TSX-V: SGN $0.06

News

Show printable version of 'Scorpio Gold Announces Fourth Quarter 2012 Prelimi...' in a New Window

News

Jan 16, 2013

Scorpio Gold Announces Fourth Quarter 2012 Preliminary Operating Results for the Mineral Ridge Project, Nevada

Vancouver, January 16, 2013 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) today announced its preliminary operating results for the fourth quarter of 2012 ("Q4") at its 70% owned Mineral Ridge project, Nevada.

Peter J. Hawley, CEO reports; "The Company continued to ramp up operations and track positively in Q4 with the strongest quarterly performance to date at Mineral Ridge. Ore production from the Drinkwater pit remained close to static while waste removal decreased by 18% compared to third quarter 2012 ("Q3"). Ore production from the start-up Mary pit increased by 73% compared to Q3. Gold head grade processed in Q4 increased by 27%, while ounces produced increased 59% and gold ounces sold increased 25% compared to Q3.

In its first year of declared commercial production the Company produced a total of 31,852 ounces of gold. We are continuing with an aggressive growth strategy both internally and by acquisition. During Q4, Scorpio Gold completed its acquisition of the Goldwedge gold property and milling facility located in Manhattan, Nevada, and the Pinon gold property located near Carlin, Nevada, from Royal Standard Minerals."

Key Operating Statistics
  Q4 Q3 Q2 Q1 Total 2012
Mining operations      
    Drinkwater pit      
    Ore tonnes mined 161,699 156,007 160,664 122,995 601,365
    Waste tonnes mined 606,047 738,890 700,523 656,770 2,702,230
    Total mined 767,746 894,897 861,187 779,765 3,303,595
         
    Mary pit 
    Ore tonnes mined 15,072 8,727 3,156 - 26,955
    Waste tonnes mined 340,576 282,157 244,927 280,205 1,147,865
    Total mined  355,648 290,884 248,083  280,205 1,174,820
         
Processing 
  Tonnes processed 176,500 186,858 160,759 126,668 650,785
  Gold head grade (g/t)  2.67 2.10 2.09 2.34 2.30
  Ounces produced(1)
    Gold  10,598 6,663 7,394  7,197 31,852
    Silver 4,688 2,900 2,930 3,174 13,693
  Throughput (tonnes per day) 2,292 2,427 2,115 1,667 2,127
         
Precious Metal Sales (ounces)(1)
    Gold  9,052 7,234 7,803 7,774 31,863
    Silver 3,775 3,135 2,956 3,429 13,295
         
Exploration Drilling
    Holes  42 35 63 51 191
    Meters  6,826 5,880 6,436  5,104 24,246


(1) Production and sales numbers for Q4 are preliminary estimates and include approximately 1,660 ounces of gold and 580 ounces of silver that were part of a sale of loaded carbon to Waterton Global Value L.P. ("Waterton"), for which final settlement is expected to occur in early February 2013. Waterton is a joint venture partner and secured creditor of the Company and has certain rights to purchase gold and silver produced by the Company.

Scorpio Gold's CEO, Peter J. Hawley, P.Geo., is a Qualified Person for the Mineral Ridge project and has reviewed and approved the content of this release. For additional information please see the Company's website at www.scorpiogold.com.

Scorpio Gold's CEO, Peter Hawley, and President, Steve Roebuck, will be attending the Vancouver Resource Investment Conference held at the Vancouver Convention Centre on January 20-21, 2013. Management looks forward to meeting its shareholders and interested parties at booth 1143.

About Mineral Ridge

The Mineral Ridge gold mining operation is located in Esmeralda County, Nevada. Scorpio Gold holds a 70% interest with joint venture partner Waterton Global Value L.P. (30%), and is entitled to receive 80% of cash flow generated. Mineral Ridge is currently in production as a conventional open pit mining and heap leach operation. The property is host to multiple gold-bearing structures, veins and bodies at exploration, development and production stages. Scorpio Gold recently acquired the Goldwedge gold property and milling facility in Manhattan, Nevada and the Pinon gold property near Carlin, Nevada. The Company is assessing its exploration plans for these properties as well as the potential for toll milling at the 500 ton per day Goldwedge plant.

ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION


Peter J. Hawley,
CEO

For further information contact:
Steve Roebuck Tel: (819) 825-7618
Email:

Investor Relations:
Jim Macdonald, Torrey Hills Capital
Tel: (858) 456-7300
Email:

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 exploration, development and exploitation of its Mineral Ridge project and acquisition of additional properties. 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 such as delays related to completion of exploration programs and those risk factors outlined in the Company's Management Discussion and Analysis 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 thereof.