08.03.2015 Views

Prodigy-Gold-Technic.. - Argonaut Gold Inc.

Prodigy-Gold-Technic.. - Argonaut Gold Inc.

Prodigy-Gold-Technic.. - Argonaut Gold Inc.

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

Final<br />

<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update,<br />

Magino <strong>Gold</strong> Project, Ste. Sault Marie Mining District, Ontario<br />

Project No. V1111<br />

NI 43-101 <strong>Technic</strong>al Report<br />

2 November 2011


Office Locations<br />

Perth<br />

87 Colin St, West Perth WA 6005<br />

AUSTRALIA<br />

PO Box 77, West Perth WA 6872<br />

AUSTRALIA<br />

Tel: +61 8 9213 9213<br />

Fax: +61 8 9322 2576<br />

ABN: 99 085 319 562<br />

perth@snowdengroup.com<br />

Brisbane<br />

Level 15, 300 Adelaide Street<br />

Brisbane QLD 4000 AUSTRALIA<br />

PO Box 2207, Brisbane QLD 4001<br />

AUSTRALIA<br />

Tel: +61 7 3231 3800<br />

Fax: +61 7 3211 9815<br />

ABN: 99 085 319 562<br />

brisbane@snowdengroup.com<br />

Johannesburg<br />

Technology House ,Greenacres Office Park,<br />

Cnr. Victory and Rustenburg Roads, Victory<br />

Park<br />

JOHANNESBURG 2195 SOUTH AFRICA<br />

PO Box 2613, Parklands 2121<br />

SOUTH AFRICA<br />

Tel: + 27 11 782 2379<br />

Fax: + 27 11 782 2396<br />

Reg No. 1998/023556/07<br />

johannesburg@snowdengroup.com<br />

Vancouver<br />

Suite 550, 1090 West Pender St,<br />

VANCOUVER BC V6E 2N7 CANADA<br />

Tel: +1 604 683 7645<br />

Fax: +1 604 683 7929<br />

Reg No. 557150<br />

vancouver@snowdengroup.com<br />

Calgary<br />

Suite 850, 550 11th Avenue SW CALGARY,<br />

ALBERTA T2R 1M7<br />

Tel +1 403 452 5559<br />

Fax +1 403 452 5988<br />

calgary@snowdengroup.com<br />

Belo Horizonte<br />

Afonso Pena 2770, CJ 201 A 205<br />

Funcionários, 30.130-007, BELO HORIZONTE<br />

MG BRASIL<br />

Tel: +55 (31) 3222-6286<br />

Fax: +55 (31) 3222-6286<br />

belohorizonte@snowdengroup.com<br />

Oxford<br />

Lvl 3, The Magdalen Centre 1 Robert Robinso<br />

Avenue The Oxford Science Park<br />

OXFORD OX4 4GA<br />

Tel: +44 1865 784 884<br />

Fax: +44 1865 784 888<br />

oxford@snowdengroup.com<br />

Website<br />

www.snowdengroup.com<br />

IMPORTANT NOTICE<br />

This report was prepared as a National Instrument 43-101 <strong>Technic</strong>al<br />

Report, in accordance with Form 43-101F1, for <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated<br />

by Snowden. The quality of information, conclusions, and estimates<br />

contained herein is consistent with the level of effort involved in Snowden’s<br />

services, based on: i) information available at the time of preparation, ii)<br />

data supplied by outside sources, and iii) the assumptions, conditions, and<br />

qualifications set forth in this report. This report is intended to be used by<br />

<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated, subject to the terms and conditions of its<br />

contract with Snowden. That contract permits <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated<br />

to file this report as a <strong>Technic</strong>al Report with Canadian Securities<br />

Regulatory Authorities pursuant to provincial securities legislation. Except<br />

for the purposes legislated under provincial securities law, any other use of<br />

this report by any third party is at that party’s sole risk.<br />

2011<br />

All rights are reserved. No part of this document may be reproduced,<br />

stored in a retrieval system, or transmitted in any form or by any means,<br />

electronic, mechanical, photocopying, recording or otherwise, without the<br />

prior written permission of Snowden.<br />

By<br />

Qualified<br />

Person<br />

Andrew F. Ross<br />

M.Sc., P. Geo., CP, FAusIMM,<br />

Senior Principal Consultant.........................................................<br />

Issued by: Vancouver Office<br />

Doc Ref: 111216_V1111_Final_<strong>Prodigy</strong><strong>Gold</strong>_MR_NI43101.docx<br />

Last Edited: 16/12/2011 4:26:00 PM<br />

Number of copies<br />

Snowden: 2<br />

<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: 2


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

1 Summary ............................................................................................................................. 8<br />

1.1 Geology and Mineralization ...................................................................................... 8<br />

1.2 Mineral Resource Estimate ...................................................................................... 9<br />

1.3 Recommendations ................................................................................................. 11<br />

2 Introduction ........................................................................................................................ 12<br />

3 Reliance on other experts .................................................................................................. 13<br />

4 Property description and location ....................................................................................... 14<br />

4.1 Location ................................................................................................................. 14<br />

4.2 Status of mining titles ............................................................................................. 14<br />

4.3 Environmental matters ........................................................................................... 17<br />

5 Accessibility, climate, local resources, infrastructure and physiography ............................. 19<br />

5.1 Accessibility ........................................................................................................... 19<br />

5.2 Climate ................................................................................................................... 19<br />

5.3 Local resources ...................................................................................................... 19<br />

5.4 Physiography ......................................................................................................... 19<br />

6 History ............................................................................................................................... 21<br />

6.1 Prior to 1940s ......................................................................................................... 21<br />

6.2 1972 to 1996 McNellen Resources and Muscocho Explorations ............................ 22<br />

6.2.1 Comments on drilling and core sampling ................................................ 26<br />

6.2.2 Comments on analytical laboratory ........................................................ 26<br />

6.3 1996 – 2010 <strong>Gold</strong>en Goose ................................................................................... 26<br />

6.3.1 1996....................................................................................................... 26<br />

6.3.2 1997....................................................................................................... 26<br />

6.3.3 1998-1999.............................................................................................. 28<br />

6.3.4 2000....................................................................................................... 29<br />

6.3.5 2001....................................................................................................... 30<br />

6.3.6 2002....................................................................................................... 30<br />

6.3.7 2004....................................................................................................... 30<br />

6.3.8 2006....................................................................................................... 31<br />

6.3.9 2007....................................................................................................... 32<br />

6.3.10 2008....................................................................................................... 32<br />

6.3.11 2009....................................................................................................... 33<br />

6.3.12 2010....................................................................................................... 33<br />

6.3.13 Summary ................................................................................................ 34<br />

7 Geological setting and mineralization ................................................................................ 39<br />

7.1 The Archean Superior Province ............................................................................. 39<br />

7.2 The Wawa Sub-province ........................................................................................ 39<br />

. Final 2 November 2011 3 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

7.3 The Michipicoten greenstone belt ........................................................................... 41<br />

7.4 The geology of the Magino mine area .................................................................... 43<br />

7.5 <strong>Gold</strong> mineralization ................................................................................................ 45<br />

7.6 Structures associated with gold mineralization ....................................................... 47<br />

7.7 Current view on mineralization controls and identification of ore zones .................. 48<br />

8 Deposit types ..................................................................................................................... 50<br />

9 Exploration ........................................................................................................................ 53<br />

10 Drilling ............................................................................................................................... 54<br />

10.1 <strong>Prodigy</strong> drilling ....................................................................................................... 54<br />

10.1.1 Type and extent ..................................................................................... 54<br />

10.1.2 Procedures followed ............................................................................... 54<br />

10.1.3 Relevant results ..................................................................................... 55<br />

10.1.4 Factors that could materially impact the accuracy and reliability of<br />

the results .............................................................................................. 71<br />

10.1.5 Drill plan ................................................................................................. 71<br />

10.1.6 Examples of drill sections ....................................................................... 72<br />

11 Sample preparation, analyses and security ....................................................................... 76<br />

11.1 Sampling method and approach ............................................................................. 76<br />

11.2 Sample preparation methods and quality control measures employed before<br />

dispatch of samples ............................................................................................... 76<br />

11.2.1 2009 - 2010 <strong>Gold</strong>en Goose program ...................................................... 76<br />

11.2.2 2010 2011 Kodiak and <strong>Prodigy</strong> program ................................................ 77<br />

11.2.3 Statement ............................................................................................... 77<br />

11.3 Analytical laboratories ............................................................................................ 78<br />

11.3.1 Accurassay Laboratories Ltd .................................................................. 78<br />

11.3.2 ALS Chemex .......................................................................................... 78<br />

11.4 Sample splitting and reduction ............................................................................... 78<br />

11.4.1 Accurassay Laboratories Ltd .................................................................. 78<br />

11.4.2 ALS Chemex .......................................................................................... 78<br />

11.5 Analytical procedures ............................................................................................. 79<br />

11.5.1 Accurassay Laboratories Ltd .................................................................. 79<br />

11.5.2 ALS Chemex .......................................................................................... 79<br />

11.6 Quality control ........................................................................................................ 80<br />

11.6.1 2009 - 2010 <strong>Gold</strong>en Goose program ...................................................... 80<br />

11.6.2 Accurassay Laboratories Ltd .................................................................. 80<br />

11.6.3 2010 Kodiak sampling program .............................................................. 80<br />

11.7 <strong>Prodigy</strong> QAQC for 2011 ......................................................................................... 81<br />

11.8 Specific gravity determinations ............................................................................... 86<br />

. Final 2 November 2011 4 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

11.9 Author’s opinion on 2011 sample preparation, security and analytical<br />

procedures ............................................................................................................. 86<br />

12 Data verification ................................................................................................................. 87<br />

12.1 Site verification ....................................................................................................... 89<br />

13 Mineral processing and metallurgical testing ..................................................................... 90<br />

13.1 Historic test data and reports.................................................................................. 90<br />

13.1.1 Grindability and CIL Efficiency ................................................................ 90<br />

13.2 September 2011 testwork ...................................................................................... 91<br />

14 Mineral resource estimates ................................................................................................ 92<br />

14.1 Summary................................................................................................................ 92<br />

14.2 Disclosure .............................................................................................................. 92<br />

14.2.1 Known issues that materially affect mineral resources ........................... 92<br />

14.3 Assumptions, methods and parameters ................................................................. 95<br />

14.3.1 Data provided ......................................................................................... 96<br />

14.3.2 Geological interpretation and modelling .................................................. 98<br />

14.3.3 Compositing of assay intervals ............................................................... 98<br />

14.3.4 Consideration of grade outliers and estimation method ........................ 101<br />

14.3.5 Variogram analysis ............................................................................... 101<br />

14.3.6 Establishment of block models ............................................................. 103<br />

14.3.7 Grade interpolation parameters ............................................................ 104<br />

14.3.8 Density assignment .............................................................................. 104<br />

14.3.9 Prior mining .......................................................................................... 104<br />

14.3.10 Resource classification ......................................................................... 104<br />

14.3.11 Resource reporting ............................................................................... 105<br />

15 Adjacent properties .......................................................................................................... 107<br />

16 Other relevant data and information................................................................................. 108<br />

17 Interpretation and conclusions ......................................................................................... 109<br />

18 Recommendations ........................................................................................................... 110<br />

19 References ...................................................................................................................... 111<br />

20 Certificate of author, date and signature page ................................................................. 118<br />

Tables<br />

Table 1.1 Indicated Mineral Resource estimate – November 2011 ........................ 10<br />

Table 1.2 Inferred Mineral Resource estimate – November 2011 ........................... 10<br />

Table 4.1 Description of mining title types in Ontario .............................................. 14<br />

. Final 2 November 2011 5 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Table 6.1 Historical tonnages and grades estimated for the Magino Joint<br />

Venture <strong>Gold</strong> Project of McNellen Resources ......................................... 23<br />

Table 6.1 Historical summary ................................................................................. 35<br />

Table 10.1 <strong>Prodigy</strong> drilling details ............................................................................ 54<br />

Table 10.2 <strong>Prodigy</strong> drillhole mineralization intersect results ..................................... 55<br />

Table 13.1 Grindability data ..................................................................................... 90<br />

Table 13.2 Bottle leach results ................................................................................. 91<br />

Table 13.3 Bottle leach results – samples at minus 150 microns ............................. 91<br />

Table 14.1 Indicated Mineral Resource estimate – November 2011 ........................ 92<br />

Table 14.2 Inferred Mineral Resource estimate – November 2011 ........................... 92<br />

Table 14.3 <strong>Prodigy</strong> density data ............................................................................... 93<br />

Table 14.4 Statistics for all 5 m composites ............................................................. 99<br />

Table 14.5 Statistics for mineralized composites .................................................... 100<br />

Table 14.6 Variography by domain ........................................................................ 102<br />

Table 14.7 Indicated mineral resource reported for a range of cut-off grades ......... 105<br />

Table 14.8 Inferred resource reported for a range of cut-off grades ....................... 106<br />

Figures<br />

Figure 4.1 Map showing the location of the Magino property in Ontario .................. 16<br />

Figure 4.2 Claim map of the Magino property .......................................................... 17<br />

Figure 5.1 Topography and accessibility of the Magino property ............................. 20<br />

Figure 7.1 Tectonic subdivisions of the Superior Province within northern<br />

Ontario ................................................................................................... 40<br />

Figure 7.2 Major geological elements of the eastern Wawa Sub-province ............... 40<br />

Figure 7.3 Mineral belts in the Michipicoten-Shebandowan region of the Wawa<br />

Sub-province .......................................................................................... 41<br />

Figure 7.4 Geology of the Magino mine area ........................................................... 44<br />

Figure 7.5 Historical G Zone in the 24+75E drift ...................................................... 46<br />

Figure 7.6 <strong>Gold</strong>-bearing veins on the face of the 23+80E drift ................................. 46<br />

Figure 8.1 Inferred crustal levels of gold deposition showing the different types<br />

of lode gold deposits and the inferred deposit clan ................................. 50<br />

Figure 8.2 Schematic diagram illustrating the setting of greenstone-hosted<br />

quartz-carbonate vein deposits............................................................... 51<br />

Figure 8.3 Location of the Goudreau Lake deformation zone .................................. 52<br />

Figure 10.1 Plan view of <strong>Prodigy</strong> drillhole locations ................................................... 72<br />

Figure 10.2 Drill cross section 300SW....................................................................... 73<br />

Figure 10.3 Drill cross section 1375SW ..................................................................... 74<br />

Figure 10.4 Drill cross section 1180SW ..................................................................... 75<br />

Figure 11.1 <strong>Gold</strong> assays for coarse blank inserted by <strong>Prodigy</strong> .................................. 81<br />

. Final 2 November 2011 6 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 11.2 <strong>Gold</strong> assays for standard CDN-BL-7 ...................................................... 81<br />

Figure 11.3 <strong>Gold</strong> assays for standard CDN-GS-1F ................................................... 82<br />

Figure 11.4 <strong>Gold</strong> assays for standard CDN-GS-2E ................................................... 82<br />

Figure 11.5 <strong>Gold</strong> assays for standard CDN-GS-30B ................................................. 82<br />

Figure 11.6 <strong>Gold</strong> assays for standard CDN-GS-2G................................................... 83<br />

Figure 11.7 <strong>Gold</strong> assays for standard CDN-GS-1G................................................... 83<br />

Figure 11.8 <strong>Gold</strong> assays for standard CDN-GS-1P5C ............................................... 83<br />

Figure 11.9 <strong>Gold</strong> assays for standard CDN-GS-2E ................................................... 84<br />

Figure 11.10 <strong>Gold</strong> assays for standard CDN-GS-2G................................................... 84<br />

Figure 11.11 <strong>Gold</strong> assays for standard CDN-GS-3G................................................... 84<br />

Figure 11.12 <strong>Gold</strong> assays for standard CDN-GS-4B ................................................... 85<br />

Figure 11.13 <strong>Gold</strong> assays for standard CDN-GS-7B ................................................... 85<br />

Figure 11.14 <strong>Gold</strong> assays for standard CDN-GS-P2 ................................................... 85<br />

Figure 11.15 <strong>Gold</strong> assays for standard CDN-GS-P4A ................................................. 86<br />

Figure 14.1 Comparison of declustered composites – surface drilling vs<br />

underground drilling less than 50 metres total length .............................. 94<br />

Figure 14.2 Comparison of declustered composites – surface drilling vs<br />

underground drilling greater than 50 metres total length ......................... 95<br />

Figure 14.3 Distribution of underground drillholes ..................................................... 97<br />

Figure 14.4 Distribution of surface drillholes .............................................................. 98<br />

Figure 14.5 Log histogram of all 5 m composites ...................................................... 99<br />

Figure 14.6 Log histogram of 5 m gold composites for mineralized zones ............... 100<br />

Figure 14.7 Log probability plot indicating mixed populations .................................. 101<br />

. Final 2 November 2011 7 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

1 Summary<br />

The purpose of this <strong>Technic</strong>al Report is to provide an update to the February 2011<br />

Resource Estimate (Ross 2011) and to support the news release of 2 November 2011 in<br />

which an updated Mineral Resource estimate was reported for the Magino gold property.<br />

The February 2011 Resource Estimate was the basis for a preliminary economic<br />

assessment (PEA) completed in April 2011 (Ross et al., 2011). That PEA is now<br />

superseded and an updated PEA will be reported in a subsequent technical report to be<br />

issued by Wardrop, a Tetra Tech Company.<br />

In September 2011, Snowden Mining Industry Consultants <strong>Inc</strong>. (“Snowden”) was<br />

requested by <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated (“<strong>Prodigy</strong>”), to complete an updated Mineral<br />

Resource Estimate for the Magino gold project in compliance with National Instrument 43-<br />

101 and Form 43-101F1. <strong>Prodigy</strong> was formed in January 2011 by the unification of<br />

Kodiak Exploration Limited (“Kodiak”) and <strong>Gold</strong>en Goose Resources <strong>Inc</strong>orporated<br />

(“<strong>Gold</strong>en Goose”).<br />

The Magino property is approximately 40 km north-east of the town of Wawa, Ontario, and<br />

consists of a former underground mine that was active in the period 1988 to 1992, and<br />

processed 768,678 tons at a recovered grade of 0.137 oz/t Au to produce 105,543 ounces<br />

of gold. Since closure of the underground mine there have been several studies by<br />

<strong>Gold</strong>en Goose to evaluate the feasibility for re-commencing underground operations and /<br />

or commencing open pit operations.<br />

The intention of <strong>Prodigy</strong> is to re-assess the Magino gold deposit as an open pittable<br />

scenario.<br />

Land Manager Mr Randy Sedore confirmed that the issuer’s wholly-owned (i.e., 100%<br />

Registered Ownership) land holdings forming the Magino property comprise seven (7)<br />

patented mining claims (mining and surface rights), four (4) leased mining claims, and<br />

sixty-six (66) unpatented mining claims with a combined area of 5,131,180 acres<br />

(2,076.515 hectares). Additionally, on 9 February, 2011 <strong>Prodigy</strong> announced that it had<br />

signed an option agreement with MPH Resources Corp. that allows <strong>Prodigy</strong> to earn up to<br />

a 100% interest in the 128 ha Gould <strong>Gold</strong> property located adjacent to the Magino<br />

property.<br />

1.1 Geology and Mineralization<br />

The Magino property is located within the Michipicoten greenstone belt of the Archean<br />

Superior Province. The Michipicoten greenstone belt is a structurally and stratigraphically<br />

complex assemblage of volcanic, sedimentary and intrusive rocks that were<br />

metamorphosed to greenschist and amphibolites facies. Several suites of plutonic rocks<br />

ranging in composition from gabbro to monzogranite and syenite occur in and around the<br />

Michipicoten greenstone belt. The Magino property is situated in the Goudreau-Lochalsh<br />

gold district of the Wawa gold camp. Supracrustal rocks in the Goudreau-Lochalsh district<br />

consist of Cycle 2 felsic to intermediate pyroclastic metavolcanics capped by pyritebearing<br />

ironstone. To the north are pillowed, massive and schistose, mafic to intermediate<br />

metavolcanics and minor intercalations of Cycle 3 mafic pyroclastic rock. Several<br />

medium- to coarse-grained quartz dioritic to dioritic sills and/or dikes intrude all<br />

metavolcanic rocks.<br />

. Final 2 November 2011 8 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

<strong>Gold</strong> mineralization at the former Magino mine is dominantly hosted by the Webb Lake<br />

stock, which intrudes Cycle 3 mafic volcanic rocks. The Webb Lake stock is a felsic<br />

intrusion interpreted as a trondhjemite, but continues to be called a granodiorite in mine<br />

terminology. The long axis of the Webb Lake stock is parallel to the regional supracrustal<br />

rock stratigraphy. The Webb Lake stock is ENE-striking and has a steep northerly dip.<br />

The granodiorite (trondhjemite) contains 5-10% veins of carbonate, quartz, tourmaline and<br />

pyrite in various orientations.<br />

The current focuses of <strong>Prodigy</strong>’s evaluation are zones of low-grade gold-bearing quartzsericite-pyrite<br />

mineralization that include narrow higher-grade gold-bearing veins, the<br />

target of former underground mining. <strong>Prodigy</strong> commenced a surface drilling program in<br />

early 2011 to in-fill and replace earlier sample data. The database used for the current<br />

study update (this report) includes this recent drilling information.<br />

1.2 Mineral Resource Estimate<br />

The region of interest covers 1,350 metres of the 075 degree trending Webb Lake<br />

grandiorite stock and the alteration zones that aggregate up to 300 metres width, and dip<br />

steeply to depths of up to 600 metres. At Magino the Webb Lake stock is covered by up<br />

to 30 m thickness of fluvio-glacial material. The felsic and mafic volcanic country rock<br />

surrounding the stock does contain examples of low grade mineralization encountered by<br />

drilling, however the main focus remains the broad low-grade alteration zones within the<br />

stock. A late stage diabase dyke transects the stock.<br />

The database provided to Snowden by <strong>Prodigy</strong> on 16 September 2011 contains 512<br />

surface diamond drillholes (for a total of 103,491 metres; average length 202 m) and 980<br />

underground diamond drillholes (for a total of 60,345 m; average length 62 m).<br />

Ninety-four surface drillholes were completed in the period from 1997 to 2009 and<br />

comprise HQ and NQ diameter core. All underground drillholes were completed in the<br />

period 1986 to 1991 and are dominated by AQ diameter core with some BQ diameter<br />

core, clearly clustered around the underground workings and, in some cases subsequently<br />

stoped out. Since the sample volumes of the underground drill cores are markedly less<br />

than the surface drill cores, and because of potential bias contained within some samples,<br />

Snowden elected to use only the assays from the surface drillholes and those<br />

underground drill holes relatively unbiased for the grade estimates. The underground<br />

diamond drillholes retained for the resource estimates comprised 484 drillholes for a total<br />

of 48,896 m, average length 100 m. Assay information from all of the underground drill<br />

cores however was used to develop the geological interpretation of the mineralized<br />

bodies.<br />

A Vulcan block model with cell dimensions of 10m (X) 10m (Y) 5m (Z) was coded to reflect<br />

the surface topography, base of overburden, Webb Lake granodiorite contacts, domain<br />

solids, and the late stage diabase dyke. A 3D wireframe model of the underground<br />

development and stopes was stored as percent volumes in the block model to ensure that<br />

the reported mineral resource estimates are depleted for prior mining. The <strong>Prodigy</strong><br />

geologists have interpreted 17 structural domains to identify the zones of mineralization in<br />

the drill cores.<br />

. Final 2 November 2011 9 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

<strong>Gold</strong> grades were estimated from 5 m length-weighted un-cut composites into the<br />

interpreted mineralized blocks by ordinary kriging, using parameters established from<br />

analysis of domain variography. The impact of clustered high gold grades was controlled<br />

by using a combination of “sample per hole” restrictions, octant search and maximum<br />

distance extrapolation restrictions for grades above 22 g/t Au. Minimum / maximum<br />

numbers of composites used for estimation were set to 3 / 14 per block. Discretisation<br />

was set to 2 x 2 x 1.<br />

Density factors of 2.72 (SG) were assigned to granodiorite and mafic to felsic country rock<br />

based on approximately 2,300 new specific gravity determinations of core specimens by<br />

<strong>Prodigy</strong>.<br />

A conceptual pit shell was developed by Snowden using Whittle software in order to<br />

identify those parts of the block model that have reasonable prospects for eventual<br />

economic extraction. Parameters used were: 52 degree (overall pit slope); $1.25 /t mining<br />

cost; $1500 per oz gold price; 95% process recovery; $7 /t process cost. Mineralized<br />

blocks that lie within the conceptual pit shell have been classified as either Indicated or<br />

Inferred Mineral Resource estimates. Blocks lying outside the conceptual pit were left<br />

unclassified and have not been reported. Geostatistical parameters from the kriging<br />

system were used to identify regions of better confidence estimates.<br />

Snowden has applied an Inferred classification to blocks in the mineral resource that lie<br />

within low confidence regions and below 150 metres and within the limit of the conceptual<br />

pit shell.<br />

Above a depth from surface of 150 metres, resource blocks that lie within greater<br />

confidence regions have been classified as Indicated resource blocks. Snowden has not<br />

classified any Measured blocks after considering the uncertainty in geological<br />

interpretation and extent of the underground workings, the high nugget environment, short<br />

ranges of gold grade continuity, use of assigned densities and the current drill spacing.<br />

Snowden notes that <strong>Prodigy</strong> <strong>Gold</strong> has an ongoing drill program to in-fill the existing drill<br />

pattern.<br />

Mineral Resource estimates for the Magino property are reported in categories of<br />

Indicated and Inferred, in accordance with the CIM Definition Standards - For Mineral<br />

Resources and Mineral Reserves (CIM Code), as follows:<br />

Table 1.1 Indicated Mineral Resource estimate – November 2011<br />

Category<br />

CIM<br />

Code<br />

Reporting<br />

cut-off<br />

grade g/t<br />

Au<br />

Density<br />

Tonnes<br />

X 1,000<br />

Grade<br />

g/t Au<br />

<strong>Gold</strong><br />

grams<br />

X 1,000<br />

<strong>Gold</strong><br />

ounces<br />

X 1,000<br />

Indicated 0.35 2.72 67,555 1.00 67,690.5 2,176.3<br />

Table 1.2 Inferred Mineral Resource estimate – November 2011<br />

Category<br />

CIM<br />

Code<br />

Reporting<br />

cut-off<br />

grade g/t<br />

Au<br />

Density<br />

Tonnes<br />

X 1,000<br />

Grade<br />

g/t Au<br />

<strong>Gold</strong><br />

grams<br />

X 1,000<br />

<strong>Gold</strong><br />

ounces<br />

X 1,000<br />

Inferred 0.35 2.72 54,242 0.99 53,537.3 1,721.2<br />

In the above Mineral Resource tables there may be inconsistencies due to rounding.<br />

Estimates are rounded since the figures are not precise calculations.<br />

. Final 2 November 2011 10 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

There are no Mineral Reserves reported in this <strong>Technic</strong>al Report. Mineral Resources are<br />

not Mineral Reserves and do not have demonstrated economic viability. There is no<br />

certainty that all or any part of the Mineral Resource will be converted into Mineral<br />

Reserve.<br />

1.3 Recommendations<br />

The authors make the following recommendations:<br />

Continue the current in-fill drilling and sampling program so that all of the historic<br />

assay information can be replaced for use in subsequent mineral resource estimates.<br />

Where possible, re-sample existing core and ensure QAQC programs are in place,<br />

thus making use of much of the historic core.<br />

Update the drillhole and sample database with consistent lithogical, alteration and<br />

structural records.<br />

Complete a new series of 3D interpretations to map the distribution of quartz-sericitepyrite<br />

alteration and veins and define deeper depth mineralization. Consider multielement<br />

assays to assist in characterization of alteration zones and geological<br />

interpretation.<br />

Use the November 2011 updated resource block model for a preliminary economic<br />

assessment.<br />

Refine the current 17 structural domain solids to reflect the latest geologic<br />

interpretation and to honour alteration zones.<br />

Complete a drill hole spacing study report to establish minimum standards for<br />

resource to reserve conversion.<br />

. Final 2 November 2011 11 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

2 Introduction<br />

This <strong>Technic</strong>al Report has been prepared by Snowden Mining Industry Consultants<br />

(“Snowden”) for <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated (“<strong>Prodigy</strong>”). <strong>Prodigy</strong> was formed from the<br />

unification of Kodiak Exploration Limited (“Kodiak”) and <strong>Gold</strong>en Goose Resources<br />

<strong>Inc</strong>orporated (“<strong>Gold</strong>en Goose”) in 2011.<br />

The purpose of the <strong>Technic</strong>al Report is to support the news release of 2 November 2011<br />

in which an updated Mineral Resource estimate was reported for the Magino gold property<br />

located in Ontario.<br />

Data provided to Snowden was used as the basis for the study. A Gemcom drillhole and<br />

assay database was reviewed by Snowden, and is supported by documentation for<br />

numerous drilling programs covering the period from the early 1980s to the present.<br />

The author has made two personal inspections of the Magino gold property in 2011 during<br />

which time <strong>Prodigy</strong> was undertaking core drilling programs.<br />

. Final 2 November 2011 12 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

3 Reliance on other experts<br />

The authors have relied upon an opinion provided by Mr Randy Sedore in respect of the<br />

status of the mineral titles held by <strong>Prodigy</strong>’s subsidiary, <strong>Gold</strong>en Goose. This opinion is<br />

detailed in Section 4.2.<br />

. Final 2 November 2011 13 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

4 Property description and location<br />

Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May<br />

2009) and updated.<br />

4.1 Location<br />

The Magino property is approximately 40 kilometres (“km”) northeast of the town of Wawa,<br />

Ontario, on NTS map sheet 42C/08 (Figure 4.1). The project is located in Finan<br />

Township, which falls within the Sault Ste. Marie mining district of Ontario. The Magino<br />

mine is about 14 km southeast of the town of Dubreuilville. The approximate UTM<br />

coordinates for the geographic centre of the property are 685900E, 5351800N (Zone 16,<br />

NAD 83). The approximate position of the Magino mine is 689000E, 5351000N.<br />

4.2 Status of mining titles<br />

Mr Randy Sedore acts as the Land Manager for <strong>Gold</strong>en Goose (a subsidiary of the issuer)<br />

with regards to the exploration and mining lands that form the Magino property<br />

(Figure 4.2). He confirmed on 15 December 2011 that the issuer’s wholly-owned (i.e.,<br />

100% Registered Ownership) land holdings forming the Magino property comprise seven<br />

(7) patented mining claims (mining and surface rights), four (4) leased mining claims, and<br />

sixty-six (66) unpatented mining claims with a combined area of 5,131,18 acres<br />

(2,076.515 hectares).<br />

The four (4) leased mining claims are contiguous and consist of seven (7) mining titles<br />

(SSM 581948 to 581953 and SSM 722481) (Table 4.1). <strong>Gold</strong>en Goose owns the mining<br />

and surface rights on these leased mining claims, except mining title SSM 722481 for<br />

which <strong>Gold</strong>en Goose owns only the mining rights.<br />

The mineralized area hosting the underground workings is located just north of Webb<br />

Lake near the south-eastern corner of the property (Figure 4.2).<br />

Table 4.1<br />

Description of mining title types in Ontario<br />

Mining Titles<br />

Unpatented Mining Claims<br />

Leased Mining Claims<br />

Patented Mining Claims<br />

(from Turcotte, B., and Pelletier, C., (May 2009)<br />

Associated Rights<br />

Exploration for mineral substances<br />

Right to subsurface only<br />

Work required for renewal of right<br />

20-year period<br />

No obligation or work required<br />

Payment of annual fee<br />

Surface rights limited to mining activities<br />

For life<br />

No obligation or work required<br />

Payment of annual fee<br />

Surface rights limited to mining activities<br />

. Final 2 November 2011 14 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

On 1 November, 1985, an agreement was reached between Cavendish Investing Ltd<br />

(“Cavendish”) and Muscocho Explorations Ltd (“Muscocho”). At the time, Cavendish<br />

Investing Ltd owned a 50% interest in the Magino property, and McNellen Resources <strong>Inc</strong>.<br />

(“McNellen”), formerly Rico Copper (1966) <strong>Inc</strong>., the other 50%.<br />

The agreement stipulated that Muscocho would purchase all of Cavendish’s right, title and<br />

interest in and to the Joint Venture with McNellen, and that Cavendish would retain a 10%<br />

royalty of Muscocho’s share of net profits derived from its participation in the Joint<br />

Venture. The agreement further stipulated that if Muscocho assigns any or all part of its<br />

interest in the Joint Venture to another party or parties, it will cause the assignee(s) of<br />

such interest to enter into an agreement with Cavendish under which such assignee(s) will<br />

assume all of Muscocho’s obligations under the terms of the agreement, including the<br />

payment of said royalty to Cavendish.<br />

Net profits for the purposes of the above paragraph shall mean the monies received by<br />

Muscocho from its interest in the Joint Venture after Cavendish has paid Muscocho for all<br />

its costs incidental to the Joint Venture incurred before and after the closing date of the<br />

agreement.<br />

In 1996, three companies; Muscocho Explorations, McNellen Resources and Flanagan<br />

McAdam Resources <strong>Inc</strong>., combined to form <strong>Gold</strong>en Goose, which emerged with a 100%<br />

interest in the Magino property. <strong>Gold</strong>en Goose thus became an assignee of Muscocho’s<br />

obligation to pay Cavendish a 10% royalty for its share of the net profits, after<br />

reimbursement of all costs incurred by Muscocho since November 1985. <strong>Prodigy</strong> cannot<br />

reasonably estimate the likelihood of a royalty being paid, nor the amount.<br />

On 31 August, 2010, Kodiak and <strong>Gold</strong>en Goose announced that they entered into a<br />

definitive merger agreement and plan of arrangement dated 30 August, 2010 wherein<br />

Kodiak would acquire all of the issued and outstanding shares of <strong>Gold</strong>en Goose. The<br />

arrangement effectively combined the assets of both companies on a consolidated basis,<br />

with <strong>Gold</strong>en Goose becoming a wholly-owned subsidiary of Kodiak.<br />

On 4 January, 2011 <strong>Prodigy</strong> announced that it was the named unification of Kodiak and<br />

<strong>Gold</strong>en Goose.<br />

On 9 February, 2011 <strong>Prodigy</strong> announced that it had signed an option agreement with MPH<br />

Resources Corp. that allows <strong>Prodigy</strong> to earn up to a 100% interest in the 128 ha Gould<br />

gold property located adjacent to the Magino property. The option property is identified as<br />

numbers 4218037 and 4218038 in Figure 4.2.<br />

<strong>Prodigy</strong> has advised that the terms of the option agreement, subject to TSXV approval,<br />

are as follows:<br />

<strong>Prodigy</strong> will pay MPH $10,000 and issue to MPH 50,000 common shares of <strong>Prodigy</strong><br />

("Shares") following acceptance by the TSXV of this transaction.<br />

<strong>Prodigy</strong> can earn a 60% interest in the Property within two years of TSXV approval by<br />

paying MPH an additional $35,000, issuing MPH an additional 150,000 Shares and<br />

incurring expenditures of $250,000.<br />

<strong>Prodigy</strong> can earn a 100% interest in the Property within three years of TSXV approval<br />

by paying MPH an additional $25,000 ($70,000 in aggregate), issuing MPH an<br />

additional 200,000 Shares (400,000 Shares in aggregate), incurring additional<br />

expenditures of $500,000 ($750,000 in aggregate) and granting MPH a net smelter<br />

returns royalty of 1%, which may be repurchased for $1,000,000.<br />

The Property is subject to an additional 2% net smelter returns royalty held by prior<br />

owners, half of which may be acquired for $1,000,000.<br />

. Final 2 November 2011 15 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 4.1<br />

Map showing the location of the Magino property in Ontario<br />

(after Turcotte, B., and Pelletier, C., (May 2009))<br />

. Final 2 November 2011 16 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 4.2<br />

Claim map of the Magino property<br />

4.3 Environmental matters<br />

<strong>Gold</strong>en Goose retained AMEC Earth & Environmental, a division of AMEC Americas<br />

Limited, to carry out a dam safety inspection of the tailings dams at the Magino mine<br />

(Yong et al., 2008). The inspection was conducted in accordance with guidelines<br />

applicable to structures in Ontario, and also took into account the site’s closure plan<br />

requirements and the recommendations provided in AMEC’s previous dam safety<br />

inspection report (AMEC Earth and Environmental Ltd, 2002). With the exception of some<br />

requirements for erosion protection maintenance, all three dams appeared to be in stable<br />

condition with no visible signs of distress or instability. The conditions of the dams are not<br />

expected to change because the tailings are no longer being discharged to the primary<br />

pond.<br />

Since 1992, the site has been kept on a care and maintenance basis (temporary<br />

suspension) during which time the issuer was pursuing financing opportunities that could<br />

potentially lead to the resumption of mining operations. Personnel were kept on site to<br />

provide security and ensure compliance with the Certificate of Approval (C of A #4-0115-<br />

88-896) and other environmental requirements. In 1996, an authorization to reduce<br />

sampling frequency was granted for the Magino mine. These changes can only be<br />

implemented when the mine is not in operation. Once the mine reactivates, the<br />

frequencies specified in the Certificate of Approval must be re-implemented. The annual<br />

toxicity sample for the Rainbow Trout 96-hour LC50 bioassay toxicity test was collected<br />

from the secondary polishing pond in June 2009. Water was no longer being pumped<br />

from the mine, so the mine water settling pond was dry and sampling the pond was not<br />

required.<br />

. Final 2 November 2011 17 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

A detailed mine site characterization was completed for the Magino mine as part of the<br />

mine closure plan. The original plan, titled “Magino Mine Closure Plan – Muscocho<br />

Explorations Limited” was prepared in October 1992 by Environmental Applications Group<br />

Limited (Young and Simms, 1992). It was revised in 1993 by HBT AGRA Limited (Young<br />

and Simms, 1993). The mine site characterization is part of the February 2003<br />

amendment titled “Closure Plan - Amendment No.1, <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.,<br />

Magino Mine Site” (Dyck and Bleiker, 2003). The changes in the amendment are in<br />

accordance with the requirements laid out in Part VII of the Ontario Mining Act and have<br />

been formatted as per Ontario Regulation 240/00 and the associated Mine Rehabilitation<br />

Code of Ontario. The 2003 closure plan will have to be updated to reflect the current site<br />

conditions and the required Financial Assurance for completing mine site rehabilitation.<br />

In addition, the following documents will be required if mining operations resume:<br />

A Certificate of Authorization for Air under the Environmental Protection Act,<br />

Regulation 346.<br />

A permit to take water (PTTW) for dewatering of the mine.<br />

A permit to take water (PTTW) from Webb Lake.<br />

Waste Generator Registration from the Ontario Ministry of Environment (MOE), for<br />

waste generated on site such as oils, solvents, etc.<br />

A Notice of Project Status (NOPS) must be submitted to change the current status of the<br />

mine from Temporary Suspension to Advanced Exploration or Mine Production status<br />

under Regulation 240/00. In addition, a Notice of Project must be submitted to the<br />

Ministry of Labour.<br />

A First Nation Consultation must be held with any First Nations potentially affected by the<br />

project. Such consultations would address a requirement in Ontario's mining regulations,<br />

as well as various requirements for other approvals. The project lies within the Finan and<br />

Jacobson townships. The Michipicoten and Missanabie Cree First Nations will have to be<br />

apprised and the consultation process initiated. The Métis Nation of Ontario should also<br />

be consulted.<br />

In 2010 AMEC Earth & Environmental conducted a hydro-geological study for <strong>Gold</strong>en<br />

Goose (McBride, T.I. and Duckworth, P., 2010).<br />

On 29 September 2011, <strong>Prodigy</strong> announced that it had signed an agreement with EBA, a<br />

Tetra Tech Company, to provide environmental baseline studies at Magino.<br />

. Final 2 November 2011 18 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

5 Accessibility, climate, local resources, infrastructure<br />

and physiography<br />

Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May<br />

2009) and updated.<br />

5.1 Accessibility<br />

The closed Magino mine is located in Finan Township, Ontario, Canada, approximately<br />

40 km northeast of Wawa. The Magino mine can be reached by travelling along a 14-km<br />

all-weather gravel road (Chemin Goudreau) that turns off Highway 519 just west of the<br />

town of Dubreuilville (Figure 5.1). Dubreuilville is on Highway 519, 30 km east of the<br />

junction of highways 17 and 519. This junction is about 40 km north of Wawa on Highway<br />

17. The Magino mine is also connected to the rail sidings of Lochalsh (14 km to the east,<br />

Canadian Pacific Railway) and Goudreau (7 km to the west, Algoma Central Railway) by<br />

means of a gravel road. A 44-kV power line extends from Goudreau to Lochalsh and<br />

currently services the Magino mine. Most of the former surface buildings have been<br />

dismantled, and only the electrical and carpenter shops remain in service. The<br />

underground workings have been flooded since the early 1990s and are sealed to prevent<br />

entry.<br />

5.2 Climate<br />

The mean annual temperature for the area is slightly above the freezing point at 1 °C. The<br />

average July temperature is 20 °C and the average January temperature is -15 °C.<br />

Average annual precipitation is 650 mm. Rainfall is highest in September, averaging<br />

90 mm. Snow typically falls from October to May, but the peak is from November to March<br />

when the monthly average reaches 30 mm (expressed in mm of water).<br />

5.3 Local resources<br />

The area is well serviced by mining and milling industries. The town of Dubreuilville,<br />

population 900, is the closest service community. The Island <strong>Gold</strong> mine (operated by<br />

Richmont) is 1.5 km east of the Magino mine, and the Eagle River mine (Wesdome <strong>Gold</strong><br />

Mines) is 80 km to the west. The Hemlo operations (Barrick <strong>Gold</strong> Corp) are located<br />

approximately 150 km to the northwest. General labour and experienced workers are<br />

readily available in Wawa, Sault Ste. Marie and Thunder Bay.<br />

5.4 Physiography<br />

The Magino mine is located in the geological Wawa Sub-province of the Canadian Shield.<br />

The topography of the area is characterized by low ridges and hills (up to 50 m of relief),<br />

flanked by generally flat areas of glacial outwash, swamps and numerous lakes and bogs.<br />

. Final 2 November 2011 19 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 5.1<br />

Topography and accessibility of the Magino property<br />

. Final 2 November 2011 20 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

6 History<br />

Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May<br />

2009) and updated with information from Turcotte et al (2010).<br />

6.1 Prior to 1940s<br />

The area around the towns of Goudreau and Lochalsh has been prospected for many<br />

years. The discovery of iron ore around the turn of the twentieth century in the<br />

Michipicoten area southwest of Wawa led to a search for similar deposits along the iron<br />

ranges further north. In places, the iron formations near Goudreau were found to contain<br />

pyrite in sufficient quantity to form the basis of a mining industry of considerable<br />

importance at one time. Between 1916 and 1919, about 250,000 tons of pyrite were<br />

produced, but a lack of markets for sulphuric acid at the close of World War I led to the<br />

abandonment of the mines and the dismantling of the acid plants that had been erected 2<br />

miles east of Goudreau.<br />

Meanwhile, gold was discovered in 1918 in the vicinity of Goudreau, and prospecting and<br />

mining have continued since then, being particularly active from the mid-1920s to the<br />

beginning of World War II. The available records show that gold production from the<br />

Goudreau area was somewhat sporadic.<br />

In the fall of 1917, D.J. McCarthy and W.J. Webb of Sault Ste. Marie staked the current<br />

patented claims for pyrite after Rand Consolidated and Nichols Chemical Company<br />

started their operations in the district. <strong>Gold</strong> was discovered on the property on what is<br />

now claim 2050. Between then and 1925, when McCarthy-Webb Goudreau Mines Limited<br />

was formed to take over and develop the claim group, two shallow shafts or pits had been<br />

sunk and some stripping and 1,100 feet (335.3 m) of surface diamond drilling had also<br />

been completed.<br />

Between 1925 and 1933, McCarthy-Webb Goudreau Mines excavated test pits and<br />

trenches on the property while trying to interest major companies. One such company<br />

was Consolidated Mining and Smelting Company, which drilled an unknown number of<br />

metres (“m”) in five (5) surface holes. McCarthy-Webb Goudreau Mines constructed and<br />

operated a small test mill with a daily capacity of 25 tons. In 1934, this mill processed 421<br />

tons of ore and extracted 144 ounces of gold for a recovered gold grade of 0.342 oz/t 1 .<br />

In 1935, Algoma Summit started underground development by sinking an inclined shaft at<br />

-33° on the Grey Vein to a vertical depth of 100 feet (30.5 m). During 1936, a 500-ton-perday<br />

mill was constructed, consisting of amalgamation and flotation sections. According to<br />

the existing records, underground development was minor.<br />

A report written in 1937 by consulting mining engineer, M.C.H. Little, states that extremely<br />

poor mining practices were in effect throughout the initial production stage, resulting in a<br />

significant amount of over-break in the stopes (dilution up to 100-200%), and the<br />

processing of substantial amounts of waste rock derived from development drifting and<br />

cross-cutting. Poor production planning also resulted in the initial mill feed coming from<br />

low-grade sections of the D-Zone where ground conditions were exceptionally poor as a<br />

result of the hanging wall felsite. Once the D-Zone open cut was abandoned, mill<br />

recoveries improved, though it only operated at 25% efficiency.<br />

1 Tons = short tons; oz/t = ounces per short ton; tonnes or t = metric tons<br />

. Final 2 November 2011 21 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Between April and August 1937, the mill processed 26,801 tons of ore from the open pit.<br />

The grade was 0.042 oz/t and 1,125 ounces of gold were extracted. <strong>Gold</strong> recovery in the<br />

mill was about 79%. At the end of August 1937, production from the open pit was<br />

abandoned and ore came only from underground stopes.<br />

Production continued through to 1938 when the inclined shaft was deepened to a vertical<br />

depth of 200 feet. Algoma Summit apparently developed and mined some stopes in the<br />

A-Zone and D-Zone, but mining conditions did not improve that year. Toward the end of<br />

1938, control of the property passed to a newly formed company called Magino <strong>Gold</strong><br />

Mines Ltd. The company quickly began a detailed underground exploration program<br />

consisting of diamond drilling, mapping, sampling and drifting in an effort to develop a<br />

proven ore reserve inventory. From 1934 to 1939, the company drilled twenty-three (23)<br />

underground diamond drillholes totalling 4,190 feet (1,277 m). From 1938 to 1940,<br />

Algoma Summit and Magino <strong>Gold</strong> Mines Ltd drifted 3,613 feet (1,101 m) and cross-cut<br />

945 feet (288 m) on the first level, and drifted 2,248 feet (685 m) and cross-cut 757 feet<br />

(230 m) on the second level. In 1939 and 1940, Magino <strong>Gold</strong> Mines Ltd drilled forty-two<br />

(42) underground diamond drillholes totalling 2,124 feet (647 m).<br />

Just before Magino <strong>Gold</strong> Mines acquired the property, the M. J. O’Brien interests, who<br />

operated the nearby Cline gold mine, drilled a series of holes east of the mill buildings and<br />

discovered a new gold zone referred to as the E-Zone. Monthly reports from 1940<br />

referred to these drillholes. By the late 1940s, Magino was unable to obtain the financing<br />

needed to continue ore development, and there was undoubtedly a growing shortage of<br />

men and supplies due to wartime rationing. As a consequence, the mine was closed and<br />

the mill sold in 1942. Between 1934 and 1939, 116,627 tons were milled with a grade<br />

recovery of 0.075 oz/t (8,776 ounces).<br />

6.2 1972 to 1996 McNellen Resources and Muscocho<br />

Explorations<br />

The Magino property lay dormant until 1972 when Mr. C. McNellen of Toronto carried out<br />

a privately financed six (6)-hole drilling program totalling 2,000 feet (610 m). The property<br />

remained idle until 1981 when Rico Copper (1966) Limited (later renamed McNellen<br />

Resources <strong>Inc</strong>.) conducted a diamond drilling program to evaluate the depth continuity of<br />

the A-Zone and B-Zone, and the lateral continuity of the E-Zone. A total of 6,915 feet<br />

(2 107 m) was drilled in sixteen (16) holes.<br />

McNellen Resources entered into a joint venture with Cavendish Investing Ltd on<br />

25 September, 1981. Under the terms of the agreement, Cavendish could earn an<br />

undivided 50% interest in the property by spending C$900,000 on the property. Work on<br />

the property started on 6 October, 1981. Surface facilities were installed and dewatering<br />

of the underground workings dewatered. Pumping started on 26 November, 1981 and<br />

was completed on 21 January, 1982.<br />

. Final 2 November 2011 22 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

S. L. MacDougall O.L.S. of Sault Ste. Marie conducted a surface survey in 1981. The<br />

surface drillholes from the 1981 summer drilling were tied into several surface triangulation<br />

points and the old mill foundation. A sun-shot was taken to determine true north. The<br />

underground workings were resurveyed and the survey carried to surface and tied into the<br />

surface survey. A channel sampling program was carried out on both levels. Channel<br />

samples were cut into the drift backs using a stoping machine and a power air hammer. A<br />

total of 1,723 individual samples were collected. Seventy-five (75) test holes, 20 feet long<br />

(6.1 m), were drilled into the drift walls. Sludge samples were assayed. Cuttings were<br />

collected every 2.5 feet (0.76 m) for a total of 600 samples. A total of 8,581 feet (2,615 m)<br />

of forty-two (42) AQ holes was completed underground. Old core was re-logged and<br />

re-sampled.<br />

During the fall of 1982, a total of 6,798 feet (2,072 m) of surface drilling was completed in<br />

thirty-eight (38) holes. Old drill core was re-logged and about 683 new samples were<br />

taken, revealing a number of “ore-grade” intersections. Magnetic, electromagnetic and<br />

geological surveys were also carried out on the Magino property.<br />

In 1983, James Wade Engineer Ltd was contracted by McNellen Resources <strong>Inc</strong>., to<br />

prepare a pre-feasibility study for the Magino Joint Venture <strong>Gold</strong> Project. James Wade<br />

Engineer Ltd calculated a mineral inventory estimate over a minimum of 4.0 feet (1.2 m)<br />

and at two “cut back” levels for high-grade assays. Table 6.1 presents the reported<br />

tonnages and grades.<br />

Table 6.1<br />

Historical tonnages and grades estimated for the Magino Joint Venture<br />

<strong>Gold</strong> Project of McNellen Resources 2<br />

Classification Short tons Grades cut to 2 oz Grades cut to 1 oz<br />

Proven 17,091 0.220 0.168<br />

Probable 151,876 0.214 0.176<br />

Possible 120,913 0.190 0.163<br />

Inferred 70,623 0.150 0.142<br />

Proven + Probable 168,967 0.215 0.175<br />

James Wade Engineer Ltd concluded that the 1983 mineral inventory was insufficient to<br />

support a viable independent mining and milling operation on the property given the gold<br />

prices of the early 1980s. The report also stated that reserves of three-quarters to one<br />

million tons would be required to support this scale of mining using a mill with a capacity of<br />

500 tons per day.<br />

2 Resources and / or reserves reported are historical. These historical “resources” and/or “reserves”<br />

should not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to<br />

CIM Definition Standards, and they have not been verified to determine their relevance or reliability. They<br />

are included in this section for illustrative purposes only and should not be disclosed out of context.<br />

. Final 2 November 2011 23 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

At the request of Prophet Resources Ltd and June Resources <strong>Inc</strong>., D. A. Bourne, a<br />

professional engineer and consulting geologist, carried out a re-assessment and<br />

evaluation of the Magino gold mine in 1984. The mineral inventory was evaluated at<br />

228,734 tons 2 grading 0.35 oz/t Au to a vertical depth of 400 feet (122 m) and over a<br />

minimum mining width of 4.0 feet (1.20 m). The “cut back” level for high-grade assays<br />

was 2 oz. Prior to a production decision and in order to progress to a proper feasibility<br />

study, Donald A. Bourne recommended a program of 18,000 feet (5,485 m) of surface<br />

diamond drilling. From 5 July to 19 September, 1984, McNellen Resources completed<br />

5,122 feet (1,561 m) of surface diamond drilling in twenty (25) holes on the Magino<br />

property without Prophet Resources Ltd or June Resources <strong>Inc</strong>.<br />

Muscocho Explorations Ltd acquired a 50% interest in the property from Cavendish<br />

Resources in the fall of 1985. From September to December, they carried out a surface<br />

drilling program west of the main mine workings. During this period, twenty-nine (29)<br />

diamond drillholes were completed on the Magino property for a total of 16,441 feet (5,011<br />

m). The objective of the program was to delineate the gold-bearing zones outlined by<br />

McNellen Resources in 1984.<br />

Surface drilling continued in 1986. During the period of June 1986 to December 1986,<br />

sixty-four (64) diamond drillholes (BQ diameter) were drilled on the Magino property for a<br />

total of 12,372 feet (3,771 m). Exploratory underground development started in June. A<br />

ramp was collared at 25+00 E, 5+50 S. From June to December 1986, 3,075 feet (937 m)<br />

of underground advances were completed, consisting of 1,900 feet (579 m) of ramp, 755<br />

feet (230 m) of crosscut (the crosscut was established on line 20+50 E), and 420 feet (128<br />

m) of drifting.<br />

Five (5) drift headings were driven on three potential ore zones, 200 feet (61 m) below<br />

surface. The haulage ramp was collared south of the granodiorite stock, and the<br />

dimensions were 10 feet (3 m) by 16 feet (4.9 m). The best drift results, based on face<br />

sampling, included 0.298 oz/t over an 8.0-foot horizontal width along a strike length of 120<br />

feet (35.50 m), and 0.25 oz/t over a 4.0-foot horizontal width along a strike length of 50<br />

feet (15 m). A total of 5,508 feet (1,679 m) of underground drilling in twelve (12) diamond<br />

drillholes (AQ diameter), completed from the ramp, helped delineate eight (8) potential ore<br />

zones (A through H) east of the crosscut between sections 2070E and 2450E. Estimated<br />

property-wide “inferred reserves”, as at the end of 1986, stood at 1,926,645 tons grading<br />

0.251 oz/t to the 500 foot level 3 . These reserves were derived from four laterally<br />

contiguous zones: Mine, North-east, West and West Extension (Bourne et al., 1987).<br />

Sample processing and assaying was conducted on-site from 1986 (Magino JV 1986 Year<br />

End report).<br />

Drillholes (with few exceptions) were sampled in their entirety. Samples were analysed for<br />

gold either by AA (“atomic absorption”) or FA (“fire assay”) methods, or by both methods if<br />

the primary AA value was greater than 800 ppb Au (0.8 g/t Au). On-site assaying was<br />

done on 20 g pulp by AA and where the value exceeded 800 ppb then the coarse reject<br />

fraction was re-assayed using a 1 assay-ton gravimetric FA. The reject was crushed to<br />

3/8 inch. Consequently obtaining a representative split of discrete particles of gold was<br />

not likely (Perkins, 1997).<br />

3 Resources and / or reserves reported are historical. These historical “resources” and/or “reserves”<br />

should not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to<br />

CIM Definition Standards, and they have not been verified to determine their relevance or reliability. They<br />

are included in this section for illustrative purposes only and should not be disclosed out of context.<br />

. Final 2 November 2011 24 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Mining and construction of a mill with a capacity of 400 tons per day started in 1987.<br />

Surface drilling continued early in 1987. From January 1987 to December 1987, ninetytwo<br />

(92) diamond drillholes (BQ diameter) were drilled on the Magino property for a total of<br />

54,359 feet (16,569 m). An additional 51,330 feet (15,645 m) were drilled underground<br />

from drifts in 187 diamond drillholes (AQ diameter). Underground development was also<br />

carried out.<br />

The first gold bar was poured in June of 1988 and production began in October of 1988.<br />

From February 1988 to December 1988, Muscocho and McNellen drilled 213 underground<br />

diamond drillholes totalling 57,434 feet (17,506 m). Between January 1988 and June<br />

1988, nine (9) surface holes were completed for a total of 19,545 feet (5,957 m).<br />

Underground development and mining work was also carried out.<br />

There was no surface drilling in 1989, although 53,493 feet (16,305 m) were drilled<br />

underground from drifts in 293 diamond drillholes. Underground development and mining<br />

work was also carried out. By the end of December 1989, the mine had processed<br />

202,764 tons of ore, which returned 29,350 ounces of gold for an average recovered<br />

grade of 0.145 oz/t. From 1988 to sometime in 1989, mining was mainly accomplished by<br />

shrinkage stoping, which produced an average grade of 0.20 oz/t Au. In 1989, mill<br />

throughput was increased to 640 tons per day and production was mainly from long-hole<br />

stopes at an average grade of 0.12 oz/t. The reduced mining cost for the long-hole stopes<br />

was offset by substantial dilution, with a resultant increase in the cost per ounce mined.<br />

In 1990, underground drilling amounted to 15,178 feet (4,626 m) in 166 holes, compared<br />

to only 1,081 feet (329 m) in 13 holes in 1991. There was no surface drilling in either year,<br />

although underground development and mining work continued.<br />

Neither underground nor surface drilling was carried out in 1992. The 650 ramp was<br />

driven down to a depth of 685 feet (back elevation), and work was started to open up the<br />

exploration/mining level. Almost 1,100 feet of exploration drifting and cross-cutting was<br />

carried out. Several rounds of the 650 exploration drift were mucked to the mill. The 680<br />

level was ready for further detailed exploration, which was considered necessary if it was<br />

to be established as the future source of mill feed. The mine closed in mid-1992 due to<br />

high operating costs, and the underground workings were allowed to flood. From 1988 to<br />

1992, the Magino mine processed 768,678 tons at a recovered grade of 0.137 oz/t Au to<br />

produce 105,543 ounces of gold.<br />

The total production from twenty-eight (28) shrinkage stopes was 177,486 tons with a<br />

grade of 0.217 oz/ton (38,572 ounces). The total production from thirty-four (34) long-hole<br />

stopes was 371,285 tons with a grade of 0.118 oz/ton (43,938 ounces). Three stopes<br />

were mined using a combination of long-hole and shrinkage methods, producing 53,766<br />

tons with a grade of 0.177 oz/ton (9,534 ounces). Essentially, the excess dilution within<br />

long-hole stopes seemed to be a major factor in the reduced grades from these stopes<br />

(Nielsen, 1995). The average long-hole stope had a width in excess of 10.0 feet (3 m).<br />

The lower operating costs of the long-hole mining method were not sufficient to offset the<br />

dilution factor (Nielsen, 1995).<br />

In February 1995, Muscocho Explorations Ltd requested that R. Bruce Graham and<br />

Associates Ltd carry out a technical review of the Magino mine property. Conclusions<br />

released by the author, F. W. Nielsen, included: (1) the mining methods resulted in<br />

excessive dilution on the relatively narrow, high-grade zones and veins; (2) the zones<br />

which were thought to join up, both along strike and up and down dip, were in fact<br />

discontinuous; (3) there are no proven reserves left in the underground mine workings;<br />

and (4) there remain numerous narrow, high-grade drill intersections, indicating that a<br />

similar mineralized environment occurs throughout the Webb Lake granodiorite, especially<br />

at depth.<br />

. Final 2 November 2011 25 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

6.2.1 Comments on drilling and core sampling<br />

Drill logs for the period do not always describe the core diameter. Where this information<br />

is recorded it is clear that surface drilling was generally BQ diameter and underground<br />

drilling was either BQ or AQ diameter (though several drillhole cores are recorded as EX).<br />

Surface and underground BQ core, when originally split, was with a mechanical splitter<br />

which would result in many broken fragments and poor sample representativity (Bloom,<br />

2009).<br />

Drill logs often indicate that underground core was either, sampled in its entirety, or split.<br />

It is likely that BQ core was either split or sampled entirely, and that AQ and EX core was<br />

sampled entirely.<br />

6.2.2 Comments on analytical laboratory<br />

There currently is no documentation to confirm the quality of sample processing and<br />

analytical determinations performed by the Magino mine assay laboratory during the<br />

period of mine operations (late 1980s to early 1990s).<br />

In 1997, it was considered that sample assaying procedure used at the mine was not<br />

standard industry practice and studies indicated that a rigorous check assay program was<br />

required (Perkins, 1997).<br />

Accordingly several studies have been undertaken in the <strong>Gold</strong>en Goose period to<br />

understand whether sample representativity and analytical bias is an issue for the deposit<br />

which is characterized by coarse gold mineralization. There is no comprehensive<br />

documentation to address this issue.<br />

6.3 1996 – 2010 <strong>Gold</strong>en Goose<br />

6.3.1 1996<br />

In 1996, <strong>Gold</strong>en Goose obtained the Magino mine property through an amalgamation of<br />

Muscocho Explorations Ltd, Flanagan McAdams Resources <strong>Inc</strong>. and McNellen Resources<br />

<strong>Inc</strong>. In that same year, BLM Bharti Engineering Ltd conducted a property review that<br />

evaluated the potential for both underground and open-pit mining (BLM Bharti Engineering<br />

Limited, 1996).<br />

6.3.2 1997<br />

In early 1997, a drill core re-sampling program was carried out to determine the reliability<br />

of previous drill assay results. A stripping program with structural mapping was completed<br />

on 17 July, 1997, to determine the orientation and continuity of gold bearing veins.<br />

Drilling<br />

In 1997, ten (10) diamond drillholes totalling 2,087.5 m were drilled from 1 April to 25 April<br />

by Chibougamau Diamond Drilling Ltd of Chibougamau, Québec (Nielsen, 1997). The<br />

holes were drilled to: (1) verify the potential of the mine area for hosting large-tonnage,<br />

low-grade gold mineralization amenable to open-pit mining; (2) determine the distribution<br />

of gold mineralization; (3) twin previous holes and determine the repeatability of assay<br />

results; and (4) establish a sampling protocol.<br />

. Final 2 November 2011 26 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

All holes were drilled from north to south (N180° Az) on baseline-cut grid lines turned off a<br />

surveyed base line that was established in late 1996. The locations of the holes were<br />

determined using the Magino mine grid. All recovered core was NQ diameter. After each<br />

hole was completed, a Van Ruth plug was inserted in the bedrock below the bottom of the<br />

casing, and the top of the hole cemented. The casing was left in all holes. All drill core<br />

from this program is stored in tagged core boxes at the mine site. Several important<br />

objectives were set for the April 1997 program, with positive results. Firstly, the program<br />

confirmed the nature of the Magino mine mineralization and demonstrated that low-grade<br />

mineralization (0.5 g/t Au or higher), amenable to open-pit mining, occurs throughout the<br />

previously mined areas. Secondly, the new drillholes were used to determine sampling<br />

and assaying protocols for any future work.<br />

Sampling and analytical quality assurance and quality control<br />

In 1997, 5% of the original pulps and 5% of the coarse rejects were checked by Swastika<br />

Laboratories Ltd of Swastika, Ontario. <strong>Gold</strong>en Goose did not insert any standards or<br />

blanks. Another total of 87 pulps were sent to another laboratory (ALS Chemex) for an<br />

independent check (Nielsen, 1997).<br />

Mineral processing and metallurgical testwork<br />

Samples from diamond drillholes and rock samples from the stripped areas were sent to<br />

Lakefield Research Laboratories for gravity, column leach, bottle roll and Bond Work Index<br />

testing to develop metallurgical mill process flow sheets (Perkins, 1999a).<br />

BLM Bharti Engineering Ltd (BLME) conducted a metallurgical research program as part<br />

of their 1997 Preliminary Feasibility Study on the Magino gold property. The main results<br />

and conclusions provided below were extracted from the report (BLM Bharti Engineering<br />

Limited, 1997):<br />

Based on excellent standard leaching results, a carbon-in-leach (CIL) process was<br />

chosen for the Magino ore.<br />

Drill core and surface bulk samples were tested at Lakefield Research Laboratories.<br />

The drill core samples were higher grade material representing the main ore types to<br />

be processed. <strong>Gold</strong> recoveries for future operations were determined using a blended<br />

mill feed of drill core and surface sample ore.<br />

Bottle roll tests show that the material has an excellent dissolution rate of 97.8% in<br />

cyanide solution at a grind of 84% at minus 200 mesh. The cyanide and lime<br />

additions were found to be low relative to the majority of gold leaching applications.<br />

An overall dissolution of 96.4% can be expected, even when including a 25% blend of<br />

surface ore at 92% extraction. Consequently, an overall gold recovery of 95% should<br />

be attainable.<br />

Column leaching tests indicated that heap leaching is not economical. Recoveries<br />

were very low even after 35 to 42 days of leaching.<br />

Gravity separation did not lead to high grades in the concentrate, the highest test<br />

result being 1.64%. A higher grade is generally desired to minimize direct smelting<br />

costs.<br />

. Final 2 November 2011 27 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Geochemistry and geophysical surveys<br />

A baseline study was completed to evaluate the usefulness of geochemical sampling in<br />

future surface exploration. Quantec Consulting <strong>Inc</strong>. carried out an induced polarizationresistivity<br />

survey over the Webb Lake granodiorite on a local cut-and-picketed survey grid<br />

(non-UTM reference). The line separation was 400 feet and the station interval 100 feet.<br />

In all, 15.4 miles (24.8 km) were surveyed. The gradient and dipole-dipole IP-resistivity<br />

results for the Magino property identified potential chargeability and resistivity signatures<br />

relating to subsurface geology, including possible lithological discriminations, concordant<br />

and discordant fault-fracture structures, geochemical alteration, and weak concentrations<br />

of disseminated mineralization potentially associated with auriferous quartz- and<br />

carbonate-altered faults, fractures or shear zones.<br />

Sample and assay database<br />

A digital database that included imported archived diamond drillhole information was<br />

compiled for the property, and digital solids were created for the purposes of computer<br />

based modelling. The underground workings, including both long-hole and shrinkage<br />

stopes, were modelled using Gemcom software. A block model was created for resource<br />

evaluation purposes.<br />

Economic analysis<br />

A scoping study was performed to determine the economic viability of the project using the<br />

block model data and estimated costs for commissioning and operating an open-pit mine<br />

with a mill throughput of 7,500 tons per day (Pearson, Hofman and Associates Ltd., 1997).<br />

The scoping study indicated that at a gold price of US$350 per ounce and a cut-off grade<br />

of 0.025 oz/t Au, the property had combined proven and probable reserves of 20.5 million<br />

short tons at an overall average grade of 0.050 oz/t Au (18.6 Mt @ 1.7 g/t Au) 4 .<br />

Discounted cash flow indicators from that study showed a pre-tax internal rate of return of<br />

11.3% and a net present value of C$32M at a 5% discount rate. The decline in the gold<br />

price to the US$265-275 level in the late 1990s obviously nullified these economic<br />

analyses.<br />

6.3.3 1998-1999<br />

Mineral processing and metallurgical testwork<br />

In August 1998, two bulk samples representing two rock types; mafic volcanics and<br />

granodiorite, were amassed from the 1997 diamond drill core and sent to Kappes<br />

Cassiday and Associates for further metallurgical column leach testing. The average head<br />

grade was 0.88 g/t Au for the mafic volcanics and 0.96 g/t Au for the granodiorite (Kappes<br />

Cassiday and Associates, 1999). Column testing indicated an expected field recovery of<br />

45% Au for the mafic volcanics and 51% for the granodiorite ore when crushed to minus<br />

9.5 mm. <strong>Gold</strong> recovery increased from 80 to 84% with crushing to minus 1.70 mm.<br />

4 Resources and/or reserves reported are historical. These historical “resources” and/or “reserves” should<br />

not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to CIM<br />

Definition Standards, and they have not been verified to determine their relevance or reliability. They are<br />

included in this section for illustrative purposes only and should not be disclosed out of context.<br />

. Final 2 November 2011 28 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

6.3.4 2000<br />

Additional sampling<br />

In May of 2000, F. W. Nielsen of <strong>Gold</strong>en Goose asked Reddick Consulting <strong>Inc</strong>. to carry out<br />

a program that would assist their re-evaluation of the Magino mine property. There were<br />

two separate components to the work. The first was a review of the digital diamond<br />

drillhole database to determine where un-sampled and/or missing core occurred in the<br />

central part of deposit. This was followed by retrieving the archived core for those<br />

intervals and having them assayed to determine background gold levels for un-sampled<br />

lengths of core.<br />

Drilling<br />

The second component involved the drilling of nineteen (19) large diameter diamond<br />

drillholes (HQ diameter) in the central part of the deposit to: a) assist with grade<br />

determination in areas subject to underground mining; b) provide new baseline data to aid<br />

with grade reconciliation; and c) determine if there was variability in assay data as a<br />

function of sample size.<br />

Dominik Drilling of Timmins, Ontario, was awarded the drill contract in 2000. Drilling ran<br />

from 30 September to 18 October (Reddick, 2001a). A total of 1,231 m was drilled,<br />

producing 1,196 m of recovered core. The core was logged and sampled on the site. Drill<br />

collars were located by clearing out and re-chaining the parts of the grid lines that had<br />

been turned off the surveyed baseline established by <strong>Gold</strong>en Goose in 1996. All drill<br />

cores from this program core is stored in tagged core boxes at the mine site. The 2000<br />

drill program was designed to test the central part of the property to help reconcile grade<br />

estimates in the main mine area where stoping has removed some of the mineralization.<br />

There were two main considerations in designing the 2000 drill program. Firstly, in order<br />

to provide an even spatial distribution of samples, the holes were laid out in the most<br />

regular pattern possible. Secondly, only large diameter holes (HQ) were drilled and only<br />

one quarter of the core was archived to obtain the most representative samples possible.<br />

Sampling and analytical quality assurance – quality control (QA/QC)<br />

In 2000, <strong>Gold</strong>en Goose randomly inserted diabase samples in the shipped samples as<br />

blanks. In addition, Swastika Laboratories reported on their internal blanks, which they<br />

use for their own QA/QC purposes. To determine the variation introduced by<br />

sub-sampling, every 25th sample had a check assay done on the original pulp and a<br />

second pulp was split from the coarse reject fraction for a third assay. Swastika also<br />

performed many additional random checks. <strong>Gold</strong>en Goose did not insert any standards.<br />

None of the samples assayed by Swastika Laboratory were sent for independent<br />

verification at another laboratory (Reddick, 2001b).<br />

A total of 1,231 m was drilled. The results of the 2000 drilling program, as well as the<br />

re-sampling program, helped to establish a mean grade of 0.015 oz/t Au for un-sampled<br />

core from the central 1,000 feet (305 m) of the deposit. It also provided information on the<br />

existence of a significant percentage of granodiorite in the main part of the deposit at a<br />

grade considered sufficient for a low-grade, large-tonnage mining operation (0.06-0.10<br />

oz/t).<br />

. Final 2 November 2011 29 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

6.3.5 2001<br />

In 2001, Reddick Consulting <strong>Inc</strong>. re-evaluated the variography and interpolation<br />

techniques to produce a revised resource estimate based on the inclusion of data<br />

obtained in 2000. Taking into account past production, the total measured resource 5 when<br />

applying a cut-off grade of 0.05 oz/t was estimated at approximately 5.8 Mt at a grade of<br />

0.09 oz/t Au. These resources were estimated for an open-pit operation.<br />

6.3.6 2002<br />

Drilling<br />

In 2002, <strong>Gold</strong>en Goose conducted a seventeen (17)-hole diamond drilling program<br />

(2,743 m) under the supervision of Reddick Consulting <strong>Inc</strong>. The holes were mostly drilled<br />

west of the mine area and did not identify significant mineralization.<br />

Dominik Drilling of Timmins, Ontario, was awarded the drill contract in 2002. Drilling ran<br />

from 12 May to 12 June, 2002 (Reddick, 2002). A total of 2,743 m was drilled with 2,508<br />

m of core recovered. Drill collars were located on the grid established by <strong>Gold</strong>en Goose in<br />

1996–1997. The core was logged and sampled on the site. All drill cores from this<br />

program are stored in tagged core boxes at the mine site. The 2002 drill program tested<br />

targets along the gold trend in the mine area; these targets were in the vicinity of<br />

anomalous results obtained during earlier drilling of the Lovell Lake and North Plug<br />

granodiorite intrusions, and the previously undrilled Southern granodiorite. The best<br />

mineralization from the 2002 drilling program was in diamond drillholes near the mine<br />

area.<br />

Sampling and analytical quality assurance – quality control<br />

In 2002, <strong>Gold</strong>en Goose inserted seventeen (17) diabase samples in the shipped samples<br />

as blanks. As in 2000, Swastika Laboratories reported their internal blanks. Check<br />

assays were performed on random pulps, as were checks of a second pulp split from the<br />

coarse reject fraction. None of the assayed samples were sent for independent<br />

verification at another laboratory (Reddick, 2002).<br />

6.3.7 2004<br />

Resource estimate<br />

An NI43-101 <strong>Technic</strong>al Report by Snowden Mining Industry Consultants and Reddick<br />

Consulting <strong>Inc</strong>. in 2004 reviewed the 2001 block model resource estimate to determine its<br />

suitability for use in scoping studies involving pit optimization (Burns and Reddick, 2004).<br />

Reddick Consulting <strong>Inc</strong>. concluded that for a potential open pit mine based on a cut-off<br />

grade of 0.04 oz/t, the 2004 combined Measured and Indicated Mineral Resource at the<br />

Magino mine was 7.295 Mt grading 0.075 oz/t Au after subtracting historical production.<br />

5 Resources and/or reserves reported are historical. These historical “resources” and/or “reserves” should<br />

not be relied upon because it is unlikely they conform to current Regulation 43-101 criteria or to CIM<br />

Definition Standards, and they have not been verified to determine their relevance or reliability. They are<br />

included in this section for illustrative purposes only and should not be disclosed out of context.<br />

. Final 2 November 2011 30 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

6.3.8 2006<br />

Drilling<br />

In 2006, eighteen (18) NQ diamond drillholes were completed for a total of 8,055 m. The<br />

holes identified a very robust system of gold mineralization with numerous intersections<br />

greater than 100 g/t Au, and clearly demonstrated the down-dip continuity of the<br />

mineralization, which remained open at depth and along strike. The deepest intersection<br />

of the diamond drill program was 440 m below surface (Hole 06-12), and mineralization<br />

was still open.<br />

The 2006 drill contract was awarded to Bradley Brothers Drilling of Rouyn-Noranda,<br />

Québec. Drilling ran from 9 February to 11 April, producing eleven (11) NQ diamond<br />

drillholes totalling 4,802 m. Another four (4) holes totalling 1,866 m were drilled from 9<br />

June to 1 July.<br />

Three (3) other holes totalling 1,387 m were drilled from 23 November to 12 December.<br />

The core was logged and sampled at the mine site. All drill core from this program is<br />

stored in tagged core boxes at the mine site. The 2006 drilling program was designed to<br />

target mineralization below historical workings from a depth of 130 to 400 m below surface<br />

and within the range of a future extended decline access.<br />

Sampling and analytical quality assurance – quality control<br />

In 2006, the <strong>Gold</strong>en Goose QA/QC program consisted of 189 un-mineralized mafic<br />

volcanic samples inserted as blanks to check for cross-contamination. In addition,<br />

177 core duplicates were assayed at ALS Chemex in Thunder Bay to monitor sample<br />

variability. <strong>Gold</strong>en Goose did not insert any standards. A selection of 115 master pulps<br />

were sent to a secondary laboratory (Swastika) for check assays (Waldie, 2006). For the<br />

assay range from 0 to 100 g/t Au, the correlation coefficient was 0.983.<br />

From 1997 to 2006, <strong>Gold</strong>en Goose did not detect any significant variation between<br />

subsamples.<br />

Analytical laboratory<br />

In 2006 core samples were sent to the ALS Chemex laboratory at Thunder Bay, Ontario.<br />

The sample preparation process was as follows:<br />

Sample login<br />

Received sample weighing<br />

Crush with 90% passing 2 mm<br />

Crushing – quality control test<br />

Split sample with riffle splitter<br />

Pulverise 1000 g to 85% passing 75 micron<br />

Pulverising – quality control test<br />

<strong>Gold</strong> analysis conformed to Code Au-AA24 with a 50 g charge for fire assay followed by<br />

AA finish. “Ore” grade results were re-assayed according to Code Au-AA26.<br />

. Final 2 November 2011 31 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

6.3.9 2007<br />

Drilling<br />

<strong>Gold</strong>en Goose drilled fourteen (14) NQ diamond drillholes on the Magino property for a<br />

total of 9,239 m. The drilling program was originally designed to outline and extend<br />

multiple known gold zones from 150 to 400 m below surface, below the historical Magino<br />

mine workings.<br />

Bradley Brothers Drilling of Rouyn-Noranda, Québec was awarded the drill contract in<br />

2007. Drilling ran from 6 January to 17 December. Fourteen (14) NQ diamond drillholes<br />

were completed totalling 9,836 m. The core was logged and sampled at the mine site. All<br />

drill core from this program is stored in tagged core boxes at the mine site. The fourteen<br />

(14) diamond drillholes identified a gold system with numerous intersections and clearly<br />

demonstrated the continuity of the mineralization, which remains open at depth and along<br />

strike.<br />

Sampling and Analytical Quality Assurance – Quality Control<br />

In 2007, samples were assayed at Accurassay Laboratories in Thunder Bay, Ontario.<br />

<strong>Gold</strong>en Goose did not establish a QA/QC protocol for samples from the 2007 drilling<br />

program, nor did the company double-check the results using a second laboratory.<br />

Independent consultants InnovExplo asked <strong>Gold</strong>en Goose to send assayed samples for<br />

independent verification at ALS Chemex in Thunder Bay, Ontario. In all, 363 pulps from<br />

the 2007 program were sent, and InnovExplo’s analysis of the results from this second<br />

laboratory revealed no bias in the original data obtained from Accurassay.<br />

6.3.10 2008<br />

Resource estimate<br />

In 2008, InnovExplo completed a Mineral Resource Estimate for the Magino gold mine<br />

below the old mine workings (i.e., below the 650 level) that was published as a <strong>Technic</strong>al<br />

Report in compliance with NI 43-101 and Form 43-101F1 (Turcotte and Pelletier, 2008).<br />

Specifically, InnovExplo’s mandate was to prepare a Resource Estimate from a depth of<br />

200 to 600 m. The resulting resources could only be classified as Inferred as per CIM<br />

standards and guidelines for reporting mineral resources and reserves. The total<br />

estimated Inferred Resources were 3,755,600 tonnes grading 5.94 g/t Au for a total of<br />

717,227 ounces of gold (cut-off at 3 g/t Au). The highlight of this Resource Estimate was<br />

the addition of a large portion of Inferred Resources below the old workings of the Magino<br />

mine (i.e., below the 650 level). This upgrade was possible due to the results from the<br />

2006-2007 diamond drilling program, the most recent drill program at that time. This<br />

additional information increased the number of mineralized zones.<br />

Exploration potential<br />

InnovExplo also performed an exhaustive compilation of the entire Magino property to<br />

identify new regional exploration targets for diamond drilling and stripping. It was<br />

concluded that there is potential for gold mineralization in granodiorite, gabbro/diorite and<br />

volcanic rocks throughout the Magino property. InnovExplo constructed a geological<br />

compilation map showing all historical exploration work on the Magino property. The<br />

compilation work encompassed all previous geological mapping, trenching, diamond<br />

drilling, surface sampling, geophysical surveying, geochemical surveying, etc., and all<br />

historical mineral occurrences<br />

. Final 2 November 2011 32 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Surface sampling<br />

In July 2008, <strong>Gold</strong>en Goose carried out stripping and channel sampling in the vicinity of<br />

the southern contact of the Webb Lake granodiorite stock and adjacent volcanic rocks<br />

(<strong>Gold</strong>en Goose news release dated 28 October, 2008). The stripped area lays over the<br />

old mine workings and consists of seven (7) small strippings totalling 2,790 square m.<br />

The purpose of the work was to enhance the understanding of structural controls on gold<br />

deposition. A total of seventy-eight (78) channel samples were collected from the stripped<br />

areas. The best results for the stripping and channel sampling program were: 19.85 g/t Au<br />

over 0.5 metre, and 17.59 g/t Au over 1.0 metre.<br />

6.3.11 2009<br />

Geochemistry and geophysical surveys<br />

In 2009, Gestion Aline Leclerc <strong>Inc</strong>. of Val-d’Or, Québec, performed a geochemical field<br />

survey from 18 to 21 September, 2009. A total of 661 humus samples were collected and<br />

assayed for gold and 48 other elements. Two grids were established with lines spaced<br />

100 m apart. Grid locations were established with a hand-held GPS. One (1) sample was<br />

collected every 25 m. That same Autumn, D/C Géophysique of Val d’Or, Québec, carried<br />

out a ground magnetic survey from 26 September to 10 October, 2009. A total of 75 km<br />

was surveyed on a grid of 42 lines spaced 50 m apart.<br />

Resource estimate<br />

InnovExplo reported that the Magino mine has Measured and Indicated Resources of<br />

2,091,900 metric tonnes grading 6.74 g/t Au for a total of 453,189 ounces. Total Inferred<br />

Resources were reported as 5,828,800 metric tonnes grading 6.29 g/t Au for a total of<br />

1,178,124 ounces at a cut-off grade of 3.0 g/t Au, as published in a <strong>Technic</strong>al Report in<br />

compliance with NI 43-101 and Form 43-101F1 (Turcotte and Pelletier, 2009).<br />

6.3.12 2010<br />

Drilling<br />

From 15 November, 2009 to 1 March, 2010, <strong>Gold</strong>en Goose conducted a fourteen (14)-<br />

hole diamond drilling program totalling 4,012 m. Most of the holes were drilled in volcanic<br />

rocks south of the mine area and succeeded in identifying some significant gold<br />

mineralization.<br />

Bradley Brothers Drilling of Rouyn-Noranda, Québec was awarded the drill contract in<br />

2009-2010. Drilling ran from 15 November, 2009 to 30 March, 2010. Fourteen (14) NQ<br />

diamond drillholes were completed totalling 4,012 m. The core was logged and sampled<br />

at the mine site.<br />

All drill core from this program is stored in tagged core boxes at the mine site. The overall<br />

objective of the 2009-2010 drilling program was to discover new mineralized zones in<br />

volcanic rocks on the Magino property, south of the mine area. The fourteen (14) diamond<br />

drillholes identified some gold intersections and clearly demonstrated the possibility of<br />

increasing the gold resources in the volcanic rocks south of the mine area, which remain<br />

open at depth and along strike.<br />

. Final 2 November 2011 33 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Sampling and Analytical Quality Assurance – Quality Control<br />

A QA/QC control program was active during the <strong>Gold</strong>en Goose 2009-2010 diamond<br />

drilling program on the Magino property. The objectives of the QA/QC program were to<br />

monitor and document the quality and integrity of the sampling procedure, sample<br />

preparation, and assaying. Using a series of quality control samples, <strong>Gold</strong>en Goose’s<br />

protocol stipulates that the entire sampling, sample preparation and assaying process be<br />

monitored and evaluated for:<br />

The integrity of field sampling and sample shipment by monitoring field blank results<br />

and sample shipment procedures;<br />

Possible contamination during sample preparation or the assaying process by<br />

monitoring the results of field blank standards submitted as regular samples, and by<br />

monitoring laboratory analytical blank standard results;<br />

The suitability of crushing/splitting/pulverization sizes by measuring the precision of<br />

coarse and pulp duplicate samples; and<br />

The level of assaying accuracy by using external and internal (laboratory) certified<br />

reference standards and by assaying blind certified reference standards in each batch<br />

of samples.<br />

The laboratory inserted one (1) coarse crush duplicate sample split, selected at random,<br />

into each 10-sample sub-batch. Three (3) certified reference standards (CRMs) with<br />

different grades, all from Rocklabs in New Zealand, were used for QA/QC. One (1) field<br />

blank standard was prepared using “barren” rock from the project site, or other potentially<br />

“barren” material. One (1) of the three CRMs, or one (1) blank, was included in each<br />

batch of fifty (50) samples shipped by the <strong>Gold</strong>en Goose geologist.<br />

6.3.13 Summary<br />

The exploration and mining history of Magino is summarized in Table 6.1.<br />

. Final 2 November 2011 34 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong> Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Table 6.1 Historical summary<br />

Year Company Work description Results References<br />

1917 to 1924<br />

1925 to 1932<br />

1933 to 1934<br />

McCarthy-Webb Goudreau<br />

Mines Ltd<br />

McCarthy-Webb Goudreau<br />

Mines Ltd<br />

Consolidated Mining and<br />

Smelting Company<br />

1935 to 1937 Algoma Summit <strong>Gold</strong> Mines<br />

1938 to 1939 Algoma Summit <strong>Gold</strong> Mines<br />

Development of claim group<br />

Sinking of two shallow shafts or pits<br />

335 m of surface diamond drilling<br />

Test pits and trenching<br />

5 surface diamond drillholes (DDH)<br />

Diamond drilling<br />

Construction of mill<br />

<strong>Inc</strong>lined shaft sunk at 33 degrees<br />

Sublevel at 100 ft (30.5 m); 1st level at 176 ft (53.6 m);<br />

2nd level at 374 ft (114 m)<br />

Underground diamond drilling<br />

<strong>Inc</strong>lined shaft sunk to 2nd level at 374 ft (114 m)<br />

Underground diamond drilling<br />

Drifting<br />

1939 to 1942 Magino <strong>Gold</strong> Mines Detailed underground exploration program<br />

Mine closed<br />

Discovery of gold Bourne et al., 1983<br />

421 tons of ore milled<br />

144 oz of gold extracted<br />

47,785 tons of ore milled<br />

2,274 oz of gold extracted<br />

68,421 tons of ore milled<br />

6,049 oz of gold extracted<br />

Discovery of a new gold zone<br />

309 oz of gold from clean-up of mill<br />

Bourne et al., 1983<br />

Bourne et al., 1983<br />

Bourne et al., 1983<br />

Bourne et al., 1983<br />

Bourne et al., 1983<br />

1972 Mr. C. McNellen Surface diamond drilling: 6 DDH (AS-72-01 to AS-72-<br />

06) totalling 2,000 ft (610 m)<br />

Many new “ore-grade” intersections Bourne et al., 1983<br />

1981 Rico Copper (1966) Ltd Surface diamond drilling: 16 DDH (S-81-1 to S-81-16)<br />

totalling 6,915 ft (2,107 m)<br />

1981 to 1982<br />

1982<br />

McNellen Resources <strong>Inc</strong>.<br />

Cavendish Investing Ltd<br />

McNellen Resources <strong>Inc</strong>.<br />

Cavendish Resources Ltd<br />

Surfaces facilities installed<br />

Underground workings dewatered and resurveyed<br />

Channel sampling<br />

Test hole drilling<br />

75 test holes totalling 1,500 ft (457 m)<br />

Surface diamond drilling: 38 DDH (SS-1 to SS-37A)<br />

totalling 6,798 ft (2,072 m)<br />

Underground drilling: 42 DDH (U1-1 to U1-11;<br />

U2-1 to U2-31) totalling 8,581 ft (2,615 m)<br />

Magnetic and electromagnetic surveys<br />

Geological survey<br />

Many new “ore-grade” intersections Bourne et al., 1983<br />

Many new “ore-grade” intersections Bourne et al., 1983<br />

No electromagnetic conductors<br />

Magnetic anomalies<br />

Mongeau, 1982<br />

Parbery and<br />

Mongeau, 1982<br />

. Final 2 November 2011 35 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong> Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Year Company Work description Results References<br />

1983<br />

McNellen Resources <strong>Inc</strong>.<br />

Cavendish Resources Ltd<br />

Pre-feasibility study<br />

Mineral inventory estimation<br />

Project not viable Bourne et al., 1983<br />

1984<br />

McNellen Resources <strong>Inc</strong>.<br />

Cavendish Resources Ltd<br />

Prophet Resources Ltd June<br />

Resources <strong>Inc</strong>.<br />

Pre-feasibility study<br />

Mineral inventory estimation<br />

Surface diamond drilling: 25 DDH (JJ-1 to JJ-24)<br />

totalling 5,122 ft (1,561 m)<br />

New gold-bearing zones found<br />

Bourne, 1984<br />

Sutherland, 1987<br />

1985<br />

McNellen Resources <strong>Inc</strong>.<br />

Muscocho Explorations Ltd<br />

1986 McNellen Resources <strong>Inc</strong>.<br />

Muscocho Explorations Ltd<br />

1987 McNellen Resources <strong>Inc</strong>.<br />

Muscocho Explorations Ltd<br />

1988<br />

McNellen Resources <strong>Inc</strong>.<br />

Muscocho Explorations Ltd<br />

Surface diamond drilling<br />

29 DDH (MAG-85-01 to MAG-85-29) totalling 16,441 ft<br />

(5,011 m)<br />

Surface diamond drilling: 64 DDH (S-86-01to S-86-55;<br />

S-86-57 to S-86-65) totalling 12,372 ft (3,771 m)<br />

Underground diamond drilling: 12 DDH (U-86-01 to U-<br />

86-12) totalling 5,508 ft (1,679 m)<br />

Ramp collared<br />

Underground development<br />

Surface diamond drilling: 92 DDH (S-87-001 to S-87-<br />

079; S-87-201 to S-87-211) totalling 54,359 ft (16,369<br />

m)<br />

Underground diamond drilling: 187 DDH (U- 87-001 to<br />

U-87-118; U-87-120 to U-87-186) totalling 51,330 ft<br />

(15,645 m)<br />

Underground development<br />

Surface diamond drilling<br />

9 DDH (S-88-001 to S-88-009) totalling 54,359 ft<br />

(16,369 m)<br />

Underground diamond drilling: 213 DDH (U-88-001 to<br />

U-88-064; U-88-072 to U-88-151; U-88-155 to U-88-<br />

166; U-88-171 to U-88-207; U-88-219 to U-88-232; U-<br />

88-240 to U-88-245) totalling 57,434 ft (17,506 m)<br />

Underground development and mining work<br />

Four (4) mineralized zones outlined Sutherland, 1987<br />

Best drift results: 0.298 oz/t over 8.0 ft<br />

horizontal width along strike length of<br />

120 ft (35.50 m)<br />

DDH S-86-014 intersected 0.624 oz/t<br />

over 13.0 ft (21.38 g/t Au over 3.96 m)<br />

DDH S-87-045 intersected 0.708 oz/t<br />

over 14.2 ft (24.29 g/t Au over 4.33 m)<br />

DDH S-88-001 intersected 0.371 oz/t<br />

over 31.0 ft (12.73 g/t Au over 9.45 m)<br />

Muscocho<br />

Explorations Ltd,<br />

1987<br />

Sutherland, 1987<br />

DDH Logs<br />

DDH logs<br />

DDH logs<br />

. Final 2 November 2011 36 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong> Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Year Company Work description Results References<br />

1989<br />

1990<br />

1991<br />

1992<br />

1988 to 1992<br />

McNellen Resources <strong>Inc</strong>.<br />

Muscocho Explorations Ltd<br />

McNellen Resources <strong>Inc</strong>.<br />

Muscocho Explorations Ltd<br />

McNellen Resources <strong>Inc</strong>.<br />

Muscocho Explorations Ltd<br />

McNellen Resources <strong>Inc</strong>.<br />

Muscocho Explorations Ltd<br />

McNellen Resources <strong>Inc</strong>.<br />

Muscocho Explorations Ltd<br />

Underground diamond drilling: 293 DDH (U-89-001 to<br />

U-89-090; U-89-092 to U-89-116; U-89-118 to U-89-<br />

142; U-89-147 to U-89-64; U-89-168 to U-89-169; U-<br />

89-171; U-89-173 to U-89-176; U-89-179 to U-89-188;<br />

U-89-190 to U-89-192; U-89-194 to U-89-196; U-89-<br />

198 to U-89-200; U-89-204 to U-89-237; U-89-238 to<br />

U-89-248; U-89-251 to U-89-315) totalling 53,493 ft<br />

(16,305 m)<br />

Underground development and mining work<br />

Underground diamond drilling: 166 DDH (U-90-001 to<br />

U-90-015; U-90-017 to U-90-019; U-90-021 to U-90-<br />

023; U-90-025 to U-90-092; U-90-101 to U-90-127; U-<br />

90-129 to U-90-178) totalling 15,178 ft (4,626 m)<br />

Underground development and mining work<br />

Underground diamond drilling: 13 DDH (U-91-001 to<br />

U-91-013) totalling 1,081 ft (329 m)<br />

Underground development and mining work<br />

No underground and surface diamond drilling<br />

Underground development and mining work<br />

The 650 ramp was driven to a depth of 685 ft<br />

Mining production<br />

DDH U-89-043 intersected 0.257 oz/t<br />

over 6.0 ft (8.81 g/t Au over 1.83 m)<br />

DDH U-89-061 intersected 0.244 oz/t<br />

over 9.4 ft (8.37 g/t Au over 2.87 m)<br />

DDH U-89-159 intersected 2.283 oz/t<br />

over 3.4 ft (78.27 g/t Au over 1.02 m)<br />

DDH U-89-163 intersected 0.30 oz/t<br />

over 24.8 ft (10.29 g/t Au over 7.56 m)<br />

DDH U-90-080 intersected 0.21 oz/t<br />

over 10.3 ft (7.21 g/t Au over 3.14 m)<br />

DDH U-91-008 intersected 0.243 oz/t<br />

over 9.70 ft (8.32 g/t Au over 2.96 m)<br />

768,678t processed production of<br />

105,543 oz of gold<br />

28 shrinkage stopes totalling 177,486 t<br />

with a grade of 0.217 oz/t (38,572 oz)<br />

34 long-hole stopes totalling 371,285 t<br />

with a grade of 0.118 oz/t (43,938 oz)<br />

3 combined long-hole and shrinkage<br />

stopes totalling 53,766 t with a grade<br />

of 0.177 oz/t (9,534 oz)<br />

DDH logs<br />

DDH logs<br />

DDH logs<br />

Muschocho<br />

Explorations, 1992<br />

McBride, 1991<br />

Nielsen, 1995<br />

Perkins, 1999<br />

1995<br />

McNellen Resources <strong>Inc</strong>.<br />

Muscocho Explorations Ltd<br />

1996 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

<strong>Technic</strong>al review of the Magino mine property Nielsen, 1995<br />

Acquisition of Magino mine<br />

Evaluation of potential for both underground and openpit<br />

mining<br />

BLME 1996<br />

Reddick 1996a<br />

Reddick 1996b<br />

. Final 2 November 2011 37 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong> Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Year Company Work description Results References<br />

1997 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

1998 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Two bulk samples<br />

2000 to 2001 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

Check sampling program<br />

Geochemical study for surface exploration<br />

IP survey of Webb Lake granodiorite<br />

Surface diamond drilling<br />

10 DDH (S-97-01 to S-97-10) totalling 2,087 m<br />

Stripping, mapping and channel sampling<br />

Structural study<br />

Creation of a digital database in Gemcom software<br />

Creation of a block model for resource evaluation<br />

Scoping study<br />

Surface diamond drilling<br />

19 DDH (00-01 to 00-18) totalling 1,231 m<br />

Revised resource estimate<br />

2002<br />

Surface diamond drilling<br />

<strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

17 DDH (00-02 to 02-17) totalling 2,743 m<br />

2004 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Review of mineral resources<br />

DDH S-97-05 intersected 18.57 g/t Au<br />

over 7.00 m<br />

Measured Resources: 5.8 Mt grading<br />

0.09 oz/t Au<br />

DDH 00-02 intersected 9.54 g/t Au<br />

over 3.65 m<br />

DDH 02-02 intersected 12.89 g/t Au<br />

over 0.67 m<br />

Measured and Indicated Resources:<br />

7.295 Mt grading 0.075 oz/t Au<br />

Nielsen, 1997<br />

Perkins, 1997<br />

PHA, 1997<br />

Hall et al., 1997<br />

Wilson, 1997<br />

BLME, 1997<br />

Analytical Solutions<br />

Ltd, 1997<br />

Reddick, 1999<br />

Perkins, 1999<br />

Reddick, 2000<br />

Reddick, 1999<br />

Perkins, 1999<br />

Reddick, 2001a<br />

Reddick, 2001b<br />

Reddick, 2002<br />

Burns and Reddick,<br />

2004<br />

2006 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

2007 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

2008 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

2009 to 2010 <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

Surface diamond drilling<br />

18 DDH (06-01 to 06-15; 2006-16 to 2006-17) totalling<br />

8,055 m<br />

Surface diamond drilling<br />

14 DDH (2007-17 to 2007-30) totalling 9,239 m<br />

<strong>Technic</strong>al Report and Mineral Resource Estimate<br />

Stripping and channel sampling<br />

Compilation of the entire Magino property<br />

Geochemical field survey (humus)<br />

Ground magnetic survey (75 km)<br />

14 DDH (2009-01 to 2009-08; 2010-01 to 2010-06)<br />

totalling 4,012 m<br />

DDH 06-14 intersected 7.29 g/t Au<br />

over 5.4 m<br />

DDH 2007-30 intersected 7.94 g/t Au<br />

over 2.9 m<br />

Inferred Resources: 3,775 Mt grading<br />

5.94 g/t (717,227 oz) below the old<br />

workings<br />

Best channel sampling results: 19.85<br />

g/t over 0.5 m and 17.59 g/t over 1.0 m<br />

Some gold anomalies (humus)<br />

Some magnetic anomalies<br />

Some significant gold mineralization<br />

Waldie, 2006<br />

DDH logs<br />

Turcotte and<br />

Pelletier, 2008<br />

Press release from<br />

<strong>Gold</strong>en Goose<br />

Resources: October<br />

28, 2008<br />

Leclerc and Fleury,<br />

2009 News release<br />

from <strong>Gold</strong>en Goose<br />

Resources: March<br />

30, 2010<br />

. Final 2 November 2011 38 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

7 Geological setting and mineralization<br />

Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May<br />

2009) and updated.<br />

7.1 The Archean Superior Province<br />

The Archean Superior Craton forms the core of the North American continent and is<br />

surrounded and truncated on all sides by Proterozoic orogens, the collisional zones along<br />

which elements of the Precambrian Canadian Shield were amalgamated (Hoffman, 1988<br />

and 1989). The Superior Province represents two million square km of this craton that is<br />

free of significant post-Archean cover rocks and deformation (Card and Poulsen, 1998).<br />

Tectonic stability has prevailed since ca. 2.6 Ga in large parts of the Superior Province<br />

(Percival, 2007). The rocks of this Province are mainly Mesoarchean and Neoarchean in<br />

age and have been significantly affected by post-Archean deformation only along the<br />

boundaries marked by Proterozoic orogens, such as the Trans-Hudson and Grenville<br />

orogens, or along major internal fault zones, such as the Kapuskasing Structural Zone.<br />

The rest of the Superior Province has remained stable since the end of the Archean<br />

(Goodwin et al., 1972).<br />

Proterozoic and younger activity is limited to rifting along the margins, emplacement of<br />

numerous mafic dyke swarms (Buchan and Ernst, 2004), compressional reactivation, and<br />

large scale rotation at ca. 1.9 Ga, and failed rifting at ca 1.1 Ga. With the exception of the<br />

northwest and northeast Superior margins that were pervasively deformed and<br />

metamorphosed at 1.9 to 1.8 Ga, the craton has escaped ductile deformation. A<br />

first-order feature of the Superior Province is its linear sub-provinces of distinctive<br />

lithological and structural character, accentuated by sub-parallel boundary faults (e.g.<br />

Card and Ciesielski, 1986). Trends in the Superior Province are generally easterly in the<br />

south, westerly to north-westerly in the northwest, and north-westerly in the northeast<br />

(Figure 7.1). The southern Superior Province (to latitude 52°N) is a major source of<br />

mineral wealth. Owing to its potential for base metals, gold and other commodities, the<br />

Superior Province continues to attract mineral exploration in both established and frontier<br />

regions.<br />

7.2 The Wawa Sub-province<br />

The Magino property is located in the Wawa Sub-province (Figure 7.2). Most workers<br />

accept a correlation between the Wawa and Abitibi terranes across the transverse<br />

Kapuskasing uplift (Percival, 2007). Volcanism appears to have begun with the 2.89 to<br />

2.88 Ga Hawk assemblages. The 2.745 Ga Wawa assemblage and the 2.72 Ga<br />

Greenwater and Manitouwadge assemblages reflect oceanic settings. Volcanogenic<br />

massive sulphide deposits in the Wawa terrane have similar ages of 2.72 Ga (Corfu and<br />

Stott, 1986; Williams et al., 1991; Sage et al, 1996a and b). Polat and Kerrich (1999)<br />

reported a variety of oceanic magma types from the Schreiber belt and interpreted the belt<br />

as a tectonic mélange (Polat et al., 1998; Polat and Kerrich, 1999 and 2001). Relatively<br />

late-stage volcanism at ca. 2.695 Ga (Carfish assemblage) took place during D1 thrusting.<br />

Subsequent calc-alkalic to alkali magmatism (ca. 2.689 Ga; Corfu and Stott, 1996) and<br />

associated coarse clastic sedimentation (< 2.689 Ga) was followed by the emplacement of<br />

sanukitoid plutons (2.685-2.68 Ga) and dextral transpressive D2 deformation.<br />

. Final 2 November 2011 39 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 7.1<br />

Tectonic subdivisions of the Superior Province within northern Ontario<br />

(from Stott et al., 2007)<br />

Figure 7.2<br />

Major geological elements of the eastern Wawa Sub-province<br />

(from Card and Poulsen, 1998)<br />

. Final 2 November 2011 40 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Mineralization occurs in two main regions: the Michipicoten-Mishubishu belt in the Wawa<br />

area, and the Shebandowan-Schreiber belt to the west (Percival, 2007). The<br />

Michipicoten-Mishubishu belt contains mainly iron and gold deposits with some nickel and<br />

copper-vein deposits (Figure 7.3). Iron deposits are in oxide-, sulphide- and<br />

carbonate-facies iron formations that lie stratigraphically above the 2.74 to 2.735 Ga<br />

Wawa assemblage. <strong>Gold</strong> deposits in this region occur within veins associated with shear<br />

zones in plutonic rocks of variable composition and age.<br />

The Shebandowan-Schreiber belt hosts important deposits of gold, iron and base metals<br />

(volcanic-hosted massive sulphide deposits; e.g., Manitouwadge) (Peterson and Zaleski,<br />

1999; Zaleski et al., 1999), as well as intrusion-hosted nickel deposits. The most<br />

significant is the Hemlo gold camp, a large disseminated deposit (Muir, 2003) in a strongly<br />

deformed, ca 2.693 to 2.685 Ga volcano-sedimentary sequence (Davis and Lin, 2003).<br />

<strong>Gold</strong> was deposited during D2 sinistral wrench deformation between 2.680 and 2.677 Ga,<br />

likely from fluids derived from granitoid rocks.<br />

Figure 7.3<br />

Mineral belts in the Michipicoten-Shebandowan region of the Wawa<br />

Sub-province<br />

(from Card and Poulsen, 1998)<br />

7.3 The Michipicoten greenstone belt<br />

The Magino mine is located within the Michipicoten greenstone belt (Figure 7.2 and<br />

Figure 7.3). This belt, including the adjacent Gamitagama and Mishubishu greenstone<br />

belts, is one of the key localities with respect to the Superior Province (Wawa<br />

Sub-province) geology, partly because of the importance of its Algoma-type iron<br />

formations, partly because many important concepts of greenstone belt geology are based<br />

there, and partly because it contains a record of volcanism, sedimentation and plutonism<br />

that spans at least 240 Ma of Archean time (Card and Poulsen, 1998).<br />

. Final 2 November 2011 41 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

The Michipicoten greenstone belt is a structurally and stratigraphically complex<br />

assemblage of volcanic, sedimentary and intrusive rocks that were metamorphosed to<br />

greenschist and amphibolite facies (Attoh, 1981; Williams et al., 1991). To the east and<br />

south, the Michipicoten greenstone belt and satellite Gamitagama greenstone belt are<br />

bounded by plutonic rocks of the Wawa gneiss domain, mainly tonalite gneiss with<br />

abundant granitic intrusions (Card and Poulsen, 1998). The north-eastern Wawa<br />

Sub-province consists of similar gneissic and plutonic rocks along with the small<br />

Saganash Lake and Kabinakagami Lake greenstone belts. At the eastern edge of the<br />

Michipicoten greenstone belt, a Mesoarchean sequence (Cycle 1) of basalt and komatiite,<br />

overlain by calc-alkaline tuff, is intruded by the 2888 Ma Hawk granite and 2881 Ma felsic<br />

sills (Sage, 1994; Card and Poulsen, 1998). This sequence is in contact with 2747 Ma<br />

tonalite gneiss cut by 2698 Ma intrusions of the Whitefish Lake batholith. The<br />

Mesoarchean rocks may represent a basement to the younger volcanic succession<br />

(Jackson and Sutcliffe, 1990). The Mesoarchean and Neoarchean supracrustal rocks<br />

form at least three (3) mafic-felsic cycles with intercalated sediments, notably the thick<br />

Helen iron formation that caps the lower cycle and consists of a lower siderite member, a<br />

middle pyritic carbonate member, and upper chert-carbonate and black shale members<br />

(Goodwin, 1962; Sage, 1987; Sage, 1994). Cycle 2 is a 2749 to 2746 Ma and 2729 Ma<br />

sequence consisting of tholeiitic basalt and andesite overlain by calc-alkaline dacite and<br />

rhyolite (Sage, 1994; Card and Poulsen, 1998). The upper volcanic cycle (Cycle 3), which<br />

is separated from the lower cycles by the Doré conglomerate containing tonalite clasts as<br />

young as 2698 Ma, consists of tholeiitic basalt with minor komatiite, capped by 2701 to<br />

2691 Ma calc-alkaline felsic volcanic and clastic sedimentary rocks that include wacke,<br />

arkose, polymictic conglomerate and oligomictic quartz conglomerate (Sage, 1994; Card<br />

and Poulsen, 1998). Detrital zircons from the sedimentary rocks are as young as 2680 Ma<br />

(Corfu and Sage, 1992), demonstrating that these sediments, like similar sequences in the<br />

Abitibi greenstone belt, were deposited following major volcanism. The petrography of the<br />

wacke units indicates that they were derived from bimodal mafic-felsic volcanic sequences<br />

(Ayres, 1983).<br />

Several suites of plutonic rocks ranging in composition from gabbro to monzogranite and<br />

syenite occur in and around the Michipicoten greenstone belt. Early tonalite, trondhjemite<br />

and granodiorite plutons with ages of 2747 to 2737 Ma, 2729 to 2721 Ma and 2698 to<br />

2693 Ma, respectively—similar to the ages of the main volcanic cycles—are probably<br />

syn-volcanic and have characteristics consistent with derivation from melting of basaltic<br />

sources (Card and Poulsen, 1998).<br />

The rocks of the Michipicoten and Gamitagama greenstone belts have been repeatedly<br />

deformed and metamorphosed under low-pressure, greenschist to lower amphibolite<br />

facies conditions (Ayres, 1969, 1983; Studemeister, 1983; McGill and Shrady, 1986; Arias<br />

and Helmstaedt, 1990; McGill, 1992; Sage, 1993 and 1994). Early structures include<br />

major recumbent folds, thrusts and associated cleavages (Card and Poulsen, 1998).<br />

Later superimposed upright folds are accompanied by steep cleavages. The latest<br />

structures include northeast-trending shear zones that host auriferous vein systems<br />

(Heather, 1989) and northerly-trending sinistral faults.<br />

. Final 2 November 2011 42 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

The Michipicoten-Mishubishu mineral belt is dominated by iron and gold deposits<br />

(Figure 7.3); lesser prospects include nickel sulphide and copper-vein deposits. Iron<br />

formation deposits are widely distributed in this region. <strong>Gold</strong> deposits also typify the<br />

Michipicoten-Mishubishu mineral belt. Most of these occur in a linear zone extending<br />

west-southwest from Renabie in the east, through the Goudreau-Lochalsh area, to<br />

Mishubishu Lake. Although the gold deposits of this area occur in a terrane with extensive<br />

iron formations, they display a remarkable association with altered shear zones and<br />

plutonic rocks regardless of composition or age (Studemeister, 1985; Studemeister and<br />

Kilias, 1987; Arias and Heather, 1987; Heather and Arias, 1987 and 1992).<br />

7.4 The geology of the Magino mine area<br />

The Magino mine is situated in the Goudreau-Lochalsh gold district of the Wawa gold<br />

camp. The geology of the Goudreau-Lochalsh gold district has been mapped by Sage<br />

and published over a ten-year period (Sage 1983, 1984, 1985, 1987a, 1993, 1993a,<br />

1993b, 1993c and 1993d). Supracrustal rocks in the Goudreau-Lochalsh district consist of<br />

Cycle 2 felsic to intermediate pyroclastic metavolcanics capped by pyrite-bearing<br />

ironstone. To the north are pillowed, massive and schistose, mafic to intermediate<br />

metavolcanics and minor intercalations of Cycle 3 mafic pyroclastic rock. Several<br />

medium- to coarse-grained quartz dioritic to dioritic sills and/or dikes intrude all<br />

metavolcanic rocks.<br />

<strong>Gold</strong> mineralization at the Magino mine is dominantly hosted by the Webb Lake stock<br />

(Deevy, 1994), which intrudes isoclinally folded Cycle 3 mafic volcanic rocks (Sage, 1993).<br />

The Webb Lake stock is a felsic intrusion interpreted by Sage (1993, 1994) as a<br />

trondhjemite, but continues to be called a granodiorite in mine terminology and by mine<br />

geologists.<br />

The long axis of the Webb Lake stock is parallel to the regional supracrustal rock<br />

stratigraphy (Sage, 1993; 1994). The Webb Lake stock is ENE-striking and has a steep<br />

northerly dip (Deevy, 1992 and 1994). Its surface expression is at least 1,800 m long and<br />

up to 300 m wide. The aureole rocks of the Webb Lake stock are predominately mafic<br />

volcanic rocks (Deevy, 1992 and 1994). The southern contact is quite linear and regular,<br />

consisting mostly of dark green mafic rocks. The northern contact is quite irregular and<br />

there is interfingering of granodiorite (trondhjemite) and aureole rocks. The granodiorite<br />

(trondhjemite) is medium- to coarse-grained, green-grey, moderately hard, non-magnetic<br />

and massive (Sutherland, 1987). It is locally foliated and hydrothermally altered, and has<br />

been affected by greenschist facies metamorphism. The granodiorite (trondhjemite)<br />

contains 5% to 10% veins of carbonate, quartz, tourmaline and pyrite in various<br />

orientations. Approximately 5% of the igneous rock contains healed faults and fractures,<br />

generally filled with chlorite and carbonate. They may correspond to the late,<br />

north-trending, 45°-dipping, carbonate-filled faults observed underground (Sutherland,<br />

1987).<br />

Some lithologies occur within the granodiorite. In mine terminology, these are “felsites”,<br />

“mafics” and “intermediates” (Deevy, 1992 and 1994). “Grey felsite” is the oldest of the<br />

three and possibly predates gold mineralization. It is predominately a medium to dark<br />

grey aphanitic body about 0.30 to 1.20 m thick that can be traced from one end of the<br />

mine to the other. Grey felsite may not in fact be an intrusive in its own right, but rather<br />

cataclastized granodiorite (trondhjemite) (Deevy, 1992). “Pink felsite” and “brown felsite”<br />

postdate gold mineralization. They are both fine-grained rocks of quartz-feldspar porphyry<br />

composition. They vary from a few centimetres to 3.5 m wide and can be traced for a<br />

hundred metres or more both laterally and vertically.<br />

. Final 2 November 2011 43 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

The “mafics” may be either dykes or xenoliths. They are dark green in colour, generally<br />

strongly foliated, and are of similar composition to the aureole mafic rocks (Deevy, 1992<br />

and 1994). These mafic rafts or dykes are up to 6 m wide (Bourne et al., 1987). The<br />

“intermediates” are much more limited in extent and have the texture of a crystal tuff.<br />

They are probably true xenoliths within the granodiorite. Both the mafic and intermediate<br />

xenoliths/dykes predate gold mineralization (Deevy, 1992 and 1994).<br />

Figure 7.4<br />

Geology of the Magino mine area<br />

(adapted and modified from Sage 1990, 1993b, 1993c and 1993d)<br />

Several diabase dykes up to 12 m wide, of probable Keweenawan age, strike<br />

north-north-west and cut all rock types (Bourne et al., 1987). Diamond drilling east of the<br />

diabase dyke marking the eastern limit of underground workings in the “old mine” indicates<br />

that the granodiorite(trondhjemite)-metavolcanic contact has been offset by approximately<br />

50 feet (15 m), and that the dip of the contact at this location is vertical instead of 65° to<br />

the north as is found west of the dyke. Bourne et al. (1987) believe the diabase dyke<br />

intruded a pre-existing fault zone along which movement was mainly rotational in nature<br />

(sinistral displacement), which would explain both the apparent horizontal offset and the<br />

marked change in dip. The horizontal distance between mineralized zones across this<br />

structure exceeds that shown for the displacement of the stock’s margins on mine plans<br />

(Nielsen, 1997). This suggests that if displacement entirely post-dates mineralization, it<br />

must have been oblique, or alternatively, the zones on either side of the diabase are not<br />

related (Nielsen, 1997).<br />

The granodiorite (trondhjemite) intrusion is cut by numerous shear zones related to the<br />

Goudreau Lake Deformation Zone and it is on these shear-hosted gold-bearing quartz<br />

veins that the Magino mine occurs (Sage, 1994). The portion of the intrusion north of the<br />

deformation zone hosts the gold mineralization and is more deformed than the southern<br />

portion. The Goudreau Lake Deformation Zone is a major contact between Cycle 2 to the<br />

south and Cycle 3 to the north. In the Magino mine area, the Goudreau Lake Deformation<br />

Zone consists of a 070°-striking, ductile-brittle zone sub-parallel to dextral oblique-slip<br />

high-strain zones developed within strongly altered and deformed, felsic to intermediate<br />

metavolcanic rocks (Heather and Arias, 1992).<br />

. Final 2 November 2011 44 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

7.5 <strong>Gold</strong> mineralization<br />

<strong>Gold</strong> mineralization at the Magino gold mine occurs within the Webb Lake granodiorite<br />

(trondhjemite) stock. The Webb Lake stock underwent variable metasomatic alteration<br />

during deformation and gold mineralization (Heather and Arias, 1992). Distinct haloes of<br />

quartz-sericite-pyrite with minor Fe-carbonate and hematite alteration are observed<br />

adjacent to the quartz vein systems. Alteration of the Webb Lake stock outside the goldbearing<br />

zones is manifested by a chlorite-albite-quartz-tourmaline-calcite assemblage<br />

(Heather and Arias, 1992). Locally present within the stock are lenticular chlorite-schist<br />

zones that represent either strongly foliated mafic metavolcanic xenoliths or a chloritealtered<br />

felsic intrusion (Heather and Arias, 1992).<br />

<strong>Gold</strong> mineralization occurs in several sub-parallel high-strain zones striking 070°–080°<br />

within the Webb Lake stock and within mafic metavolcanic rocks immediately along the<br />

northern margin of the stock (Heather and Arias, 1992). Deevy (1992 and 1994)<br />

distinguished and described two types of ore shoots, namely “zones” and “veins”. The<br />

“zones” are usually 2 to 4.5 m wide and have a strike length of 25 to 70 m. They consist<br />

of foliated, bleached and silica-flooded granodiorite (trondhjemite). The zones are folded<br />

in places, which produces mineable widths of up to 10.5 m. The “zones” dip at about the<br />

same angle as the foliation and have a vertical plunge. The vertical continuity of the<br />

“zones” is at a vertical to horizontal ratio of 2.5:1 (Deevy, 1994). Weak bleaching and<br />

silica flooding are the distinguishing features of the “zones” (Deevy, 1994). Silica flooding<br />

consists of incipient pale gray quartz replacing the foliated granodiorite. <strong>Gold</strong> content is<br />

directly related to the amount of silica flooding (Deevy, 1994).<br />

The “veins” consist of discrete pale grey to pale green to almost white quartz veins varying<br />

in width from a few to 45 centimetres. They have a strike length of several to 35 m. <strong>Gold</strong><br />

values are distributed erratically within the veins, but overall grades are quite high. The<br />

veins are folded in places, with gold concentrated in the fold noses (Deevy, 1992 and<br />

1994). Vertical continuity of the “veins” is similar to that of the “zones”, and the plunge is<br />

also vertical.<br />

Native gold occurs in zones of pervasive silicification and in narrow (i.e.,


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 7.5<br />

Historical G Zone in the 24+75E drift<br />

The granodiorite (trondhjemite) is sericitized, carbonatized, silicified and chloritized.<br />

<strong>Gold</strong>-bearing quartz veins have diffuse boundaries. Photographed area is 50 centimetres<br />

across (from Sutherland, 1987)<br />

Figure 7.6<br />

<strong>Gold</strong>-bearing veins on the face of the 23+80E drift<br />

Note the vein spacing and sericite alteration selvage along the vein contact. Centre vein<br />

is 15 centimetres wide (from Sutherland, 1987)<br />

. Final 2 November 2011 46 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

7.6 Structures associated with gold mineralization<br />

There is a strong structural control on the gold-bearing quartz vein system within the<br />

Webb Lake stock. The system consists of several main 070°- to 075°-striking high-strain<br />

zones, which in turn consist of subsidiary, parallel 070°- to 075°-striking mineralized zones<br />

(Heather and Aria, 1992). The zones are also parallel to the regional schistosity in this<br />

area, which strikes 070°. Individual quartz veins are localized within narrow, secondary,<br />

brittle-ductile shear fractures with the following documented attitudes and apparent<br />

horizontal displacements (Heather and Arias, 1992):<br />

a) 080°-090° / 65°N, ductile, dextral (oblique-slip)<br />

b) 045°-055° / 70°N, ductile, (?)<br />

A strongly developed foliation defined by elongated feldspar and aligned sericite has been<br />

observed wrapping asymptotically into the narrow shear fractures (Heather and Arias,<br />

1992). These shear-fractures appear to splay off each other, with the 085° set being<br />

dominant. Surface outcrops show no obvious crosscutting relationships between these<br />

two sets of shear-fractures, suggesting synchronous development (Heather and Arias,<br />

1992). Underground, however, it was reported by Magino’s mine geologist T. Deevy that<br />

the 055° set is part of a conjugate set of post-ore faults (1991 pers. comm. cited in<br />

Heather and Arias, 1992). Locally, the veins are better developed within the 085°-striking<br />

fracture set than in the 055° set. Some of the auriferous high-strain zones comprise two<br />

or more obliquely-oriented auriferous vein structures (e.g., the 070°-striking high-strain<br />

zone containing 085°- and 050°-striking veins) (Heather and Arias, 1992).<br />

Underground at the Magino mine, mine geologist T. Deevy noted that raise-mining on a<br />

single quartz vein structure revealed that the vein rolls from a dip of 80° to 60° and back to<br />

80° over a vertical distance of roughly 15 m. He also noted that the best gold grades are<br />

found at the intersections between vein-bearing shear fractures with different orientations<br />

(1987 pers. comm. cited in Heather and Arias, 1992). The plunge of the Magino<br />

mineralization is sub-vertical and parallel to measured elongation lineations defined by<br />

stretched feldspar crystals (Heather and Arias, 1992).<br />

The brittle-ductile shear fractures and associated veins are consistently offset by a few<br />

centimetres along brittle fractures with the following attitudes and apparent horizontal<br />

displacements (Heather and Arias, 1992):<br />

a) 190° (010°) / 85°W, brittle, sinistral<br />

b) 310° (130°) 67°N, brittle, dextral<br />

North-striking late tourmaline-quartz veins cut both the Webb Lake stock and<br />

aforementioned gold-bearing quartz vein systems (Heather and Arias, 1992). Zones of<br />

intense tourmaline-quartz fracture-filling, flooding and brecciation are locally present within<br />

the Webb Lake stock. This late tourmaline-quartz mineralization uses the pre-existing<br />

fracture network in the rock. The tourmaline-quartz fracture-fillings and veins can contain<br />

anomalous gold values, especially where they cut an earlier gold-bearing quartz vein.<br />

. Final 2 November 2011 47 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

7.7 Current view on mineralization controls and identification<br />

of ore zones<br />

The mineralization of the Magino Mine is associated with varying amounts of alteration to<br />

the Webb Lake Stock. This variation is marked by five progressive levels of<br />

alteration/deformation described below. In general; alteration levels are marked by<br />

increasing amount of foliation, sericite alteration, silicification (veining, flooding, pervasive<br />

silicification) and pyrite mineralization. Carbonatization is also apparent, but it is poorly<br />

understood if variation from calcite to ankerite is associated with higher gold grades. In<br />

areas such as the Northeast zone it is also suggested that the focus, or central and most<br />

highly altered portion of the ‘zone’ is associated with dolomite alteration, however this<br />

needs more study.<br />

Generally four (4) levels of alteration to Webb Lake Stock Granodiorite are recognized, as<br />

follows:<br />

Granodiorite: Relatively unaltered, coarse grained, equigranular quartz – plagioclase –<br />

chlorite +/- carbonate with typically > 10 % chlorite, network texture, no planar fabric is<br />

observed.<br />

Weakly Altered Granodiorite: Weakly developed planar fabric (foliation) caused by the<br />

alignment of sericite/chlorite grains, unit is finer grained than “Network Granodiorite”<br />

however relict texture can still be interpreted. Quartz +/- carbonate +/- tourmaline veining<br />

varies from 1 – 2 %, pyrite mineralization is elevated in places but generally < 0.5 %.<br />

Moderately Altered Granodiorite: Well developed planar fabric (foliation) caused by<br />

alignment of sericite/chlorite grains which make up > 20% of the rock. This planar<br />

sericite/chlorite alignment is referred to as “Sericite Lace”. Dependent on amount of<br />

chlorite this rock has a light green to light grey – grey colour. The Unit is finer grained<br />

than weakly altered granodiorite, with rounded quartz crystals. Quartz +/- carbonate +/-<br />

tourmaline veining varies from 2 – 5%, pyrite mineralization is elevated in places but<br />

generally 0.5 – 1%<br />

Strongly Altered Granodiorite: Well developed planar fabric (foliation) caused by<br />

alignment of sericite/chlorite/quartz grains which make up > 80% of the rock, the<br />

remaining constituent being quartz +/- carbonate +/- tourmaline veining. Visible gold is<br />

most commonly observed in this alteration, and the presence of visible gold is believed to<br />

be dependent on amount of smokey grey quartz veining/flooding (i.e. silica in the system<br />

at that locality). <strong>Gold</strong> bearing grey (altered) quartz veins are typically sub-parallel to<br />

foliation, mm-cm in scale with some 5-10 grey quartz flooded zones. The rock has a<br />

green and more often a light tan – pink coloration, remnant intrusive texture is completely<br />

destroyed. Remnant quartz phenocrysts are often augen shape and appear isolated in<br />

the sericite matrix.<br />

Visible gold is nearly always observed within silica (most typically small veinlets of smokey<br />

grey quartz). <strong>Gold</strong> emplacement within the moderate to strong altered zones is somewhat<br />

erratic due to the anastomosing nature of silica (quartz vein/flooding emplacement). As<br />

veins are typically


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

It is understood that historic logging and some mapping of the Magino deposit was<br />

focused on identifying several ‘types’ (or compositional phases) of granodiorite. It is<br />

because of this interpretation, that <strong>Prodigy</strong>’s geologists believe the past geological<br />

interpretation was forced into a model where the central portion of the stock was<br />

considered a more mafic ‘phase’ and then there were ring shaped outer phases, with a<br />

more felsic (and more calcic trondjhemite) phase along the contacts. <strong>Prodigy</strong>’s<br />

interpretation consists of sigmoidal cross-cutting zones which are folded (drag) in places<br />

and offset. To some extent, the historic phases were described similarly to the varying<br />

amounts of alteration/deformation that are now observed, however the phases were<br />

described primarily utilizing compositional differences, ignoring most<br />

alteration/deformation variations, and so the historic geologic logging data is not as useful<br />

for modelling, beyond the use for general lithology (i.e. Granodiorite or Metavolcanic).<br />

. Final 2 November 2011 49 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

8 Deposit types<br />

Information in this section has been excerpted from Turcotte, B., and Pelletier, C., (May<br />

2009).<br />

Lode gold deposits (gold from bedrock sources: Figure 8.1) occur dominantly in terranes<br />

with an abundance of volcanic and clastic sedimentary rocks of low to medium<br />

metamorphic grade (Poulsen, 1996). The Magino mine is an orogenic gold occurrence<br />

related to longitudinal shear zones (greenstone-hosted quartz-carbonate vein deposit).<br />

Greenstone-hosted quartz-carbonate vein deposits are a subtype of lode-gold deposits<br />

(Poulsen et al., 2000). They correspond to structurally controlled, complex epigenetic<br />

deposits hosted in deformed metamorphosed terranes (Dubé and Gosselin, 2007).<br />

Figure 8.1<br />

Inferred crustal levels of gold deposition showing the different types of<br />

lode gold deposits and the inferred deposit clan<br />

(from Dubé et al., 2001; Poulsen et al., 2000)<br />

Greenstone-hosted quartz-carbonate vein deposits consist of simple to complex networks<br />

of gold-bearing, laminated quartz-carbonate fault-fill veins in moderately to steeply<br />

dipping, compressional brittle-ductile shear zones and faults with locally associated<br />

shallow-dipping extensional veins and hydrothermal breccias. They are hosted by<br />

greenschist to locally amphibolite-facies metamorphic rocks of dominantly mafic<br />

composition and formed at intermediate depth in the crust (5-10 km). They are distributed<br />

along major compressional to transtensional crustal-scale fault zones in deformed<br />

greenstone terranes of all ages, but are more abundant and significant, in terms of total<br />

gold content, in Archean terranes. Greenstone hosted quartz-carbonate veins are thought<br />

to represent a major component of the greenstone deposit clan (Figure 8.1) (Dubé and<br />

Gosselin, 2007). They can coexist regionally with iron formation-hosted vein and<br />

disseminated deposits, as well as with turbidite-hosted quartz-carbonate vein deposits<br />

(Figure 8.2).<br />

. Final 2 November 2011 50 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 8.2 Schematic diagram illustrating the setting of greenstone-hosted<br />

quartz-carbonate vein deposits<br />

(from Poulsen et al., 2000)<br />

The main gangue minerals are quartz and carbonate, with variable amounts of white<br />

micas, chlorite, scheelite and tourmaline. The sulphide minerals typically constitute less<br />

than 10% of the ore. The main ore minerals are native gold with pyrite, pyrrhotite and<br />

chalcopyrite without significant vertical zoning (Dubé and Gosselin, 2007).<br />

The Magino gold deposit lies within the Goudreau Lake Deformation Zone, a major<br />

contact between Cycle 2 felsic to intermediate pyroclastic metavolcanic rocks to the south<br />

and Cycle 3 massive pillowed mafic metavolcanic rocks to the north (Heather and Arias,<br />

1992). The Goudreau Lake Deformation Zone appears to be spatially related to a large,<br />

regionally mappable intrusive sheet. This rigid meta-intrusive body deformed in a brittle<br />

manner relative to the enclosing mafic metavolcanic rocks, thus acting as a competency<br />

contrast and thereby focusing the strain and associated mineralization (Heather and Arias,<br />

1992).<br />

In the Magino gold deposit area, the Goudreau Lake Deformation Zone (Figure 8.3) is<br />

characterized as a 1- to 2-kilometre wide, 070°-striking zone of sub-parallel ductile and<br />

brittle-ductile high-strain zones (Heather and Arias, 1992). <strong>Gold</strong> mineralization occurs in<br />

these high-strain zones.<br />

At the regional scale, there is no readily discernible alteration pattern directly related to<br />

gold mineralization. However, rocks within the Goudreau Lake Deformation Zone are<br />

slightly more altered relative to the rest of the supracrustal rocks in the Michipicoten<br />

Greenstone Belt. This suggests that hydrothermal fluids were preferentially focused into<br />

regional deformation zones (Heather and Arias, 1992).<br />

Regionally, two types of gold mineralization have been recognized in the Magino gold<br />

mine area (Heather and Arias, 1992): (a) quartz veins hosted by brittle and brittle-ductile<br />

high strain zones; (b) brittle fault-hosted breccia-style mineralization.<br />

. Final 2 November 2011 51 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 8.3<br />

Location of the Goudreau Lake deformation zone<br />

(adapted and modified from Heather and Arias, 1992)<br />

. Final 2 November 2011 52 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

9 Exploration<br />

In August 2010, Kodiak announced an agreement with <strong>Gold</strong>en Goose to evaluate the<br />

Magino gold property.<br />

Since that announcement, Kodiak has conducted a review of the geological and<br />

exploration data, and recompiled the drillhole and assay database in metric format. In<br />

addition, Kodiak has undertaken sampling of previously un-sampled intervals of drill core<br />

from the 2006 program, and submitted these for assaying at independent analytical<br />

laboratories.<br />

The intervals of core that had been previously sampled by <strong>Gold</strong>en Goose were visually<br />

mineralised and/or altered and interpreted as vein structures that might be amenable to<br />

underground mining. The intervening altered intervals were regarded as disseminated<br />

mineralization; were not the focus of <strong>Gold</strong>en Goose’s recent program; and remained<br />

un-sampled.<br />

In response to higher prevailing gold prices in 2010, Kodiak considered that Magino’s<br />

disseminated mineralization could be evaluated as an open pittable mining scenario.<br />

In addition to the further sampling undertaken on existing drill core, <strong>Prodigy</strong> has conducted<br />

surface diamond core drilling throughout 2011 and this program is described in Section 10<br />

Drilling.<br />

Details of pre-<strong>Prodigy</strong> exploration other than drilling undertaken at the Magino property are<br />

presented in Section 6 History.<br />

Gould <strong>Gold</strong> property<br />

The Gould <strong>Gold</strong> property covers an extensive sequence of gabbroic intrusive and<br />

metavolcanic rocks along a prospective structural trend that is parallel to the Magino gold<br />

deposit. There is no information from this property contained in the database that was<br />

provided to Snowden.<br />

. Final 2 November 2011 53 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

10 Drilling<br />

<strong>Prodigy</strong> commenced an in-fill drilling program at Magino in January 2011. Assays from<br />

the drilling undertaken by <strong>Prodigy</strong> from January 2011 until approximately mid-September<br />

2011 are included in the mineral resource estimate reported in this technical report.<br />

Assays from drilling undertaken by <strong>Prodigy</strong> after mid-September 2011 are not included in<br />

the updated resource report.<br />

Details of pre-<strong>Prodigy</strong> drilling are provided in Section 6 History.<br />

10.1 <strong>Prodigy</strong> drilling<br />

10.1.1 Type and extent<br />

In late 2010 <strong>Prodigy</strong> designed a 20,000 m diamond core drilling program on the whollyowned<br />

Magino Mine property. The drilling program, designed to in-fill and expand the<br />

existing resource, started on 4 January 2011. In May 2011 <strong>Prodigy</strong> announced a doubling<br />

of the drill program to approximately 45,000 metres. The program is carried out by various<br />

rigs from two contractors: Northstar Drilling and Discovery Drilling.<br />

To mid-September, Northstar Drilling completed 42 of the drillholes and Discovery Drilling<br />

completed 85 drillholes.<br />

Information used in the resource estimate update includes 29,755.84 m of drilling from 127<br />

<strong>Prodigy</strong> drillholes. Core diameters are: HQ in five (5) holes; NQ in eighty-one (81) holes;<br />

and NQ2 in forty-one (41) holes.<br />

The drill rigs are conventional wireline machines operated by experienced drilling<br />

companies. Due to the proximity of underground workings several holes were<br />

commenced as HQ diameter and were reduced to NQ diameter on intersecting the<br />

workings.<br />

Details of the <strong>Prodigy</strong> drillholes are provided in Table 10.1.<br />

Table 10.1<br />

<strong>Prodigy</strong> drilling details<br />

Item Total Minimum Maximum Average<br />

Number of drillholes 127 50 m length 710 m length 234 m length<br />

Collar easting - 688171 mE 689375 mE -<br />

Collar northing - 53508541 mN 535081643 mN -<br />

Collar elevation - 388 mRL 406 mRL -<br />

10.1.2 Procedures followed<br />

Drillholes are located and set-up so that, as much as possible, the drillholes are<br />

perpendicular to the strike and dip of the mineralized zones at Magino. Drillhole collar<br />

locations are surveyed to 1 cm accuracy using DGPS instruments, and drillhole paths are<br />

typically surveyed at 3 m intervals using a multishot instrument. Eighteen drillhole paths<br />

were surveyed at intervals of 20 m to 50 m using a single shot instrument, and 3 drillhole<br />

paths remained unsurveyed.<br />

Drill core at Magino is boxed, covered, and sealed at the drill rig and moved to the <strong>Prodigy</strong><br />

logging and sample preparation facilities by <strong>Prodigy</strong> personnel. The core is then split<br />

down the centre using a typical table fed circular rock saw normally at one metre intervals.<br />

. Final 2 November 2011 54 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Core from this drilling is currently stored next to the company’s core shed facilities north of<br />

the town of Dubreuilville, Ontario.<br />

10.1.3 Relevant results<br />

Results from <strong>Prodigy</strong>’s core drilling program were reported in five news releases during<br />

2011 (18 May, 20 June, 4 August, 30 August and 27 September).<br />

Table 10.2 provides a summary of mineralization intercepts from <strong>Prodigy</strong>’s drilling<br />

program. The records are composited intervals where the cut-off grade is 0.35 g/t Au over<br />

a minimum length of 5 m. Composited intervals can include up to 5 m of assays below<br />

0.35 g/t Au. The estimated true thickness reflects 76 % of the downhole drill length.<br />

Table 10.2<br />

<strong>Prodigy</strong> drillhole mineralization intersect results<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-001 68.0 73.6 5.6 4.3 0.31<br />

MA11-001 82.8 115.0 32.2 24.5 0.35<br />

MA11-001 127.9 197.7 69.8 53.0 0.88<br />

MA11-001 204.0 212.0 8.0 6.1 0.45<br />

MA11-001 218.0 229.0 11.0 8.4 0.43<br />

MA11-001 250.0 260.0 10.0 7.6 0.55<br />

MA11-001 267.0 272.0 5.0 3.8 0.52<br />

MA11-001 282.0 294.4 12.4 9.4 1.05<br />

MA11-001 301.0 318.3 17.3 13.1 0.35<br />

MA11-001 338.2 359.0 20.8 15.8 1.15<br />

MA11-001 365.0 401.0 36.0 27.4 1.11<br />

MA11-001 470.0 479.0 9.0 6.8 2.26<br />

MA11-001 485.0 490.0 5.0 3.8 0.64<br />

MA11-002 0.0 0.0 0.0 0.0 0.00<br />

MA11-003 128.0 145.0 17.0 12.9 1.68<br />

MA11-003 163.0 175.0 12.0 9.1 0.81<br />

MA11-003 182.0 223.0 41.0 31.2 1.52<br />

MA11-003 230.0 240.0 10.0 7.6 0.30<br />

MA11-003 312.0 321.0 9.0 6.8 0.60<br />

MA11-004 125.0 228.0 103.0 78.3 2.09<br />

MA11-004 237.0 248.0 11.0 8.4 0.50<br />

MA11-004 255.0 272.4 17.4 13.2 1.10<br />

MA11-004 306.6 317.0 10.4 7.9 27.14<br />

MA11-004 334.0 340.0 6.0 4.6 1.70<br />

MA11-004 511.0 526.0 15.0 11.4 0.32<br />

MA11-004 545.0 558.0 13.0 9.9 0.48<br />

MA11-004 572.0 594.0 22.0 16.7 0.39<br />

. Final 2 November 2011 55 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-004 610.0 623.0 13.0 9.9 2.99<br />

MA11-004 635.0 655.0 20.0 15.2 0.45<br />

MA11-004 681.0 703.0 22.0 16.7 2.00<br />

MA11-005 113.0 122.0 9.0 6.8 0.20<br />

MA11-005 156.0 161.0 5.0 3.8 1.20<br />

MA11-005 171.0 176.0 5.0 3.8 0.69<br />

MA11-005 201.0 207.4 6.4 4.8 1.32<br />

MA11-005 226.0 241.0 15.0 11.4 0.40<br />

MA11-005 252.0 259.0 7.0 5.3 1.48<br />

MA11-005 265.0 274.0 9.0 6.8 0.61<br />

MA11-005 321.0 331.0 10.0 7.6 6.92<br />

MA11-005 362.0 409.0 47.0 35.7 1.49<br />

MA11-006 131.0 244.7 113.7 86.4 1.69<br />

MA11-006 259.0 266.0 7.0 5.3 0.46<br />

MA11-006 295.0 301.0 6.0 4.6 1.87<br />

MA11-006 404.0 426.0 22.0 16.7 0.35<br />

MA11-006 446.0 459.0 13.0 9.9 0.38<br />

MA11-006 594.0 603.0 9.0 6.8 0.90<br />

MA11-006 614.0 634.0 20.0 15.2 0.63<br />

MA11-006 640.0 652.0 11.0 8.4 0.76<br />

MA11-007 79.0 86.0 7.0 5.3 1.00<br />

MA11-007 121.0 145.0 24.0 18.2 0.50<br />

MA11-007 153.0 158.0 5.0 3.8 0.43<br />

MA11-007 168.0 173.0 5.0 3.8 7.94<br />

MA11-007 208.0 238.0 30.0 22.8 0.57<br />

MA11-007 255.0 260.0 5.0 3.8 0.43<br />

MA11-007 285.0 290.0 5.0 3.8 2.37<br />

MA11-007 320.8 328.0 7.2 5.5 0.21<br />

MA11-007 366.0 372.0 6.0 4.6 5.23<br />

MA11-008 48.0 62.0 14.0 10.6 0.58<br />

MA11-008 71.0 90.0 19.0 14.4 1.16<br />

MA11-008 106.0 131.0 25.0 19.0 0.81<br />

MA11-008 164.0 169.0 5.0 3.8 0.35<br />

MA11-008 219.0 232.0 13.0 9.9 0.72<br />

MA11-008 244.5 252.0 7.5 5.7 0.34<br />

MA11-008 306.0 334.0 28.0 21.3 2.05<br />

MA11-008 363.0 369.0 6.0 4.6 0.47<br />

. Final 2 November 2011 56 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-008 385.0 412.0 27.0 20.5 0.45<br />

MA11-008 422.0 429.0 7.0 5.3 0.19<br />

MA11-008 439.0 451.0 12.0 9.1 1.55<br />

MA11-008 458.0 470.0 12.0 9.1 0.44<br />

MA11-008 477.0 508.0 31.0 23.6 0.78<br />

MA11-008 538.0 560.9 22.9 17.4 2.35<br />

MA11-008 575.0 591.0 16.0 12.2 1.06<br />

MA11-008 600.7 612.0 11.4 8.6 0.82<br />

MA11-008 629.0 635.0 6.0 4.6 0.21<br />

MA11-008 643.0 654.0 11.0 8.4 1.03<br />

MA11-009 30.4 36.0 5.6 4.3 0.97<br />

MA11-009 104.0 122.0 18.0 13.7 0.41<br />

MA11-009 138.0 181.0 43.0 32.7 0.74<br />

MA11-009 187.0 198.0 11.0 8.4 2.22<br />

MA11-009 239.0 312.0 73.0 55.5 1.30<br />

MA11-009 319.0 326.0 7.0 5.3 2.11<br />

MA11-009 333.0 338.0 5.0 3.8 0.82<br />

MA11-009 348.0 370.0 22.0 16.7 0.50<br />

MA11-009 401.0 420.0 19.0 14.4 2.31<br />

MA11-009 465.0 477.0 12.0 9.1 0.20<br />

MA11-009 505.0 513.0 8.0 6.1 1.09<br />

MA11-010 45.0 55.0 10.0 7.6 0.26<br />

MA11-010 78.0 93.0 15.0 11.4 0.17<br />

MA11-010 118.0 127.0 9.0 6.8 0.84<br />

MA11-010 163.0 173.0 10.0 7.6 0.58<br />

MA11-010 184.0 211.0 27.0 20.5 1.78<br />

MA11-010 225.0 235.0 10.0 7.6 0.34<br />

MA11-010 270.0 280.0 10.0 7.6 0.33<br />

MA11-011 9.0 18.0 9.0 6.8 0.33<br />

MA11-011 37.0 45.0 8.0 6.1 0.33<br />

MA11-012 20.0 26.0 6.0 4.6 0.45<br />

MA11-012 49.0 65.0 16.0 12.2 2.88<br />

MA11-012 86.0 99.0 13.0 9.9 0.60<br />

MA11-012 105.9 125.0 19.1 14.5 1.43<br />

MA11-012 133.0 143.3 10.3 7.8 3.02<br />

MA11-012 164.0 194.0 30.0 22.8 0.79<br />

MA11-013 50.0 55.0 5.0 3.8 5.57<br />

. Final 2 November 2011 57 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-013 61.0 80.0 19.0 14.4 0.35<br />

MA11-013 92.0 100.0 8.0 6.1 1.59<br />

MA11-014 31.0 39.0 8.0 6.1 1.11<br />

MA11-014 56.0 82.0 26.0 19.8 1.88<br />

MA11-014 89.0 98.0 9.0 6.8 0.41<br />

MA11-014 106.0 123.0 17.0 12.9 0.43<br />

MA11-014 136.0 143.0 7.0 5.3 5.87<br />

MA11-015 20.0 61.0 41.0 31.2 0.60<br />

MA11-016 11.0 16.0 5.0 3.8 0.39<br />

MA11-016 50.0 66.0 16.0 12.2 0.73<br />

MA11-016 80.0 86.0 6.0 4.6 0.38<br />

MA11-016 101.0 109.0 8.0 6.1 0.74<br />

MA11-016 129.0 154.0 25.0 19.0 0.49<br />

MA11-016 162.0 170.0 8.0 6.1 0.47<br />

MA11-016 182.0 191.0 9.0 6.8 2.86<br />

MA11-017 9.0 19.0 10.0 7.6 2.25<br />

MA11-017 29.0 36.0 7.0 5.3 2.59<br />

MA11-017 42.0 65.0 23.0 17.5 0.71<br />

MA11-017 79.0 86.0 7.0 5.3 0.62<br />

MA11-018 36.0 45.0 9.0 6.8 0.41<br />

MA11-018 54.0 61.0 7.0 5.3 0.75<br />

MA11-018 76.0 98.0 22.0 16.7 0.63<br />

MA11-018 107.0 117.0 10.0 7.6 0.38<br />

MA11-018 179.0 198.0 19.0 14.4 0.95<br />

MA11-018 204.0 218.0 14.0 10.6 0.33<br />

MA11-018 236.0 248.0 12.0 9.1 0.52<br />

MA11-018 374.0 386.0 12.0 9.1 2.36<br />

MA11-019 29.0 45.0 16.0 12.2 0.52<br />

MA11-019 88.0 104.0 16.0 12.2 1.16<br />

MA11-020 189.0 201.0 12.0 9.1 0.57<br />

MA11-020 230.0 259.0 29.0 22.0 0.51<br />

MA11-020 266.0 279.0 13.0 9.9 2.04<br />

MA11-020 299.0 308.0 9.0 6.8 0.60<br />

MA11-021 6.2 26.0 19.8 15.0 4.44<br />

MA11-022 26.0 69.0 43.0 32.7 0.81<br />

MA11-022 76.0 87.0 11.0 8.4 0.68<br />

MA11-023 249.0 255.0 6.0 4.6 1.59<br />

. Final 2 November 2011 58 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-023 282.0 294.0 12.0 9.1 0.99<br />

MA11-023 387.0 402.0 15.0 11.4 0.56<br />

MA11-023 416.0 431.0 15.0 11.4 0.49<br />

MA11-024 20.0 37.0 17.0 12.9 0.61<br />

MA11-024 49.0 54.0 5.0 3.8 3.70<br />

MA11-024 75.0 104.0 29.0 22.0 0.96<br />

MA11-024 118.0 124.0 6.0 4.6 1.06<br />

MA11-025 15.0 24.0 9.0 6.8 1.94<br />

MA11-025 40.0 48.0 8.0 6.1 0.27<br />

MA11-025 66.0 83.0 17.0 12.9 0.42<br />

MA11-025 104.0 111.0 7.0 5.3 2.42<br />

MA11-025 121.0 135.0 14.0 10.6 1.38<br />

MA11-025 186.0 193.0 7.0 5.3 0.25<br />

MA11-026 12.0 20.0 8.0 6.1 1.30<br />

MA11-026 26.0 59.0 32.0 24.3 1.05<br />

MA11-026 77.0 89.0 12.0 9.1 1.10<br />

MA11-027 20.0 32.0 12.0 9.1 0.34<br />

MA11-027 64.0 85.0 21.0 16.0 0.49<br />

MA11-027 98.0 104.0 6.0 4.6 2.80<br />

MA11-027 114.0 132.0 18.0 13.7 0.82<br />

MA11-027 144.0 160.0 16.0 12.2 0.57<br />

MA11-028 77.0 97.0 20.0 15.2 0.62<br />

MA11-028 115.7 127.0 11.4 8.6 0.50<br />

MA11-028 136.0 150.0 14.0 10.6 0.54<br />

MA11-028 156.0 164.0 8.0 6.1 0.22<br />

MA11-028 170.0 196.0 26.0 19.8 0.87<br />

MA11-028 213.0 225.5 12.5 9.5 0.42<br />

MA11-029 0.0 0.0 0.0 0.0 0.00<br />

MA11-030 16.0 21.0 5.0 3.8 2.33<br />

MA11-030 32.2 38.0 5.8 4.4 0.82<br />

MA11-030 46.0 53.0 7.0 5.3 0.42<br />

MA11-030 169.0 176.0 7.0 5.3 4.96<br />

MA11-030 183.0 193.0 10.0 7.6 1.55<br />

MA11-030 200.0 208.0 8.0 6.1 0.70<br />

MA11-031 71.0 77.0 6.0 4.6 0.35<br />

MA11-031 90.0 100.0 10.0 7.6 0.31<br />

MA11-032 4.6 32.0 27.4 20.8 0.88<br />

. Final 2 November 2011 59 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-032 38.0 72.0 34.0 25.8 0.63<br />

MA11-033 11.0 16.0 5.0 3.8 0.19<br />

MA11-034 37.0 54.0 17.0 12.9 0.80<br />

MA11-034 84.0 91.3 7.3 5.5 0.73<br />

MA11-034 105.0 136.0 31.0 23.6 1.19<br />

MA11-035 0.0 0.0 0.0 0.0 0.00<br />

MA11-036 60.0 65.0 5.0 3.8 0.34<br />

MA11-036 120.0 125.0 5.0 3.8 0.42<br />

MA11-036 160.7 179.0 18.4 13.9 0.46<br />

MA11-036 187.0 194.0 7.0 5.3 2.02<br />

MA11-036 217.7 228.0 10.3 7.8 0.34<br />

MA11-037 13.1 31.0 17.9 13.6 0.75<br />

MA11-037 54.0 94.0 40.0 30.4 1.10<br />

MA11-038 32.0 44.0 12.1 9.2 0.51<br />

MA11-039 21.0 28.0 7.0 5.3 0.54<br />

MA11-039 35.0 54.0 19.0 14.4 0.32<br />

MA11-039 71.0 78.0 7.0 5.3 0.66<br />

MA11-039 88.0 94.0 6.0 4.6 0.26<br />

MA11-039 112.0 135.0 23.0 17.5 0.56<br />

MA11-039 159.0 167.0 8.0 6.1 0.39<br />

MA11-039 187.0 194.0 7.0 5.3 0.39<br />

MA11-039 205.0 211.0 6.0 4.6 0.76<br />

MA11-039 250.0 258.0 8.0 6.1 0.29<br />

MA11-039 313.8 324.0 10.3 7.8 0.30<br />

MA11-040 34.0 41.0 7.0 5.3 0.21<br />

MA11-040 106.0 117.0 11.0 8.4 0.63<br />

MA11-040 166.0 181.0 15.0 11.4 0.49<br />

MA11-040 188.0 223.0 35.0 26.6 1.23<br />

MA11-041 21.0 51.0 30.0 22.8 1.57<br />

MA11-041 68.0 78.0 10.0 7.6 0.16<br />

MA11-041 86.0 104.0 18.0 13.7 1.08<br />

MA11-042 6.0 13.0 7.0 5.3 0.36<br />

MA11-042 21.0 45.0 24.0 18.2 0.79<br />

MA11-042 53.0 97.0 44.0 33.4 1.56<br />

MA11-042 123.0 137.0 14.0 10.6 2.71<br />

MA11-043 30.3 51.0 20.7 15.7 0.42<br />

MA11-043 81.0 100.0 19.0 14.4 0.47<br />

. Final 2 November 2011 60 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-043 118.0 128.0 10.0 7.6 0.74<br />

MA11-043 147.0 157.0 10.0 7.6 0.62<br />

MA11-043 166.0 171.0 5.0 3.8 0.39<br />

MA11-043 182.0 188.0 6.0 4.6 0.37<br />

MA11-043 197.0 219.0 22.0 16.7 0.79<br />

MA11-043 225.0 230.0 5.0 3.8 0.99<br />

MA11-043 236.0 255.0 19.0 14.4 0.70<br />

MA11-044 10.0 38.0 28.0 21.3 0.60<br />

MA11-044 44.0 54.0 10.0 7.6 0.47<br />

MA11-045 14.0 51.0 37.0 28.1 0.42<br />

MA11-045 61.0 66.7 5.7 4.3 4.07<br />

MA11-045 72.0 97.0 25.0 19.0 0.47<br />

MA11-045 108.0 113.0 5.0 3.8 0.79<br />

MA11-045 140.0 146.0 6.0 4.6 0.24<br />

MA11-046 18.0 24.0 6.0 4.6 0.21<br />

MA11-046 61.0 85.0 24.0 18.2 0.62<br />

MA11-046 91.0 130.0 39.0 29.6 0.59<br />

MA11-046 136.0 143.0 7.0 5.3 0.37<br />

MA11-047 20.0 35.0 15.0 11.4 0.40<br />

MA11-048 15.0 46.0 31.0 23.6 0.49<br />

MA11-048 55.0 72.0 17.0 12.9 0.51<br />

MA11-049 65.0 77.0 12.0 9.1 3.85<br />

MA11-049 84.0 91.0 7.0 5.3 1.47<br />

MA11-049 98.0 106.0 8.0 6.1 0.35<br />

MA11-049 129.0 159.0 30.0 22.8 0.88<br />

MA11-050 59.0 74.0 15.0 11.4 0.39<br />

MA11-050 140.0 187.0 47.0 35.7 0.55<br />

MA11-050 211.5 247.0 35.5 27.0 0.43<br />

MA11-050 270.0 292.0 22.0 16.7 0.75<br />

MA11-050 298.0 330.0 32.0 24.3 0.70<br />

MA11-050 340.0 349.0 9.0 6.8 1.16<br />

MA11-050 357.0 365.0 8.0 6.1 0.83<br />

MA11-050 376.0 383.0 7.0 5.3 0.57<br />

MA11-051 24.0 35.0 11.0 8.4 0.39<br />

MA11-051 75.0 80.0 5.0 3.8 0.40<br />

MA11-051 99.0 120.0 21.0 16.0 0.39<br />

MA11-051 141.0 148.0 7.0 5.3 0.58<br />

. Final 2 November 2011 61 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-051 201.0 212.0 11.0 8.4 0.80<br />

MA11-051 229.0 238.0 9.0 6.8 0.31<br />

MA11-051 253.0 258.0 5.0 3.8 0.53<br />

MA11-052 23.0 37.0 14.0 10.6 1.35<br />

MA11-052 53.0 61.0 8.0 6.1 0.37<br />

MA11-053 35.0 45.0 10.0 7.6 0.73<br />

MA11-053 70.0 76.0 6.0 4.6 0.18<br />

MA11-053 84.0 104.0 20.0 15.2 0.54<br />

MA11-054 26.0 70.0 44.0 33.4 1.19<br />

MA11-054 79.0 120.0 41.0 31.2 0.52<br />

MA11-055 69.0 74.0 5.0 3.8 1.78<br />

MA11-055 116.0 196.0 80.0 60.8 1.46<br />

MA11-055 211.0 222.0 11.0 8.4 0.64<br />

MA11-055 246.0 277.0 31.0 23.6 2.58<br />

MA11-056 31.6 98.0 66.4 50.5 1.41<br />

MA11-056 120.0 130.0 10.0 7.6 0.59<br />

MA11-057 118.0 123.0 5.0 3.8 0.20<br />

MA11-057 146.0 158.0 12.0 9.1 0.27<br />

MA11-057 167.0 182.0 15.0 11.4 1.38<br />

MA11-057 199.0 208.0 9.0 6.8 1.51<br />

MA11-057 214.0 234.0 20.0 15.2 0.27<br />

MA11-057 250.0 294.0 44.0 33.4 1.31<br />

MA11-057 310.0 316.0 6.0 4.6 0.31<br />

MA11-057 325.0 338.0 13.0 9.9 0.55<br />

MA11-058 5.0 10.0 5.0 3.8 3.02<br />

MA11-058 17.0 28.0 11.0 8.4 0.36<br />

MA11-059 5.0 33.0 28.0 21.3 0.38<br />

MA11-059 53.0 79.4 24.0 18.2 1.20<br />

MA11-060 20.0 60.0 40.0 30.4 1.19<br />

MA11-060 87.0 92.0 5.0 3.8 1.04<br />

MA11-060 99.0 107.0 8.0 6.1 1.06<br />

MA11-060 113.0 128.0 15.0 11.4 0.46<br />

MA11-061 8.4 16.3 7.9 6.0 1.23<br />

MA11-061 41.5 50.9 9.4 7.1 0.59<br />

MA11-061 59.0 70.0 11.0 8.4 0.35<br />

MA11-061 78.0 86.0 8.0 6.1 0.36<br />

MA11-061 99.0 149.0 50.0 38.0 1.08<br />

. Final 2 November 2011 62 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-061 163.0 168.0 5.0 3.8 0.43<br />

MA11-061 184.0 192.0 8.0 6.1 2.20<br />

MA11-061 277.0 296.0 19.0 14.4 0.49<br />

MA11-061 340.0 346.0 6.0 4.6 3.18<br />

MA11-061 363.0 377.0 14.0 10.6 0.54<br />

MA11-061 383.0 388.0 5.0 3.8 0.29<br />

MA11-061 394.0 400.0 6.0 4.6 1.87<br />

MA11-062 22.0 32.0 10.0 7.6 0.46<br />

MA11-062 43.0 64.0 21.0 16.0 0.62<br />

MA11-062 73.0 85.0 12.0 9.1 0.73<br />

MA11-063 71.1 77.0 5.9 4.5 1.58<br />

MA11-063 118.0 142.0 24.0 18.2 1.08<br />

MA11-063 165.0 189.0 24.0 18.2 1.15<br />

MA11-064 9.2 27.0 17.9 13.6 0.59<br />

MA11-064 54.0 63.0 9.0 6.8 0.97<br />

MA11-064 109.0 128.0 19.0 14.4 0.73<br />

MA11-064 175.0 190.0 15.0 11.4 2.96<br />

MA11-065 45.0 77.0 32.0 24.3 0.55<br />

MA11-065 96.0 112.0 16.0 12.2 0.36<br />

MA11-065 141.0 169.0 28.0 21.3 0.33<br />

MA11-066 29.0 34.0 5.0 3.8 2.63<br />

MA11-067 0.0 0.0 0.0 0.0 0.00<br />

MA11-068 12.5 30.0 17.5 13.3 0.28<br />

MA11-068 93.0 98.0 5.0 3.8 2.04<br />

MA11-069 12.0 21.0 9.0 6.8 1.36<br />

MA11-069 47.0 59.0 12.0 9.1 0.46<br />

MA11-069 74.0 87.9 13.9 10.6 0.74<br />

MA11-069 94.0 99.0 5.0 3.8 3.19<br />

MA11-070 21.0 30.0 9.0 6.8 2.15<br />

MA11-070 43.0 54.0 11.0 8.4 1.41<br />

MA11-070 78.0 94.0 16.0 12.2 0.56<br />

MA11-071 24.0 67.0 43.0 32.7 0.46<br />

MA11-072 52.0 59.0 7.0 5.3 0.71<br />

MA11-072 97.0 102.0 5.0 3.8 0.90<br />

MA11-072 109.0 137.0 28.0 21.3 0.76<br />

MA11-073 113.0 120.0 7.0 5.3 0.23<br />

MA11-073 137.5 161.0 23.5 17.9 0.63<br />

. Final 2 November 2011 63 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-073 190.0 207.0 17.0 12.9 0.77<br />

MA11-073 219.0 226.0 7.0 5.3 0.35<br />

MA11-073 233.0 243.0 10.0 7.6 0.99<br />

MA11-073 250.0 280.0 30.0 22.8 1.80<br />

MA11-074 51.0 67.0 16.0 12.2 0.69<br />

MA11-074 116.0 148.0 32.0 24.3 0.86<br />

MA11-074 167.0 175.0 8.0 6.1 1.83<br />

MA11-075 43.0 77.0 34.0 25.8 0.66<br />

MA11-076 5.5 17.0 11.5 8.7 0.58<br />

MA11-076 41.0 52.0 11.0 8.4 0.68<br />

MA11-076 69.0 98.0 29.0 22.0 0.37<br />

MA11-076 104.0 116.0 12.0 9.1 0.42<br />

MA11-076 132.0 137.0 5.0 3.8 1.17<br />

MA11-077 70.0 76.8 6.8 5.1 0.37<br />

MA11-077 82.9 96.0 13.2 10.0 0.31<br />

MA11-077 105.0 124.0 19.0 14.4 0.33<br />

MA11-077 144.0 201.0 57.0 43.3 1.33<br />

MA11-077 261.0 271.0 10.0 7.6 0.87<br />

MA11-077 290.0 295.8 5.8 4.4 0.19<br />

MA11-078 26.0 104.0 78.0 59.3 0.94<br />

MA11-078 142.0 157.0 15.0 11.4 0.33<br />

MA11-078 166.0 181.0 15.0 11.4 0.46<br />

MA11-078 188.0 203.0 15.0 11.4 1.35<br />

MA11-078 253.0 261.0 8.0 6.1 0.41<br />

MA11-078 278.0 288.0 10.0 7.6 0.25<br />

MA11-078 323.0 336.0 13.0 9.9 0.38<br />

MA11-078 352.0 359.0 7.0 5.3 0.25<br />

MA11-078 378.0 385.0 7.0 5.3 0.83<br />

MA11-079 21.0 73.0 52.0 39.5 0.64<br />

MA11-080 14.0 50.0 36.0 27.4 1.55<br />

MA11-081 106.0 132.0 26.0 19.8 0.63<br />

MA11-081 154.0 161.0 7.0 5.3 0.29<br />

MA11-081 173.0 182.0 9.0 6.8 0.29<br />

MA11-081 203.0 221.0 18.0 13.7 2.01<br />

MA11-081 227.0 254.0 27.0 20.5 1.90<br />

MA11-081 328.0 335.0 7.0 5.3 1.78<br />

MA11-082 15.0 31.0 15.0 11.4 0.66<br />

. Final 2 November 2011 64 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-082 50.0 58.0 7.0 5.3 0.60<br />

MA11-082 119.0 146.0 25.0 19.0 0.30<br />

MA11-082 166.0 174.0 8.0 6.1 6.31<br />

MA11-082 180.0 192.0 12.0 9.1 0.55<br />

MA11-082 225.0 236.0 8.0 6.1 1.07<br />

MA11-082 311.0 320.0 9.0 6.8 1.12<br />

MA11-083 166.0 234.0 68.0 51.7 1.88<br />

MA11-083 257.0 325.0 68.0 51.7 0.69<br />

MA11-083 436.0 453.0 17.0 12.9 1.47<br />

MA11-084 25.0 57.0 32.0 24.3 0.52<br />

MA11-084 65.0 79.0 14.0 10.6 1.13<br />

MA11-084 93.0 138.0 45.0 34.2 0.78<br />

MA11-084 175.0 183.0 8.0 6.1 0.46<br />

MA11-084 205.0 211.0 5.0 3.8 0.27<br />

MA11-085 31.0 46.0 15.0 11.4 0.44<br />

MA11-086 11.0 24.0 13.0 9.9 0.65<br />

MA11-087 22.0 28.0 6.0 4.6 0.76<br />

MA11-087 66.0 71.0 5.0 3.8 0.25<br />

MA11-087 77.0 87.0 10.0 7.6 0.36<br />

MA11-088 53.0 58.0 5.0 3.8 0.44<br />

MA11-088 83.0 106.7 23.7 18.0 0.32<br />

MA11-088 121.0 129.0 8.0 6.1 0.26<br />

MA11-088 146.0 151.0 5.0 3.8 8.47<br />

MA11-088 167.3 175.0 7.7 5.9 0.83<br />

MA11-088 192.0 200.0 8.0 6.1 3.63<br />

MA11-088 237.0 247.0 10.0 7.6 0.45<br />

MA11-088 271.0 281.0 10.0 7.6 0.45<br />

MA11-089 34.0 98.0 64.0 48.6 0.66<br />

MA11-089 121.0 126.0 5.0 3.8 0.42<br />

MA11-089 139.0 155.0 16.0 12.2 1.20<br />

MA11-089 168.0 173.0 5.0 3.8 0.39<br />

MA11-089 191.3 197.0 5.7 4.3 4.11<br />

MA11-089 226.0 246.0 20.0 15.2 0.67<br />

MA11-089 260.0 269.0 9.0 6.8 0.30<br />

MA11-090 37.0 50.0 13.0 9.9 1.17<br />

MA11-090 96.0 103.0 7.0 5.3 0.41<br />

MA11-090 111.0 125.0 14.0 10.6 0.66<br />

. Final 2 November 2011 65 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-090 175.0 231.0 56.0 42.6 0.49<br />

MA11-090 241.0 247.0 6.0 4.6 1.29<br />

MA11-091 71.0 85.0 14.0 10.6 1.67<br />

MA11-091 91.0 98.0 7.0 5.3 0.46<br />

MA11-091 107.0 150.0 43.0 32.7 0.37<br />

MA11-091 158.0 166.0 8.0 6.1 0.60<br />

MA11-091 177.0 209.0 32.0 24.3 1.05<br />

MA11-091 224.0 302.0 77.0 58.5 1.14<br />

MA11-091 386.0 393.0 7.0 5.3 0.26<br />

MA11-091 413.0 420.0 7.0 5.3 0.49<br />

MA11-092 57.0 64.0 7.0 5.3 0.33<br />

MA11-092 78.0 99.0 21.0 16.0 1.10<br />

MA11-092 192.0 200.0 8.0 6.1 0.25<br />

MA11-092 207.0 213.0 6.0 4.6 1.29<br />

MA11-092 222.0 270.0 48.0 36.5 0.80<br />

MA11-092 298.0 303.0 5.0 3.8 3.73<br />

MA11-092 311.0 318.0 7.0 5.3 0.19<br />

MA11-093 18.0 42.0 24.0 18.2 0.27<br />

MA11-093 51.0 63.5 12.5 9.5 0.51<br />

MA11-093 87.0 111.0 24.0 18.2 0.50<br />

MA11-093 144.0 156.0 12.0 9.1 0.22<br />

MA11-093 239.0 254.0 15.0 11.4 7.68<br />

MA11-094 75.0 97.0 22.0 16.7 1.35<br />

MA11-094 168.0 176.0 8.0 6.1 0.78<br />

MA11-094 187.0 208.0 21.0 16.0 0.46<br />

MA11-094 218.0 227.0 9.0 6.8 0.42<br />

MA11-094 233.0 254.0 19.0 14.4 1.09<br />

MA11-094 285.0 296.0 11.0 8.4 0.79<br />

MA11-095 47.0 53.8 6.8 5.2 0.36<br />

MA11-095 59.0 76.0 17.0 12.9 0.91<br />

MA11-095 97.0 112.0 13.0 9.9 2.47<br />

MA11-095 119.0 136.0 17.0 12.9 0.61<br />

MA11-095A 53.0 74.0 18.0 13.7 0.48<br />

MA11-095A 80.0 109.0 29.0 22.0 0.53<br />

MA11-095A 120.0 142.0 22.0 16.7 0.36<br />

MA11-095A 213.0 226.0 13.0 9.9 2.08<br />

MA11-095A 275.0 287.0 12.0 9.1 0.82<br />

. Final 2 November 2011 66 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-095A 296.0 304.0 8.0 6.1 0.80<br />

MA11-095A 319.0 326.0 7.0 5.3 1.56<br />

MA11-095A 334.0 344.0 10.0 7.6 1.06<br />

MA11-095A 352.0 403.0 47.0 35.7 0.98<br />

MA11-095A 421.0 441.0 20.0 15.2 0.71<br />

MA11-096 148.0 154.0 6.0 4.6 0.33<br />

MA11-096 186.0 194.0 8.0 6.1 0.80<br />

MA11-096 221.0 235.0 14.0 10.6 0.54<br />

MA11-096 251.0 271.0 20.0 15.2 1.03<br />

MA11-096 277.0 285.0 8.0 6.1 0.36<br />

MA11-096 294.0 301.9 7.9 6.0 0.39<br />

MA11-097 12.0 17.0 5.0 3.8 0.20<br />

MA11-097 80.0 105.0 23.0 17.5 1.79<br />

MA11-098 97.0 193.0 96.0 73.0 1.06<br />

MA11-098 200.4 223.0 22.6 17.2 1.16<br />

MA11-099 57.0 69.0 12.0 9.1 0.55<br />

MA11-099 85.0 142.0 57.0 43.3 0.47<br />

MA11-099 160.0 167.0 7.0 5.3 0.32<br />

MA11-100 5.0 17.0 12.0 9.1 0.86<br />

MA11-100 32.0 52.0 20.0 15.2 0.68<br />

MA11-100 60.0 69.0 9.0 6.8 0.47<br />

MA11-100 77.0 83.0 6.0 4.6 0.32<br />

MA11-100 101.0 111.0 10.0 7.6 2.98<br />

MA11-101 10.0 32.0 21.0 16.0 0.89<br />

MA11-101 101.0 133.0 32.0 24.3 0.36<br />

MA11-101 140.0 147.0 7.0 5.3 0.43<br />

MA11-101 153.0 158.0 5.0 3.8 0.44<br />

MA11-102 78.0 109.0 31.0 23.6 4.68<br />

MA11-103 22.0 34.0 12.0 9.1 0.59<br />

MA11-103 42.0 49.0 7.0 5.3 0.60<br />

MA11-103 56.0 63.0 7.0 5.3 1.21<br />

MA11-103 74.0 82.0 8.0 6.1 0.38<br />

MA11-104 56.0 61.0 5.0 3.8 0.34<br />

MA11-104 68.0 77.0 9.0 6.8 0.45<br />

MA11-104 83.0 111.0 27.0 20.5 0.48<br />

MA11-104 144.0 154.0 10.0 7.6 0.84<br />

MA11-104 174.0 189.0 15.0 11.4 2.54<br />

. Final 2 November 2011 67 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-104 197.0 217.0 20.0 15.2 0.46<br />

MA11-104 238.0 243.0 5.0 3.8 0.20<br />

MA11-104 250.0 270.0 20.0 15.2 0.44<br />

MA11-105 22.0 34.0 12.0 9.1 1.38<br />

MA11-105 42.0 66.0 24.0 18.2 6.36<br />

MA11-105 78.0 101.0 21.0 16.0 0.41<br />

MA11-105 116.0 150.0 34.0 25.8 0.76<br />

MA11-106 17.0 32.0 15.0 11.4 0.44<br />

MA11-106 81.0 102.0 21.0 16.0 3.75<br />

MA11-106 114.0 149.0 35.0 26.6 0.91<br />

MA11-106 156.0 192.0 34.0 25.8 0.83<br />

MA11-107 8.5 22.0 13.5 10.3 0.27<br />

MA11-107 92.0 98.0 6.0 4.6 0.31<br />

MA11-107 105.0 110.0 5.0 3.8 0.67<br />

MA11-107 121.0 127.0 6.0 4.6 0.29<br />

MA11-107 167.0 174.0 7.0 5.3 0.43<br />

MA11-107 186.0 208.0 22.0 16.7 2.86<br />

MA11-107 291.0 296.0 5.0 3.8 6.23<br />

MA11-107 319.0 325.0 6.0 4.6 2.61<br />

MA11-107 336.0 357.0 20.0 15.2 1.16<br />

MA11-107 364.0 382.0 18.0 13.7 0.64<br />

MA11-107 412.7 427.0 14.3 10.9 0.39<br />

MA11-108 22.0 31.0 9.0 6.8 1.01<br />

MA11-108 40.0 49.0 7.0 5.3 2.10<br />

MA11-108 73.0 80.0 7.0 5.3 0.77<br />

MA11-108 87.0 93.0 6.0 4.6 0.23<br />

MA11-109 24.0 35.0 11.0 8.4 0.41<br />

MA11-109 50.0 55.0 5.0 3.8 0.30<br />

MA11-110 45.0 58.0 13.0 9.9 0.32<br />

MA11-110 71.0 95.0 23.0 17.5 0.58<br />

MA11-111 56.0 65.0 9.0 6.8 0.57<br />

MA11-111 82.0 90.0 8.0 6.1 0.60<br />

MA11-112 55.0 63.0 8.0 6.1 0.88<br />

MA11-112 79.0 86.0 7.0 5.3 4.02<br />

MA11-112 96.0 122.0 26.0 19.8 0.38<br />

MA11-112 138.0 146.0 8.0 6.1 0.44<br />

MA11-112 152.0 159.0 7.0 5.3 0.49<br />

. Final 2 November 2011 68 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-112 165.0 175.0 10.0 7.6 1.35<br />

MA11-112 193.0 201.0 8.0 6.1 1.13<br />

MA11-112 224.0 236.0 12.0 9.1 7.08<br />

MA11-112 246.0 265.0 19.0 14.4 0.65<br />

MA11-112 340.0 345.0 5.0 3.8 0.69<br />

MA11-113 10.0 16.0 6.0 4.6 0.23<br />

MA11-113 24.0 41.0 16.2 12.3 0.88<br />

MA11-113 55.8 73.0 17.2 13.0 0.59<br />

MA11-114 77.0 83.0 6.0 4.6 1.15<br />

MA11-114 103.0 121.0 18.0 13.7 1.01<br />

MA11-114 127.0 137.0 10.0 7.6 1.72<br />

MA11-114 173.0 180.0 7.0 5.3 0.79<br />

MA11-114 203.0 210.0 7.0 5.3 0.86<br />

MA11-115 4.0 30.0 26.0 19.8 0.54<br />

MA11-115 36.0 42.0 6.0 4.6 2.48<br />

MA11-115 51.0 59.0 8.0 6.1 0.80<br />

MA11-115 65.0 78.0 11.0 8.4 2.44<br />

MA11-116 42.0 62.0 20.0 15.2 0.39<br />

MA11-116 91.0 103.0 12.0 9.1 0.30<br />

MA11-116 112.0 122.0 10.0 7.6 0.58<br />

MA11-117 Assays pending<br />

MA11-118 108.0 123.0 15.0 11.4 0.78<br />

MA11-118 163.0 180.0 17.0 12.9 0.61<br />

MA11-118 220.0 236.0 16.0 12.2 0.78<br />

MA11-119 167.0 198.0 31.0 23.6 1.02<br />

MA11-119 204.0 219.0 13.0 9.9 0.51<br />

MA11-119 234.0 251.0 17.0 12.9 0.59<br />

MA11-119 266.0 279.0 12.0 9.1 2.72<br />

MA11-120 41.0 51.0 10.0 7.6 0.99<br />

MA11-120 75.0 99.0 24.0 18.2 0.33<br />

MA11-120 107.0 129.0 22.0 16.7 0.35<br />

MA11-120 237.0 249.0 12.0 9.1 2.10<br />

MA11-120 255.0 265.0 10.0 7.6 0.81<br />

MA11-120 271.0 305.0 34.0 25.8 0.75<br />

MA11-120 324.0 334.0 10.0 7.6 0.30<br />

MA11-120 341.0 381.0 40.0 30.4 1.12<br />

MA11-120 387.0 430.0 43.0 32.7 1.05<br />

. Final 2 November 2011 69 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-120 452.0 469.0 17.0 12.9 0.64<br />

MA11-120 488.0 505.0 17.0 12.9 0.45<br />

MA11-121 Assays pending<br />

MA11-122 268.0 302.0 33.0 25.1 0.92<br />

MA11-122 320.0 325.0 5.0 3.8 0.69<br />

MA11-122 352.0 362.0 10.0 7.6 4.14<br />

MA11-122 374.0 380.0 4.0 3.0 7.98<br />

MA11-123 126.0 147.0 21.0 16.0 0.56<br />

MA11-123 157.0 162.0 5.0 3.8 1.65<br />

MA11-123 176.0 187.0 11.0 8.4 0.45<br />

MA11-123 194.0 199.0 5.0 3.8 0.53<br />

MA11-123 251.0 269.0 18.0 13.7 0.34<br />

MA11-123 276.0 287.0 9.0 6.8 1.00<br />

MA11-123 304.0 309.0 5.0 3.8 0.48<br />

MA11-123 318.0 344.0 24.0 18.2 0.96<br />

MA11-123 351.0 369.0 17.0 12.9 0.52<br />

MA11-123 394.0 401.0 7.0 5.3 0.54<br />

MA11-123 439.0 445.0 5.0 3.8 0.85<br />

MA11-124 Assays pending<br />

MA11-125 184.0 279.0 95.0 72.2 1.45<br />

MA11-125 285.0 325.0 38.0 28.9 0.86<br />

MA11-125 342.0 360.2 18.2 13.8 17.24<br />

MA11-125 438.0 443.0 5.0 3.8 0.29<br />

MA11-126 8.0 14.0 6.0 4.6 2.92<br />

MA11-126 23.0 31.0 7.0 5.3 1.01<br />

MA11-126 37.0 87.0 49.0 37.2 1.25<br />

MA11-127 77.0 95.0 17.0 12.9 0.30<br />

MA11-127 105.0 125.0 20.0 15.2 0.81<br />

MA11-127 247.0 255.0 8.0 6.1 0.69<br />

MA11-127 272.0 278.0 6.0 4.6 0.64<br />

MA11-127 286.6 298.0 11.4 8.7 1.65<br />

MA11-127 317.0 322.0 5.0 3.8 2.61<br />

MA11-127 337.0 342.0 5.0 3.8 0.69<br />

MA11-127 350.0 360.0 8.0 6.1 1.73<br />

MA11-128 132.0 147.0 15.0 11.4 0.38<br />

MA11-128 212.0 273.0 61.0 46.4 0.41<br />

MA11-128 305.0 348.0 42.0 31.9 0.66<br />

. Final 2 November 2011 70 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Drillhole<br />

From<br />

(m)<br />

To (m)<br />

Length<br />

(m)<br />

Estimated true<br />

thickness (m)<br />

Au g/t<br />

MA11-128 379.0 392.0 13.0 9.9 0.57<br />

MA11-129 Assays pending<br />

MA11-130 Assays pending<br />

MA11-131 108.0 115.0 7.0 5.3 0.99<br />

MA11-131 121.0 127.0 6.0 4.6 0.62<br />

MA11-131 163.0 184.0 21.0 16.0 0.47<br />

MA11-131 198.0 239.0 39.0 29.6 1.10<br />

MA11-131 257.0 272.0 15.0 11.4 0.96<br />

MA11-131 284.0 300.0 16.0 12.2 0.55<br />

MA11-131 310.0 316.0 6.0 4.6 0.34<br />

MA11-131 322.0 361.0 39.0 29.6 1.06<br />

MA11-131 396.0 410.0 14.0 10.6 0.32<br />

MA11-131 417.0 434.0 17.0 12.9 0.32<br />

MA11-131 462.0 467.0 4.0 3.0 1.60<br />

10.1.4 Factors that could materially impact the accuracy and reliability of<br />

the results<br />

In the author’s opinion there are no recovery factors that would materially affect sampling.<br />

The rock mass is typically tight and recovery information indicates better than 98% core<br />

recovery in the granodiorite stock. Core recoveries can be affected in proximity to<br />

underground workings.<br />

10.1.5 Drill plan<br />

Figure 10.1 provides the location of <strong>Prodigy</strong> drillholes as at mid-September 2011. The<br />

outline of the proposed pit shown in this figure is now superseded.<br />

. Final 2 November 2011 71 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 10.1<br />

Plan view of <strong>Prodigy</strong> drillhole locations<br />

10.1.6 Examples of drill sections<br />

Figure 10.2 to Figure 10.4 illustrate representative examples of drill sections through the<br />

Magino mineral deposit. Depictions of a PEA Pit Outline in these figures are now<br />

superseded.<br />

. Final 2 November 2011 72 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 10.2<br />

Drill cross section 300SW<br />

. Final 2 November 2011 73 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 10.3<br />

Drill cross section 1375SW<br />

. Final 2 November 2011 74 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 10.4<br />

Drill cross section 1180SW<br />

. Final 2 November 2011 75 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

11 Sample preparation, analyses and security<br />

11.1 Sampling method and approach<br />

Sampling at Magino has been carried out through drill core sampling and underground<br />

channel sampling. The current database contains no verified channel sample data and<br />

therefore this sample type has not been used in the current study.<br />

The reader is referred to Section 6 History for details of pre-<strong>Prodigy</strong> sampling programs.<br />

Drill core programs have been conducted from surface and from underground during the<br />

operating mine period from 1988 to 1992. Drill core sizes have included AQ, EXT (both<br />

27 mm diameter); BQ (36.5 mm); NQ (47.6 mm); and HQ (63.5 mm).<br />

Surface drilling has included BQ, NQ and HQ coring, while underground drilling has<br />

included AQ, EXT and BQ coring.<br />

Records are incomplete for the underground drilling and some of the early surface drilling,<br />

but they indicate that underground core was either sampled whole, or split or sawn. It is<br />

assumed that 27 mm core was sampled whole, and it is reported that BQ was either<br />

sampled whole or split / sawn. Surface drill core was either split or sawn prior to sampling.<br />

Coarse grained (“nuggety”) gold mineralization is a feature of the Magino deposit.<br />

Consequently it has been noted by previous mineral resource estimators that samples of<br />

small-diameter core are likely to be unrepresentative, however no recent study has been<br />

undertaken to establish what is an acceptable minimum sample volume.<br />

In the author’s opinion, half-sawn NQ core is the minimum core diameter recommended<br />

for sampling of this deposit type. Apart from HQ coring in 2000, <strong>Gold</strong>en Goose and<br />

<strong>Prodigy</strong> have maintained this standard. Snowden recommends that <strong>Prodigy</strong> continues to<br />

re-drill certain altered zones with NQ, where earlier pre-<strong>Gold</strong>en Goose coring was BQ<br />

diameter or smaller.<br />

11.2 Sample preparation methods and quality control measures<br />

employed before dispatch of samples<br />

11.2.1 2009 - 2010 <strong>Gold</strong>en Goose program<br />

Turcotte et al (2010) describe the process as follows:<br />

The drill core sampling method and approach was established by <strong>Gold</strong>en Goose and<br />

verified by their geologist Gilles Provost, P.Geo. Turcotte et al (2010) found no<br />

indication of anything in the drilling, core handling and sampling procedures, or in the<br />

sampling methods and approach that could have had a negative impact on the<br />

reliability of the reported assay results.<br />

Drill core sections were selected for sampling and assaying based on the presence of<br />

sulphide mineralization or visible gold and quartz veins.<br />

After being examined and described (logged), the core was sampled according to an<br />

established protocol. First, the core of the selected section was cut in half with a core<br />

splitter, with one half put aside for eventual shipment to the laboratory. The second<br />

half of the core was then put back in its place in the core box and a tag bearing the<br />

same number was placed at the beginning of sawed core halves forming the selected<br />

sampled length. The metallic bowls, core splitter and work table were cleaned<br />

thoroughly before proceeding to the next sample. Each bag, after being closed and<br />

tied, was placed with about twenty (20) other samples into a larger bag for shipment.<br />

. Final 2 November 2011 76 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

<br />

Trans-Provincial Freight Carriers Ltd came to the mine site, picked up the larger bags,<br />

and shipped them to Accurassay Laboratories in Thunder Bay, Ontario.<br />

11.2.2 2010 2011 Kodiak and <strong>Prodigy</strong> program<br />

In the latter half of 2010 Kodiak identified sections of core from the 2006 drill program that<br />

had not been sampled, and undertook the following process to effect the sampling:<br />

Core that is to be sampled is first logged by the geologist and a cut line is drawn on<br />

the core, perpendicular to the dominant structural fabric.<br />

The core is cut by a Kodiak employee using a table-fed circular diamond saw into<br />

halves with one half sent for analysis and the remaining half labelled and retained in<br />

core boxes for future reference. Core cutting is supervised by the geologist logging<br />

core who ensures that a sequence of blanks, duplicates and standards is followed.<br />

Sampling occurs at 1 metre intervals, or less to account for lithological contacts.<br />

Zones of low core recovery are noted, however these are rare due to the competency<br />

of the rock mass.<br />

The half core selected for analysis is always from one side and no regard for<br />

presence of visible gold is made, in order to reduce sampling bias.<br />

The sampled half core is placed into clean, new transparent plastic sample bags with<br />

one pre-printed sample tag as laboratories have their own internal numbering system.<br />

The sample bags are rolled and sealed with staples.<br />

A metal tag is stapled in the core tray along with the meterage represented by the<br />

sample. The sample tag is also printed on the remaining sample card in the booklets<br />

and once all tags have been used the booklets are stored in the core logging facility.<br />

The sealed sample bags are placed in rice sacks in sequence for shipment to the<br />

laboratory. A copy of the sample submittal form is returned to the project<br />

geologist/project manager after being stamped by the receiving laboratory. Samples<br />

are transported by Kodiak personnel or picked up by the laboratories directly from the<br />

project. If a third party transportation company is used the number or rice sacks is<br />

accounted for and sealed with a numbered sealing tie. The number is controlled by<br />

the laboratory to ensure no tampering of the bags has occurred.<br />

The same procedures apply to the 2011 <strong>Prodigy</strong> program<br />

11.2.3 Statement<br />

Drilling programs in 2010 and 2011 were conducted under the supervision of employees<br />

of <strong>Gold</strong>en Goose, Kodiak and <strong>Prodigy</strong>. Employees of these companies undertook<br />

sampling of the core, under the supervision of staff Qualified Persons and this is normal<br />

industry practice.<br />

Gilles Provost, P.Geo. and Quentin Browne, P.Geo, were the Qualified Persons for site<br />

activities in 2010. Tom Pollock P.Geo is the Qualified Person for 2011.<br />

Following transport of half core samples to the analytical laboratory, all sample handling,<br />

reduction, splitting and analysis were conducted by independent registered companies<br />

and their employees.<br />

. Final 2 November 2011 77 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

11.3 Analytical laboratories<br />

11.3.1 Accurassay Laboratories Ltd<br />

Accurassay Laboratories Ltd is located at 1046 Gorham Street, Thunder Bay, Ontario P7B<br />

5X5. Accurassay’s methods are accredited to ISO 17025 by the Standards Council of<br />

Canada (SCC). Accurassay Laboratories is an independent, privately owned company<br />

with 30 years of experience in the mineral analysis business in Canada.<br />

11.3.2 ALS Chemex<br />

ALS Chemex is a division of ALS Laboratory Group, itself owned by the publically listed<br />

Campbell Brothers Limited company (Australia).<br />

ALS Chemex has a sample preparation facility located at 2090 Riverside Drive, Timmins,<br />

Ontario P4R 0A2. Prepared samples are shipped from Timmins to the ALS Chemex Val<br />

D’Or laboratory for analysis. The Val D’Or laboratory is located at 1324 Rue Turcotte,<br />

Québec J9P 3X6. ALS Chemex laboratories are registered to ISO 9001:2008 certification,<br />

and analytical facilities have received ISO 17025 accreditations for specific laboratory<br />

procedures.<br />

ALS Chemex commenced processing of <strong>Prodigy</strong>’s Magino samples on 21 June 2010.<br />

11.4 Sample splitting and reduction<br />

11.4.1 Accurassay Laboratories Ltd<br />

Turcotte et al (2010) describe the process as follows:<br />

Upon arrival at Accurassay Laboratories, rock samples are entered into the Laboratory<br />

Information Management System (LIMS). Samples are then dried, if necessary, and jaw<br />

crushed to approximately 8 mesh. A 250- to 500-gram subsample is taken and pulverized<br />

to 90% at 150 mesh, and then matted to ensure homogeneity. Silica sand is used to clean<br />

out the pulverizing dishes between each sample to prevent cross-contamination. The<br />

homogenized sample is then sent to the fire assay laboratory or the wet chemistry<br />

laboratory, depending on the analysis required.<br />

11.4.2 ALS Chemex<br />

Upon arrival at the Timmins sample preparation facility, samples are entered into the<br />

LIMS. The average sample weight of split drill core is 2.2 kg. After drying, samples are<br />

crushed using a Terminator jaw crusher such that 70% of material passes 2 mm. Crushed<br />

material is then riffle split and 1 kg is pulverised such that 85% of material passes 75 µm.<br />

An extra 1 kg pulp is created for every 10 th sample, for check analysis.<br />

In the year ending 30 March 2011, ALS Chemex has processed 5,843 drill core samples<br />

from Magino.<br />

. Final 2 November 2011 78 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

11.5 Analytical procedures<br />

11.5.1 Accurassay Laboratories Ltd<br />

Turcotte et al (2010) describe the process as follows:<br />

For precious metal analysis (gold, platinum, palladium, and/or rhodium), the sample is<br />

mixed with a lead-based flux and fused for one hour and fifteen minutes. A silver solution<br />

is added to each sample prior to fusion, producing a button that contains lead from the<br />

flux, the added silver and any precious metals from the sample. The button is placed in a<br />

cupelling furnace where all the lead is absorbed by the cupel, and a silver bead containing<br />

all the gold, platinum and palladium remains in the cupel. The cupel is then removed from<br />

the furnace and allowed to cool. Once the cupel is sufficiently cooled, the silver bead is<br />

placed in a labelled test tube and digested using aqua regia. The samples are bulked up<br />

with 1.0 ml of distilled de-ionized water and 1.0 ml of 1% digested lanthanum solution.<br />

The samples are allowed to cool before mixing to ensure proper homogeneity in the<br />

solution. Once the samples are settled, they are analyzed for gold, platinum and<br />

palladium using atomic absorption spectroscopy (AAS). The AAS unit is calibrated for<br />

each element using the appropriate ISO 9002 certified standards in an air-acetylene<br />

flame. The AAS results are checked by a technician, forwarded to data entry by means of<br />

electronic transfer, and a certificate produced. The Laboratory Manager checks the data,<br />

validates the certificates, and issues the results in the format requested by the client.<br />

11.5.2 ALS Chemex<br />

<strong>Gold</strong> analysis is by way of fire assay of a 30 g or 50 g pulp sub-sample. All samples are<br />

first subject to procedure AuAA23 which uses AAS. Any sample that returns grades<br />

higher than 10 g/t Au is re-assayed with a gravimetric finish, per procedure AuGRA21.<br />

Details below are sourced from ALS Chemex.<br />

Fire Assay-Gravimetric Procedure for Ore Grade Samples<br />

Gravimetric methods involve the use of balances to weigh the element of interest, either in<br />

its pure elemental form or as a chemical compound. One of the most common gravimetric<br />

determinations is that of gold and silver following a fire Assay Fusion cupellation. The<br />

precious metal bead that remains following cupellation is an alloy of silver and gold.<br />

Weighing this bead will give the total weight of silver and gold. If the bead is then treated<br />

with dilute nitric acid, it is possible to remove the silver quantitatively. The residual mass<br />

consists of pure gold which can then be weighed separately, thus allowing the silver to be<br />

determined by difference. The balances used for this purpose are microbalances capable<br />

of weighing to the nearest microgram (one millionth of a gram). Analysis of Bullion for<br />

gold, silver and base metal content is another common procedure. The classical<br />

technique for determining gold is the fire assay fusion followed by cupellation and a<br />

gravimetric finish (method codes Au-GRA21, Au-GRA22and Au-GRA24).This is still the<br />

preferred procedure for the analysis of high grade ores. There is no upper quantitative<br />

limit applied for these procedures but clients should note that the detection limit is<br />

significantly higher than for procedures that use spectroscopic measurement techniques.<br />

Fire Assay-Atomic Absorption procedures for Low to Medium Grade Ore<br />

Samples<br />

The method involves fire assay collection followed by cupellation, dissolution of the<br />

precious metal prill and a pre-concentration solvent extraction step. The final<br />

determination is by flame AAS, providing a detection limit of 5 ppb.<br />

. Final 2 November 2011 79 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

11.6 Quality control<br />

11.6.1 2009 - 2010 <strong>Gold</strong>en Goose program<br />

Turcotte et al (2010) describe the process as follows:<br />

A quality control program was present for the <strong>Gold</strong>en Goose 2009-2010 diamond drilling<br />

program on the Magino property. The objectives of the quality control program were to<br />

monitor and document the quality and integrity of the sampling procedure, sample<br />

preparation, and assaying. Using a series of quality control samples, <strong>Gold</strong>en Goose’s<br />

protocol stipulates that the entire sampling, sample preparation and assaying process be<br />

monitored and evaluated for:<br />

the integrity of field sampling and sample shipment by monitoring field blank results<br />

and sample shipment procedures;<br />

possible contamination during sample preparation or the assaying process by<br />

monitoring the results of field blank standards submitted as regular samples, and by<br />

monitoring laboratory analytical blank standard results;<br />

the suitability of crushing/splitting/pulverization sizes by measuring the precision of<br />

coarse and pulp duplicate samples; and<br />

the level of assaying accuracy by using external and internal (laboratory) certified<br />

reference standards and by assaying blind certified reference standards in each batch<br />

of samples.<br />

The laboratory inserted one (1) coarse crush duplicate sample split, selected at random,<br />

into each 10-sample sub-batch. Three (3) certified reference standards (CRMs) with<br />

different grades, all from Rocklabs in New Zealand, were used for quality control. One (1)<br />

field blank standard was prepared using “barren” rock from the project site, or other<br />

potentially “barren” material. One (1) of the three CRMs, or one (1) blank, was included in<br />

each batch of fifty (50) samples shipped by the <strong>Gold</strong>en Goose geologist.<br />

11.6.2 Accurassay Laboratories Ltd<br />

Turcotte et al (2010) describe the process as follows:<br />

Accurassay Laboratories employs an internal quality control system that tracks certified reference materials and inhouse<br />

quality assurance standards. Accurassay Laboratories uses a combination of reference materials, including<br />

reference materials purchased from CANMET, standards created in-house by Accurassay Laboratories (and tested<br />

by round robin with laboratories across Canada), and ISO-certified calibration standards purchased from suppliers.<br />

Should any of the standards fall outside the warning limits (+/- 2SD), reassays are performed on 10% of the<br />

samples analyzed in the same batch, and the reassay values are compared with the original values. If the values from<br />

the reassays match the original assays, the data is certified; if they do not match, the entire batch is reassayed.<br />

Should any of the standards fall outside the control limit (+/- 3SD), all the assay values are rejected and all<br />

samples in that batch are reassayed.<br />

11.6.3 2010 Kodiak sampling program<br />

Until September 2010, the protocol described in Section 13.5.1 continued. Since that time<br />

each batch of 20 samples included one (1) coarse reject, one (1) pulp duplicate, one (1)<br />

certified reference standard, and one (1) coarse blank.<br />

. Final 2 November 2011 80 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Should any of the standards fall outside the warning limits (+/- 2SD), reassays are<br />

performed on 10 of the samples analyzed in the same batch around the position of the<br />

standard, and the reassay values are compared with the original values. If the values<br />

from the reassays match the original assays, the data is certified; if they do not match, the<br />

entire batch is reassayed. Should any of the standards fall outside the control limit (+/-<br />

3SD), all the assay values are rejected and all samples in that batch are reassayed.<br />

11.7 <strong>Prodigy</strong> QAQC for 2011<br />

<strong>Prodigy</strong> collates and monitors all quality control data through Maxwell Geosciences Data<br />

Shed and QAQCReporter softwares on a batch basis.<br />

Results for blank and standard assays are presented below. <strong>Prodigy</strong> has advised the<br />

author that reassays have been requested for instances where certified reference<br />

standard assays fall outside of the control lines (blue).<br />

Figure 11.1<br />

<strong>Gold</strong> assays for coarse blank inserted by <strong>Prodigy</strong><br />

Figure 11.2<br />

<strong>Gold</strong> assays for standard CDN-BL-7<br />

. Final 2 November 2011 81 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 11.3<br />

<strong>Gold</strong> assays for standard CDN-GS-1F<br />

Figure 11.4<br />

<strong>Gold</strong> assays for standard CDN-GS-2E<br />

Figure 11.5<br />

<strong>Gold</strong> assays for standard CDN-GS-30B<br />

. Final 2 November 2011 82 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 11.6<br />

<strong>Gold</strong> assays for standard CDN-GS-2G<br />

Figure 11.7<br />

<strong>Gold</strong> assays for standard CDN-GS-1G<br />

Figure 11.8<br />

<strong>Gold</strong> assays for standard CDN-GS-1P5C<br />

. Final 2 November 2011 83 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 11.9<br />

<strong>Gold</strong> assays for standard CDN-GS-2E<br />

Figure 11.10<br />

<strong>Gold</strong> assays for standard CDN-GS-2G<br />

Figure 11.11<br />

<strong>Gold</strong> assays for standard CDN-GS-3G<br />

. Final 2 November 2011 84 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 11.12<br />

<strong>Gold</strong> assays for standard CDN-GS-4B<br />

Figure 11.13<br />

<strong>Gold</strong> assays for standard CDN-GS-7B<br />

Figure 11.14<br />

<strong>Gold</strong> assays for standard CDN-GS-P2<br />

. Final 2 November 2011 85 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 11.15<br />

<strong>Gold</strong> assays for standard CDN-GS-P4A<br />

Assays are performed on an extra split sample to monitor precision. Results for 30<br />

“repeats” show that precision is within acceptable limits for the grade range from 0 to 10<br />

g/t Au for 70% of samples tested. Thus far there are insufficient results for the grade<br />

range from 10 to 50 g/t Au.<br />

11.8 Specific gravity determinations<br />

On 11 April 2008, <strong>Gold</strong>en Goose received 12 specific gravity analysis determinations from<br />

Accurassay Labs of Thunder Bay, Ontario, The samples were analysed by pycnometer<br />

using pulverised core.<br />

During 2011 <strong>Prodigy</strong> has undertaken 2,268 specific gravity determinations using the<br />

immersion method at its core shed in Dubreuilville. Solid full core samples between<br />

approximately 10 cm and 15 cm in length were taken at approximately 3 metre intervals<br />

regardless of composition. Samples were weighed using a RADWAG model PS 1200/C/2<br />

digital balance. Samples were first weighed dry and then weighed in distilled de-ionised<br />

water by suspension ensuring the entire sample was submerged (Simpson 2011).<br />

As part of the QAQC program, <strong>Prodigy</strong> selected 49 samples from its dataset for specific<br />

gravity analysis checks at ALS Chemex. The check determinations indicated that<br />

<strong>Prodigy</strong>’s determinations were acceptable.<br />

11.9 Author’s opinion on 2011 sample preparation, security and<br />

analytical procedures<br />

Procedures undertaken in 2011 have been under the supervision and security of the<br />

issuer’s Qualified Persons, as far as drill core sampling prior to dispatch. Laboratory<br />

sample reduction and analytical procedures have been conducted by independent<br />

accredited companies with acceptable practices.<br />

<strong>Prodigy</strong> ensures quality control is monitored through the insertion of blanks, certified<br />

reference materials and duplicates for the on-going 2011 drill campaign.<br />

. Final 2 November 2011 86 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

12 Data verification<br />

Since the introduction of National Instrument 43-101 in 2000, the Magino drilling and<br />

sampling database has been re-compiled from first principles, updated as necessary and<br />

reported as verified by independent Qualified Persons on several occasions, as follows:<br />

2000 (Reddick, 2001b)<br />

2002 (Reddick, 2002)<br />

2004 (Burns & Reddick, 2004)<br />

2008 (Turcotte & Pelletier, 2008)<br />

2009 (Turcotte & Pelletier, 2009)<br />

The current drilling and sampling database is an update of the 2008 recompilation by<br />

Turcotte & Pelletier, with the addition of data by <strong>Prodigy</strong>. In the 2008 exercise, Turcotte &<br />

Pelletier conducted the following (excerpted from Turcotte et al (2010):<br />

The purpose of an earlier mine site visit by author Carl Pelletier in December 2007 was to<br />

conduct a general review of the site. The visit was led by Gilles Provost of <strong>Gold</strong>en Goose,<br />

field geologist for the Magino Project. Carl Pelletier reviewed some of the mineralized<br />

zones from five (5) <strong>Gold</strong>en Goose diamond drillholes. Sample tags were still present in<br />

the core boxes and it was possible to validate sample numbers and gold grades for each<br />

of the samples in the mineralized zones. Not all of the diamond drill core was stored on<br />

the mine site, and some holes were therefore not available for verification. Geological<br />

logging was generally done using the standard logging codes for the Magino mine (i.e.,<br />

the geological legend). These codes are amenable to management in a computer<br />

database.<br />

The result was coded lithological and mineralogical descriptors and brief descriptive<br />

columns. Unfortunately, the mine’s geological legend did not provide any codes for<br />

alteration, structural elements or mineralization, and the resulting level of detail is barely<br />

adequate for basic interpretation, especially in logs before 2000. Structural geology<br />

logging was also inadequate prior to 2000 (e.g., shears are observed but their orientations<br />

are consistently missing), but descriptions by geologists from 2000 to 2007 are more<br />

detailed. Many of the original paper logs and/or copies of logs are present at the Magino<br />

mine site. Paper logs for all surface and underground diamond drillholes from 1981 to<br />

2010 were available for consultation. Only partial diamond drillhole information is<br />

available before 1981 (typically location and assays). No geotechnical logging was<br />

performed, therefore none of the diamond drillhole logs have records of fracture frequency<br />

or RQD (Rock Quality Designation).<br />

The data supplied by <strong>Gold</strong>en Goose for the Magino mine were in the form of a GeoticLog<br />

and Gemcom software database. The Gemcom software database came from the<br />

<strong>Technic</strong>al Report published by Snowden Mining Industry Consultants in 2004 (Burns and<br />

Reddick, 2004).<br />

Snowden used this database to produce resource estimation work in compliance with<br />

National Instrument (NI) 43-101. The GeoticLog software database only contained data<br />

for <strong>Gold</strong>en Goose’s last diamond drillholes carried out in 2006-2010. InnovExplo<br />

transferred the GeoticLog software data into a Gemcom software database, and validated<br />

and corrected the data.<br />

. Final 2 November 2011 87 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

InnovExplo carefully reviewed the database before generating cross-sections and carrying<br />

out the Mineral Resource Estimate. The integrity of the database was checked by Bruno<br />

Turcotte and Pierre Gauthier of InnovExplo. All surface and underground diamond<br />

drillholes were retained. The drilling database consists of 1,286 diamond drillholes<br />

totalling 124,118 m. Only the 2006 to 2010 diamond drillhole casings were surveyed in<br />

the field using a Sokkia GPS.<br />

Measurement precision and position accuracies were plus or minus five centimetres (±5<br />

cm). Casings of earlier diamond drillholes were surveyed with traditional surveying<br />

equipment using the mine grid or a small GPS. Coordinates for pre-2006 surface diamond<br />

drillholes and all underground diamond drillholes are preserved as handwritten entries on<br />

summary log sheets. The data from location and orientation surveys for diamond<br />

drillholes from 1972 to 2007 were checked by Pierre Gauthier (InnovExplo) using available<br />

summary log sheets and old crosssections. Many mistakes were found and corrected by<br />

InnovExplo personnel. Generally, both tropari and acid tests were done for surface holes,<br />

but only acid tests were performed for underground holes. All drilling data are available as<br />

a computer database (Excel and Gemcom software).<br />

InnovExplo went to the Magino mine site to recover all historical information from past<br />

mining operations. Most of the information was available on paper, such as longitudinal<br />

sections, crosssections and level plans showing geological mapping and channel<br />

sampling. InnovExplo also recovered information from old back-up (Bernouilly) disks<br />

containing data from a 1991 survey of the ramp, drifts and stopes. More recent<br />

information from 1991 to 1993 was not found.<br />

All assays from the drilling database were verified by Bruno Turcotte and Pierre Gauthier<br />

of InnovExplo. In all, they reviewed 136,953 samples with assay certificates and/or log<br />

sheets. Unfortunately, there are no original assay certificates remaining for a large<br />

number of diamond drillholes, specifically between 1972 and 1991, and as such, the gold<br />

assay results are preserved only as handwritten entries on log sheets. A lot of missing<br />

assay data was found on log sheets and old drilling reports on the Ministry of Northern<br />

Development and Mines website (http://www.mndm.gov.on.ca/mines/default_e.asp).<br />

InnovExplo calculated an average gold value (g/t Au) for each sample with one or more reassays.<br />

InnovExplo used these average gold values when calculating the Mineral<br />

Resource Estimate. All assays from the drilling database are now available in a computer<br />

database (Excel and Gemcom software).<br />

InnovExplo geologists noticed that the mine grid on the old set of cross-sections was not<br />

oriented for optimum geological interpretation. Using the information on geological maps<br />

from several levels, they adjusted the direction to create a new grid and generate another<br />

set of cross-sections, which were used to produce a new geological interpretation.<br />

InnovExplo oriented these cross-sections to be as perpendicular as possible to the<br />

auriferous structures. The resulting trend for the set is N075°, with each cross-section<br />

oriented at N345°.<br />

Channel samples were taken from each development for grade control purposes. The<br />

channel sampling in drifts was mapped out on a mapping sheet. Sample locations were<br />

drawn on the sheet (scale 1’’ = 20’) with the length (feet) and gold grade (oz/t) indicated.<br />

There were no geological descriptions for the samples, and the channel sampling data<br />

were not provided in a computer database. In addition, data were not available for all<br />

levels, sub-levels and raises, although the majority of the samples were present on the<br />

mapping sheet.<br />

. Final 2 November 2011 88 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

The Gemcom software database containing old mine working data was obtained from the<br />

<strong>Technic</strong>al Report published by Snowden Mining Industry Consultants in 2004 (Burns and<br />

Reddick, 2004). This database was reviewed by Serge Morin of InnovExplo before<br />

generating the new cross-sections and carrying out the Mineral Resource Estimate.<br />

Missing data were found on old plans stored at the Magino mine site. Length data were<br />

missing for some drifts and sublevels, raises and stopes, as were numerous assay results.<br />

When missing information was found, it was added to the Gemcom software database.<br />

Unfortunately, InnovExplo was unable to find the survey data for many of the raises.<br />

Consequently, the information for many raises is not present in the Gemcom software<br />

database.<br />

Lastly, InnovExplo discovered a survey error on one back plug at the start of the ramp.<br />

This error displaces the old mine workings by about one to five m (1-5 m) in plan and<br />

elevation. Consequently, the current survey coordinates for underground drillholes are not<br />

accurate.<br />

In December 2010 the author restored the 2004 Snowden Gemcom database that is<br />

archived in Snowden’s office in Vancouver, and conducted cross-checks with the 2008<br />

InnovExplo Gemcom database and finally with the Gemcom database supplied by<br />

<strong>Prodigy</strong>.<br />

In September 2011 <strong>Prodigy</strong> provided Snowden with an updated Gemcom database, for<br />

the November Resource Estimate update. Internal validation and integrity checks were<br />

conducted on the database submitted to Snowden by <strong>Prodigy</strong>.<br />

12.1 Site verification<br />

In February and August 2011 the author visited site and inspected drill core laid out for the<br />

2011 drilling program currently underway for <strong>Prodigy</strong>. The following items were verified:<br />

Locations of drill rigs and operation, however operations were suspended due to a<br />

driller’s accident.<br />

Cross-check of <strong>Prodigy</strong> drill logs with drill core.<br />

Core handling, storage and security.<br />

Core logging process, alignment, recovery, mark-up and core sawing, sampling.<br />

Insertion of blanks, certified reference material.<br />

Core farm at the mine site where <strong>Prodigy</strong> are conducting an inventory, for subsequent<br />

re-sampling consideration.<br />

Density measurements using water displacement weighing method.<br />

Cross-check of low grade and high grade assays against alteration and visible gold in<br />

drill core.<br />

Review of drill logs and assay sheets at the mine office.<br />

The author has not undertaken a complete data verification study, however sufficient<br />

checks have been completed to satisfy the author that the Magino drilling and sampling<br />

data is suitable to use in estimating a Mineral Resource to support a preliminary economic<br />

assessment.<br />

. Final 2 November 2011 89 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

13 Mineral processing and metallurgical testing<br />

Data available for process design is sourced from metallurgical data from the historical<br />

work by Lakefield Research (Lakefield) in 1997 as part of the Prefeasibility Study for a 2.6<br />

Mtpa open pit mine and leach plant prepared by BLM Bharti Engineering Ltd. for <strong>Gold</strong>en<br />

Goose in 1997, and Kappes Cassiday & Associates (KCA) in 1999. The samples tested in<br />

Lakefield Research were taken from drill core and surface bulk samples by BLM Bharti<br />

Engineering as representative for future operations (BLM Bharti Engineering Limited,<br />

1997).<br />

In September 2011, <strong>Prodigy</strong> reported the results of metallurgical testing by G & T<br />

Metallurgical Services Ltd (“G & T”) of twenty samples from cut and halved drill core.<br />

13.1 Historic test data and reports<br />

In 1997, Lakefield conducted ore hardness, gravity concentration, column leach and bottle<br />

roll tests on a core and a surface bulk sample. The results are contained in the report, “An<br />

Investigation of the Recovery of <strong>Gold</strong> from Magino Project Samples”.<br />

In 1999, KCA conducted further column leach and bottle roll tests on a mafic volcanic<br />

sample and a granodiorite sample. The results are reported in (Kappes, Cassiday and<br />

Associates, 1999).<br />

The Lakefield work showed low levels of gravity recoverable gold. Both Lakefield and<br />

KCA reported low recoveries from column tests, hence the ore is not amenable to heap<br />

leaching but high recoveries from bottle roll tests, indicating that grind-CIL is the preferred<br />

process.<br />

13.1.1 Grindability and CIL Efficiency<br />

Lakefield conducted one standard Bond ball mill work index test on each of the core and<br />

bulk sample. The results in Table 13.1 showed similar and relatively low ore hardness for<br />

both samples, indicating relatively low grinding energy requirements.<br />

Table 13.1<br />

Grindability data<br />

Imperial<br />

Bond ball work index<br />

Metric<br />

Core sample 11.5 12.6<br />

Bulk samples 11.7 12.8<br />

The results of the direct cyanidation bottle roll tests are shown in Table 13.2 (Lakefield)<br />

and Table 13.3 (KCA).<br />

. Final 2 November 2011 90 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Table 13.2<br />

Core<br />

sample<br />

Bulk<br />

sample<br />

%-200<br />

mesh<br />

Bottle leach results<br />

Reagents, kg/t Calc. Head Residue g/t % Au Extraction<br />

NaCN CaO g/t Au Au 24 h 48 h<br />

84 0.30 0.48 1.34 0.03 85.0 97.8<br />

72 0.13 0.46 1.03 0.08 75.0 92.2<br />

60 0.13 0.50 0.95 0.07 71.0 92.6<br />

84 0.37 0.57 0.75 0.06 83.0 92.0<br />

72 0.15 0.48 0.90 0.04 81.0 95.6<br />

59 0.14 0.51 0.76 0.05 77.0 93.4<br />

(Lakefield)<br />

Table 13.3<br />

Bottle leach results – samples at minus 150 microns<br />

Reagents, kg/t Calc. Head Residue % Au Extraction<br />

NaCN CaO g/t Au g/t Au 24 h 48 h<br />

Mafic volcanics 0.49 0.76 0.73 0.05 91.9 93.2<br />

Grano-diorite 0.45 0.61 1.57 0.05 96.1 96.8<br />

(KCA)<br />

13.2 September 2011 testwork<br />

Twenty samples were submitted to G & T and ranged in feed grade from 0.07 g/t Au to<br />

5.99 g/t Au. The testing intentionally focused on lower grade material as most previous<br />

metallurgical testing was completed on higher grade samples.<br />

A total of twenty samples were subjected to the testing program; for the ten samples with<br />

feed grades greater than 0.35 g/t Au (cut off grade for the gold resource), combined<br />

gravity and cyanide gold recovery was 95% (range: 86 to 99%). Average gold recovery<br />

for all twenty samples in the test program was 92%. For the ten samples with grades less<br />

than cut off, average recovery was 89%, ranging from 63 to 99%.<br />

The twenty samples averaged about 15 kilograms in weight and were composited from cut<br />

and halved drill core. A total of 313 kilograms of core was used in the study. The samples<br />

were ground to 80 % passing 75 microns and then subject to industry standard gravity<br />

concentration. Average gold recovery in the gravity circuit was 33%. The tailings from the<br />

gravity concentration circuit were then subjected to a 48 hour cyanide bottle roll test at a<br />

targeted cyanide concentration of 250 ppm. Average cyanide consumption was 0.02<br />

kilogram/tonne (<strong>Prodigy</strong> News Release 15 September 2011).<br />

. Final 2 November 2011 91 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

14 Mineral resource estimates<br />

14.1 Summary<br />

Mineral Resource estimates for the Magino property are reported in categories of<br />

Indicated and Inferred, in accordance with the CIM Definition Standards - For Mineral<br />

Resources and Mineral Reserves (CIM Code), as follows:<br />

Table 14.1 Indicated Mineral Resource estimate – November 2011<br />

Category<br />

CIM Code<br />

Reporting<br />

cut-off<br />

grade g/t<br />

Au<br />

Density<br />

Tonnes<br />

X 1,000<br />

Grade g/t<br />

Au<br />

<strong>Gold</strong><br />

grams<br />

X 1,000<br />

<strong>Gold</strong><br />

ounces<br />

X 1,000<br />

Indicated 0.35 2.72 67,555 1.00 67,690.5 2,176.3<br />

Table 14.2 Inferred Mineral Resource estimate – November 2011<br />

Category<br />

CIM Code<br />

Reporting<br />

cut-off<br />

grade g/t<br />

Au<br />

Density<br />

Tonnes<br />

X 1,000<br />

Grade g/t<br />

Au<br />

<strong>Gold</strong><br />

grams<br />

X 1,000<br />

<strong>Gold</strong><br />

ounces<br />

X 1,000<br />

Inferred 0.35 2.72 54,242 0.99 53,537.3 1,721.2<br />

In the above Mineral Resource tables there may be inconsistences due to rounding.<br />

Estimates are rounded since the figures are not precise calculations.<br />

There are no Mineral Reserves reported in this <strong>Technic</strong>al Report. Mineral Resources are<br />

not Mineral Reserves and do not have demonstrated economic viability. There is no<br />

certainty that all or any part of the Mineral Resource will be converted into Mineral<br />

Reserve.<br />

14.2 Disclosure<br />

Mineral Resources reported in Section 14 were prepared by the W. A. Dzick, Principal<br />

Consultant, an employee of Snowden Mining Industry Consultants <strong>Inc</strong>. under the<br />

supervision of the author who is an employee of Snowden Mining Industry Consultants<br />

<strong>Inc</strong>.<br />

14.2.1 Known issues that materially affect mineral resources<br />

Snowden is not aware of any permitting, legal, title, taxation, socio-economic, and<br />

marketing or political issues that could materially affect the mineral resource estimates.<br />

There are a number of items that will require addressing by <strong>Prodigy</strong> in order to update<br />

mineral resource estimates for use in feasibility studies.<br />

These are discussed below:<br />

Lithological records, interpretation of alteration zones and vein structures<br />

The current database has incomplete and inconsistent records for lithology and alteration.<br />

A revised 3D interpretation of quartz-sericite-pyrite alteration zones and mineralised veins<br />

will be required for future mineral resource estimates.<br />

. Final 2 November 2011 92 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

The identification of seventeen (17) structural zones has allowed the deposit to be subdomained<br />

for local estimation purposes.<br />

Density measurements<br />

A tonnage factor of 2.72 gm/cc for granodiorite is used in reporting of Mineral Resource<br />

estimates. The February 2011 tonnage factor of 2.82 gm/cc used in the February 2011<br />

Resource Estimate was based on laboratory density determinations for 10 samples<br />

(Turcotte, B., and Pelletier, C., 2009). <strong>Prodigy</strong> have since made approximately 700<br />

additional determinations at site that indicate a lower tonnage factor of 2.72 for the Webb<br />

Lake stock, however the determinations require confirmation under laboratory conditions<br />

(Table 14.3).<br />

Table 14.3<br />

<strong>Prodigy</strong> density data<br />

Lithology # Samples Average SG Value<br />

Mafic meta-volcanics 68 2.81<br />

Intermediate meta-volcanics 34 2.78<br />

Chemical meta-sediments 23 3.03<br />

Synvolcanic Felsic to<br />

Intermediate Intrusive<br />

Felsic to Intermediate<br />

Intrusive<br />

513 2.71<br />

5 2.71<br />

Mafic Intrusive 12 2.81<br />

Diabase Dyke 60 3.01<br />

Quartz Vein 1 2.64<br />

Historical data<br />

There are uncertainties in respect of pre-<strong>Gold</strong>en Goose historical data that remain<br />

unverifiable (Section 6 History). The current estimates have not incorporated any of the<br />

sample grades from underground channel and core drilling of less than 50 metres, as<br />

these sample groups have a potential bias. The potential for bias exists because<br />

descriptions of mine laboratory sample preparation and quality control methods in the<br />

period 1988 to 1992 do not conform to current industry standards and the small diameter<br />

core samples obtained from underground drilling would appear to be unrepresentative as<br />

well.<br />

A comparison was made between underground drillholes less than 50 metres total length<br />

and greater than 50 metres total length and surface drillhole assay data after compositing<br />

to 5 m intervals (Figure 14.1) and (Figure 14.2) The data was declustered within a region<br />

measuring 650 mE by 600 mN, and occurring within 295 m and 165 m relative elevations.<br />

The study indicated that the less than 50 metre total length underground drilled<br />

composites were approximately 30% higher in grade than the surface drilled composites<br />

and the greater than 50 metre total length underground drilled composites exhibited much<br />

less potential bias (Dzick 2011).<br />

. Final 2 November 2011 93 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 14.1<br />

Comparison of declustered composites – surface drilling vs underground<br />

drilling less than 50 metres total length<br />

. Final 2 November 2011 94 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 14.2<br />

Comparison of declustered composites – surface drilling vs underground<br />

drilling greater than 50 metres total length<br />

The lithological information from underground core drill logs, however is relevant and was<br />

used for geological interpretation.<br />

Many historic (predating <strong>Gold</strong>en Goose) surface drillholes with adequate core diameter<br />

remain in the database and are incorporated into the Mineral Resource estimates.<br />

Intervals from these holes have been subjected to re-sampling and assaying, however this<br />

task is incomplete. <strong>Prodigy</strong> has embarked on an in-fill drilling and sampling program and it<br />

is expected that much of the historic assay information will be superseded for use in<br />

subsequent feasibility studies.<br />

Prior resource estimates for Magino have included a component of the Measured<br />

category. No Measured resources are currently categorised by the author to reflect the<br />

uncertainties described above.<br />

14.3 Assumptions, methods and parameters<br />

The estimates were prepared in the following steps:<br />

. Final 2 November 2011 95 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Data validation. This is described in Section 12 Data Verification.<br />

Data preparation – this and subsequent steps are summarised below.<br />

Exploratory data analysis of gold data.<br />

Geological interpretation and modelling.<br />

Establishment of block models.<br />

Compositing of assay intervals.<br />

Consideration of grade outliers.<br />

Variogram analysis.<br />

Derivation of kriging plan.<br />

Grade interpolation of gold values.<br />

Deduction for prior mined volume.<br />

Classification of estimates with respect to CIM Definition Standards.<br />

Resource tabulation and resource reporting.<br />

14.3.1 Data provided<br />

<strong>Prodigy</strong> has focused its geological and resource evaluation program on assessment of the<br />

wide zones of quartz-pyrite-sericite altered granodiorite that host the former underground<br />

mine workings at Magino. Throughout 2011 <strong>Prodigy</strong> has re-logged existing core, taken<br />

samples of previously intact core to provide fuller coverage of sampling throughout the<br />

alteration zones, and updated the drillhole and sample database accordingly to ensure<br />

consistency.<br />

For the purpose of this report, specific areas of the deposit were identified as uniquely<br />

similar in alteration, mineralization, structure as well as level of dissemination vs. narrow<br />

high grade mineralization. Seventeen (17) individual 3D solid domains were created<br />

utilizing lithology, sericite alteration, foliation information and assay information obtained<br />

from the 2011 drill campaign. <strong>Prodigy</strong> geologists believe these interpretations are<br />

accurately identifying areas in the deposit which contain similar style mineralization, in<br />

particular the NE zone, The Central zone and the Southwest zone. Zones were created in<br />

Gemcom drawing rings in 25 m spaced cross sections and then connecting those rings to<br />

create 3D solids. The zones were more readily identified where more information was<br />

available from the current drilling campaign. Extension of these zones was carried across<br />

historic drilling information by utilizing grade to identify continuation of the interpreted<br />

zone. Detailed alteration modelling was not possible due to the lack of digitized data from<br />

historic drilling.<br />

The database used by the author contains 512 surface diamond drillholes (for a total of<br />

103,491 m; average length 202 m) and 980 underground diamond drillholes (for a total of<br />

60,345 m; average length 62 m) (Figure 14.3 and Figure 14.4).<br />

. Final 2 November 2011 96 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Ninety-four surface drillholes were completed in the period from 1997 to 2010 and<br />

comprise HQ and NQ diameter core. All underground drillholes were completed in the<br />

period 1984 to 1991 and are dominated by AQ diameter core with some BQ diameter<br />

core, clearly clustered around the underground workings and, in some cases subsequently<br />

stoped out. Since the sample volumes of the short underground drill cores are markedly<br />

less than the surface and longer underground drill cores, the author elected to use only<br />

the assays from the surface and longer underground drillholes in the grade estimates.<br />

The underground diamond drillholes retained for the resource estimates comprised 484<br />

drillholes for a total of 48,896 m, average length 100 m. Assay information from all the<br />

underground drill cores however was used to develop the geological interpretation through<br />

a categorical indicator method.<br />

<strong>Prodigy</strong> also provided geological interpretations in the form of wireframes for the major<br />

rock units at Magino, as follows:<br />

Overburden<br />

Webb Lake granodiorite stock, and internal synvolcanic felsic and intermediate sills<br />

Late stage diabase dyke<br />

Wireframes for the surface topography and underground mining areas were also provided.<br />

Figure 14.3<br />

Distribution of underground drillholes<br />

N<br />

. Final 2 November 2011 97 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Figure 14.4<br />

Distribution of surface drillholes<br />

14.3.2 Geological interpretation and modelling<br />

The area of interest covers 1,350 m parallel to the Goudreau deformation zone. The<br />

075 degree trending Webb Lake grandiorite stock and the alteration zones that aggregate<br />

up to 300 m width, dip steeply to depths of up to 600 m. At Magino the Webb Lake stock<br />

is covered by up to 30 m thickness of fluvio-glacial material. The felsic and mafic volcanic<br />

country rock surrounding the stock does contain examples of low grade mineralization<br />

encountered by drilling, however the main focus remains the broad low-grade alteration<br />

zones. A late stage diabase dyke transects the stock.<br />

14.3.3 Compositing of assay intervals<br />

The dominant sample interval is 1 metre. A 5 metre composite length interval was applied<br />

for compositing underground and surface cored drillholes used for resource estimation.<br />

Unsampled intervals within the mineralized zones were assigned a zero grade during the<br />

compositing process.<br />

Basic statistics for gold composites are presented in Table 14.4 and Figure 14.5. Basic<br />

statistics for the composites located within the mineralized zones as modelled in Section<br />

14.3.3 are presented in Table 14.5 and Figure 14.6.<br />

This sub-set was subsequently used for grade estimation.<br />

. Final 2 November 2011 98 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Table 14.4<br />

Statistics for all 5 m composites<br />

Number of<br />

samples<br />

Min<br />

g/t<br />

Au<br />

Max g/t<br />

Au<br />

Mean<br />

g/t<br />

Au<br />

CV<br />

28,342 0.0 355.83 0.74 4.24<br />

Distribution<br />

g/t Au<br />

10% 0.02<br />

20% 0.06<br />

30% 0.10<br />

40% 0.16<br />

50% 0.23<br />

60% 0.34<br />

70% 0.50<br />

80% 0.77<br />

90% 1.45<br />

95% 2.73<br />

97.5% 4.93<br />

99% 10.11<br />

Figure 14.5<br />

Log histogram of all 5 m composites<br />

. Final 2 November 2011 99 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Table 14.5<br />

Statistics for mineralized composites<br />

Number of<br />

samples<br />

Min<br />

g/t<br />

Au<br />

Max g/t<br />

Au<br />

Mean<br />

g/t<br />

Au<br />

CV<br />

23,900 0.0 355.8 0.82 4.03<br />

Distribution<br />

g/t Au<br />

10% 0.04<br />

20% 0.09<br />

30% 0.15<br />

40% 0.20<br />

50% 0.29<br />

60% 0.39<br />

70% 0.57<br />

80% 0.87<br />

90% 1.65<br />

95% 3.10<br />

97.5% 5.60<br />

99% 11.47<br />

Figure 14.6<br />

Log histogram of 5 m gold composites for mineralized zones<br />

. Final 2 November 2011 100 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

14.3.4 Consideration of grade outliers and estimation method<br />

Assay populations from gold deposits are generally skewed and contain high grade<br />

outliers that can introduce bias to mineral resource estimates. Estimation practice is to<br />

use grade caps or top cuts when using estimation methods such as inverse distance<br />

weighting or ordinary kriging.<br />

In the Magino case, the zones of mineralization are characterized by mixing of background<br />

low grade disseminated regions and higher grade vein styles (Figure 14.7). The author<br />

elected to use a distance grade capping strategy to address the mixed grade populations<br />

and grade outliers.<br />

The impact of high gold grade outliers was controlled by using restricted search<br />

dimensions; a combination of “sample per hole” restrictions; octant search and maximum<br />

distance extrapolation restrictions for grades above 22 g/t Au. Grades were not capped<br />

further.<br />

Figure 14.7<br />

Log probability plot indicating mixed populations<br />

14.3.5 Variogram analysis<br />

Grade continuity across each structural domain was investigated using variogram analysis<br />

in Snowden’s Supervisor software. Experimental variograms were modelled for each of<br />

the 17 structural domains and the granodiorite stock. For the few domains that lacked<br />

sample density for meaningful variography the granodiorite results were used. The<br />

spherical model parameters that were fitted to the variograms are provided in Table 14.6.<br />

. Final 2 November 2011 101 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Table 14.6<br />

Variography by domain<br />

Domain<br />

Component<br />

– increment<br />

Angle 1<br />

X<br />

rotation<br />

Angle 2<br />

Y<br />

rotation<br />

Angle 3<br />

Z<br />

rotation<br />

Range<br />

1 (m)<br />

Range<br />

2 (m)<br />

Range<br />

3 (m)<br />

C0 – 0.66<br />

- - -<br />

llsh1<br />

C1 – 0.32 26.5 -17 -169.5 80 100 50<br />

C2 – 0.03 300 300 100<br />

C0 – 0.66<br />

- - -<br />

llsh2<br />

C1 – 0.32 26.5 -17 -169.5 80 100 50<br />

C2 – 0.03 300 300 100<br />

C0 – 0.69<br />

- - -<br />

bend<br />

C1 – 0.29 -30 0 114 21.5 14.5 22.5<br />

C2 – 0.02 114 151 155<br />

C0 – 0.42<br />

- - -<br />

c1<br />

C1 – 0.44 0 90 -90 20 18 16<br />

C2 – 0.13 183 480 187<br />

C0 – 0.85<br />

- - -<br />

c2<br />

C1 – 0.14 39.5 22.5 134 19.5 30 31<br />

C2 – 0.01 82 83.5 53<br />

C0 – 0.84<br />

- - -<br />

n<br />

C1 – 0.10 80 -44 -104 80.5 22.5 15<br />

C2 – 0.06 126.5 115.5 233<br />

C0 – 0.84<br />

- - -<br />

n1<br />

C1 – 0.10 80 -44 -104 81 23 15<br />

C2 – 0.06 127 116 233<br />

C0 – 0.81<br />

- - -<br />

nc<br />

C1 – 0.14 10 -14 69 33 23 36<br />

C2 – 0.04 250 187 298<br />

C0 – 0.66<br />

- - -<br />

nc1<br />

C1 – 0.32 26.5 -17 -169.5 80 100 50<br />

C2 – 0.03 300 300 100<br />

. Final 2 November 2011 102 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Domain<br />

Component<br />

– increment<br />

Angle 1<br />

X<br />

rotation<br />

Angle 2<br />

Y<br />

rotation<br />

Angle 3<br />

Z<br />

rotation<br />

Range<br />

1 (m)<br />

Range<br />

2 (m)<br />

Range<br />

3 (m)<br />

C0 – 0.66<br />

- - -<br />

nc2<br />

C1 – 0.32 26.5 -17 -169.5 80 100 50<br />

C2 – 0.03 300 300 100<br />

C0 – 0.66<br />

- - -<br />

ne<br />

C1 – 0.26 59.5 -19 -106 31 73.5 24<br />

C2 – 0.08 146 250 157<br />

C0 – 0.66<br />

- - -<br />

rich<br />

C1 – 0.32 26.5 -17 -169.5 80 100 50<br />

C2 – 0.03 300 300 100<br />

C0 – 0.42<br />

- - -<br />

se<br />

C1 – 0.53 60 -5 19 12.5 6.5 17.5<br />

C2 – 0.05 203 34 158<br />

C0 – 0.78<br />

- - -<br />

sw<br />

C1 – 0.19 174 26 24 42.5 54 35.5<br />

C2 – 0.04 488.5 278.5 239.5<br />

C0 – 0.66<br />

- - -<br />

sw1<br />

C1 – 0.32 26.5 -17 -169.5 80 100 50<br />

C2 – 0.03 300 300 100<br />

C0 – 0.73<br />

- - -<br />

sw2<br />

C1 – 0.24 155 -10 -2 14.5 20 16<br />

C2 – 0.03 83 86.5 203<br />

C0 – 0.36<br />

- - -<br />

sw3<br />

C1 – 0.49 357 -13 59 7 8 8<br />

C2 – 0.15 163.5 71.5 198.5<br />

14.3.6 Establishment of block models<br />

A Vulcan bmf Project block model with cell dimensions of 10m (X) 10m (Y) 5m (Z) was<br />

coded to reflect the surface topography, base of overburden, Webb Lake granodiorite<br />

contacts, late stage diabase dyke, and the 17 domain solids.<br />

. Final 2 November 2011 103 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

14.3.7 Grade interpolation parameters<br />

<strong>Gold</strong> grades were interpolated from 5m length-weighted un-cut composites into the<br />

domain solids by ordinary kriging, using parameters established from the variographic<br />

analyses (Table 14.6).<br />

The interpolation was controlled by:<br />

Minimum / maximum numbers of composites: set to 3 / 20 per block<br />

Discretisation: 2 x 2 x 1<br />

Octant search type<br />

Maximum samples per octant: 4<br />

Minimum number of octants: 2<br />

Maximum number of composites per hole: 2<br />

High yield limit threshold value: 22 g/t Au<br />

High yield limit ellipse: 60 m x 12.5 m x 35 m<br />

Search ellipse: 170 m x 25 m x 120 m<br />

14.3.8 Density assignment<br />

Density factor of 2.72 was assigned to all blocks, based upon approximately 2,300 specific<br />

gravity determinations.<br />

14.3.9 Prior mining<br />

A 3D wireframe model of the underground development and stopes was stored as percent<br />

volumes in the block model to ensure that the reported mineral resource estimates are<br />

depleted for prior mining.<br />

14.3.10 Resource classification<br />

The resource classification definitions used for this estimate are those published by the<br />

Canadian Institute of Mining, Metallurgy and Petroleum in their document “CIM Definition<br />

Standards”.<br />

Measured Mineral Resource: that part of a Mineral Resource for which quantity, grade or<br />

quality, densities, shape, physical characteristics are so well established that they can be<br />

estimated with confidence sufficient to allow the appropriate application of technical and<br />

economic parameters, to support production planning and evaluation of the economic<br />

viability of the deposit. The estimate is based on detailed and reliable exploration,<br />

sampling and testing information gathered through appropriate techniques from locations<br />

such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough<br />

to confirm both geological and grade continuity.<br />

Indicated Mineral Resource: that part of a Mineral Resource for which quantity, grade or<br />

quality, densities, shape and physical characteristics can be estimated with a level of<br />

confidence sufficient to allow the appropriate application of technical and economic<br />

parameters, to support mine planning and evaluation of the economic viability of the<br />

deposit. The estimate is based on detailed and reliable exploration and testing information<br />

gathered through appropriate techniques from locations such as outcrops, trenches, pits,<br />

workings and drill holes that are spaced closely enough for geological and grade continuity<br />

to be reasonably assumed.<br />

. Final 2 November 2011 104 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Inferred Mineral Resource: that part of a Mineral Resource for which quantity and grade<br />

or quality can be estimated on the basis of geological evidence and limited sampling and<br />

reasonably assumed, but not verified, geological and grade continuity. The estimate is<br />

based on limited information and sampling gathered through appropriate techniques from<br />

locations such as outcrops, trenches, pits, workings and drill holes.<br />

In order to identify those blocks in the Vulcan block model that could reasonably be<br />

considered as a Mineral Resource, the block model was filtered by a conceptual pit shell<br />

wireframe. A conceptual pit shell was developed using Whittle software in order to identify<br />

those parts of the block model that have reasonable prospects for eventual economic<br />

extraction. Parameters used were: 52º (overall pit slope); $1.25 /t mining cost; $1500 per<br />

oz gold price; 95% process recovery; $7 /t process cost.<br />

The blocks occurring within the conceptual pit shell were classified as either Indicated or<br />

Inferred. Mineralised blocks lying outside the pit shell are too low grade and lack<br />

geological continuity to be considered as part of a Mineral Resource estimate.<br />

After considering the distribution of composites in the deeper parts of the pit shell through<br />

the examination of geostatistical parameters from the kriging system, the author<br />

constructed a Vulcan solid for classification purposes. An Inferred Classification applies to<br />

all blocks in the Mineral Resource that lie beyond depths of 150 m but within the limit of<br />

the conceptual pit shell.<br />

Above 150 m, resource blocks that lie within the search ellipse and have been estimated<br />

by at least 12 samples have been classified as Indicated Resource blocks. The author<br />

has not classified any Measured blocks after considering the uncertainty in geological<br />

interpretation; the high nugget environment; short ranges of gold grade continuity; use of<br />

assigned densities and the current drill spacing.<br />

14.3.11 Resource reporting<br />

The Mineral Resource estimates are reported for a range of cut-off grades in Table 14.7<br />

and Table 14.8. A gold cut-off grade of 0.35 g/t Au for mineral resource reporting is<br />

recommended as it reflects the parameters used in the pit shell construction and is<br />

reasonable, given that there are existing open pit operations in similar geological terranes<br />

in Québec that are currently reported at cut-off grades of 0.30 to 0.32 g/t Au.<br />

Table 14.7<br />

Indicated mineral resource reported for a range of cut-off grades<br />

Reporting cut-off grade<br />

g/t Au<br />

Tonnes<br />

X 1,000<br />

Grade g/t Au<br />

<strong>Gold</strong> grams<br />

X 1,000<br />

<strong>Gold</strong> ounces<br />

X 1,000<br />

2.00 5,562 3.36 18,704.5 601.3<br />

1.50 10,345 2.60 26,928.0 865.7<br />

1.00 20,779 1.91 39,603.9 1,273.3<br />

0.75 31,730 1.55 49,086.0 1,578.2<br />

0.50 50,056 1.21 60,367.0 1,940.8<br />

0.35 67,555 1.00 67,690.0 2,420.8<br />

. Final 2 November 2011 105 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Table 14.8<br />

Inferred resource reported for a range of cut-off grades<br />

Reporting cut-off grade<br />

g/t Au<br />

Tonnes<br />

X 1,000<br />

Grade g/t Au<br />

<strong>Gold</strong> grams<br />

X 1,000<br />

<strong>Gold</strong> ounces<br />

X 1,000<br />

2.00 4,272 3.47 14,834.8 476.9<br />

1.50 7,345 2.74 20,096.3 646.1<br />

1.00 15,897 1.91 30,411.8 977.7<br />

0.75 25,072 1.53 38,335.5 1232.5<br />

0.50 40,464 1.10 47,747.9 1535.1<br />

0.35 54,242 0.99 53,537.3 1721.2<br />

. Final 2 November 2011 106 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

15 Adjacent properties<br />

There is no information on adjacent properties for inclusion in this report.<br />

. Final 2 November 2011 107 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

16 Other relevant data and information<br />

There is no other relevant data and information for inclusion in this report.<br />

. Final 2 November 2011 108 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

17 Interpretation and conclusions<br />

An updated Mineral Resource estimate has been prepared for <strong>Prodigy</strong>’s Magino gold<br />

property located near Wawa in Ontario. The Indicated and Inferred estimates are<br />

intended for use to update a preliminary economic assessment of an open pit mining<br />

scenario.<br />

In the process of preparing the estimates, it was concluded that:<br />

The supplied database included 512 surface diamond drillholes (total of 103,491m)<br />

and 980 underground diamond drillholes (for a total of 60,345 m). Of the underground<br />

drillholes, the author elected to use only assays in the grade estimates from the longer<br />

drillholes and these amounted to 484 drillholes for a total of 48,896 m.<br />

All underground drillholes were completed in the period 1984 to 1991 and are<br />

dominated by narrow AQ diameter core with some BQ diameter core, clearly clustered<br />

around the underground workings as expected and, in some cases subsequently<br />

stoped out. Most underground core was sampled in its entirety. Sample volumes of<br />

the underground drill cores are markedly less than the surface drill cores and are<br />

likely unrepresentative given the incidence of coarse gold. Assays of underground<br />

core were performed at the mine laboratory during operations in the period 1987 to<br />

1991, and are unverifiable. Comparisons of underground core assays with surface<br />

core assays indicate a potential bias. Subsequent analysis allowed the exclusion of<br />

that set of underground drill cores which exhibited the most potential bias.<br />

Ninety-four (94) surface drillholes were completed in the period from 1997 to 2010<br />

and comprise HQ and NQ diameter core. Intervals from these holes have been<br />

subjected to re-sampling and assaying, however this task is incomplete. <strong>Prodigy</strong> has<br />

embarked on an in-fill drilling and sampling program and it is expected that much of<br />

the historic assay information will be superseded for use in subsequent mineral<br />

resource estimates.<br />

The geological interpretation used in the resource estimates will require updating to<br />

better reflect the distribution of quartz-sericite-pyrite zones and mineralised veins.<br />

The mineralized zones were geologically interpreted as structural domains and<br />

modelled as 3D solids using GEMS software. Blocks within these domains were<br />

estimated using ordinary kriging of 5 m composites.<br />

The Mineral Resource estimates were generated using Ordinary Kriging in Vulcan<br />

software. Search restrictions were applied to reduce the impact of high grade<br />

composites.<br />

The resource reporting was constrained by a conceptual pit shell to identify those<br />

regions of the model that have reasonable prospects for economic extraction.<br />

Eventual drill spacing of 25 m or less, confirmed through statistical analysis in a drill<br />

hole spacing study, should be considered for categorisation of Measured Mineral<br />

Resource estimates, and a bulk sampling program completed to validate this<br />

category.<br />

. Final 2 November 2011 109 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

18 Recommendations<br />

The author makes the following recommendations:<br />

Continue an in-fill drilling and sampling program so that all of the historic assay<br />

information can be replaced for use in subsequent mineral resource estimates. It will<br />

be possible to re-sample existing core and to ensure QAQC programs are in place,<br />

thus making use of the available historic core.<br />

Update the drillhole and sample database with consistent lithogical, alteration and<br />

structural records for historic data where possible.<br />

Complete a new series of 3D interpretations to map the distribution of quartz-sericitepyrite<br />

alteration and veins. Consider multi-element assays to assist in<br />

characterization of alteration zones and geological interpretation.<br />

Use the current resource block model for an update of the preliminary economic<br />

assessment reported in March 2011.<br />

Compile exploration data for the Gould property and develop a budget and schedule<br />

for an exploration program.<br />

Review and update current domain solids to ensure all mineralized rock is captured<br />

within a domain.<br />

. Final 2 November 2011 110 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

19 References<br />

AMEC Earth & Environmental Ltd, 2002. Reference TC630.01, Magino Mine Tailings<br />

Containment Area, Dam Safety Inspection 2002. Magino Mine, Wawa, Ontario,<br />

November 2002.<br />

Arias, Z. G., and Heather, K. B., 1987. Regional structural geology related to gold<br />

mineralization in Goudreau-Lochalsh area, District of Algoma; in Summary of Field Work<br />

and Other Activities 1987, Ontario Geological Survey, Miscellaneous Paper 137, pages<br />

146-154.<br />

Arias, Z., and Helmstaedt, H., 1990. Structural evolution of the Michipicoten (Wawa)<br />

greenstone belt, Superior Province; in Geoscience research Program, Summary of<br />

Research 1989-1990; Ontario Geological Survey, Miscellaneous Paper 150, pages<br />

107-114.<br />

Attoh, K., 1981. Pre- and Post-Doré sequences in the Wawa volcanic belt, Ontario; in<br />

Current Research, Part B; Geological Survey of Canada, Paper 81-1B, pages 49-54.<br />

Ayres, L. D., 1969. Geology of Townships 31 and 30, Ranges 20 and 19; Ontario<br />

Department Mines, G.R-69, 100 pages.<br />

Ayres, L. D., 1983. Bimodal volcanism in Archean greenstone belts exemplified<br />

greywacke composition, Lake Superior Park, Ontario; Canadian Journal of Earth<br />

Sciences, v. 20, p. 1168-1194.<br />

BLM Bharti Engineering Limited, 1996. Magino Mine Study (“Revised”), Internal Report.<br />

<strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

BLM Bharti Engineering Limited, 1997. Preliminary Feasibility Study for a 2.6M tpa Open<br />

Pit Mine and Leach Plant, Magino <strong>Gold</strong> Project, Dubreuilville, Ontario, Internal Report,<br />

<strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

Bloom, L., 2009. Memo from ASL to <strong>Gold</strong>en Goose Resources “Preliminary comments on<br />

the Magino project re-assay program”. Internal Report, <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. 9<br />

pages.<br />

Bourne, D. A., 1984. An evaluation of the Magino <strong>Gold</strong> Mine, Goudreau-Lochalsh area,<br />

Ontario. Report presented to Prophet Resources Ltd and June Resources <strong>Inc</strong>. Donald A.<br />

Bourne, B.Sc., M. Sc., P. Eng. Consulting Geologist. Internal Report. 28 pages.<br />

Bourne, D. A., Botsford, J. N., and Ross, M., 1987. Report on the Magino <strong>Gold</strong> Project.<br />

Commissioned by Muscocho Explorations Ltd. Report presented to Muscocho<br />

Explorations Ltd and McNellen Resources <strong>Inc</strong>. Internal Report. 172 pages.<br />

Bourne, D.A., Mongeau, J. R., Seeber, O. A., Wade, J., and Wilson, B. H., 1983. The<br />

Magino Mine <strong>Technic</strong>al and Economic Study. 96 pages. (Assessment File Research<br />

Imaging AFRI file No. 42C08SW0235 on Ministery of Northern Development and Mines<br />

website)<br />

Buchan, K. L., and Ernst, R. E., 2004. Diabase dyke swarms and related units in Canada<br />

and adjacent regions (with accompanying notes): Geological Survey of Canada, Map<br />

2022A, 1:5,000,000.<br />

Burns, N. R., and Reddick, J., 2004. <strong>Technic</strong>al Report Magino Property, Wawa, Ontario,<br />

Canada. Report presented to <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Report prepared by<br />

Snowden Mining Industry Consultants. Report published on SEDAR website dated 6<br />

April, 2004, 43 pages.<br />

. Final 2 November 2011 111 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Card, K. D. and Ciesielski, A. 1986. DNAG #1. Subdivisions of the Superior province of<br />

the Canadian Shield. Geoscience Canada 13. p. 5-13.<br />

Card, K. D., and Poulsen, K. H., 1998. Geology and mineral deposits of the Superior<br />

Province of the Canadian Shield; Chapter 2 in Geology of the Precambrian Superior and<br />

Grenville Provinces and Precambrian Fossils in North America, (co-ord.) S. Lucas;<br />

Geological Survey of Canada, Geology of Canada, no. 7, pages 12-194.<br />

Corfu, F., and Sage, R. P., 1992. U-Pb constraints for deposition of clastic<br />

metasedimentary rocks and late-tectonic plutonism, Michipicoten belt, Superior Province;<br />

Canadian Journal of Earth Sciences, v. 29, pages 1640-1651.<br />

Corfu, F., and Stott, G. M., 1986. U-Pb ages for late magmatism and regional deformation<br />

in the Shebandowan belt, Superior Province, Canada. Canadian Journal of Earth<br />

Sciences, v. 35, pages 1075-1082.<br />

Davis, D. W., and Lin, S., 2003. Unravelling the geologic history of the Hemlo Archean<br />

gold deposit, Superior Province, Canada: A U-Pb geochronological study. Economic<br />

Geology, v. 98, pages 51-67.<br />

Deevy, A. J., 1992. Magino, The making of a mine. Muscocho Explorations Ltd. Internal<br />

Report. 28 pages.<br />

Deevy, A. J., 1994. Magino, The making of a Mine. Exploration and Mining Geology, vol.<br />

3, No. 1 pages 45-51.<br />

Dubé, B. and Gosselin, P., 2007. Greenstone-Hosted Quartz-Carbonate Vein Deposits.<br />

In Goodfellow, W. D., ed. Mineral Deposits of Canada: A Synthesis of Major<br />

Deposit-Types, District Metallogeny, the Evolution of Geological Provinces, and<br />

Exploration Methods. Geological Association of Canada, Mineral Deposits Division,<br />

Special Publication No. 5. p. 49-73.<br />

Dubé, B., O’Brien, S., and Dunning, G. R., 2001. <strong>Gold</strong> deposits in deformed terranes:<br />

examples of epithermal and quartz-carbonate shear-zone-related gold systems in the<br />

Newfoundland Appalachians and their implications for exploration. In North Atlantic<br />

Symposium, St-John’s, NF, Canada. Extended abstracts volume, 27-30 May, 2001.<br />

p. 31-35.<br />

Dyck, D. and Bleiker, D. 2003. Closure Plan – Amendment No. 1 – <strong>Gold</strong>en Goose<br />

Resources <strong>Inc</strong>., Magino Mine Site. Prepared by AMEC Earth & Environmental Limited<br />

(TC630.01). February 2003. 22 pages, appendices and plan.<br />

Dzick, W., 2011. Report on Magino Drillhole Analysis. Comparison of drill sampling<br />

campaigns – Magino <strong>Gold</strong> Project, Ontario, Canada. Snowden Mining Consultants.<br />

Internal Report. 20 pages.<br />

Goodwin, A. M., 1962. Structure, stratigraphy and iron formation, Michipicoten area,<br />

Algoma District, Ontario, Canada; Geological Society of America Bulletin, v. 73, pages<br />

561-586.<br />

Goodwin, A. M., Ambrose, J. W., Ayers, L. D., Clifford, P. M., Currie, K. L., Ermanovics, I.<br />

M., Fahrig, W. F., Gibb, R. A., Hall, D. H., Innes, M. J. S., Irvine, T. N., MacLaren, A. S.,<br />

Norris, A. W., Pettijohn, F. J., and Ridler, P. H., 1972. The Superior Province. In:<br />

Variations in Tectonic Style in Canada, (eds.) R. A. Price and R. W. Douglas; Geological<br />

Association of Canada, Special Paper 11, pages 528-623.<br />

. Final 2 November 2011 112 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Hall, D., Williston, C., and Legault, J. M., 1997. Regarding the Induced Polarization<br />

Surveys over the Magino Mine Project, Finan Township, Ontario on behalf of <strong>Gold</strong>en<br />

Goose Resources <strong>Inc</strong>. Report prepared by Quantec Consulting <strong>Inc</strong>. Internal Report. 25<br />

pages.<br />

Heather, K. B., 1989. The geological and structural setting of gold mineralization in the<br />

Renabie portion of the Missanabie-Renabie gold district, Wawa gold camp; in Summary of<br />

Field Work and Other Activities 1989, Ontario Geological Survey, Miscellaneous Paper<br />

146, pages 99-107.<br />

Heather, K. B., and Arias, Z. G., 1987. Geological setting of gold mineralization in<br />

Goudreau-Lochalsh area, District of Algoma; in Summary of Field Work and Other<br />

Activities 1987, Ontario Geological Survey, Miscellaneous Paper 137, pages 155-162.<br />

Heather, K. B., and Arias, Z., 1992. Geological and structural setting of gold<br />

mineralization in the Goudreau-Lochalsh area, Wawa gold camp. Ontario Geological<br />

Survey, Open File Report 5832. 159 pages.<br />

Hoffman, P. F. 1988. United plates of America, the birth of a craton: Early Proterozoic<br />

assembly and growth of Laurentia; Annual Review of Earth and Planetary Science, v. 16,<br />

pages 543-603.<br />

Hoffman, P. F., 1989. Precambrian geology and tectonic history of North America; in The<br />

Geology of North America – An overview, (ed.) A. W. Bally and A. R. Palmer; Geological<br />

Society of America, The Geology of North America, Volume A, pages 447-512.<br />

Jackson, S. L., and Sutcliffe, R. H., 1990. Central Superior Province geology; evidence for<br />

an allochthonous, ensimatic, southern Abitibi greenstone belt; Canadian Journal of Earth<br />

Sciences, v. 27, pages 582-589.<br />

Kappes, Cassiday & Associates, 1999. Report of Metallurgical Testwork, Magino<br />

Property. Internal Report.<br />

Koskitalo, L. O., 1983. Magino <strong>Gold</strong> Project, Wawa Area, Ontario. Report presented to<br />

McNellen Resources <strong>Inc</strong>. James Wade Engineering Ltd. Toronto. Project No. WE83-068.<br />

Internal Report. 67 pages.<br />

Leclerc, A., and Fleury, F., 2009. Propriété Magino, Levé Pédogéochimique d’humus,<br />

Grilles Magino SE et NO. Gestion Aline Leclerc <strong>Inc</strong>. Internal Report. 32 pages.<br />

McBride, D. E., 1991. Report of the geology, reserves and potential of the Magino<br />

Deposit, Finan township, Ontario. Internal Report. 19 pages.<br />

McBride, T.I. and Duckworth, P., 2010. Hydrogeological Study, Magino Mine Project,<br />

Finan Township, District of Wawa, Ontario. <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Prepared by<br />

AMEC Earth & Environmental – Project TC63001 2000. March 17, 2010. 53 pages.<br />

McGill, G. E., 1992. Structure and kinematics of a major tectonic contact belt, Ontario;<br />

Canadian Journal of Earth Sciences, v. 29, pages 2118-2132.<br />

McGill, G. E., and Shrady, C. H., 1986. Evidence for a complex Archean deformational<br />

history, southwestern Michipicoten greenstone belt, Ontario; Journal of Geophysical<br />

Reports, v. 91, pages E281-E289.<br />

Mongeau, R., 1982. Geophysical Survey of the A, B, C claim group, Finan Twp, Ontario.<br />

Magino Joint Venture. Internal Report. 7 pages.<br />

Muscocho Explorations Ltd., 1987. 1986 year-end report, Magino Joint Venture <strong>Gold</strong><br />

Project. March 1987. Muscocho Explorations Ltd. and McNellen Resources. Internal<br />

Report. 22 pages.<br />

. Final 2 November 2011 113 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Muir, T. L., 2003. Structural evolution of the Hemlo greenstone belt in the vicinity of the<br />

worldclass Hemlo gold deposit. Canadian Journal of Earth Sciences, v. 40, pages 395-<br />

430.<br />

Nielsen, F. W., 1995. Summary and Review of Past Work and Options for Future Work,<br />

Magino Mine, Wawa Area, Ontario. Report presented to Muscocho Explorations Ltd.<br />

Prepared by R. Bruce Graham and Associates Ltd. Internal Report. 38 pages.<br />

Nielsen, F. W., 1997. Diamond Drilling Program, Magino Mine, Wawa Area, Ontario,<br />

September 1997. Report presented to <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Prepared by<br />

Pearson, Hofman and Associates Ltd. Internal Report. 19 pages.<br />

Parbery, D., and Mongeau, J. 1982. Geological Survey of the A, B, C Claim Group, Finan<br />

TWP, Ontario. Magino Joint Venture. Internal Report. 6 pages.<br />

Percival, J. A., 2007. Geology and Metallogeny of the Superior Province, Canada. In<br />

Goodfellow W. D., ed., Mineral Deposits of Canada: A Synthesis of Major Deposit-Types,<br />

District Metallogeny, the Evolution of Geological Provinces, and Exploration Methods:<br />

Geological Association of Canada, Mineral Deposits Division, Special Publication No.5, p.<br />

903-928.<br />

Pearson, Hofman and Associates Ltd., 1997. Evaluation of In-Situ Resources (“Revised”),<br />

Magino Mine Project, Wawa Area, Ontario, Internal Report, <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

Perkins, M. J., 1997. Report on Magino <strong>Gold</strong> Mine Property Check Sampling Program.<br />

Report presented to <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Report prepared by Pearson, Hofman<br />

and Associates Ltd. Internal Report 16 pages.<br />

Perkins, M. J., 1999. Structural Geology and <strong>Gold</strong> Magino Mine Project, Wawa Area,<br />

Ontario. Report prepared for <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Internal Report 9 pages.<br />

Perkins, M. J., 1999a. Report of Metallurgical Testwork Magino Mine Project, Wawa Area,<br />

Ontario. Report prepared for <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Internal Report 12-pages.<br />

Peterson, V. L., and Zaleski, E., 1999. Structural history of the Manitouwadge greenstone<br />

belt and its volcanogenic Cu-Zn massive sulphide deposits, Wawa Subprovince, southcentral<br />

Superior Province. Canadian Journal of Earth Sciences, v. 36, pages 605-625.<br />

Polat, A, and Kerrich, R., 1999. Formation of an Archean tectonic mélange in the<br />

Schreiber-Hemlo greenstone belt, Superior Province, Canada: Implications for Archean<br />

subductionaccretion processes. Tectonics, v. 18, p. 733-755.<br />

Polat, A., and Kerrich, R., 2001. Magnesian andesites, Nb-enriched basalts-andesites,<br />

and adakites from late Archean 2.7 Ga Wawa greenstone belts, Superior Province,<br />

Canada: Implication for late Archean subduction zone petrogenetic processes.<br />

Contribution to Mineralogy and Petrology, v. 141, pages 36-52.<br />

Polat, A., Kerrich, R., and Wyman, D., 1998. The late Archean Schreiber-Hemlo and<br />

White River-Dayohessarah greenstone belts, Superior Province: Collage of oceanic<br />

plateaus, oceanic arcs, and subduction-accretion complexes. Tectonophysics, v. 289,<br />

pages 295-326.<br />

Poulsen, K. H., 1996. Lode <strong>Gold</strong> : in Geology of Canadian Mineral Deposits Types, (ed.)<br />

O. R. Eckstrand, W. D. Sinclair, and R. I. Thorpe; Geological Survey of Canada, Geology<br />

of Canada, no 8, p. 323-328.<br />

Poulsen, K. H., Robert, F., and Dubé, B., 2000. Geological classification of Canadian gold<br />

deposits: Geological Survey of Canada, Bulletin 540, 106 pages.<br />

. Final 2 November 2011 114 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Reddick, J. R., 1996a. Geological section of the property report, BLM Bharti Engineering<br />

Limited. Internal Report.<br />

Reddick, J. R., 1996b. Overview, Recommendations, and Budgets for Magino Property,<br />

Consultants report.<br />

Reddick, J. R., 2001a. The 2000 diamond drilling and sampling program, Magino Mine<br />

Property, Wawa Ontario. Report presented to <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Prepared by<br />

Reddick Consulting <strong>Inc</strong>. Internal Report. 18 pages.<br />

Reddick, J. R., 2001b. Block Model Resource Estimates for the Magino Mine Property,<br />

Wawa Ontario (Revised June 2001). Report presented to <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

Prepared by Reddick Consulting <strong>Inc</strong>. Report published on SEDAR website dated 15 May,<br />

2002. 31 pages.<br />

Reddick, J. R., 2002. The 2002 diamond drilling and sampling program, Magino Mine<br />

Property, Wawa Ontario. Report presented to <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Prepared by<br />

Reddick Consulting <strong>Inc</strong>. Internal Report.<br />

Ross, A.F., 2011. Mineral Resource Estimate, Magino <strong>Gold</strong> Project, Ste. Sault Marie<br />

Mining District, Ontario. Report presented to <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>. Report prepared by<br />

Snowden Mining Industry Consultants <strong>Inc</strong>. Report published on SEDAR website dated 28<br />

February 2011. 93 pages.<br />

Ross, A.F., Finch A., Yang D., Yu F., Teh H., 2011. Magino Property Preliminary<br />

Economic Assessment <strong>Technic</strong>al Report. Report presented to <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>. Report<br />

prepared by Snowden Mining Industry Consultants <strong>Inc</strong>., CWA Engineers <strong>Inc</strong>., Knight<br />

Piesold Canada. Report published on SEDAR website dated 29 March 2011.<br />

Sage, R. P., 1984. Goudreau-Lochalsh Area, District of Algoma; in Summary of Field<br />

Work and Other Activities 1984; Ontario Geological Survey, Miscellaneous Paper 119,<br />

pages 56-61.<br />

Sage, R. P., 1985. Josephine-Goudreau Area, District of Algoma; in Summary of Field<br />

Work and Other Activities 1985; Ontario Geological Survey, Miscellaneous Paper 126,<br />

pages 90-94.<br />

Sage, R. P., 1987. Preliminary interpretation of the relationship between economic<br />

mineralization and volcanic stratigraphy in the Wawa area; Ontario Geological Survey,<br />

Miscellaneous Paper 100, pages 41-44.<br />

Sage, R. P., 1987a. Geology of the Goudreau-Lochalsh and Kabenung Lake Areas,<br />

District of Algoma; in Summary of Field Work and Other Activities 1987; Ontario<br />

Geological Survey, Miscellaneous Paper 137, pages 134-137.<br />

Sage, R. P., 1990. Precambrian geology Finan Township. Ontario Geological Survey,<br />

Preliminary Map P3168, Scale 1 : 15 840.<br />

Sage, R. P., 1993. Geology of Aguonie, Bird, Finan and Jacobson townships, District of<br />

Algoma. Ontario Geological Survey, Open File Report 5588, 286 pages.<br />

Sage, R. P., 1993a. Geology of Abotossaway, Corbiere, LeClaire and Musquash and part<br />

of Dunphy township. Ontario Geological Survey, Open File Report 5587, 308 pages.<br />

Sage, R. P., 1993b. Precambrian geology Aguonie Township. Ontario Geological Survey,<br />

Open File Map 217, Scale 1: 15 840.<br />

Sage, R. P., 1993c. Precambrian geology Abotossaway Township. Ontario Geological<br />

Survey, Open File Map 223, Scale 1: 15 840.<br />

. Final 2 November 2011 115 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Sage, R. P., 1993d. Precambrian geology Dunphy Township. Ontario Geological Survey,<br />

Open File Map 224, Scale 1: 15 840.<br />

Sage, R. P., 1994. Geology of the Michipicoten greenstone belt. Ontario Geological<br />

Survey, Open File Report 5888, 592 pages.<br />

Sage, R. P., Lightfoot, P. C., and Doherty, W., 1996a. Bimodal cyclical Archean basalts<br />

and rhyolites from the Michipicoten(Wawa) greenstone belt, Ontario: Geochemical<br />

evidence for magma contributions from asthenospheric mantle and ancient continental<br />

lithosphere near southern margin of the Superior Province. Precambrian Research, v. 76,<br />

page 119-153.<br />

Sage, R. P., Lightfoot, P. C., and Doherty, W., 1996b. Geochemical characteristics of<br />

granitoid rocks from within Archean Michipicoten greenstone belt, Wawa Subprovince,<br />

Superior Province, Canada: Implications for source regions and tectonic evolution.<br />

Precambrian Research, v. 76, page 155-190.<br />

Simpson, M. 2011. Specific Gravity Sampling Program. Internal report prepared for<br />

<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated. 151 pages.<br />

Stott, G.M., Buse, S and Préfontaine, S., 2007. A possible Mesoarchean Anticlinorium in<br />

the Berens River Region and its Tectonic Significance. Summary of Field Work and Other<br />

Activities 2007, Ontario Geological Survey, Open File Report 6213, pages 38-1 to 38-5.<br />

Studemeister, P. A., 1983. The greenschist facies of an Archean assemblage near Wawa,<br />

Ontario. Canadian Journal of Earth Sciences, v. 20, pages 1409-1420.<br />

Studemeister, P. A., 1985. <strong>Gold</strong>-bearing veins around a felsic stock near Wawa, Ontario:<br />

implications for gold exploration; Canadian Institute of Mining and Metallurgy Bulletin, v.<br />

78, pages 43-47.<br />

Studemeister, P. A., and Kilias, S., 1987. Alteration pattern and fluid inclusions of<br />

gold-bearing quartz veins in Archean trondhjemite near Wawa, Ontario, Canada Economic<br />

Geology, v. 82. pages 429-439.<br />

Sutherland, K. S., 1987. Report on the Magino <strong>Gold</strong> Project. Report commissioned by<br />

Muscocho Explorations Ltd. Queen’s University, Kingston, Ontario. Internal Report. 60<br />

pages.<br />

Turcotte, B., and Pelletier, C., 2008. <strong>Technic</strong>al Report and Mineral Resource Estimate for<br />

the Magino Mine (according to the Regulation 43-101 and Form 43-101F1). Report<br />

prepared by InnovExplo for <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Report published on SEDAR<br />

website dated 3 July, 2008. 85 pages.<br />

Turcotte, B., and Pelletier, C., 2009. <strong>Technic</strong>al Report and Mineral Resource Estimate for<br />

the Magino Mine (according to Regulation 43-101 and 43-101F1). Report prepared by<br />

InnovExplo for <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Report published on SEDAR website dated<br />

29 May, 2009. 116 pages.<br />

Turcotte, B., Pelletier, C., and Poirier S., 2010. <strong>Technic</strong>al Report on the Preliminary<br />

Economic Assessment prepared by InnovExplo for <strong>Gold</strong>en Goose Resources <strong>Inc</strong>.<br />

Unpublished draft report dated 3 June, 2010. Internal Report, <strong>Gold</strong>en Goose Resources<br />

<strong>Inc</strong>. 176 pages.<br />

Yong, P., Verma, N. S., and Dyck, D., 2008. Magino Mine tailings containment area dam<br />

safety inspection 2007. Submitted by AMEC Earth & Environmental. 10 pages.<br />

Young, R. and Simms, D. 1992. Magino Mine Closure Plan – Muscocho Explorations<br />

Limited. October 1992. Prepared by Environmental Applications Group Limited.<br />

60 pages, plans and appendices.<br />

. Final 2 November 2011 116 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

Young, R. and Simms, D. 1993. Magino Mine Closure Plan – Muscocho Explorations<br />

Limited- Revised January 1993. Prepared by HBT AGRA Limited (TC 630). 72 pages,<br />

appendices and maps in pocket.<br />

Waldie, C., 2006. Report on the 2006 Diamond Drilling Program, Magino Mine Property,<br />

Wawa, Ontario, Canada. <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Internal Report. 45 pages.<br />

Williams, H. R., Scott, G. M., Heather, K. B., Muir, T. L., and Sage, R. P., 1991. Wawa<br />

Subprovince; in Geology of Ontario, (eds.) P. C. Thurston, H. R. Williams, R. H., Sutcliffe,<br />

and G. M. Scott; Ontario Geological Survey, Special Paper 4, pt.1, pages 485-539.<br />

Wilson, B. C., 1997. Structural Geology and <strong>Gold</strong> on the Magino Mine Property. Report<br />

prepared for <strong>Gold</strong>en Goose Resources <strong>Inc</strong>. Internal Report. 21 pages.<br />

Zaleski, E., van Breemen, O., and Peterson, V. L., 1999. Geological evolution of the<br />

Manitouwadge greenstone belt and Wawa-Quetico subprovince boundary, Superior<br />

Province, Ontario: Constrained by U-Pb zircon dates of supracrustal and plutonic rocks.<br />

Canadian Journal of Earth Sciences, v.36, pages 945-966.<br />

. Final 2 November 2011 117 of 118


<strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated: Mineral Resource Estimate Update, Magino <strong>Gold</strong><br />

Project, Ste. Sault Marie Mining District, Ontario<br />

NI 43-101 <strong>Technic</strong>al Report<br />

20 Certificate of author, date and signature page<br />

(a)<br />

I, Andrew F. Ross, Senior Principal Consultant of Snowden Mining Industry<br />

Consultants <strong>Inc</strong>., 600 -1090 W. Pender St., Vancouver; do hereby certify that:<br />

(b) I am the author of “Mineral Resource Estimate Update, Magino <strong>Gold</strong> Project, Ste.<br />

Sault Marie Mining District, Ontario”, dated 2 November 2011 (the ‘Report’)<br />

prepared for <strong>Prodigy</strong> <strong>Gold</strong> <strong>Inc</strong>orporated.<br />

(c) I graduated with an BSc Honours Degree in Geology from the University of Adelaide<br />

in 1972. In 1985 I graduated with a MSc degree in Mining and Exploration Geology<br />

from James Cook University of North Queensland. I am: a Fellow and Chartered<br />

Professional of the Australasian Institute of Mining and Metallurgy; a member of the<br />

Australian Institute of Geoscientists; licensed as a Professional Geoscientist with<br />

APEG (British Columbia). I have worked as a geologist continuously for a total of 39<br />

years since graduation. I have been involved in resource evaluation consulting for<br />

16 years, including resource estimation of primary gold deposits for at least 5 years.<br />

I have been involved in gold exploration and mining operations for at least 5 years. I<br />

have read the definition of ‘qualified person’ set out in NI 43-101 (‘the Instrument’)<br />

and certify that by reason of my education, affiliation with a professional association<br />

and past relevant work experience, I fulfill the requirements of a ‘qualified person’ for<br />

the purposes of the Instrument.<br />

(d) I visited the Magino property from 23 February to 24 February, 2011 and from 1<br />

August to 3 August 2011.<br />

(e) I am responsible for the preparation of the Report.<br />

(f) I am independent of the issuer as defined in section 1.4 of the Instrument.<br />

(g) I have had prior involvement with the property that is the subject of the Report. I<br />

reviewed the technical report prepared by Burns & Reddick (Snowden, 2004); and<br />

authored technical reports in February and March 2011.<br />

(h) I have read the Instrument and Form 43-101F1, and the Report has been prepared<br />

in compliance with that instrument and form.<br />

(i) As of the date of this certificate, to the best of my knowledge, information and belief,<br />

the Report contains all the scientific and technical information that is required to be<br />

disclosed to make the Report not misleading.<br />

(j) I consent to the filing of the Report with any stock exchange or any regulatory<br />

authority and any publication by them, including electronic publication in the public<br />

company files on their websites accessible by the public, of the Report.<br />

Dated at Perth, Australia this 14th Day of December, 2011.<br />

[signed]<br />

Andrew F. Ross<br />

. Final 2 November 2011 118 of 118

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!