Scorpio Gold Corporation (the "Company") is a publicly traded company incorporated under the laws of the Province of British Columbia. The Company's shares are listed on the TSX Venture Exchange ("TSX-V") and trade under the symbol SGN. The corporate office of the Company is located at Unit 1 - 15782 Marine Drive, White Rock, B.C., V4B 1E6. The Company and its subsidiaries conduct mineral exploitation, exploration and development activities in the United States of America ("USA").
Scorpio holds a 100% interest in the Mineral Ridge gold project located 6 km northwest of the town of Silver Peak and 56 km west of Tonopah in Esmeralda County, Nevada. Scorpio produced over 222,440ozs of gold at Mineral Ridge between 2010 until December 31st, 2020; Mining was suspended in November 2017 due to an uneconomic strip ratio for the Heap Leach Operation, however Scorpio has continued to draw down from the existing heaps, between 150ozs and 300ozs per month since that time.
On January 4, 2018, the Company announced an updated feasibility study outlining positive economics for processing the residual heap leach material and mining of higher-grade mineralization in the existing pits. The study provides ~7.5 years of additional mine life at Mineral Ridge and 250,500 oz. life of project gold sold at a total cash cost of US$805/oz. The Company is pursuing financing for the construction of a 4,000 TPD milling facility with CIL recovery and dry stack tailings circuit.
In August 2020, the Company entered into a part and parcel transaction whereby the Company would raise C$6 million in equity and grant an option to Titan Mining Corporation ("Titan") to earn an 80% interest in the Mineral Ridge property by spending US$35 million on exploration over five years. If Titan spends US$7 million of exploration expenditures on Mineral Ridge, it will also receive the right to acquire a 100% interest in Mineral Ridge by making a cash payment to Scorpio Gold of US$35 million on or before December 31, 2022. Results from the exploration drilling on the property will be disclosed by Scorpio Gold in conjunction with Titan Mining. On June 4, 2021 Scorpio Gold Corporation regained 100% control of the Company’s Mineral Ridge Property, located in Nevada as a result of Titan Mining Corporation’s (“Titan”) termination of an earn-in option agreement (the “Titan Agreement”) announced on August 31, 2020.
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. Underground drilling and drifting is presently underway to identify further zones of mineralization that may provide additional ore feed and restart the production facility. The Mill is also being upgraded to include flotation recovery of gold and silver.
A toll milling contract is in place with Lodestar Mining and several other contracts are being negotiated.
The company has also purchased 5,300 acres of adjoining property presently held by Kinross Gold/Round Mountain Corp for US$100,000 in cash and US $150,000 shares of Scorpio. Approval of the purchase by the US Government (CFIUS) is expected by the end of February 2021. The transaction for the purchase was closed on March 25, 2021.