Vancouver, January 13, 2015 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) announces its operating results for full year and the fourth quarter ("Q4") of 2014 at its 70% owned Mineral Ridge project, located in Nevada.
Total gold production in 2014 was 40,814 ounces, an increase of 4% over the year 2013. Gold production in Q4 2014 totalled 10,258 ounces, representing a decrease of 10% from Q4 2013 and a 9% decrease from Q3 2014. Production challenges occurred in the fourth quarter of 2014 as the Company experienced a delay in receiving its mine permit for the satellite deposits. The delay created a shortfall in scheduled tons and ounces mined from those pits and had to be made up by mining in the Mary LC area. Looking forward, the Company is in the process of finalizing its 2015 budget and expects to provide guidance in Q1 2015 once the mine permit for the satellite deposits has been received.
Peter J. Hawley, CEO reports, "We are proud to report a record annual gold production of 40,814 ounces at Mineral Ridge in 2014, representing a 4% increase over 2013 and meeting our 2014 production guidance. Scorpio Gold has now completed three full years of production at Mineral Ridge and has fully transitioned production from the Drinkwater pit to the Mary pit. On behalf of the Company, I would like to thank the entire production team and contractors who continue to make the Mineral Ridge operation a success."
Key Operating Statistics
|Three Months Ending Dec 31||Twelve Months Ending Dec 31|
|Ore tonnes mined||141,056||136,891||3.0%||443,343||285,688||55.2%|
|Waste tonnes mined||674,026||563,368||19.6%||2,266,625||1,986,738||14.1%|
|Ore tonnes mined||-||100,732||-||395,177||607,535||-35.0%|
|Waste tonnes mined||-||441,244||-||834,938||2,102,002||-60.3%|
|Total producing pits|
|Ore tonnes mined||141,056||237,623||-40.6%||838,520||893,223||-6.1%|
|Waste tonnes mined||674,026||1,004,612||-32.9%||3,101,563,||4,088,740||-24.1%|
|Pits under development|
|Mary LC Pit|
|Ore tonnes mined||37,417||-||-||73,718||-||-|
|Waste tonnes mined (pre-stripping)||902,039||151,332||496.1%||2,346,051||213,411||999.3%|
|Ore tonnes mined||7,339||-||-||7,339||-||-|
|Waste tonnes mined (pre-stripping)||99,920||-||-||118,332||-||-|
|Total mining operations|
|Ore tonnes mined||185,812||237,623||-21.8%||919,577||893,223||3.0%|
|Waste tonnes mined||1,675,985||1,155,944||45.0%||5,565,946||4,302,151||29.4%|
|Gold head grade (g/t)||205,643||242,124||-15.1%||974,346||903,337||7.9%|
|Crusher throughput (tonnes per day)||2,235||2,632||-15.1%||2,891||2,681||7.8%|
|Recoverable(1) gold (ounces) placed on pad||7,207||11,554||-37.6%||35,086||43,845||-20.0%|
(1) A 65% metallurgical recovery factor has been applied to the estimated contained ounces crushed and placed on the leach pad.
Scorpio Gold's President, Steve Roebuck, will be attending the Vancouver Resource Investment Conference held at the Vancouver Convention Centre on January 18-19, 2015. Management looks forward to meeting its shareholders and interested parties at booth 1506. Further information is available at: VRIC 2015
About Scorpio Gold Corporation
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 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 ton 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
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. 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 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.