Vancouver, October 22, 2014 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) is pleased to report that a third reverse circulation ("RC") drill rig has mobilized to site to expand the 2014 exploration and satellite deposit drilling program at its 70% owned Mineral Ridge project, located in Nevada.
The 2014 exploration and satellite deposit drilling program has been highly successful with 340 RC holes completed to date, totalling more than 34,000 meters (111,500 feet). The program has been expanded to include a further 150 RC holes totalling approximately 18,300 meters (60,000 feet).
An additional 2,939 meters (9,643 feet) of drilling was completed in 20 HQ (~63 mm diameter) oriented diamond drill core holes. The drill core is providing for a better understanding of the lithology and structural geology as well as the styles and geological controls to mineralization on a property-wide scale.
Peter J. Hawley, CEO, reports, "A significant drop in RC and core drilling costs during the year has allowed us to increase the overall 2014 drill program under the current budget. By adding a third RC drill rig, we can accelerate the program and push hard on priority targets such as the NW Brodie trend."
The expanded 2014 drill program will concentrate in several areas, including:
- Infill and down dip extension on the Mary LC deposit
- Infill drilling on the Brodie deposit
- Step out drilling along the NW Brodie trend
- Delineation of pit outlines on the Bluelite and Solberry deposits
This accelerated drill program is directed at converting previously designated waste areas into mineable material, upgrading inferred mineralized blocks within the Mary LC deposit, and further defining the NW Brodie trend. The overall objective of the program is to increase and upgrade the mineral resource and reserve estimates that were presented in the Company's updated Life of Mine Plan ("LOM Plan") for Mineral Ridge, which includes the currently producing Drinkwater and Mary LC pits and five adjacent satellite deposits (as reported in the Company's July 21, 2014 news release).
NW Brodie Trend
The Company is pleased to report additional assay results from the NW Brodie trend, a semi-continuous mineralized corridor that extends between the Brodie and Bluelite deposits. This area lies well outside of currently defined resources and modelled pit outlines. Results to date are very promising and may potentially allow for building a new resource in this area.
Highlights from this latest phase of RC drilling on the NW Brodie trend include:
- MR141101: 0.90 grams per tonne ("g/t") gold over 47.24 meters
- MR141103: 3.36 g/t gold over 9.14 meters
- MR141144: 1.97 g/t gold over 10.67 meters
- MR141144: 3.14 g/t gold over 10.67 meters
- MR141146: 1.22 g/t gold over 4.57 meters
- MR141147: 2.44 g/t gold over 6.10 meters
A drill hole location map is available at: View Drill Plan
Table 1. NW Brodie Trend - 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)|
All holes presented in Table 1 were completed by reverse circulation ("RC") drilling. True width is estimated at 80-100% of downhole width. Analytical results 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. Further details are presented in the Company's quality assurance and quality control program for the Mineral Ridge project at: View PDF.
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 is assessing its exploration plans for the Goldwedge property as well as the potential for toll milling at the Goldwedge plant, which is currently permitted for 400 tons per day.
Scorpio Gold's President, Steve Roebuck, 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,
For further information contact:
Steve Roebuck, President
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, including the completion or potential results of the additional RC drilling planned in 2014 and the potential addition of new mineral resources along the NW Brodie trend. 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 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.