Vancouver, February 14, 2011 - Scorpio Gold Corporation (the "Company") (TSX-V: SGN) today announced that leach pad operations are underway at its 70% owned, fully funded, Mineral Ridge Gold Project in Nevada.
Peter J. Hawley, President & CEO reports, "This is a monumental step for the Company as it enters the stage of becoming a gold producer. Due to the hard work of our operations team the Company expects to commence gold production in March of this year, approximately one year after buying the project, rehabbing, rebuilding and completing mine planning."
Leach pad operations began last week following the Company receiving the final piece of permitting from the Bureau of Land Management (BLM) and the Nevada Division of Environmental Protection agency (NDEP). With this approval the Company has completed all requirements in order to proceed with mining of the open pits and processing of materials.
Crushing, agglomeration and stacking of gold-bearing material mined by the previous owners is currently taking place with the application of leaching solution scheduled to begin during the last week of February. There are presently some 280,000 tons of material available to be treated on the pad, after which, ore for the balance of 2011 will be mined from the Drinkwater Pit.
It is expected that the initial processing of pregnant solution through the ARD circuit to recover gold will take place in March. Processing contracts to treat the loaded carbon from the circuit have been put in place. Gold production, which is completely un-hedged, is expected to reach a steady state by June and then continue to track positively in the second half of 2011.
The Company's interest in the Mineral Ridge project is expected to increase to 80% before year end based on Mineral Ridge achieving two quarters of commercial production, pursuant to its agreement with Golden Phoenix Minerals.
President & CEO, Peter J. Hawley, PGeo, is the Qualified Person for the Mineral Ridge project and has reviewed the content of this release.
For additional information please see the Company's website at www.scorpiogold.com
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley,
President & CEO
For further information contact:
Peter J. Hawley Tel: (819) 825-7618
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.