TSX-V: SGN $0.06

News

Show printable version of 'Scorpio Gold Reports Initial Results from 2015 Exp...' in a New Window

News

Jun 01, 2015

Scorpio Gold Reports Initial Results from 2015 Exploration Drilling at the Oromonte Satellite Deposit, Mineral Ridge Project, Nevada

Vancouver, June 1, 2015 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) reports initial results from its 2015 exploration drilling program on the Oromonte satellite deposit at the 70% owned Mineral Ridge project, located in Nevada.

Oromonte continues to be the least explored of the satellite deposits at Mineral Ridge. It lies within a sparsely drilled target area of approximately 300 x 500 meters that is situated between the Solberry and Wedge deposits. A small mineral resource estimate containing almost entirely Indicated resources was reported for Oromonte based on 53 reverse circulation ("RC") drill holes (as presented in the Company's July 21, 2014 news release on the updated Life of Mine Plan for the Mineral Ridge Operation). There is currently no economic pit shell developed for the Oromonte deposit.

In 2014, three RC holes tested the southwest extent of the target area and one core hole (MR14982; Table 1) twinned RC hole, MR13599 (RC results previously released on Dec 22, 2014 and Sep 23, 2013). Drill holes MR13599, MR14982, and several adjacent holes drilled in 2012-13, intersected a zone of higher-grade mineralization located at 85 to 115 metres vertical depth, which is below the current extent of the estimated resource. Initial drilling in 2015 has tested the 100 meter gap between these holes and the southeast extent of drilling at the Solberry target area. Two of the three 2015 holes, MR151382-83, intersected the higher-grade mineralized zone from 106-126 meters vertical depth. With these intercepts, the zone of higher-grade mineralization has now been outlined over an area of approximately 75 x 85 meters at vertical depths ranging from 85 to 126 meters.

A preliminary interpretation of the mineralization in the Oromonte target area is that it represents a continuation of the mineralized horizon(s) between the Solberry and Wedge deposits offset by normal faulting. It is believed that the occurrence of a higher-grade zone of mineralization at depth may be related to a synform axis which concentrated mineralization in the Oromonte area. This mineralized zone was subsequently down-dropped by late stage normal faulting. A generalized geological model of the mineralization is presented here: Oromonte Cross Section.

Although not accessible by open pit mining, this deeper zone may be amenable to underground extraction should further results support underground development. Historical underground workings occur in the Wedge deposit area approximately 180 meters to the east.

Highlights of the 2014 core hole and initial results from the 2015 exploration drilling at Oromonte include:
  • MR14982: 17.08 grams per tonne ("g/t") gold over 4.02 meters
  • MR151382: 18.18 g/t gold over 9.14 meters
  • MR151383: 10.56 g/t gold over 12.19 meters

A drill hole location map is available at: DH Plan

Table 1. Oromonte Deposit - Significant Drill Results
Hole
No.
Azm
(deg)
Dip
(deg)
From
(ft)
To
(ft)
Width
(ft)
From
(m)
To
(m)
Width
(m)
Gold
(OPT)
Gold
(g/t)
MR14982 0 -90 157.5 162.7 5.2 48.01 49.59 1.58 0.010 0.36
209.9 213.1 3.2 63.98 64.95 0.98 0.017 0.57
289.1 300.4 11.3 88.12 91.56 3.44 0.011 0.36
310.2 311.7 1.5 94.55 95.01 0.46 0.031 1.07
317.2 321.6 4.4 96.68 98.02 1.34 0.013 0.45
360.8 374.0 13.2 109.97 114.00 4.02 0.498 17.08
incl 360.8 365.3 4.5 109.97 111.34 1.37 1.425 48.86
MR151382 0 -90 155 165 10 47.24 50.29 3.05 0.019 0.63
210 215 5 64.01 65.53 1.52 0.019 0.65
255 295 40 77.72 89.92 12.19 0.031 1.06
380 410 30 115.82 124.97 9.14 0.530 18.18
incl 380 390 10 115.82 118.87 3.05 1.480 50.74
445 450 5 135.64 137.16 1.52 0.018 0.62
MR151383 0 -90 55 60 5 16.76 18.29 1.52 0.059 2.02
85 90 5 25.91 27.43 1.52 0.015 0.51
260 265 5 79.25 80.77 1.52 0.016 0.55
295 305 10 89.92 92.96 3.05 0.040 1.35
350 390 40 106.68 118.87 12.19 0.308 10.56
incl 355 365 10 108.20 111.25 3.05 1.064 36.46
400 410 10 121.92 124.97 3.05 0.019 0.65
MR151384 0 -90 220 225 5 67.06 68.58 1.52 0.018 0.62
230 235 5 70.10 71.63 1.52 0.015 0.51
320 335 15 97.54 102.11 4.57 0.020 0.69

All holes presented in Table 1 were completed by reverse circulation (RC) drilling with the exception of core hole MR14982. True width is estimated at 80-100% of downhole width. Analytical results for the RC holes were performed by American Assay Laboratory Inc. in Sparks, Nevada, an ISO/IEC 17025:2005 accredited facility. External check assays to verify lab accuracy are routinely completed by ALS Chemex, an ISO 9001:2000 certified and ISO/IEC 17025:2005 accredited facility. Analytical results for core hole MR14982 were performed by ALS Chemex. Further details are presented in the Company's quality assurance and quality control program for the Mineral Ridge project, available for review at: MR QAQC.

About Scorpio Gold

Scorpio Gold holds a 70% interest in the producing Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Waterton Global Value L.P. (30%), and Scorpio Gold is currently entitled to receive 80% of cash flow generated. Mineral Ridge is a conventional open pit mining and heap leach operation. The Mineral Ridge property is host to multiple gold-bearing structures, veins and lenses at exploration, development and production stages. Scorpio Gold also holds a 100% interest in the advanced exploration-stage Goldwedge property and processing facility in Manhattan, Nevada. The Company has commenced its 2015 exploration program for the Goldwedge property and is currently processing high-grade Mineral Ridge ore at the Goldwedge plant, which is permitted to process 400 tons per day.

Scorpio Gold's President & 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.

ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION


Peter J. Hawley,
President & CEO

For further information contact:
Peter J. Hawley, CEO
Tel: (819) 825-7618
Email: phawley@scorpiogold.com
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, development and exploitation of its Mineral Ridge project, including potential further exploration or development of the Oromonte deposit, and any potential increase in the mineral resource estimate in respect thereof. 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 involved in mineral exploration and development programs, risks related to differences between mineral reserve and resource estimates and actual operating results 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.