Vancouver, October 27 2017 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) announces its operating results for the third quarter ("Q3") of 2017 at its 70% owned Mineral Ridge project, located in Nevada.
Production at Mineral Ridge in Q3 2017 totalled 4,935 ounces of gold and 2,588 ounces of silver compared to 9,981 ounces of gold and 4,630 ounces of silver in Q3 of 2016. Gold and silver production for the first nine months of 2017 totalled 15,336 ounces of gold and 7,947 ounces of silver, representing decreases of 46.3% and 38.3%, respectively, over the same period in 2016. The lower metal production is attributed to fewer tons being mined and processed as a result of the decreasing size of the Mary LC and Brodie pits and slower mining rates as current production in these pits winds down.
Current mining is expected to continue through the first week of November 2017, at which time mining will be suspended while evaluations are conducted by Mine Technical Services ("MTS") on the mine's remaining internal resources for a NI-43-101 compliant resource and reserve estimate and updated mine plan. Based on the positive results from the recently completed feasibility study, the Company intends to pursue financing for the construction of a 4,000 TPD milling facility with CIL recovery and dry stack tailings circuit. The Company also intends to add additional run of mine resources, when confirmed by MTS, to the already confirmed heap leach resource for processing and recovery of the contained precious metals. Construction of the milling facility will begin once financing is obtained and the Plan of Operations Amendment and Water Pollution Control permit are approved and issued. Permit approval is expected in early 2018.
The Company will provide further updates on its Q4 activities at Mineral Ridge in due course.
Key Operating Statistics
|Three Months Ending Sep 30||Nine Months Ending Sep 30|
|Mary LC pit|
|Ore tonnes mined||61,555||119,574||-48.5%||315,242||405,241||-22.2%|
|Waste tonnes mined||309,207||919,556||-66.4%||1,805,218||2,542,039||-29.0%|
|Ore tonnes mined||19,074||48,029||-60.3%||54,564||190,774||-71.4%|
|Waste tonnes mined||360,403||152,883||135.7%||551,254||519,603||6.1%|
|Total producing pits|
|Ore tonnes mined||80,629||167,603||-51.9%||369,806||596,015||-38.0%|
|Waste tonnes mined||669,610||1,072,439||-37.6%||2,356,472||3,061,642||-23.0%|
|Pits under development|
|Ore tonnes mined||-||-||-||772||-||100.0%|
|Waste tonnes mined (pre-stripping)||-||25,876||-100.0%||249,085||149,230||66.9%|
|Total mining operations|
|Ore tonnes mined||80,629||167,603||-51.9%||370,578||596,015||-37.8%|
|Waste tonnes mined||669,610||1,098,315||-39.0%||2,605,557||3,210,872||-18.9%|
|Gold head grade (g/t)||1.34||1.35||-0.7%||1.54||1.45||6.2%|
|Crusher throughput (tonnes per day)||856||1,923||-55.5%||1,350||2,569||-47.5%|
|Recoverable(1) gold (ounces) placed on pad||2,299||5,215||-55.9%||12,456||22,249||-44.0%|
(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. Current mining is expected to continue through the first week of November 2017 and the Company intends to proceed with financing and construction of a mill facility for the processing of the heap leach resource and expected run of mine resources upon permit approval. 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 Chairman, 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
For further information contact:
Chris Zerga, President
Tel: (819) 825-7618
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 suspension of mining activities; the Company achieving production forecasts for 2017, planned financing and construction activities, or planned future production schedules. 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, 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 approval to the revised Plan of Operations, permits and governmental approvals; changes in metals prices; the availability of cash flows or financing to meet the Company's ongoing financial obligations or to finance the construction of the mill facility; 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.