Prodigy Gold's December 2024 quarterly report reveals significant high-grade gold intercepts at its Hyperion and Tregony projects, alongside progress on metallurgical testing and a new Mineral Lease application. The company maintains a solid cash position with no debt, positioning itself for an active 2025 exploration season.
- Strong gold intercepts at Hyperion and Tregony projects with grades up to 15.9g/t Au
- Metallurgical testwork underway to assess processing suitability for Hyperion deposit
- Application lodged for new Mineral Lease covering Hyperion Gold Deposit
- Cash reserves of A$2.8 million with zero debt at quarter end
- Joint venture activities ongoing with Newmont and IGO, while some tenements returned to management
Significant Drilling Success at Hyperion and Tregony
Prodigy Gold NL has reported a productive December 2024 quarter, highlighted by the release of final assay results from its September drilling campaigns at the Hyperion and Tregony gold projects within the Tanami North region. The 17-hole Reverse Circulation (RC) program at Hyperion delivered multiple substantial gold intercepts, including a standout 10 meters at 15.9 grams per tonne (g/t) from 177 meters depth in hole HYRC24004, and a 33-meter intercept at 2.6 g/t from 49 meters in hole HYRC24017A. These results underscore the continuity and grade potential of the Hyperion, Tethys, and Suess lodes.
Similarly, the Tregony project’s six-hole RC drilling returned encouraging results, such as 21 meters at 4.4 g/t gold from 24 meters, including a high-grade 1-meter interval at 24.7 g/t. These findings build on previous resource updates and provide a strong foundation for resource model refinement planned for early 2025.
Metallurgical Testing and Mineral Lease Progress
In parallel with drilling, Prodigy Gold has advanced metallurgical testwork on samples from the Hyperion and Tethys lodes, submitted to Independent Metallurgical Operations Pty Ltd. This work aims to evaluate the amenability of the mineralisation to conventional Carbon-in-Leach (CIL) processing, a critical step in confirming the economic viability of the deposit. Early indications from prior testwork on the Suess lode suggest recoveries exceeding 95%, and further results are expected in the first half of 2025.
Notably, the company has lodged a Mineral Lease application covering approximately 1,980 hectares of Exploration Licence EL9250, fully encompassing the Hyperion Mineral Resource, which currently stands at 8.6 million tonnes at 1.5 g/t gold for 407,000 ounces. This lease application marks a significant milestone towards potential development, requiring engagement with Traditional Owners and environmental approvals.
Joint Ventures and Portfolio Management
Prodigy Gold continues to manage its joint ventures strategically, with Newmont progressing exploration at the Tobruk and Monza projects through geophysical surveys and reconnaissance sampling. Meanwhile, the Lake Mackay project, under joint ventures with IGO and Castile, saw no field activity this quarter but remains under review for potential partnerships or divestment.
The expiration of the sales agreement with Stockton Mining has returned management of several Tanami West tenements to Prodigy Gold, allowing the company to reassess and optimize its portfolio.
Financial Position and Outlook
Financially, Prodigy Gold ended the quarter with a healthy cash balance of A$2.8 million and no debt, following a modest capital raise completed in late 2024. The company’s prudent cash management supports ongoing exploration and development activities planned for 2025, including drilling campaigns post the Northern Australia wet season and advancing the Hyperion Mineral Lease process.
Managing Director Mark Edwards emphasized the company’s momentum, noting the strong assay results and the strategic importance of the Mineral Lease application. The team is focused on refining resource models and progressing metallurgical studies to underpin future development decisions.
Bottom Line?
Prodigy Gold’s strong drilling results and strategic lease application set the stage for a pivotal 2025 in the Tanami region.
Questions in the middle?
- How will upcoming metallurgical test results influence the development timeline for Hyperion?
- What are the prospects for expanding mineral resources at Tregony and other Tanami North deposits?
- How might joint venture negotiations and tenement portfolio adjustments impact Prodigy Gold’s exploration focus?