Long intercept lifts Prodigy (March 17, 2011)

Prodigy Gold (PDG-V) continues to hit significant gold intercepts as it drives to push its Magino Mine gold project back into production.

The latest results from infill drilling were highlighted by a long intercept of 261 metres grading 1.13 grams gold including 104.6 metres grading 2.06 grams gold.

Those numbers were deemed substantial enough by investors to boost the company’s market cap by 14% in Toronto on March 16. In all, the company’s shares were up 4¢ to close at 32¢ on 840,000 shares traded.

Prodigy says the in-fill program is targeting areas for resource expansion within the known Magino resource and that the highlight hole hit mineralization at just the 80 metre level in an area with little previous drilling.

The result has the company confident that it can grow the resource at the project within the limits of the conceptual pit shell.

Magino currently has indicated gold resources of 51.6 million tonnes grading 1.16 grams gold for 1.92 million oz. and 18.3 million tonnes in the inferred category grading 1.04 grams gold for 587,100 oz. of gold.

The company has finished 1,836 metres of its planned 20,000 metre drill program.

Magino is a past producing underground gold mine located 40 km northeast of Wawa, Ontario. The project is wholly owned by Prodigy and stretches out over 19 sq. km.

The company is currently conducting a Preliminary Economic Assessment (PEA) study on the project, which it plans to have out in April. It says the PEA will position it to complete a full bankable feasibility study by the first quarter of 2012.