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Jul 06, 2009

Scorpio Gold's JV Partner Atlantic Gold Reports Surface Drill Results Including 24 meters Grading 8.0 g/t Gold From Scorpio's Cochrane Hill Gold Project, Nova Scotia

Vancouver, July 6, 2009 - Scorpio Gold Corporation (TSX-V: SGN) is pleased to announce that it's Joint Venture ("JV") partner Atlantic Gold NL has released interim drill results from its ongoing Phase 2 resource delineation surface drill program at the Cochrane Hill gold project, Nova Scotia.

Atlantic Gold has reported that 16 diamond drill holes (CH-09-032 to 047) for 1717 meters were drilled in May 2009 and assay results for half of the drill holes have been received, with intersections including 24 meters grading 8.0 g/t gold, 27 meters grading 3.1 g/t gold, and 38 meters grading 1.68 g/t gold.

These broad intersections are characterised by continuous gold mineralization punctuated by occasional high grade intervals, and in general confirm the grades and reflect the style of mineralization typified by the previous diamond drilling in the 1970's and 1980's.

Gold mineralization is developed within a 10 to 30 meter wide zone of sulphic and quartz veined thin bedded sediments which dip 70 degrees north and trend almost east to west over a strike length of approximately 650 meters. Coarse (visible) gold is common and, subject to confirmatory metallurgical testing, the gold is expected to be free milling.

Assay results reported by Atlantic Gold are as follows:

Table 1. Cochrane Hill 2009 Drill Program

Hole # Dip
()
Az.
()
From
(m)
To
(m)
Length
(m)
Au
(g/t)
CH-09-032 -60 180 95.00 104.00 9.00 5.30
Includes     97.00 98.00 1.00 42.80
      117.00 141.00 24.00 8.00
Includes     125.00 126.00 1.00 89.40
Includes     140.00 141.00 1.00 77.80
      170.00 171.00 1.00 26.10
 CH-09-033 -60 180 63.00 90.00 27.00 3.10
Includes     67.00 68.00 1.00 40.80
      116.00 117.00 1.00 12.40
CH-09-034 -60 180 117.00 130.00 13.00 2.25
      148.00 149.00 1.00 9.07
      157.00 164.00 7.00 1.75
CH-09-035 -60 180 26.00 51.00 25.00 0.98
      75.00 76.00 1.00 22.30
CH-09-036 -60 180 44.00 82.00 38.00 1.68
CH-09-037 -45 180 4.00 22.00 18.00 1.99
CH-09-040 -45 180 16.00 25.00 9.00 1.69
      31.00 32.00 1.00 26.00
      41.00 42.00 1.00 15.00
CH-09-041 -60 180 62.00 69.00 7.00 3.14
  • All holes are NQ core diameter with half sawn core sampled at 1 meter intervals and fire assayed following total sample pulverisation. Quality control procedures include routine submission of drill core blanks and accredited standards together with selected submission of blank standards immediately following samples containing visible gold. Credited Assay laboratory is ALS Chemex, Timmins, Ontario Laboratory.
  • Drill hole data in Table 1 reflects down hole core lengths and actual (uncut) grades. True widths cannot be reliably estimated at this time.

Atlantic Gold has now drilled a total of 39 surface diamond drill holes for 3,102 meters as part of the delineation of the Cochrane Hill gold deposit. Completion of the resource definition is expected to require an additional 5,500 meters which will enable an estimate of a full resource inventory of Measured and Indicated categories (required for ore reserve estimation).

The Cochrane Hill project is subject to an option agreement dated May 12, 2008 between Scorpio Gold and Atlantic Gold NL (through its wholly owned Canadian subsidiary) whereas once Atlantic has completed expenditures of Cdn.$4.75 million on exploration and development within 4 years and has made aggregate cash payments of Cdn.$100,000 to Scorpio Gold then at Scorpio Gold's election Atlantic will have earned either a 60% Joint Venture interest (with Scorpio Gold retaining a 40% Joint Venture interest) or a 100% interest subject to a 20% free carried interest retained by Scorpio Gold. Atlantic may withdraw at any time and the property is subject to an underlying 3% production royalty.

CEO, Mr. Peter J. Hawley, PGeo, is the Company's Qualified Person for the various Company projects. Mr. Hawley 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.