Prodigy Gold completes drilling at Euro

Prodigy Gold has completed completed drilling at the Companys Euro JV Project, which is part of a farm-in agreement with Newcrest Mining.

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Dune Prospect 2019 drilling program. New results highlighted in black.

Under the farm-in agreement, Newcrest are to sole fund up to AU$12 million over seven years to earn up to a 75 per cent interest in the project, which hosts key targets along strike or parallel to the Trans-Tanami Trend which have seen limited or no previous exploration.

The Dune Prospect is located 1.5 kilometres to the south of the Newmont Oberon Deposit. Limited previous aircore drilling intersected 3m @ 0.3g/t Au. RC drilling in late 2018 produced encouraging results including 2m @ 12g/t Au, 8m at 1.9g/t Au, and 2m at 3.0g/t Au.

A follow-up program designed to continue to test for more favourable stratigraphic positions and test for higher grades to the north was completed in mid-2019. Gold mineralisation was intersected on the northern drill line with a best result of 36m @ 0.65g/t Au from 104m including 20m @ 0.95g/t Au from 105m in drill hole EUR0010.

Three RC drill holes were drilled for a total of 512 metres and all assays have been received. The holes completed tested northern extensions of the Target 2 anomaly and for an antiformal closure to the east of Target 1. Holes EUR0019 and EUR0021 infill and extend gold anomalism in oxide to the north to a strike length of 1.4 kilometres. The area, thickness and grade of gold in oxide is significant when compared to gold deposits in the district.

The Company reports that there is no previous drilling between the northern line of drilling and the Newmont Goldcorp tenement boundary.

The ongoing intersection of water in RC drilling has made the drilling into fresh rock challenging. Future work, and success on this target requires an effective method of defining the bedrock source of the anomalism through transported cover, Prodigy Gold reported.

The Anomaly 16 Prospect is located 50 kilometres north of the Granites Gold Mine and 40 kilometres northwest along strike of the main controlling structure to the Minotaur (Windy Hill) gold deposit. Anomaly 16 was initially generated through first pass reconnaissance vacuum drilling during 1990 by North Flinders Mines, which identified a 2.5-kilometre NW-trending gold bulk cyanide leach anomaly.

Previous drilling appears to have been ineffective in testing the denser magnetic rocks which are the host rocks for large gold deposits in the Tanami Region, commented Prodigy Gold.

A revised interpretation of the gravity and magnetic anomaly highs underlying the prospect indicated the historic drilling may not have effectively tested the target.

According to the company report, a single 616.9 metre diamond hole (EUR0032), co-funded by the Northern Territory Government as part of the Resourcing the Territory Initiative, was completed in September. This hole intersected the same stratigraphic units as Oberon and two zones of quartz, pyrite and pyrrhotite veining, 30 metres and 16 metres wide in the target position.

Despite the encouraging veining and sulphides, no significant gold intercepts were returned. No additional work is currently planned for this target, said the Company.

Prodigy Golds Managing Director Matt Briggs said the follow-up drilling at Dune has been encouraging

Holes completed on the northern two lines of RC drilling have intersected 18 metres at 0.4g/t Au and 10 metres at 0.3g/t Au, explained Mr Briggs.

Importantly, the 1.4-kilometre-long gold and arsenic anomaly remains open to the north, and the area, thickness and grade of gold in oxide is significant when compared to gold deposits in the district. There is no previous drilling between these recently completed RC holes and the Newmont Goldcorp tenement boundary.

In addition, results were returned from the 616.9 metre diamond hole completed at the Anomaly 16 Prospect and co-funded by the NTGS. The hole was successful in targeting the gravity and magnetic highs interpreted to be associated with folded Dead Bullock Formation, however assays of veining and sulphides intersected are low and do not appear to be associated with a significant gold system.

Future work at the Euro Project will incorporate the recently released NTGS airborne magnetic data with full program details to be communicated in the New Year.