Prodigy (ASX:PRX) nears inflection point at Top End gold development

Prodigy Gold has reworked its Hyperion gold deposit to put lower grade and higher tonnage into an 8.64 million tonne at 1.5 grams per tonne resource for 407 thousand ounces at its Tanami North project in Australia’s Northern Territory.

Now reported at a lower 0.6g/t cut-off with a 33 per cent decrease in grade, the rejiggered resource represents a 96% tonnage rise and a 30% upgrade in total ounces.

With a low barrier to entry and the ability to produce smaller-scale profit, gold has long been one of the most splintered of commodity industries.

And now trading over $3600 an ounce after a 22%-plus gain year-on-year, it has opened the barrier for lower grade operations and the opportunity to get to production and self-fund greater exploration.

Prodigy Gold Managing Director Mark Edwards said the Hyperion deposit was one of its most strategically important projects and with 14 holes and 1674 metres drilled into the resource itself last year, was a focus of 2023.

“The work completed highlights that the Hyperion deposit is now reaching a size that warrants consideration for future development,” he said.

“While this mineral resource update has yielded more tonnes at lower grade, this update represents a better understanding of the deposit.”

Edwards noted the wireframing was completed using a lower 0.3g/t cut-off level compared to the 0.5g/t used in 2018, meaning the underlying high-grade material of the updated resource is still using a 1.1g/t cut-off.

“The Hyperion deposit remains a key pillar in Prodigy Gold’s exploration plans for the coming year with
drilling and further metallurgical testwork planned,” he said.

“The drilling will focus on both increasing the confidence in the mineral resource and to potentially increase the overall inventory.”

He added the company plans to drill holes into the Hyperion and Tethys lodes to collect more metallurgical material similar to work on the Seuss lode in 2023 and looks forward to divulging updates throughout the remainder of 2024.

When combined with the maiden resources recently stamped in at the Tregony deposit, the Tanami North project now holds a total of 10.2Mt at 1.4g/t Au for 471k ounces using the 0.6g/t cut-off.

First drilled by Zapopan Resources in 1992, the project has had several operators over the years, and has been in Prodigy hands since acquiring the company acquired it from Newmont (ASX:NEM) in 2009.

The Hyperion deposit sits on a licence granted to Otter Gold in 2001, and Prodigy has lodged applications for licence renewal as it takes its next steps on investigating making a mine 50 kilometres to the north of Northern Star‘s (ASX:NST) Central Tanami Plant.

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