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Message: James West, Midas Letter (5/29/12)
Expert Analysis
James West, Midas Letter (5/29/12) "Prodigy Gold Inc.'s new drill results for its Magino mine gold project in northern Ontario show an expanded resource deposit. . .the company's gold project remains attractive because the resource can be extracted as an open-pit mining project, which requires much lower grades than an underground mine to be economically viable. . .the 'Highlands project' covers extensions of gold mineralization from the Magino mine, greatly increasing the potential size of Prodigy Gold's resources. . .the addition of new land adjacent to the property for $1.8M shows a core conviction by the management team in the economics of the project. . .we think the company is on track and continue to rate it a 'Buy'."
TGR: Let's get into some of your favorite positions operating in Canada.
JW: One of my favorites is Prodigy Gold Inc. (PDG:TSX.V). The company is developing the Magino deposit in Ontario. Its Feb. 3 updated preliminary economic assessment (PEA) increased its resources and projected profitability.
TGR: It just did a financing, too.
JW: It just announced another 60,000 meters (m) of drilling and will issue a full feasibility study late this year updating the gold resource based on that drill program. It just keeps getting bigger and better. There is no longer much doubt that this will become a mine.
At this point, it has Indicated gold resources of more than 2.1 million ounces (Moz) at 1 gram per ton (g/t) and 1.7 Moz Inferred. At the end of the day, if it puts those Inferred ounces into an Indicated category, you are looking at a deposit of more than 4 Moz, going into production with a 250,000 ounce (Koz)/year production rate over 11 years.
JW: One of my favorites is Prodigy Gold Inc. (PDG:TSX.V). The company is developing the Magino deposit in Ontario. Its Feb. 3 updated preliminary economic assessment (PEA) increased its resources and projected profitability.
TGR: It just did a financing, too.
JW: It just announced another 60,000 meters (m) of drilling and will issue a full feasibility study late this year updating the gold resource based on that drill program. It just keeps getting bigger and better. There is no longer much doubt that this will become a mine.
At this point, it has Indicated gold resources of more than 2.1 million ounces (Moz) at 1 gram per ton (g/t) and 1.7 Moz Inferred. At the end of the day, if it puts those Inferred ounces into an Indicated category, you are looking at a deposit of more than 4 Moz, going into production with a 250,000 ounce (Koz)/year production rate over 11 years.
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