Vancouver, April 27, 2015 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) announces the commencement of underground exploration drilling, and results from its 2014 surface drilling program, at the Company's 100% owned Goldwedge project, located in Manhattan, Nevada.
The Company recently commenced a 5,000 ft (1,524 m) underground drilling program encompassing a planned 23 NQ diameter core holes drilled from 7 underground stations. The goal of the program is to test the Company's revised geological model, which is based on new structural and lithological data obtained from the Company's 2014 surface drilling and geological mapping program. The 2015 underground holes are designed to intersect perpendicular to the N60W trending mineralized zones, providing better information for ongoing geological modelling that will in turn guide future exploration drilling. Completion of the program is expected in Q2 2015 with analytical results available later in 2015.
The Goldwedge project includes a fully permitted underground mine with over 600 meters of underground development and a mill facility with gravity circuit that is currently permitted to process 400 tons per day. Geologically, the Goldwedge deposit lies within the Walker Lane Gold Belt and is situated on the southern periphery of the Manhattan Caldera, approximately 16 kilometers south of the operating Round Mountain Mine. Several styles of gold mineralization have been documented at Goldwedge, from fault breccia and vein hosted to strata-bound replacement style in limestone and pervasive quart-sericite-pyrite alteration hosted.
In 2014, Scorpio Gold drilled four surface oriented core holes to gain further knowledge of the Goldwedge geology and controls to the mineralization. The orientation of the holes was based on the historical interpretation that mineralization was controlled by N30W trending structures which paralleled the regionally significant Reliance Fault Zone. Information gained from the 2014 drilling, in conjunction with surface and underground mapping, has led to the re-interpretation that the primary structural control to mineralization actually trends N60W.
Significant results from the 2014 drilling are presented in Table 1.
Table 1. 2014 Goldwedge Surface Drilling - Significant Results
All holes presented in Table 1 were completed by diamond (core) drilling. Widths are presented as down hole core lengths; true widths are unknown at this time. Analytical results were performed by ALS Chemex in Reno, Nevada, an ISO/IEC 17025:2005 accredited testing laboratory. Further details are presented in the Company's quality assurance and quality control program for the Goldwedge project at at: GW 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 limited quantities of high-grade Mineral Ridge ore at the Goldwedge plant, which is permitted to process 400 tons per day.
Scorpio Gold's 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,
For further information contact:
Steve Roebuck, President
Tel: (819) 825-7618
Renmark Financial Communications Inc.
Barry Mire: moc.laicnanifkramner@erimb
Farialle Pacha: moc.laicnanifkramner@ahcapf
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 plans with respect to the exploration, development and exploitation of its Mineral Ridge project and its Goldwedge property and mill. 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 involved in mineral processing; 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.