Nov 6, 2024

Prodigy Gold Hits 21m @ 4.4g/t Au at Tregony North, Tanami Project, Northern Territory

Introduction:

Prodigy Gold NL (ASX: PRX) has reported significant gold intercepts from its recent drilling program at the Tregony North prospect within its Tanami North Project in the Northern Territory, highlighted by 21m at 4.4g/t Au from 24m.

Drill Results:

21m @ 4.4g/t Au from 24m (including 1m @ 24.7g/t Au from 42m) (TGRC24006)
20m @ 1.3g/t Au from 88m (TGRC24004)
13m @ 2.7g/t Au from 45m (including 2m @ 9.7g/t Au from 48m) (TGRC24002)‍
2m @ 3.4g/t Au from 112m (TGRC24004)

Project Overview:

The Tregony deposit is part of Prodigy Gold's Tanami North Project, located approximately 125km southwest of Lajamanu in the Northern Territory. The project area hosts several known gold deposits including the neighboring 1.1Moz Groundrush deposit. Tregony is situated about 25km north of Prodigy Gold's wholly owned Hyperion deposit.

The Tregony deposit currently has a Mineral Resource of 1.56Mt @ 1.3g/t Au for 64,000 ounces at a 0.6g/t Au cut-off grade. The deposit is hosted within the regional Suplejack Shear Zone over a strike length of around 3km, with mineralization represented in a stacked vein style model within sediments of the Killi Killi Formation.

Program Details:

The recent drilling program at Tregony North consisted of 6 RC holes totaling 486m. This drilling was designed to follow up on previous intercepts, including 8m @ 1.6g/t Au from an earlier 2023 program. The new results suggest potential for more vertical mineralization in the northern area compared to the stacked vein style seen in the southern part of the deposit. The company is now assessing these results with a view to updating the Tregony Mineral Resource in the coming months.

Understanding These Results:

The reported intersections are calculated using a 0.5g/t Au lower cut-off and a minimum width of 2m, while including a maximum of 2m of contiguous lower grade material. No high-grade cut has been applied. The mineralization is understood to be dipping at around 45 degrees to the west, with drill holes roughly intercepting mineralization perpendicular to drilling.

The wide, high-grade intercept in TGRC24006 (21m @ 4.4g/t Au) is particularly significant as it occurs in an area not currently included in the reported resources due to a lack of higher quality drilling support. This result highlights the potential for resource growth in the Tregony North area.

Management Commentary:

Prodigy Gold Managing Director, Mark Edwards, stated:

“While it was only a small program completed around the northern lodes of the Tregony deposit, these holes were designed to target an area that showed potential to grow the recently updated Tregony Mineral Resource. The six holes targeted mineralisation identified by earlier drilled Air Core holes, which could not be included in the estimation process, but whose results supported the resource update. Prodigy Gold looks forward to keeping our shareholders informed on how these new holes will assist with the growth of our resource base at one of the Company’s strategically important deposits.”

“While the results of the holes drilled at both Brokenwood and Pandora don’t have high grade intercepts the geology identified has helped with our understanding of these prospects. With additional geological information from planned costeaning and a more thorough review of the holes completed over the past two years, further drilling could be designed for completion in the 2025 field season. Both projects are only in the early stages of exploration and some of the results identified suggest there is potential for discovery.”

Next Steps & Catalysts:

Prodigy Gold is now assessing the new results and planning further drilling in coming field seasons. The company intends to update the Tregony Mineral Resource in the coming months to evaluate the potential for further growth in the Tregony North area.

Additional work may include a diamond drill hole to twin RC hole TGRC24006, which would assist in assessing the geological controls on the mineralization. The company also plans to systematically evaluate all of its targets to determine next steps, which may include further exploration, divestment, or tenement relinquishment.

Commodity Outlook:

With gold at record highs, eyes are finally returning back to the small gold explorers after a couple years of disinterest. The Tanami region is a proven multi-million-ounce gold province, hosting significant deposits such as Newmont Australia's Tanami operation. With ongoing exploration success and resource growth, projects in this area continue to attract interest from the industry.

Conclusion:

The latest results from Tregony North demonstrate potential to expand the current resource base at the Tregony deposit. With mineralization remaining open and showing potential for more vertical orientations in the north, the project continues to demonstrate characteristics of a promising gold system with growth potential. The upcoming resource update and further planned exploration activities could serve as catalysts for Prodigy Gold in the near term.

Sources:

PRX Drill Results Announcement

Additional Figures:

Australia

ASX

Gold

Nov 4, 2024