ASX-listed Prodigy Gold (ASX:PRX) reports it has recommenced exploration activities at its Lake Mackay Joint-Venture (JV) Project following the successful completion of capital raising.
It is reported that a diamond drilling (DD) campaign has commenced at the project’s Phreaker prospect and has been designed to follow-up on the company’s recent drilling campaign, which was completed earlier this year.
The previous drilling campaign is reported to have delivered ‘encouraging’ results, however failed to test down-plunge of the ‘high-grade’ interval drillhole 21PHDD002, which returned 4.5m at 3.03% copper (Cu), 1.78g/t gold (Au) and 14g/t silver (Ag) from 562m.
The DD campaign is expected to take 2-3 weeks to complete.
Commenting on the drilling campaign, Prodigy Gold Managing Director, Mark Edwards said: “The completion of the Rights Issue, through the outstanding support of our shareholders, has allowed us to recommence exploration with a diamond drilling program at Lake Mackay.
This program is anticipated to complete the restructuring of the joint venture agreement with IGO Limited (IGO) giving Prodigy Gold a majority interest in the Gold Tenements while retaining its 30% position in the base metal tenements. This program has now commenced with one deep hole to be drilled to test down-plunge of the ‘high-grade’ intercept identified in 2021.
“This program is anticipated to complete the restructuring of the joint venture agreement with IGO Limited (IGO) giving Prodigy Gold a majority interest in the Gold Tenements while retaining its 30% position in the base metal tenements”
It is an exciting time for Prodigy Gold, with the support of our shareholders we can now continue a detailed drilling program around one of our priority targets in the Lake Mackay region. This drilling will advance our understanding of mineralisation at the Phreaker prospect, which has previously reported ‘high-grade’ mineralised zones.”
Prodigy Gold also notes that drilling has commenced with a follow-up drillhole to test a previously identified electromagnetic (EM) plate by ASX-listed company IGO (ASX:IGO) along strike from drillhole 21PHDD002.
The drilling campaign is also expected to ensure the fulfilment of the sole funding commitment on the Base Metal JV tenements, with an expenditure of $850,000.
In addition, reports indicate that any follow-up field work that may be required for the DD program will not occur until later in 2023 after the wet season has passed and will be subject to an agreed program between Prodigy Gold and IGO.
As of 10am (AEST) Prodigy Gold’s share price has increased by 9.09%.
The Lake Mackay project is located about 400km northwest of the township of Alice Springs and comprises about 10,609km-square of exploration licences and applications. The project represents a JV between Prodigy Gold and IGO, with IGO owning the majority 70% of the Base Metal JV and Prodigy owning the majority 60% and 70% of the Castile Gold JV and Gold JV respectively. Work completed on the project’s Phreaker prospect in 2019 demonstrated that the mineralised system extends for over 750m of strike.
With the DD campaign now underway, Prodigy Gold announces results from the drilling will be returned during the Northern Territory’s wet season.
Images: Prodigy Gold NL
