National Bank Financial says development draft picks "have it all": Prodigy Gold

Prodigy Gold, for example, with a price target of $0.85, is definitely a prime takeover candidate. Since acquiring its Magino gold project near Wawa, Ontario in lat 2010, the company has outlined a more than 1.5 million ounce mineable gold resource, and completed a preliminary economic assessment for a simple open-pit, carbon-in-leach project.

The economic study outlined strong baseline economics, said National Bank, with a pre–tax net present value of $351 million and a 49% internal rate of return (IRR), considering a long–term gold price more than 20% below three–year trailing prices. Project valuations are also expected to increase in the near term, as Prodigy completes additional drilling and technical studies.

"We expect additional upside could come from consideration of increased resources, increased annual throughput, reduced stripping ratio and consideration of a SAG mill," explained the report.

Existing surface infrastructure in the area will also benefit project development, with an expected positive permitting decision on an accelerated timeline.

http://www.proactiveinvestors.com/companies/news/18508/national-bank-financial-says-development-draft-picks-have-it-all-prodigy-gold-lydian-international-astur-gold-and-grayd-resource-18508.html