Prodigy Gold is drilling a deep, untested target at Hyperion while new ore-sorting results strengthen the case for a potential Old Pirate restart. The ASX-listed explorer is also relying on a fully underwritten A$7.92 million entitlement offer after ending the quarter with A$1.95 million in cash and only 1.9 quarters of reported funding.
- 600m diamond hole testing an IP anomaly beyond Hyperion’s current resource
- Old Pirate testwork upgraded selected feed from 322.3g/t to 2,647g/t gold
- A$7.92 million entitlement offer underwritten by three substantial holders
- 23.8Mt Mineral Resource base containing 1.05Moz of gold
- No Ore Reserves reported and Old Pirate restart remains subject to approvals
Hyperion drilling tests an uncharted sulphide target
Prodigy Gold NL (ASX:PRX) has moved from geological modelling to the drill bit at Hyperion, with a single approximately 600-metre HQ diamond hole testing an induced polarisation chargeability anomaly about 300 metres southwest of the current Mineral Resource. The target sits outside the existing drilling footprint and is interpreted as a possible sulphide-rich extension, parallel structure or down-plunge continuation of the Hyperion mineral system.
The hole is being drilled under the Northern Territory Government’s Round 19 Geophysics and Drilling Collaborations Program, which is providing A$112,152 in co-funding. The program builds on the Hyperion drilling grant, which previously supported a 600-metre deep hole targeting an untested geophysical anomaly. Results from the current drilling are expected towards the end of 2026, according to managing director Mark Edwards.
CSIRO study sharpens the geological model
A completed CSIRO collaboration has supplied the framework for the new targeting work, integrating structural geology, mineralogy, geochemistry and three-dimensional geological modelling at Hyperion. The study identified two stages of gold mineralisation and refined target corridors around the Hyperion-Tethys, Seuss and broader Suplejack structures. That is useful exploration intelligence, but it remains a targeting model until drilling demonstrates continuity and grade.
Prodigy also reported that PhotonAssay checks on 27 selected high-grade RC samples from 12 Hyperion and Tregony drill holes closely matched the original Fire Assay results. Across the sample set, Fire Assay averaged 11.56g/t gold compared with 11.57g/t by PhotonAssay. At Tregony, three consecutive samples averaged 29.4g/t and 28.9g/t respectively, with the strongest individual result recording 40.1g/t by Fire Assay and 41.6g/t by PhotonAssay. The company says the technique remains a quality-control tool for higher-grade samples, rather than a change to its resource estimates.
Old Pirate testwork supports a potential restart case
At the Twin Bonanza Project, TOMRA XRT sorting testwork produced a striking concentration result from selected Old Pirate mineralised material: feed grading 322.3g/t gold was upgraded to a product fraction grading 2,647g/t, with approximately 89% mass rejection. The company says the result demonstrates the potential to remove relatively lower-grade waste before processing, but the testwork was conducted on selected material and does not establish that a restart would be economic.
Mining approval work continues, with the existing EIS assessment completed and several other foundations already in place, including a current deemed mining licence and an updated Sacred Site Clearance Certificate. A new environmental mining licence for mining and a water extraction licence are still required before operations could recommence. The latest update follows the Old Pirate ore sorting announcement, which reported the same upgrade result and the advance of restart approvals.
Capital raising arrives ahead of a tight cash position
Prodigy ended September with A$1.954 million in cash, no debt and net operating cash outflows of A$1.027 million for the quarter. On that reported burn rate, the Appendix 5B indicated approximately 1.9 quarters of funding. The company has since launched a fully underwritten, non-renounceable entitlement offer seeking up to A$7.92 million, with its three largest shareholders committed to their full entitlements and any shortfall.
The raise is intended to fund exploration and development work, including Hyperion drilling, activity around the less-explored Tanami West area, planned drilling at Old Pirate and ongoing approval work. Prodigy reported a total Mineral Resource of 23.8 million tonnes at 1.4g/t gold for 1.05 million ounces across Hyperion, Tregony, Buccaneer and Old Pirate. Those figures are resources rather than reserves: the company states that no Ore Reserves have been reported for any of its projects.
The immediate investment tension is therefore straightforward. Prodigy has several potentially valuable catalysts, from Hyperion drilling results to Old Pirate permitting and processing studies, but the exploration and restart plans depend on completing the capital raising and converting geological and metallurgical promise into mineable, financeable outcomes. The next hard evidence will come from the drill core and the regulator, not the headline grades alone.
Bottom Line?
Prodigy has bought itself exploration time through the underwritten raise, but the investment case now depends on Hyperion results and whether Old Pirate approvals and testwork can support a credible restart.
Questions in the middle?
- Will the 600-metre Hyperion hole intersect mineralisation associated with the IP anomaly, and could it expand the current resource?
- Can the Old Pirate sorting result be reproduced across representative bulk material and incorporated into a viable restart study?
- Will the entitlement offer provide enough capital to progress both exploration growth and the outstanding mining and water approvals without another near-term raise?