Prodigy Gold (ASX:PRX) has completed its sole funding requirements under restructured joint venture (JV) agreements with IGO (ASX:IGO) following the conclusion of drilling at the Phreaker prospect, as part of the Lake Mackay Gold JV Project in the Northern Territory.
The company says it has achieved all of its sole funding requirements following the completion of a single diamond drillhole (PRDD2203) at the project’s Phreaker prospect in November 2022.
Adding on, the company says assays received from this drillhole are described as ‘significantly high tenor’ compared to those received from the initial hole completed by Prodigy in mid 2022.
Key assays include hole PRDD2203 with 2.3m @ 1.14% copper (Cu), 0.97% zinc (Zn), 9.1g/t silver (Ag) and 0.11g/t gold (Au) from 739.8m, including 0.3m @ 5.65% Cu, 3.64% Zn, 45g/t Ag and 0.70g/t Au from 741.5m.
“With the satisfaction of the sole funding commitments, Prodigy Gold will focus on advancing the gold prospects at Lake Mackay”
Drilling was conducted by the company to conclude its sole funding requirement under the restructured JV agreements with IGO, and has resulted in Prodigy consolidating its interest in the Lake Mackay JV project at 70%. Drilling was also undertaken to intersect the geophysically modelled electromagnetic (EM) plate down-plunge of the ‘high-grade’ mineralisation reported in hole 21PHDD002.
Addressing the results, Prodigy Gold Managing Director Mark Edwards says: “The completed sole funded drill programs at Lake Mackay have been undertaken to facilitate the restructuring of the JV’s with IGO, giving Prodigy Gold a majority interest in the gold tenements, while retaining its position in the base metal tenements. With the satisfaction of the sole funding commitments, Prodigy Gold will focus on advancing the gold prospects at Lake Mackay.
Prodigy Gold has been reviewing exploration data for the gold tenements and is planning further drilling at the Goldbug Prospect to follow-up on highly encouraging gold results previously reported by IGO. Drilling is planned for the second half of 2023 after drilling on our Tanami North project area has been completed.”
The company also notes the restructuring of the JV with IGO was undertaken to provide Prodigy with a 70% interest in the gold tenements whilst retaining a 30% interest in the base metal tenements of the project.
In addition, the restructured agreement covering the base metal tenements also required Prodigy Gold to sole fund $850,000 of JV expenditure to drill 3 diamond holes within 24 months of signing of the amended agreement, which it has now completed.
With drillhole PRDD2203 now complete, Prodigy Gold announces it has moved forward with planning on the gold projects, focusing initially on the Goldbug prospect, where a series of ‘significant’ gold intercepts were reported in 2021.
Prodigy Gold is an ASX-listed company with a unique greenfields and brownfields exploration portfolio in the proven multimillion ounce Tanami Gold district in the Northern Territory. The company’s Lake Mackay project is located about 400km northwest of the township of Alice Springs in the Northern Territory and represents a JV between Prodigy and IGO.
Other assets included within Prodigy Gold’s exploration portfolio include the Buccaneer, North Arunta, and Hyperion projects.
