TSX-V: SGN $0.10


Show printable version of 'Scorpio Gold Produces 10,769 Ounces Gold in Second...' in a New Window


Jul 16, 2013

Scorpio Gold Produces 10,769 Ounces Gold in Second Quarter 2013 at the Mineral Ridge Operation, Nevada

Vancouver, July 16, 2013 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) announces its operating results for the second quarter of 2013 ("Q2") at its 70% owned Mineral Ridge project, Nevada.

Production in Q2 totalled 10,769 ounces of gold and 4,379 ounces of silver for year-over-year increases of 45.6% and 49.5%, respectively, from 2012. Total gold production for the first half of 2013 now stands at 18,180 ounces. The Company's 2013 production forecast remains unchanged at 32,000 to 35,000 ounces of gold (see February 7, 2013 news release).

Peter J. Hawley, CEO reports, "We are very pleased with our second quarter operating results, which have exceeded 2013 guidance in both ore tonnes mined and processed head grades. Ore production from the Drinkwater and Mary pits is up 22% from the previous quarter and has increased 48% compared to Q2 2012. The average gold head grade of 2.56 g/t for Q2 increased by 23% compared to Q2 2012, and is 31% higher than predicted in the mine plan. Mining in the Drinkwater pit is now within the main ore zone, resulting in a lower stripping ratio that is expected to continue through the life of the pit. The Company's new, higher capacity crushing facility went online in June 2013 and is expected to be fully operational in the coming weeks, leading to expected increases in plant throughput. Scorpio Gold is very fortunate to have an exceptional operations team that is dedicated to making ongoing improvements and lowering costs, which continues to strengthen our quarterly results."

Key Operating Statistics
  Q2 2013 Q2 2012 % Change
Mining operations
    Drinkwater pit
    Ore tonnes mined 209,114 160,664 30.2%
    Waste tonnes mined 568,765 700,523 -18.8%
    Total mined 777,879 861,187 -9.7%
   Strip Ratio  2.7 4.4 -38.6%
    Mary pit (in development)
    Ore tonnes mined 33,644 3,156 966.0%
    Waste tonnes mined 444,029 244,927 81.3%
    Total mined  477,673 248,083 92.5%
    Tonnes processed 208,262 160,759 29.5%
     Gold head grade (g/t) 2.56 2.09 22.5%
     Ounces produced
        Gold 10,769 7,394 45.6%
        Silver 4,379 2,930 49.5%
    Throughput (tonnes per day) 2,670 2,115 29.6%
    Recoverable(1) gold (ounces) placed on pad 11,126 7,019 58.5%

(1) A 65% metallurgical recovery factor has been applied to the estimated contained ounces crushed and placed on the leach pad.

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 currently 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 Mineral Ridge property is host to multiple gold-bearing structures, veins and bodies at exploration, development and production stages. Scorpio Gold recently acquired the Goldwedge advanced exploration-stage property and processing facility in Manhattan, Nevada, and the Pinon advanced exploration-stage 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 Goldwedge plant, which is currently permitted for 400 tons per day.

Scorpio Gold's CEO, Peter J. Hawley, PGeo, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the content of this release.


Peter J. Hawley,

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

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

Website: www.scorpiogold.com

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 and development of its Mineral Ridge project. 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 related to open pit mining and heap leach operations 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.