Vancouver, October 14, 2015 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) announces its operating results for the third quarter ("Q3") of 2015 at its 70% owned Mineral Ridge project, located in Nevada.
Production at Mineral Ridge in Q3 2015 totalled 9,497 ounces of gold and 4,927 ounces of silver. Gold production for the first nine months of 2015 totals 30,187 ounces, representing a decrease of 1.2% over the same period in 2014.
Peter J. Hawley, President & CEO, reports, "Gold production at the Mineral Ridge operation for the first nine months of 2015 is comparable with the Company's performance in the same period in 2014. An unexpected loss of one of the four mine production drills in early August 2015 resulted in a shortfall of budgeted mining production during Q3. This has been rectified with the recent addition of a new production drill and moving to a 24-hour per day drilling schedule to partly compensate for lost production. In addition, a backup production drill will be added to site within the coming weeks. Production in Q4 is expected to remain on target for scheduled mining performance."
"Due to the shortfall in mining production in Q3 2015, the Company has revised its production forecast to 38,000 to 40,000 ounces of gold at Mineral Ridge in 2015."
Key Operating Statistics
| Three Months Ending Sep 30 | Nine Months Ending Sep 30 | |||||||||
| 2015 | 2014 | Change | 2015 | 2014 | Change | |||||
| Mining operations | ||||||||||
| Mary pit | ||||||||||
| Ore tonnes mined | 5,695 | 130,145 | -95.6% | 202,002 | 302,287 | -33.2% | ||||
| Waste tonnes mined | 10,311 | 564,727 | -98.2% | 1,053,992 | 1,592,599 | -33.8% | ||||
| Total mined | 16,006 | 694,872 | -97.7% | 1,255,994 | 1,894,886 | -33.7% | ||||
| Strip Ratio | 1.8 | 4.3 | -58.1% | 5.2 | 5.3 | -1.9% | ||||
| Mary LC pit | ||||||||||
| Ore tonnes mined | 83,577 | - | 100.0% | 83,577 | - | 100.0% | ||||
| Waste tonnes mined | 941,334 | - | 100.0% | 941,334 | - | 100.0% | ||||
| Total mined | 1,024,911 | - | 100.0% | 1,024,911 | - | 100.0% | ||||
| Strip Ratio | 11.3 | - | 100.0% | 11.3 | - | 100.0% | ||||
| Satellite pits | ||||||||||
| Ore tonnes mined | 127,546 | - | 100.0% | 241,665 | - | 100.0% | ||||
| Waste tonnes mined | 990,728 | - | 100.0% | 1,276,601 | - | 100.0% | ||||
| Total mined | 1,118,274 | - | 100.0% | 1,518,266 | - | 100.0% | ||||
| Strip Ratio | 7.8 | - | 100.0% | 5.3 | - | 100.0% | ||||
| Drinkwater pit | ||||||||||
| Ore tonnes mined | - | 74,343 | -100.0% | - | 395,177 | -100.0% | ||||
| Waste tonnes mined | - | 110,401 | -100.0% | - | 834,938 | -100.0% | ||||
| Total mined | - | 184,744 | -100.0% | - | 1,230,115 | -100.0% | ||||
| Strip Ratio | - | 1.5 | -100.0% | - | 2.1 | -100.0% | ||||
| Total producing pits | ||||||||||
| Ore tonnes mined | 216,818 | 204,488 | 6.0% | 527,244 | 697,464 | -24.4% | ||||
| Waste tonnes mined | 1,942,373 | 675,128 | 187.7% | 3,271,927 | 2,427,537 | 34.8% | ||||
| Total mined | 2,159,191 | 879,616 | 145.5% | 3,799,171 | 3,125,001 | 21.6% | ||||
| Strip Ratio | 9.0 | 3.3 | 172.7% | 6.2 | 3.5 | 77.1% | ||||
| Pits under development | ||||||||||
| Ore tonnes mined | - | 29,386 | -100.0% | 92,146 | 36,301 | 153.8% | ||||
| Waste tonnes mined (pre-stripping) | - | 793,866 | -100.0% | 1,995,432 | 1,462,424 | 36.4% | ||||
| Total mined | - | 823,252 | -100.0% | 2,087,578 | 1,498,725 | 39.3% | ||||
| Total mining operations | ||||||||||
| Ore tonnes mined | 216,818 | 233,874 | -7.3% | 619,390 | 733,765 | -15.6% | ||||
| Waste tonnes mined | 1,942,373 | 1,468,994 | 32.2% | 5,267,359 | 3,889,961 | 35.4% | ||||
| Total mined | 2,159,191 | 1,702,868 | 26.8% | 5,886,749 | 4,623,726 | 27.3% | ||||
| Processing | ||||||||||
| Tonnes processed | 213,957 | 276,857 | -22.7% | 626,980 | 768,703 | -18.4% | ||||
| Gold head grade (g/t) | 1.59 | 1.49 | 6.7% | 1.46 | 1.74 | -16.1% | ||||
| Ounces produced | ||||||||||
| Gold | 9,497 | 11,228 | -15.4% | 30,187 | 30,556 | -1.2% | ||||
| Silver | 4,927 | 4,911 | 0.3% | 14,837 | 13,795 | 7.6% | ||||
| Crusher throughput (tonnes per day) | 2,326 | 3,009 | -22.7% | 2,297 | 3,138 | -26.8% | ||||
| Recoverable(1) gold (ounces) placed on pad | 7,327 | 8,616 | -15.0% | 19,755 | 27,879 | -29.1% | ||||
(1) A weighted average metallurgical recovery factor has been applied to the estimated contained ounces crushed and placed on the leach pad based on the pit from which the ore was mined.
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 Elevon, LLC (30%). 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 in Manhattan, Nevada, with a fully permitted underground mine and 400 ton per day mill facility. The Goldwedge mill facility has been placed on a care and maintenance basis and can be restarted immediately when needed.
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: moc.dlogoiprocs@yelwahp
Investor Relations:
Jim Macdonald, Torrey Hills Capital
Tel: (858) 456-7300
Email: moc.chtds@mj
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 restriction, any statements regarding the Company achieving production forecasts for 2015. 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, including unanticipated changes in the mineral content of materials being mined; unanticipated changes in recovery rates; changes in project parameters; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; availability of skilled labour and the impact of labour disputes; delays in obtaining governmental approvals; changes in metals prices; the availability of cash flows or financing to meet the Company's ongoing financial obligations; unanticipated changes in key management personnel; changes in general economic conditions; other risks of the mining industry; 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.
