Tregony Gold Resource Grows to 80,000oz at 1.2g/t Amid Cost Pressures

Resource Growth and Drilling Success

Prodigy Gold NL (ASX – PRX) has announced a significant update to the Mineral Resource estimate for its wholly owned Tregony Gold Deposit, located in the Northern Territory’s Tanami North project. The new estimate totals 2.01 million tonnes at an average grade of 1.2 grams per tonne gold, equating to 80,000 ounces; a 25% increase in contained gold compared to the previous estimate.

This uplift is primarily attributed to a 29% increase in tonnage, partially offset by a modest 3% decline in grade. The updated resource incorporates results from a targeted 2024 drilling campaign comprising six reverse circulation holes, which enhanced geological confidence and expanded the deposit’s footprint.

Technical and Economic Considerations

The resource update was reported in accordance with the 2012 JORC Code, applying a lower cut-off grade of 0.5g/t for oxide material and 0.6g/t for transitional and fresh rock. These cut-offs reflect updated economic assumptions, including a forecast gold price of AUD 4,395 per ounce and increased mining and processing costs rising to approximately AUD 70 per tonne from AUD 56 previously.

Metallurgical testwork, although historic, suggests favourable recoveries of 95% for oxide and 90% for transitional and fresh material using conventional carbon-in-leach processing. Prodigy Gold acknowledges the need for further metallurgical studies to confirm these assumptions ahead of any mining decision.

Broader Project Context and Exploration Potential

The Tregony deposit is one of several assets within Prodigy Gold’s Tanami North portfolio, which now collectively hosts 11.7 million tonnes at 1.4g/t gold for 515,000 ounces. This includes the nearby Hyperion Gold Deposit and other projects such as Old Pirate and Buccaneer.

Management highlights that additional prospective zones adjacent to Tregony have been identified through historic air core and rotary air blast drilling, presenting compelling targets for future exploration. Prodigy Gold plans to undertake follow-up drilling in 2025 aimed at further resource growth and improved geological understanding.

Geological and Operational Insights

The mineralisation at Tregony is characterised by a stacked vein system within the Killi Killi Formation, trending north-south and dipping westward. The deposit extends from surface to approximately 150 metres depth and is amenable to open pit mining methods. The company’s drilling and modelling efforts have focused on enhancing resource classification, with material now reported in both Indicated and Inferred categories.

While the updated resource model benefits from recent drilling and refined geological interpretation, Prodigy Gold notes that further infill drilling and detailed topographic surveys are necessary to support future mine planning and increase confidence levels.