Jun 29, 2009
Scorpio Gold Corporation Engages Micon For 43-101 Feasibility Study on Mineral Ridge Property, Nevada, USA
Vancouver, June 29, 2009 - Scorpio Gold Corporation (TSX-V: SGN) is pleased to announce that it has engaged Micon International Limited as independent consultants to provide guidance, definition and auditing of a Scorpio managed exploration program to develop a well founded NI 43-101 mineral reserve estimate, mine plan and a full feasibility study for the Mineral Ridge Property, Nevada, USA.
Peter J. Hawley, CEO reports, "Now that the Company has completed its due diligence on the property and is proceeding with finalization of a definitive joint venture agreement with Golden Phoenix Minerals, the next step going forward is the preparation of a 43-101 technical report which will include a full feasibility study. Given the property's existing permits, bonding, and infrastructure, Mineral Ridge is considered to be a potential turn-key operation and Scorpio Gold looks forward to the reactivation of mining operations at the Mineral Ridge project in a relatively short period of time once the definitive agreement is in place and financing is arranged.
The Mineral Ridge gold mine is located about 30 miles west of Tonopah, Nevada and has historically produced almost 700,000 ounces of gold from open pit and underground mining operations. The property is currently bonded and has been permitted for heap leach gold processing and production, and was in production as recently as 2005. The mine project comprises 65 patented and 130 unpatented mining claims covering 2,590 acres, and hosts multiple gold bearing structures, veins and bodies. It features a well-developed infrastructure consisting of roadways, power grid, heap leach pad, crushing circuit, ADR plant, water supply, maintenance shop, refuelling and storage facilities and administrative buildings.
Mineral Ridge has had a clean operating history and no environmental, permitting, legal, taxation, marketing or political factors are known that may impact the mineral resource/reserve estimates to be outlined in the planned NI 43-101 feasibility report. The dry climate and non-acid generating character of the rock offer favourable conditions for mining and reclamation operations.
Completion of the acquisition of an anticipated 70% joint venture interest in the Mineral Ridge property remains subject to a binding definitive agreement, regulatory approvals, required financing and other customary closing conditions. See the Company's news release of June 22, 2009 for more details of the Company's agreement with Golden Phoenix.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley,
Chief Executive Officer and Director
Phone: (819) 825-7618
Fax: (819) 825-0977
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.