Vancouver, May 9, 2011 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) announces that a mining contract has been signed with Ledcor CMI Inc. ("Ledcor") for its Mineral Ridge Gold heap leach project. Ledcor is currently providing contract mining services for both Barrick Gold Corporation and Newmont Mining Corporation in Nevada.
The initial term of the contract extends to May 1, 2012 and is renewable annually until the completion of the project. The current mine plan contains 3.2 million tons of mineralized material to be mined plus waste rock extraction over a period of 41 months. The mine plan will be updated on annual basis.
Ledcor will begin mobilization of equipment on May 9, 2011 with setup of site facilities expected to be completed by June 3, 2011. Preparations for the start of mining are to begin this week with the cleaning of loose material from previously mined safety benches and extraction of mineralized material stock piles left behind by the previous owner/operator.
Initial production is slated for approximately 14,000 total tons per day ramping up to full production schedule of approximately 20,000 tons per day.
Ledcor will be responsible for all aspects of drilling, blasting, loading and hauling of material and Mineral Ridge Gold personnel will be responsible for pit and dump layout, blast hole surveying and all aspects of grade control.
In addition, the Company announces that on May 2, 2011, a second shipment of loaded precious metal carbon was shipped from the Mineral Ridge facilities to Metals Research in Kimberley, Idaho for processing.
For additional information please see the Company's website at www.scorpiogold.com
President & CEO, Peter J. Hawley, PGeo, is the Qualified Person for the Mineral Ridge project and has reviewed the content of this release.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley,
President & CEO
For further information contact:
Peter J. Hawley Tel: (819) 825-7618
Torrey Hills Capital
Andrew Hoffman Tel: (858) 456-7300
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Company relies on litigation protection for "forward-looking" statements. This news release contains forward-looking statements that are based on the Company's current expectations and estimates, including statements as to future sales. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the Company's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements, including those risk factors outlined in the Company's Management Discussion and Analysis for the year ended December 31, 2010 as filed on Sedar. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.