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Prodigy Gold Releases Favourable Prelim Assessment Results Of Ontario Mine; Price Up 7%

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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