The Gould Gold Property, Wawa, Ontario

Gould Gold consists of 8 claim units (112 hectares) made up of two separate claim groups. They are located 50 km east of Wawa, Ontario and 125 km southeast of the Hemlo Gold Camp. Access to the properties are by Hwy 519 to the village of Dubreville and then 15 km east by gravel road.

 

Gould Gold Property Location Map Click to Enlarge

The properties lies within the Goudreau Lake Deformation zone. The north block lies 300 metres to the north of the currently producing Island Gold mine owned by Richmont Mines. The second block is situated along strike approximately 1.6 km to the southwest. It should be noted that Island Gold has a 650 tonne/day mill set up on site.

Geologically the properties are situated within a high priority area. The north block is within 300 metres of a currently producing gold mine (Richmont Mines Island Gold) while the second block is approximately 1.6 km along strike to the southwest.

On February 9, 2011, MPH signed an option agreement with Prodigy Gold Incorporated (TSX- V: PDG) that allows Prodigy to earn up to a 100% interest in the 112 hectare Gould Gold property (the "Property") located adjacent to the Magino Mine gold property in the Township of Finan, Ontario.

The principal terms of the option agreement, are as follows:

• Prodigy has paid MPH $10,000 and issue to MPH 50,000 common shares of Prodigy ("Shares") following acceptance by the TSXV of this transaction;
• Prodigy can earn a 60% interest in the Property within two years of TSXV approval by paying MPH an additional $35,000, issuing MPH an additional 150,000 Shares and incurring expenditures of $250,000;
• Prodigy can earn a 100% interest in the Property within three years of TSXV approval by paying MPH an additional $25,000 ($70,000 in aggregate), issuing MPH an additional 200,000 Shares (400,000 Shares in aggregate), incurring additional expenditures of $500,000 ($750,000 in aggregate) and granting MPH a net smelter returns royalty of 1%, which may be repurchased for $1,000,000;
• The Property is subject to an additional 2% net smelter returns royalty held by prior owners, half of which may be acquired for $1,000,000.

Prodigy Gold's Magino mine property is a past producing underground gold mine located 40 kilometres northeast of Wawa, Ontario, in Finan Township, approximately 14 kilometres southeast of the town of Dubreuilville. The property consists of seven patented mining claims, four leased mining claims and 69 unpatented mining claims totaling 2,204.495 hectares. Magino is being evaluated by Prodigy as an open-pit mining opportunity with the potential for deeper, higher grade gold production. The resource estimate for the project (see below) is the basis for a Preliminary Economic Assessment (PEA) establishing the economic parameters of an open pit mining operation. The PEA will provide the framework for a full bankable feasibility study expected in the first quarter of 2012. Bringing the Magino Mine project through the feasibility process and towards production has the potential to add substantial value to Prodigy share holders.

Prodigy Gold has released an updated NI 43-101 compliant mineral resource estimate for the Magino mine project (see Press Release dated February 28, 2011). The updated mineral resource estimate, reported within a conceptual pit shell, was completed by Snowden Mining Industry Consultants Inc. (Snowden). Indicated gold resources are reported to be 1,924,200 ounces grading 1.16 gpt gold (51.6M tonnes), a more than four-fold increase in Measured and Indicated gold resources over the previous resource estimate that was focused on higher grade underground mineable zones (InnovExplo Technical Report issued 28 May, 2009). Using the same cut off grade (0.35 gpt gold), the Magino deposit is also estimated to contain 587,100 ounces of Inferred gold resources grading 1.04 gpt gold (18.3M tonnes). A complete Technical Report is filed on SEDAR.

Gould Gold Property Map Click to Enlarge