Vancouver, August 20, 2010 - Scorpio Gold Corporation (TSX-V: SGN) is pleased to announce that its 70% owned joint venture subsidiary, Mineral Ridge Gold, LLC, has awarded a US$3 million contract to Canyon Construction Company of Elko, Nevada pertaining to the re-stacking of material on the leach pad at its Mineral Ridge project in Esmeralda County, Nevada.
Peter J. Hawley, Chief Executive Officer comments, "This is a major milestone for the Company. By the time the crushing equipment is in place and the re-stacking is ready to commence, the final permitting process will be complete, thus allowing the Company to rapidly advance with the placement of the drainage layer, piping, crushing of mineralized material and the impregnation of the material, ultimately leading to gold recovery from the pad. The Company remains ahead of schedule and on target for all operations and estimated recovery of gold in 2010."
This contract includes mobilizing temporary crushing, screening and haulage equipment to the property to crush and place a drainage layer of barren rock on the leach pad, which is exposed and has never been used. This will be followed by the crushing and placement on the drainage layer of approximately 300,000 tons of oversized mineralized material left on the pad by the previous operators.
The placement of the drainage rock layer and associated pipe works will complete the pad construction and prepare the pad for full operations in anticipation of active mining planned for early 2011. The 300,000 tons of initial mineralized material is expected to be activated for leaching late in the third quarter of 2010 with gold pregnant solution flowing in the fourth quarter.
The Nevada Division of Environmental Protection has approved an Engineering Design Change (EDC) for the planned work pending submission of previous engineering and design documents. A Change of Operator notice and associated transfer of the reclamation bond is also proceeding on a parallel path. This is required to change the Operator of Record from the previous owner Golden Phoenix Minerals to Mineral Ridge Gold, LLC. All documentation and transfer of bonding is expected to be in place the first week of September.
The Company is also pleased to announce that it has engaged Jackson Strategic, Inc. of New York, New York, the principal of which is Jonathan Berg (the "Consultant") to provide advisory services to the Company designed to raise awareness of the Company in the investment community.
As compensation for its services to the Company, the Consultant will receive US$10,000 per month and has been granted effective August 20, 2010 stock options entitling the Consultant to acquire 100,000 shares of the Company at an exercise price of Cdn$0.61 per share, subject to the approval of the TSX Venture Exchange.
The Consultant, an arm's length party to the Company, has advised the Company that it does not own, directly or indirectly, any common shares of the Company.
For additional information please see the Company's website at www.scorpiogold.com
Mr. Peter Hawley, PGeo, is the Company's Chief Executive Officer and Qualified Person for the various Company projects. He is responsible for the current exploration and development programs and has reviewed the content of this release.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley,
Chief Executive Officer and Director
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.