Prodigy Gold (CVE:PDG) said Tuesday that it intercepted "significant gold mineralization" during recent resource expansion drilling at its 100%-owned Magino mine gold project in Ontario.
To enable the junior miner, formed last year from the merger of Kodiak Resources and Golden Goose Exploration, to incorporate these recent, material results, completion of the updated resource estimate has been deferred until October, the company said.
The revised resource estimate will be followed by an update to the Magino Preliminary Economic Assessment in November or December of this year.
The latest mineralization was encountered in two areas: southwest of the known gold resource and multiple zones of higher grade gold mineralization in the northeast portion of the Magino gold deposit.
In the northeast area, drill hole MA11-125 cut 147 metres grading 1.24 grams per tonne (g/t) gold, including 47 metres grading 3.05 g/t gold, which also includes 7.8 metres grading 13.50 g/t gold.
This gold mineralization is within the footprint of the known Magino gold resource and proposed open pit. As part of the in-fill drilling program, this drill hole will help augment and upgrade the known Magino resource while identifying promising targets for deeper exploration below the proposed open pit, Prodigy Gold said.
The company also said that resource expansion drilling has been successful at the southwest edge of the Magino gold deposit. Drill hole MA11-122 intercepted 140 metres of 0.82 g/t gold including 21 metres grading 3.08 g/t gold.
This drill hole, when combined with other drilling, defines a zone of gold mineralization over a vertical range of 300 metres.
Located at the southwest edge of the known gold resource, the drilling suggests that the deposit can be expanded to the southwest and that significant volumes of gold mineralization may be present in this direction.
The higher grades seen in drill hole MA11-122, at vertical depths between 200 and 300 metres, also suggest that a new zone of higher grade gold mineralization may be present southwest of the deposit, within the range of the open pit mining.
Nearby drill hole MA11-106 also intercepted higher grades, including 21 metres grading 3.46 g/t gold. These drill results at the southwest end of the Magino gold deposit are generating new drilling targets, both shallow and deep, for Prodigy Gold.
National Bank recently initiated coverage on the junior miner with an "outperform" rating.
The Magino project contains indicated gold resources of 1.92 million ounces grading 1.16 g/t gold (51.6 million tonnes), and 587,100 ounces of inferred gold resources grading 1.04 g/t gold (17.5 million tonnes).
A full feasibility study for the proposed open pit mining project at Magino is scheduled for completion in mid 2012.
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