Prodigy Gold Raises $6.35M as Tanami North Gold Resource Expands
Prodigy Gold has updated its mineral resources at the Tanami North Project, increasing gold ounces to over half a million, while securing $6.35 million in a recent entitlement offer to fund further exploration and development.
- Tanami North Project resource grows to 11.7Mt @ 1.4g/t Au for 515koz
- Hyperion and Tregony deposits show significant increases in gold ounces
- Northern Territory Government grants $112,046 for diamond drilling at Hyperion
- Metallurgical testwork confirms improved gold recovery with flotation process
- Entitlement offer raises $6.35 million, backed by major shareholders APAC and Plutus
Resource Growth at Tanami North
Prodigy Gold has reported a notable update to its mineral resource estimates for the Tanami North Project in the Northern Territory, highlighting a combined resource of 11.7 million tonnes at an average grade of 1.4 grams per tonne gold, equating to 515,000 ounces. This increase is driven by updated estimates for the Hyperion and Tregony gold deposits, which incorporated drilling results from 2023 and 2024 alongside adjustments to cut-off grades reflecting higher gold prices.
The Hyperion Gold Deposit now boasts 9.66 million tonnes at 1.4g/t for 435,000 ounces, representing a 7% increase in contained gold ounces compared to previous estimates. Meanwhile, the Tregony Gold Deposit has grown to 2.01 million tonnes at 1.2g/t for 80,000 ounces, a 25% increase in ounces. These updates underscore the strategic importance of the Tanami North area within Prodigy Gold’s portfolio.
Government Support and Metallurgical Advances
Supporting its exploration efforts, Prodigy Gold secured a $112,046 grant from the Northern Territory Government’s Resourcing the Territory initiative to co-fund diamond drilling at Hyperion. This funding will assist in drilling two deeper diamond holes planned for the second half of 2025, aimed at further defining the deposit’s potential.
Complementing the resource updates, final metallurgical testwork results from the Hyperion deposit’s Tethys and Hyperion lodes confirmed excellent gold recoveries from oxide and transitional materials using standard gravity and carbon-in-leach processing. Importantly, the addition of a flotation stage for fresh material significantly boosted overall gold recovery from 69.1% to 91.2%, indicating a promising processing strategy that could enhance future extraction economics.
Joint Ventures and Exploration Progress
Prodigy Gold’s exploration activities continue beyond its 100% owned projects, with joint ventures involving major partners such as Newmont Corporation at the Tobruk and Monza projects. During the quarter, Newmont completed a proprietary geochemical survey and a passive seismic survey at Monza, while Prodigy Gold designed a reverse circulation drilling program for Tobruk, scheduled for the current field season.
Capital Raising Strengthens Position
To fund its exploration and development ambitions, Prodigy Gold completed a partially underwritten entitlement offer in July 2025, raising approximately $6.35 million before expenses. Major shareholder APAC Resources Limited fully subscribed to its entitlement and additional shortfall shares, increasing its holding to 32.55%. New investor Plutus Prospecting Pty Ltd also participated, acquiring nearly 15% of the company’s shares with rights to increase its stake to just under 20%.
Following the capital raise, Prodigy Gold’s cash position improved to A$1.2 million at quarter-end, with no debt on the balance sheet. The company now has sufficient funding to support exploration activities for approximately two years, allowing it to focus on advancing its projects in the Tanami region.
Looking Ahead
With updated resources, enhanced metallurgical recoveries, and a strengthened financial position, Prodigy Gold is well placed to progress its drilling programs and exploration targets. The company’s focus remains on unlocking value in the Tanami North and West projects, while actively managing its joint ventures to expedite discovery and development.
Bottom Line?
Prodigy Gold’s resource growth and capital raise set the stage for a pivotal exploration season in the Tanami region.
Questions in the middle?
- How will the improved metallurgical recovery impact the economics of potential mining operations at Hyperion?
- What are the timelines and expected outcomes for the upcoming diamond drilling program funded by the government grant?
- How might the increased shareholding by Plutus Prospecting influence Prodigy Gold’s strategic direction and governance?
