Vancouver, July 14, 2014 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) announces its operating results for the second quarter ("Q2") of 2014 at its 70% owned Mineral Ridge project, located in Nevada.
Production at Mineral Ridge in Q2 2014 totalled 9,034 ounces of gold and 3,771 ounces of silver. Total gold production for the first half ("H1") of 2014 stands at 19,328 ounces; an increase of 6.3% from H1 of 2013. The 2014 production forecast for Mineral Ridge remains unchanged at 40,000 to 45,000 ounces of gold (as reported in the Company's February 13, 2014 news release).
Peter J. Hawley, CEO, reports, "We are in a planned period of transition at Mineral Ridge, as production from the Drinkwater pit winds down and production from the Mary pit increases, resulting in a dip in gold ounces produced during Q2 2014 compared to the previous year. In addition, gold head grades in Q2 2014 were lower than the same period in 2013, but not unexpected based on the mine plan for this transition period. Head grades are expected to return to average levels as per the current Life of Mine plan in H2 2014. Overall, we are very pleased with the operation's performance in H1 2014.A stronger second half of 2014 is expected based on the above, and as gold inventory on the leach pad is further drawn down by a new, higher capacity carbon column recently installed in the ADR plant. We confirm our guidance of 40,000 to 45,000 ounces gold production at Mineral Ridge in 2014."
Key Operating Statistics
|Three Months Ending June 30||Six Months Ending June 30|
|Ore tonnes mined||165,882||209,114||-20.7%||320,834||372,656||-13.9%|
|Waste tonnes mined||326,304||568,765||-42.6%||724,537||1,181,831||-38.7%|
|Ore tonnes mined||79,394||33,644||136.0%||172,142||68,585||151.0%|
|Waste tonnes mined||612,511||444,029||37.9%||1,027,872||771,044||33.3%|
|Total producing pits|
|Ore tonnes mined||245,276||242,758||1.0%||492,976||441,241||11.7%|
|Waste tonnes mined||938,815||1,012,794||-7.3%||1,752,409||1,952,875||-10.3%|
|Pits under development|
|Mary LC Pit|
|Ore tonnes mined||6,915||-||-||6,915||-||-|
|Waste tonnes mined||411,162||-||-||668,558||-||-|
|Total mining operations|
|Ore tonnes mined||252,191||242,758||3.9%||499,891||441,241||13.3%|
|Waste tonnes mined||1,349,977||1,012,794||33.3%||2,420,967||1,952,875||24.0%|
|Gold head grade (g/t)||1.80||2.56||-29.7%||1.87||2.49||-24.9%|
|Crusher throughput (tonnes per day)||3,168||2,670||18.7%||3,215||2,707||18.8%|
|Recoverable(2) gold (ounces) placed on pad||9,297||11,126||-16.4%||19,263||21,527||-10.5%|
(1) A 65% metallurgical recovery factor has been applied to the estimated contained ounces crushed and placed on the leach pad.
The Company plans to release an updated mineral reserve estimate and Life of Mine Study incorporating the Drinkwater, Mary/LC and satellite deposits on July 21, 2014.
About Scorpio Gold
Scorpio Gold holds a 70% interest in the Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Waterton Global Value L.P. (30%), and is currently entitled to receive 80% of cash flow generated. Mineral Ridge is currently in production as 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 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
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 restriction, any statements regarding the Company achieving production forecasts for 2014. 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, including 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 governmental approvals; changes in metals prices; the availability of cash flows or financing to meet the Company's ongoing financial obligations; 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.