Brian Maher, the President and CEO of Prodigy Gold at the World Investment Conference in Vancouver
Mining companies favor working in areas where the infrastructure and the government support make it easier and more feasible to do business. Ontario, Canada, is just one of those areas. Known for their understanding of the requirements of mining companies as well as their desire to cooperate with mine development and exploration, Prodigy Gold is pursuing a gold project in the province of Ontario, just outside of Wawa.
Leading the project is Brian Maher, the President and CEO of Prodigy Gold. With a vast background in mining and exploration, he has been working on mines for a good part of his career. Maher said, “My background is in both mining and exploration. I've been in the industry for 35 years.” Prodigy Gold is not his first position in the mining industry as he gained experience elsewhere prior to joining them. He said, “Prior to joining Prodigy I was with Hochschild Mining for a number of years and prior to that I ran an underground gold mine in Nevada.” In addition to his background with Hochschild and in Nevada, he also worked independently as a consultant. Maher said, “I have had a successful consulting practice doing project evaluation, mine evaluation and mine development.” All of this experience has given Maher the skills he needs in order to lead Prodigy Gold through the next phase of development at the Magino mine and gold deposit. Said Maher, “I have been around. That [experience] has actually given me a good skill set for what we are doing right now.”
The project that Prodigy Gold is currently focused on is Magino, a gold deposit located in Ontario, Canada. Said Maher, “Prodigy is doing an open pit gold mine in Ontario, about 40 kilometers outside the town of Wawa.” The project itself has a great deal of potential and a long projected mine life that should give Prodigy Gold success in the open pit gold mining sector. Said Maher, “The project is approximately 250,000 ounces of gold per year with a twelve year mine life.” The estimated values on the project are astounding. Over the twelve year mine life, there could be nearly one billion dollars of gold in the Magino project. Said Maher, “There is a preliminary economic assessment (PEA) that shows a pre-tax NPV of $939 at a 5% discount rate.” The Magino project has a great deal of upside for Prodigy and their investors. Said Maher, “Economically it is a strong project.”
Currently, Maher and his staff are continuing to move forward on the Magino project with the goal of getting more information out to the market in the near term. Maher said, “We are drilling it out and will update the resource in the next few weeks.” As the results come in, Maher expects there will be positive results that will show an even greater increase over and above what they have already found in the PEA. He said, “We expect to see the project increase in size.”
To formalize the information that they already have on the Magino deposit, Prodigy Gold will go to the next step by having a feasibility study done on the deposit. Said Maher, “We expect to have a feasibility study done later this year or early 2013, which will kick off the formal permitting process.” If all goes well with the feasibility study and the permitting moves forward as planned, Prodigy Gold will start construction in the next year or so. Regarding the timeline, Maher said, “We should be able to do construction in 2014 and pour gold in 2015.” One of the benefits of working in Ontario, which is helping the project to move forward, is that there is already development in place. Said Maher, “There is infrastructure in place. Some of the hurdles other companies have in developing a project, we won't have. We are in Ontario, where there are very cooperative mining officials.”
In terms of financial status, Prodigy Gold is in a good position. Said Maher, “We have 314 million shares outstanding which are currently trading at about $0.60 per share.” Over the last year, with the merger, Prodigy Gold has experienced a leap in their value. Said Maher, “The market has really rallied to what we are doing and shows with ten times increase in market capitalization.” To fund the upcoming work that is planned, Prodigy Gold finished some additional financing. Said Maher, “We just completed a financing with no warrants and it was oversubscribed. Most of our shareholders are institutional and that shows the confidence they have in our ability to bring the project to market. Our share price is surviving – we'd like to see it higher, but we have done well. We have put the infrastructure in place and our team has a lot of experience. Our team has been there - done that. Our team has brought mines into production and we are being valued as a developer, not so much as an exploration company.”
Investors have a lot of reasons to be interested in Prodigy Gold. Said Maher, “Management has over 120 years of mining experience and we are well financed. Those building blocks are in place. The Magino project is great. When you mix in the Ontario location, it is a great place to build a mine. We are continuing to build the mine and we are expanding the resource.” With a large, high value gold deposit, excellent leadership and plans to move forward in the near future to production, Prodigy Gold is well positioned for the future.
Prodigy Gold Incorporated
1205-700 West Pender St.
Vancouver, BC V6C 1G8
Tel: 1 (604) 688 9006
Free: 1 888 688 9006
Fax: 1 (604) 688 9029