Vancouver, October 13, 2016 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) announces its operating results for the third quarter ("Q3") of 2016 at its 70% owned Mineral Ridge project, located in Nevada.
Production at Mineral Ridge in Q3 2016 totalled 9,981 ounces of gold and 4,630 ounces of silver compared to 9,497 ounces of gold and 4,927 ounces of silver in Q3 of 2015. Gold and silver production for the first nine months of 2016 totalled 28,578 ounces of gold and 12,876 ounces of silver, representing decreases of 5.3% and 13.2%, respectively, over the same period in 2015.
Peter J. Hawley, CEO, comments, "The Company is pleased to report another solid quarter of production at Mineral Ridge with a 5.1% increase in total ounces of gold produced in Q3 2016 compared to the same period in 2015. The Company remains on target to meet its 2016 production guidance of 30-35,000 ounces of gold at a total cash cost of $900-$950 per ounce."
Key Operating Statistics
|Three Months Ending Sep 30||Nine Months Ending Sep 30|
|Mary LC pit|
|Ore tonnes mined||119,574||83,577||43.1%||405,241||83,577||384.9%|
|Waste tonnes mined||919,556||941,334||-2.3%||2,542,039||941,334||170.0%|
|Ore tonnes mined||48,029||127,546||-62.3%||190,774||241,665||-21.1%|
|Waste tonnes mined||152,883||990,728||-84.6%||519,603||1,276,601||-59.3%|
|Ore tonnes mined||-||5,695||-100.0%||-||202,002||-100.0%|
|Waste tonnes mined||-||10,311||-100.0%||-||1,053,992||-100.0%|
|Total producing pits|
|Ore tonnes mined||167,603||216,818||-22.7%||596,015||527,244||13.0%|
|Waste tonnes mined||1,072,439||1,942,373||-44.8%||3,061,642||3,271,927||-6.4%|
|Pits under development|
|Ore tonnes mined||-||-||0.0%||-||92,146||-100.0%|
|Waste tonnes mined (pre-stripping)||25,876||-||100.0%||149,230||1,995,432||-92.5%|
|Total mining operations|
|Ore tonnes mined||167,603||216,818||-22.7%||596,015||619,390||-3.8%|
|Waste tonnes mined||1,098,315||1,942,373||-43.5%||3,210,872||5,267,359||-39.0%|
|Gold head grade (g/t)||1.35||1.59||-15.1%||1.45||1.46||-0.7%|
|Crusher throughput (tonnes per day)||1,923||2,326||-17.3%||2,569||2,297||11.8%|
|Recoverable(1) gold (ounces) placed on pad||5,215||7,327||-28.8%||22,249||19,755||12.6%|
(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 Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Elevon, LLC (30%). 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 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.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley,
For further information contact:
Chris Zerga, President
Tel: (819) 825-7618
Jag Sandhu, JNS Capital Corp.
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 2016, 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 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.