Vancouver, May 1, 2012 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) is pleased to present its 2012 production guidance and operating, development and exploration budgets for the 70% owned Mineral Ridge Gold Mine, Nevada.
2012 Production and Operating Guidance
2012 gold production at the Mineral Ridge operation is forecast at 35,000 to 40,000 ounces at a cash operating cost of US$650 to US$700 per ounce of gold sold.
The following key parameters form the basis for the 2012 production forecast and operating cost estimate:
- Throughput: 2,500 short tons (2,268 metric tonnes) per day
- Average grade: 2.4 grams per tonne (0.07 ounces per short ton) gold
- Waste-to-ore ratio: 4.2
The Company expects these parameters to fluctuate throughout 2012 and as a result, these parameters should be treated as full-year averages and will not necessarily be reflective of quarterly operating results.
Peter Hawley, President and CEO comments, "With 2012 as our first build-out year after reaching commercial production, we are taking a conservative approach in our estimates and will continue to advance overall production at Mineral Ridge as rapidly as possible."
2012 Operating and Development Budget
The 2012 capital and development budget is US$9.8 million and includes the following key items:
2012 Exploration Budget
|Capital Expenditure - Mineral Ridge Gold
| Water well
|Capitalized costs - Mary Pit
The 2012 exploration budget for the Mineral Ridge project is US$2.3 million. A minimum of 18,100 m of reverse circulation ("RC") and core drilling is planned with a focus on the following targets:
Annual Financial Statements
- Mary Last Chance (LC) - 8,500 m
- Drinkwater Highwall Northwest extension - 2,500 m
- Wedge Pit extensions - 2,000 m
- Chieftan/Solberry - 1,800 m
- Tarantula/ State Bank - 1,800 m
- Custer Canyon - 1,500m
The Company's Audited Consolidated Financial Statements and Management Discussion & Analysis for the year ended December 31, 2011 were filed on April 30, 2012 and are available on SEDAR at www.sedar.com and on the Company's website at www.scorpiogold.com
Scorpio Gold's President & CEO, Peter J. Hawley, PGeo, is a Qualified Person for the Mineral Ridge project and has reviewed and approved 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
Jim Macdonald, Torrey Hills Capital
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. 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 development of its Mineral Ridge project and forecasts of gold production and operating costs. 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 risks relating to commencing and sustaining production of a mining project and other risks set out in the Company's Management Discussion and Analysis for the year ended December 31, 2011. 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.