Vancouver, March 3, 2020 – Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX-V: SGN) is pleased to announce the commencement of an underground drilling campaign at the Company’s Goldwedge project located in Manhattan, Nevada.
The Goldwedge project includes a fully permitted underground mine with over 600 meters of underground development and a 400 ton per day mill facility with modifications underway to add a flotation circuit through a toll milling contract with Lode-Star Mining Inc. (January 27, 2020 news release).
Scorpio Gold plans to conduct resource definition drilling in areas where the Company’s 2014 surface drilling intersected higher-grade mineralization proximal to existing underground workings (April 27, 2015 news release). If successful, this will provide a potential source of mineralized mineable material to the Goldwedge milling circuit. The drilling program will utilize the Company’s Atlas Copco 262 skid-mounted drill rig which recently underwent extensive modifications to improve its overall performance for underground operations.
Scorpio Gold’s President, Chris Zerga, comments, “The toll milling contract recently signed with Lode-Star that includes the addition of a flotation circuit has provided the impetus to accelerate our evaluation and resource definition of the Goldwedge deposit. We look forward to the results of the drilling program and further development of the project.”
About the Goldwedge Deposit
In addition to the Company’s 2014 surface drilling, in 2015 Scorpio Gold drilled 21 core holes from 6 underground drill stations totalling 1,431 meters (September 8, 2015 news release). Drilling by previous operators totals 89 surface holes and 30 underground core holes for a total of 16,994 meters. Gold mineralization is outlined over a strike length of 335 meters and to a vertical depth of over 150 meters and is open along strike, down-dip and down-plunge toward the northwest. Several mineral resource estimates were prepared for the deposit from 1997 to 2011, none of which are NI 43-101 compliant.
About Scorpio Gold
Scorpio Gold 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. Scorpio Gold also holds a 100% interest in the Mineral Ridge gold mining operation located in Esmeralda County, Nevada. Mineral Ridge is a conventional open pit mining and heap leach operation. Mining at Mineral Ridge was suspended in November 2017; however, the Company continues to generate limited revenues from residual but diminishing recoveries from the leach pads.
Scorpio Gold’s Chairman, Peter J. Hawley, P.Geo., is a Qualified Person as defined in National Instrument 43-101 and has reviewed and approved the content of this release.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
For further information contact:
Brian Lock, Interim CEO
Tel: (604) 889-2543
Chris Zerga, President
Tel: (604) 536-2711
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 of its Goldwedge 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 involved in mineral exploration 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.