(9/19/11)

There are quite a few projects in the Red Lake camp in Ontario that are shaping up to be home runs.Prodigy Gold is a home runs in the making, as far as we're concerned.

Prodigy is not getting quite the amount of attention I think it deserves, considering continued long intercepts at its Magino deposit, like the 161m intercept announced at the end of August that assayed 1.35 g/t, including a 36m chunk that popped up at 2.64 g/t. And that's all infill drilling which will add to the existing resource of 1.57 Moz. The market seems to forget that this is a company with an NI 43-101 Preliminary Economic Assessment that indicates a net present value of $351M and an internal rate of return of 49% with a 1.8-year payback. That's before the current 40,000m program now underway gets factored in. And that's at $1,300/oz. gold price. Plus, the company has a whole raft of exploration targets that have yet to see the business end of a diamond drill. So Prodigy has got it all going on, making it one of the more exciting speculative investments for us.

http://www.theaureport.com/pub/na/10947