Vancouver, August 3, 2016 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) reports its intention to undertake Phase 2 of an exploration program on its Nevada Assets totalling approximately US$750,000.
Mineral Ridge Program
A breakthrough in the understanding of the Mineral Ridge deposit as it relates to gold emplacement resulting from a deep ductile strain event or events earlier this year, has led to the preparation by the Company of a detailed comprehensive phase 2 exploration Program, which will set the stage for growth in 2017. It is expected that the new phase 2 exploration program will consist of the following;
- 3.5 months of detailed field mapping by the Company's geology team which will focus on investigating the post mineral structural features in order to determine the localities that gold has originally formed in. This is expected to comprise of approximately 500 multi-element samples to aid in the understanding of the geology.
- A 3 month cost effective in-house ground geophysical survey comprising of vertical gradient and total field magnets and VLF (Very Low Frequency) electromagnets over the areas of interest designed to delineate post mineral faulting as well as aid in the understanding of the geological architecture during the gold formation.
- To be followed by 10 small diameter diamond drill holes in the first priority target derived from the above mentioned fieldwork and geophysical surveys which will set the stage for a more comprehensive 2017 drilling campaign.
- 10 HQ size diamond drill holes designed to test and further define the Drinkwater Highwall Open Pit economics.
- 5 HQ size diamond drill holes designed to test and further delineate the Bunkhouse Hill (Mary LC Phase 4) economics.
- The estimated cost for this program is US$718,000.
The Goldwedge exploration program is three-fold. First, sampling the Goldwedge proposed Plan of Operations boundary, second sampling the Keystone -- Jumbo area and third conducting an in-house cost effective vertical gradient and total field magnets and VLF (Very Low Frequency) electromagnets geophysical surveys. In the Goldwedge area, soil sampling will be used to augment drillhole targeting in the vicinity of the Goldwedge mine and to understand the mineralization controls in the collapsed caldera to the North of the Goldwedge mine. In the Keystone -- Jumbo area this program will be targeting structural intersections between East-West to East-Northeast structures and Northwest structures which have been identified as the main controls on mineralization in the Keystone and Jumbo pits in order to generate drill targets to include in future drill permit applications. The geophysical surveys will help to understand geological and structural controls in the area, especially where ground cover is present. The estimated cost for this program is US$33,000.
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. 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 President & 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,
President & CEO
For further information contact:
Peter J. Hawley, President & CEO
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 Company's proposed exploration programs for 2016, or future exploration programs. 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; the results of exploration and development programs and the timing and cost of such exploration and development programs; 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.