PRODIGY GOLD NL QUARTERLY REPORT
For the 3 months ended 31 March 2022
Highlights:
Prodigy Gold 100% Projects Buccaneer Gold Deposit:
• Scoping study to evaluate a potential low-cost, heap leach gold operation at Buccaneer continues to advance
• Metallurgical testwork, including column leach test work on oxide, transition and fresh material from Buccaneer has commenced and results are expected in the coming months
• Assays for previously un-sampled zones from earlier reported Buccaneer diamond holes include:
o 1.0m @ 5.1g/t Au from 26.0m - BCDD2104 and
o 11.9m interval from 33.6m with 9.8m @ 2.1g/t Au recovered - BCDD2105
• The updated results confirm the presence of relatively narrow zones of moderate to high grade gold mineralisation within quartz veins, which are enveloped by wider zones of lower grade gold mineralisation
Golden Hind Gold Deposit:
• Assays from historical diamond core containing visible gold at Golden Hind, include:
o 22.5m @ 25.2g/t Au from 11m including 16.5m @ 34g/t Au from 14m including 0.9m @ 347g/t Au from 19.1m - GHDD100001
o 21m @ 0.8g/t Au from 3m including 8m @ 1.4g/t Au from 16m - GHDD100002
Barrow Creek divestment (Australasian Metals Limited) of 90% interest in selected tenements with Prodigy Gold's interest free-carried until completion of a pre-feasibility study (PFS)
Corporate Summary:
Board changes:
• Resignation of Managing Director Matt Briggs came into effect
• Appointment of Mark Edwards to the position of Managing Director effective from 1 May 2022
Short term loan facility with Mount Sun Investments Limited executed
Prodigy Gold NL (ASX: PRX) ('Prodigy Gold' or the 'Company') is pleased to provide this activity report for the three months ended 31 March 2022.
Management Commentary
Commenting on progress made during the March quarter, Prodigy Gold Interim Executive Director, Brett Smith said: "The Company is excited about the appointment of Mark Edwards to the role of Managing Director and the Company looks forward to his commencement in May 2022.
The initial focus was on desk top reviews and planning for the upcoming exploration season, with staff mobilising into the field during the quarter. The short term loan from Mount Sun Investments has
allowed us to commit to drilling contracts and our initial campaign will be focused on the gold bearing tenements under our JV with IGO.
The Company is advancing mining studies on the Buccaneer Resource. The recently completed diamond drilling program drilled areas outside the existing resource while upgrading confidence in broadly drilled areas. The drilling includes over 200m of mineralisation (>0.3g/t Au) across 946.1m of drilling. Mineralisation occurs in several stacked zones in the oxide and multiple shallowly dipping stockwork vein arrays in the fresh rock.
The additional Buccaneer results received during the quarter support the indicator resource model with mineralisation intersected where predicted. Samples for the generation of metallurgical composites to commence metallurgical test work have arrived in Perth. These will initially be used for crush size recovery testwork, followed by column leach testwork to simulate the gold extraction performance of the average material that would be stacked on a heap leach."
March Quarter Exploration Summary
Buccaneer Resource - 100% PRX
The current Buccaneer Resource is 10Mt @ 1.8g/t for 585koz above a 1g/t cut-off grade. The resource cut-off grade is based on processing at a mill the scale of the Northern Star / Tanami Gold Central Tanami Project Joint Venture Processing Plant or a similar mill built on the Twin Bonanza Mineral Lease. Gold mineralisation is disseminated within a monzogranite intrusion, and typically associated with quartz veins, visible gold is seen in the quartz stockwork veining. Mineralisation extends from near surface to a depth of over 500m and has been defined in several zones over an area of 2,300m by 800m. The deposit remains open at depth, and aircore and RAB drilling suggest the potential for further strike extensions.
Buccaneer August 2017 Mineral Resource Estimate1
Buccaneer Gold Deposit - Mineral Resource Estimate August 2017 | |||||||||
Oxide | Indicated | Inferred | Total | ||||||
Tonnes (Mt) | Grade Au (g/t) | Metal (koz) | Tonnes (Mt) | Grade Au (g/t) | Metal (koz) | Tonnes (Mt) | Grade Au (g/t) | Metal (koz) | |
Oxidised | 0.2 | 1.69 | 12 | 0.1 | 1.82 | 4 | 0.3 | 1.73 | 16 |
Transitional | 0.7 | 1.69 | 40 | 0.5 | 1.52 | 22 | 1.2 | 1.63 | 62 |
Fresh | 0.3 | 1.59 | 13 | 8.3 | 1.86 | 494 | 8.5 | 1.85 | 507 |
Total | 1.2 | 1.67 | 65 | 8.8 | 1.84 | 521 | 10.0 | 1.82 | 585 |
Buccaneer - Metallurgical Diamond Drilling2
An 8 hole program of geotechnical and metallurgical diamond drilling was completed to provide samples for metallurgical recovery testwork to optimise the crush size for heap leach extraction of the gold. The program also aimed to provide core to allow the Company geologists to generate a predictive model of high grade structures within the thicker mineralised intervals.
Results released during this quarter are an update for holes BCDD2102, BCDD2104 and BCDD2105, from which additional samples were collected for assaying and subsequent metallurgical testwork.
Metallurgical recovery testwork has commenced and includes testing economic recoveries, leach times and crushing work indices for three categories of rock, oxide transition and fresh rock and different crush sizes in intermittent bottle roll (IBR) tests and column leach tests.
1 ASX: 1 September 2017
2 ASX: 29 Nov 2021, 17 December 2021 and 11 February 2022 2
Domain | Classification | Tonnes | Grade (g/t) | Contained Ounces |
Western Limb | Indicated | 10,000 | 7.5 | 3,000 |
Inferred | 280,000 | 5.5 | 49,700 | |
Central | Indicated | 20,000 | 3.1 | 2,400 |
Inferred | 420,000 | 4.2 | 56,300 | |
East | Indicated | 5,000 | 7.6 | 500 |
Inferred | 10,000 | 4.9 | 1,600 | |
Golden Hind | Indicated | 5,000 | 3.5 | 500 |
Inferred | 5,000 | 4.1 | 900 | |
Sub-Total | Indicated | 40,000 | 4.6 | 6,500 |
Inferred | 720,000 | 4.7 | 108,500 | |
Total | Indicated + Inferred | 760,000 | 4.7 | 114,900 |
Figure 1 - Southwest-northeast cross section through metallurgical holes showing gold results reported during the quarter.
Golden Hind - 100% PRX
The Golden Hind Mineral Resource is located approximately 600m south of the Company's Old Pirate High Grade Gold open pit. The project consists of gold bearing quartz veins hosted by sandstone and shale. Gold is hosted in quartz veins as well as ferruginous sheared sediments at Golden Hind. The Golden Hind Mineral Resources forms part of the Old Pirate Gold Deposit. The Company acquired the project from Newmont in March 2010 and conducted extensive surface sampling, reverse circulation (RC) drilling, diamond drilling (DD), trial mining and mapping prior to the commencement of open cut mining in late 2014. Mining activities ceased in March 2016, and the project was placed on care and maintenance.
Old Pirate 2016 Mineral Resource Estimate by classification and Domain (Au > 1g/t)3
Note: Totals may vary due to rounding
3 ASX: 19 August 2016 3
Assay of Historically Drilled Golden Hind Diamond Core
Assay results for core submitted for diamond hole GHDD100001 (twin of the previously reported RC hole GHRC100014) and GHDD100002, both drilled in during 2012, were reported during the quarter.
The two-hole observation and assay program was completed to provide results for possible future re-modelling of the resource and renewed understanding of the controls to the previously mined mineralisation at the Golden Hind deposit. The program also aimed to provide the Company geologists ability to generate an improved model of the high grade structures within the broader Old Pirate mineralised system with a view to better predict possible mineralisation extensions and generate new drill targets.
The vicinity of the drilling area of GHDD100001 and GHDD100002 has been completely mined out prior to March of 2016 and significant intercepts for the previously un-sampled holes include4:
• 22.5m @ 25.2g/t Au from 11m - GHDD100001 including
o 16.5m @ 34g/t Au from 14m including 0.9m @ 347g/t Au from 19.1m
• 21m @ 0.8g/t Au from 3m - GHDD100002 including
o 8m @ 1.4g/t Au from 16m
Figure 2 - North-looking cross section through historically mined pit at Golden Hind. Highlighting notable contemporary results for GHDD100001.
4 ASX: 25 January 2022 4
Joint Venture Portfolio
Lake Mackay JV (IGO and IGO/Castile)
Due to seasonal restricted access no field activity was undertaken by the JV in the March quarter.
Figure 3 - Lake Mackay Project Map
Planned JV activities proposed for the 2022 and 2023 field seasons include 3 diamond holes testing strike and plunge projections of the Phreaker prospect where diamond drilling produced results of 4.5m @ 3.03% Cu, 1.78g/t Au and 14g/t Ag from 562m and 17.47m @ 2.13% Cu, 0.21g/t Au and 9g/t Ag from 575.23m in the June quarter5. Additionally, RC drilling is planned to test six gold targets including Arcee, where previous drilling returned 12m @ 3.5g/t Au6, Goldbug (16m @ 1.15g/t Au7), and four additional soil gold anomalies.
Longer term, the focus of the JV will be airborne and ground EM, and RC/diamond drilling of targets defined on the southern application areas. Drilling in this area will require the successful negotiation of an exploration and mining agreement with the Traditional Owners.
Tobruk JV and Monza JV (Newmont)
No field work was completed on the projects during the quarter. Results for the surface geochemical surveys carried out on the Tobruk JV during Q2 2021 and Q3 2021 were not received.
Divestment of 90% interest in selected Barrow Creek tenements
Australasian Metals Limited (ASX: A8G) and Prodigy Gold signed and completed a binding Sale and Purchase Agreement (SPA) for the divestment of a 90% joint-venture interest in 5 tenements covering ~880 km2 in the North Arunta region of the Northern Territory.
Australasian Metals Limited acquired a 90% interest in exploration licences EL28515, EL29724, EL29725, EL30507 and EL30470 from Prodigy Gold for a cash consideration of $150,000. Prodigy Gold's 10% interest will be free-carried until completion of a pre-feasibility study (PFS) with an NPV exceeding $100 million. Following completion of the PFS, Prodigy Gold will have the ability to elect to convert
5 ASX: 26 May 2021
6 ASX: 16 October 2019
7 ASX: 18 January 2021 5
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Prodigy Gold NL published this content on 14 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 April 2022 08:24:07 UTC.
