 metres grading 0.87 gpt gold in drill hole 06-02

The new assays, coupled with previous drill data, is being utilized by Prodigy Gold to plan an extensive campaign of in-fill drilling, expected to begin shortly. The drill holes reported here are angle holes, therefore the depth below surface for these intercepts is 71% to 86% of the down hole distance, within the range of a potential open-pit mining operation. The geometry and grade of the Magino gold system compares favorably to several large scale low-grade gold systems currently being mined or under development in eastern Canada.

As illustrated in the table below, gold mineralization is pervasive in the Magino system. Complete results for drill holes 06-01 through 06-10 are included in the table below.

Drill Hole From (m) To (m) Interval (m) Gold Grade (gpt)
06-01 60.9 78.00 17.1 0.48
  130.0 141.00 11.0 2.34
  231.0 251.00 20.0 1.01
06-02 302.0 352.00 50.0 0.87
  403.0 433.00 30.0 0.72
06-03 282.0 304.00 22.0 0.70
  334.0 342.00 8.0 3.16
06-04     nil  
06-05 154.0 171.0 17.0 0.65
  228.5 259.0 30.5 0.56
  268.9 289.9 21.0 0.22
  311.9 325.9 14.0 3.27
  383.9 394.9 11.0 2.86
06-06 110.9 142.0 31.1 0.61
  156.0 167.0 11.0 4.32
  211.0 238.0 27.0 0.42
  337.9 367.9 30.0 1.19
  450.9 474.9 24.0 0.97
06-07 126.0 151.0 25.0 0.38
  156.0 182.0 26.0 0.33
  256.0 279.0 23.0 1.12
  330.0 342.9 12.9 2.00
  367.9 429.9 62.0 0.78
06-08 21.0 40.0 19.0 0.35
  145.0 163.0 18.0 1.52
  360.9 377.9 17.0 1.40
  360.9 413.9 53.0 1.04
  399.9 413.9 14.0 1.52
  459.9 476.6 16.7 0.54
06-09 52.0 62.0 10.0 0.65
  91.0 104.0 13.0 0.41
  134.0 150.0 16.0 0.40
  134.0 227.0 93.0 0.74
  300.0 303.4 3.4 5.83
06-10 115.3 284.6 169.3 1.02
  319.9 329.6 9.7 1.19

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.

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