Prodigy Gold has boosted the indicated resource at its Hyperion Gold Deposit by 70%, lifting total resources to 454,000 ounces and progressing key mining approvals and joint ventures.
- Hyperion resource now 454koz gold with 70% more indicated ounces
- Diamond drilling confirms potential for open pit and underground mining
- Mining approvals advanced including environmental clearances for Old Pirate
- Joint ventures with Newmont and IGO continue with targeted exploration
- Strong cash position of A$4.7 million, no debt, and board contract extended
Significant Upgrade to Hyperion Gold Deposit
Prodigy Gold (ASX:PRX) has delivered a notable boost to its Hyperion Gold Deposit in the Tanami North Project, with an updated Mineral Resource estimate now totalling 9.8 million tonnes at 1.4 grams per tonne gold, equating to 454,000 ounces. The standout figure is a 70% increase in indicated ounces to 212,000, reflecting improved geological confidence and additional drilling data. This upgrade comes with a slight easing of the cut-off grade to 0.5g/t Au, aligning with a higher gold price environment and enhanced metallurgical recoveries.
The company’s recent diamond drilling program yielded encouraging intercepts, including 42.5 metres at 1.2g/t Au from 60 metres in the Seuss Lode and a high-grade 9 metres at 4.3g/t Au from 233 metres in the Tethys Lode. Notably, visible gold was observed for the first time in hole HYRCD25002, underscoring the deposit’s potential for both open pit and underground mining operations.
This resource update builds on earlier successes, such as the 2025 drilling campaign that informed the current model, and is a key step ahead of a planned scoping study to be released in the coming quarter. The study will support negotiations with the Central Land Council and Traditional Owners as well as progress the Mineral Lease application. These developments reinforce the company’s strategic focus on advancing the Tanami North assets.
Environmental and Regulatory Progress at Twin Bonanza and Old Pirate
Beyond resource growth, Prodigy Gold is pushing forward with environmental and mining approvals critical to unlocking value at its Twin Bonanza project, including the Old Pirate Deposit. The company has completed all requirements under the EPBC Act related to the endangered Greater Bilby, with the relevant government department confirming no further actions are required. This clears a significant regulatory hurdle for mining recommencement.
Additionally, the Environmental Mining Licence application is advancing, with submission expected in the June quarter. These approvals are pivotal to restarting operations at Old Pirate, a deposit with a high-grade inferred resource of 115,000 ounces at 4.5g/t Au. The company’s environmental baseline studies at Hyperion also continue, gathering critical data for future Environmental Impact Statements.
Joint Ventures and Portfolio Management
Prodigy Gold’s joint venture activities remain active, particularly with Newmont Corporation at the Tobruk and Monza projects. While recent drilling at Tobruk returned no significant gold values, the company plans a project-wide review to prioritise targets. At Monza, Newmont’s proprietary Deep Sensing Geochemistry technique identified low-level anomalies that warrant further interpretation. These efforts aim to sharpen focus on the most prospective areas within the portfolio.
Meanwhile, Prodigy Gold continues managing joint ventures with IGO Limited at Lake Mackay and with Australasian Metals at Barrow Creek, although no fieldwork was conducted during the quarter. The company is also exploring potential interest in Lake Mackay through discussions facilitated by IGO, though no active exploration is planned for 2026.
Financial Position and Corporate Updates
Prodigy Gold closed the quarter with a healthy cash balance of A$4.7 million and no debt, providing a solid runway for ongoing exploration and development activities. The company reported a net cash outflow from operating activities of A$564,000 for the quarter, reflecting continued investment in exploration and corporate costs.
On the governance front, Managing Director Mark Edwards’ executive service agreement was converted to a continuous employment contract, signalling stability in leadership as the company advances its strategic objectives. Prodigy Gold is also in preliminary discussions with Tanami Gold NL regarding a potential transaction involving the Hyperion Gold Project, although no binding agreement has been reached.
With a total resource base exceeding one million ounces across its key projects, Prodigy Gold is positioning itself for growth in the Tanami region. The company’s focus on advancing the Hyperion scoping study, securing mining approvals, and optimising its joint venture portfolio will be critical milestones to watch in the near term.
This latest resource update builds on the company’s prior announcements, including the 70% surge in indicated ounces and the visible gold discovery in diamond drilling, which together underscore the technical progress underpinning Prodigy Gold’s development pipeline.
Bottom Line?
Prodigy Gold’s substantial upgrade at Hyperion and steady progress on approvals set the stage for a critical scoping study release, but the timing and outcome of mining permits and JV exploration results remain key uncertainties.
Questions in the middle?
- Will the upcoming Hyperion scoping study confirm economic viability for mining?
- How will Prodigy Gold navigate environmental approvals and stakeholder negotiations for Twin Bonanza and Old Pirate?
- What impact could a potential transaction with Tanami Gold NL have on Prodigy Gold’s strategic direction?