Prodigy Gold Inc. (PDG.V) has released the results from an updated NI 43-101 compliant Preliminary Economic Assessment (PEA) of its 100% owned Magino gold project in northern Ontario.
Highlights of the PEA (base case using US$1,200/oz gold):
* Pre-tax Net Present Value ( NPV ) at 5% discount rate of $939 million, almost tripling the projected NPV of the project compared to the previous PEA that was done in April 2011. The NPV at 8% discount rate is $709 million
* Life of Mine (LOM) gold production is projected to be more than 2,614,000 ounces gold (an increase of approximately 1.1 million ounces), averaging 249,300 ounces a year over an 11 year mine life. Year one gold production is projected to be approximately 350,000 ounces at a mined grade of 1.57 gpt gold.
* Base case Internal Rate of Return ( IRR ) is 36%; payback period is estimated to be 1.9 years
* Total mineable resources are estimated to be 74,234,000 tonnes grading 1.15 gpt gold with a strip ratio of 2.1:1
* Average LOM cash operating costs are estimated to be US$461 (C$496) per ounce
* Pre-tax cash flow from operations over the proposed LOM is estimated to be $2.08 billion, net cash is projected to be $1.52 billion LOM
Brian J. Maher, President and CEO of Prodigy Gold said the update to the Magino mine PEA highlights a significant increase in the scope of Prodigy's proposed mining operation. The company will be rapidly advancing the project in 2012.
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