Prodigy Gold Advances Development with Positive Hyperion Scoping Study and Twin Bonanza Mining Restart Plans

Strategic Shift Towards Gold Development

Prodigy Gold NL (ASX:PRX) has marked a clear pivot from pure exploration to gold development with its 2026 Annual Report revealing a suite of milestones that underpin this transition. Central to this is the May 2026 release of a scoping study on the Hyperion Deposit, which outlines a compelling open pit mining target of approximately 4.2 million tonnes at 1.9 grams per tonne for 260,000 ounces of gold. This study not only validates years of focused drilling and resource growth but also sets the stage for advancing the Hyperion Mineral Lease application and related environmental approvals.

The company is also actively progressing regulatory permits to restart mining at the Twin Bonanza Project, specifically the Old Pirate mine, with a potential mining recommencement targeted for early 2027. This move is buoyed by encouraging ore sorting testwork that upgraded feed grades from 322 grams per tonne to an exceptional 2,647 grams per tonne gold, achieved with nearly 90% mass rejection, signaling operational efficiencies and a sustainable small-scale mining operation.

Exploration Successes and Resource Growth

Drilling campaigns at Hyperion and Tregony have delivered significant intercepts, including standout results such as 24 meters at 5.5 grams per tonne gold at Hyperion and 7 meters at 14.1 grams per tonne at Tregony. These results have supported multiple resource upgrades, with the March 2026 update increasing Hyperion's total resource to 9.8 million tonnes at 1.4 grams per tonne for 454,000 ounces. Notably, the indicated resource portion has grown by 70%, enhancing confidence for future development.

Complementing these efforts, a detailed geochemical and structural study by CSIRO is underway to refine targeting and support future drilling campaigns. Additionally, the Northern Territory Government has co-funded a deep diamond drilling program at Hyperion, aiming to test a significant geophysical anomaly 300 meters below the current resource, which could unlock further extensions.

Capital Raising and Corporate Developments

Prodigy Gold strengthened its financial position during the year with a partially underwritten entitlement offer and placement in July 2025, raising approximately $7.13 million. This capital injection has supported exploration and development activities while enabling a 20-for-1 share consolidation and the sale of unmarketable parcels, simplifying the share register and reducing administrative costs.

The board welcomed two new non-executive directors nominated by substantial shareholders Plutus Prospecting and APAC Resources, reflecting strengthened strategic partnerships. APAC Resources increased its stake to 30.66%, with Plutus holding nearly 20%, underscoring institutional confidence in Prodigy Gold’s growth trajectory.

Joint Ventures and Land Holdings

Prodigy Gold continues to leverage joint ventures with major players including Newmont Exploration Pty Ltd, IGO Limited, and Australasian Metals Limited to manage its extensive 20,003 square kilometre landholding in the Northern Territory’s Tanami Region. These partnerships provide access to advanced exploration techniques and funding, while Prodigy Gold maintains a focus on its core projects, actively rationalising non-core assets such as the Lake Mackay Project.

Exploration activities under these JVs include geophysical surveys, geochemical sampling, and targeted drilling, with Newmont advancing projects at Tobruk and Monza. Despite some seasonal access challenges due to flooding, the company completed around 4,500 meters of drilling across key deposits.

Financial Performance and Outlook

The company reported a consolidated loss of $4.42 million for the year ended 30 June 2026, compared to a $3.54 million loss the previous year. This reflects increased exploration expenditure aligned with its development focus. Net assets rose to $6.46 million, bolstered by the capital raising. Cash and term deposits totalled approximately $5.6 million at year-end, providing runway for planned programs.

Looking ahead, Prodigy Gold plans further drilling at Hyperion, including the deep diamond hole funded by the NT Government, and exploration drilling at Old Pirate for the first time in over a decade. The company is also advancing environmental studies and negotiating mining agreements with Traditional Owners, critical steps before mining can commence.

While the company has flagged preliminary discussions with Tanami Gold NL regarding the Hyperion Project, no binding agreement has yet been reached. The coming year will be pivotal in translating exploration success into production, with regulatory approvals and feasibility studies key milestones to watch.