Prodigy Gold's Strategic Move: Mineral Lease Application for Hyperion Deposit
PRX (PRX) Share Update December 2024 Tuesday 3rd
Prodigy Gold Lodges Mineral Lease for Hyperion Gold Deposit
Prodigy Gold NL (ASX: PRX) has taken a significant step forward in its Tanami North Project by lodging a mineral lease application for the Hyperion Gold Deposit in the Northern Territory. This move marks a strategic advancement in the company's plans to develop this promising gold resource.
Instant Summary:
- Mineral Lease application submitted for Hyperion Gold Deposit.
- Hyperion Deposit contains 8.6Mt @ 1.5g/t Au for 407,000 ounces of gold.
- Potential for future underground development highlighted by recent drilling results.
- Metallurgical testwork shows over 95% recovery rates.
- Further drilling planned to explore underground mining potential.
Mineral Lease Application Details
Prodigy Gold has lodged a Mineral Lease application with the Department of Mines and Energy in the Northern Territory. This lease covers the Hyperion Gold Deposit, including its strike and depth extensions, and nearby prospects. The application also encompasses space for necessary infrastructure such as waste dumps and haul roads.
The Hyperion Deposit is a key component of Prodigy Gold's Tanami North Project, which is located in a region known for its rich gold deposits, including Newmont's Tanami Operation. The current Indicated and Inferred Mineral Resource at Hyperion stands at 8.6 million tonnes at 1.5 grams per tonne of gold, amounting to 407,000 ounces.
Potential for Development
The mineral resources at Hyperion have been estimated based on an open pit mining operation, which will form the basis for future studies. Recent drilling results have revealed promising prospects for underground development, particularly with the discovery of a high-grade zone of 10 meters at 15.9 grams per tonne of gold.
Metallurgical testwork on the Suess Lodes of the deposit has shown recovery rates exceeding 95%, indicating efficient gold extraction methods. Additional testwork is ongoing to further assess the mineralization at Hyperion and Tethys lodes.
Management's Vision
Mark Edwards, Managing Director of Prodigy Gold, expressed optimism about the potential development of the Hyperion Deposit. He emphasized the importance of commencing the mineral lease application process early to align with expected lead times for mining approvals. The company is also keen to explore the underground mining potential highlighted by recent drilling results.
Prodigy Gold plans to conduct further exploration on nearby prospects, such as Pandora and Brokenwood, which could contribute additional resources to any future mining operations.
This mineral lease application is a crucial step for Prodigy Gold as it positions itself for future development of the Hyperion Gold Deposit. The potential for both open pit and underground mining could significantly enhance the project's value, attracting investor interest. The high recovery rates from metallurgical testwork further bolster the project's prospects.
Investor Reaction:
Analysts are likely to view this development as a positive move, given the strategic importance of the Hyperion Deposit within Prodigy Gold's portfolio. The potential for underground mining could be particularly appealing, offering long-term growth opportunities.
Conclusion:
Investors should keep an eye on Prodigy Gold's progress with the Hyperion Deposit, as successful development could lead to substantial returns. The company's proactive approach in securing a mineral lease demonstrates its commitment to advancing its projects in the Tanami Region.