ONTARIO – Prodigy Gold of Vancouver notes that the recently completed preliminary economic assessment (PEA) of its Magino gold project predicts an internal rate of return (IRR) of 49%. The former mine is located 40 km northeast of Wawa.
The study examined an open pit mine and conventional carbon-in-leach (CIL) mill that will produce 166,500 oz of gold annually. At US$1,000/oz gold the project has a pre-tax net present value (NPV) of $351 million at a 5% discount rate. Pre-production capital needs are estimated to be $242 million with another $34 million for sustaining capital. Average life of mine cash operating costs (exclusive of sustaining capital) will be US$496/oz of gold. With a cutoff of 0.50 g/t Au, the indicated resource is 31.5 million tonnes at 1.53 g/t and the inferred resource is 10.1 million tonnes at 1.39 g/t Au. Total gold recovered over the nine-year life of the mine would be 1.5 million oz.
Prodigy president and CEO Brian Mahar said, “We view this PEA as a first pass analysis and look forward to fine-tuning the operating and milling plan with a focus on lowering costs and increasing the resource base prior to completing a full feasibility study.”
Additional information is posted at www.ProdigyGold.com.