Vancouver, April 24, 2013 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) is pleased to report on the planned 2013 exploration program at the Mineral Ridge project and future plans for the recently acquired Goldwedge and Pinon projects, all located in Nevada, USA.
The 2013 exploration program at Mineral Ridge is designed to expand the Company's mineral resource inventory; where in its first year of commercial production the Company produced over 32,000 ounces of gold. Initial evaluation and follow-up exploration work is also being considered on the Goldwedge and Pinon projects.
Peter J. Hawley, CEO comments; "Having achieved a successful first year of commercial production at Mineral Ridge, we are excited to turn our attention to the exceptional exploration potential of the area with a comprehensive property-wide program of geochemical sampling, detailed prospecting and mapping, as well as a helicopter-borne electromagnetic and magnetic survey over a key portion of the property. This level of exploration has never been applied at Mineral Ridge, and we are confident it will result in the discovery of new mineralization. Importantly, this exploration program will be funded entirely out of cash flow from the Mineral Ridge operation."
Mineral Ridge Project
The 2013 exploration program will focus on continued resource and reserve expansion of the Mary LC, Drinkwater Highwall and adjacent Brodie and Bluelite satellite deposits, as well as testing of high quality exploration targets. The budgeted US$3.2 million program includes:
- Detailed digital and GIS (Geographic Information System) compilation of historical data - completed.
- Acquisition by staking of 1,000 hectares (2,400 acres) of new ground with gold showings - completed.
- Geochemical sampling and detailed geological and structural mapping program - underway.
- Over 800 line-kilometers (500 line-miles) of helicopter-borne VTEM (Vertical Time-Domain Electromagnetic) and magnetic geophysical survey - underway.
- 20,000 meters (66,000 feet) of reverse circulation (RC) drilling including infill, step out and target specific exploration - underway.
Ore definition and condemnation drilling is currently in progress on the Mary & LC zones for refinement of the proposed super pit. Once completed, the drill will move to the Brodie and Bluelite satellite deposits to further define resources in those areas. Additional definition drilling on the Drinkwater Highwall zone is scheduled for later this year. The exploration drilling phase will test specific targets identified through compilation and interpretation of results from the ongoing ground and airborne surveys.
Scorpio Gold acquired the advanced exploration-stage Goldwedge project in December 2012. Located on the southern periphery of the Manhattan Caldera, about 10 miles south of the prolific Round Mountain Mine, Goldwedge includes a fully permitted underground mine, processing facility with a gravity circuit, and a strategic land package around the historic mining town site of Manhattan, Nevada. Scorpio Gold commenced rehabilitation of the plant and surrounding infrastructure in early 2013 in preparation for potential toll milling contracts.
Following a recent review of the existing geological information, the following steps have been outlined to evaluate the Goldwedge deposit:
- Validate the existing data base to ensure reliability.
- Conduct an underground mapping and sampling program.
- Identify structural controls of gold mineralization and distribution throughout the mine.
- Develop a block model of the mineralization.
- Drill test identified mineralized zones from surface and underground.
- Produce a NI 43-101 compliant mineral resource estimate.
- Evaluate the deposit for potential mine development.
- Determine budget and funding requirements and plans, which could include an earn-in joint venture option.
Concurrent with the plant rehabilitation process, Scorpio Gold is ensuring that all operational and environmental permits are in compliance with State and Federal regulations. The Company recently signed collaborative agreements with local authorities and underground mining operations in the district to provide mine rescue services to the Goldwedge mine, should the need arise, which allows for the start of underground exploration and evaluation at any time.
Budgeting and timing of an exploration program at Goldwedge awaits further consideration and will be announced when plans are finalized.
Also acquired in December 2012, the advanced exploration-stage Pinon project is located at the southern end of the Carlin trend near Elko, Nevada. Over 350 RC and diamond drill holes on the property outline a near surface oxide gold deposit as well as a deeper collapsed breccia target. The project area is located just to the south of Gold Standard Venture's Railroad and North Bullion gold deposits.
In January 2013, Scorpio Gold engaged Apex Geoscience Ltd. to undertake a complete review of the Pinon geological database and produce a NI 43-101 compliant resource estimate, which is expected to be released later this year. Upon receipt of the technical report, Scorpio Gold will contemplate future exploration plans and budget requirements for the project.
About Scorpio Gold
Scorpio Gold holds a 70% interest in the Mineral Ridge gold mining operation located in Esmeralda County, Nevada 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 processing 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.
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
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley,
For further information contact:
Steve Roebuck 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 exploration, development and exploitation of its Mineral Ridge project, potential toll milling at the Goldwedge project, and exploration and potential development of the Goldwedge and Pinon 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.