Scorpio Gold Corporation

TSX VENTURE : SGN


Scorpio Gold Corporation

July 22, 2013 08:00 ET

Scorpio Gold Intersects 2.05 g/t Gold Over 10.67 Meters and Continues to Extend the Mary/LC Zone at the Mineral Ridge Operation, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 22, 2013) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) announces additional results from its 2013 drill program in the vicinity of the proposed Mary LC pit expansion at the 70% owned Mineral Ridge project, located in Nevada.

The program is targeting undrilled areas within the Mary LC pit expansion design to determine if mineralization exists, tighten up drill hole spacing for resource estimation, and follow up on mineralized trends either below the proposed pit shell floor or outside of the existing cone boundary. Results continue to be highly encouraging, including intersections of 2.05 grams per tonne ("g/t") over 10.67 meters, 2.51 g/t over 4.57 meters and 2.49 g/t over 3.10 meters.

Peter J. Hawley, CEO comments; "The current drill program is having an excellent success rate, with over 85% of the holes to date intersecting mineralization where expected based on our wire frame modelling. Drilling is specifically targeting areas that were previously accorded zero grade within our resource block model. As such, each successful intersection is converting those areas into mineralization, potentially adding to the resource base and increasing confidence levels. The Mary LC zone remains open to the southeast and to depth."

A drill hole location map is available at: www.scorpiogold.com/i/maps/mr/MaryLC_DHplan2.jpg.

Table 1. Mary/LC Zone - Significant Drill Results

Hole
No.
Azm
(deg)
Dip
(deg)
From
(ft)
To
(ft)
Width
(ft)
From
(m)
To
(m)
Width
(m)
Gold
(OPT)
Gold
(g/t)
MR13556 225 -60 80 125 45 24.38 38.72 13.72 0.020 0.67
MR13557 0 -90 75 110 35 22.86 33.53 10.67 0.060 2.05
MR13558 225 -50 25 30 5 7.62 9.14 1.52 0.028 0.96
50 60 10 15.24 18.29 3.05 0.013 0.45
95 105 10 28.96 32.00 3.05 0.037 1.27
MR13559 0 -90 155 160 5 47.24 48.77 1.52 0.017 0.58
210 225 15 64.01 68.58 4.57 0.029 0.98
MR13560 225 -55 185 200 15 56.39 60.96 4.57 0.073 2.51
260 265 5 79.25 80.77 1.52 0.052 1.78
MR13561 0 -90 10 20 10 3.05 6.10 3.05 0.012 0.41
125 145 20 38.10 44.20 6.10 0.039 1.32
175 185 10 53.34 56.39 3.05 0.019 0.65
MR13562 225 -50 5 10 5 0.00 1.52 1.52 0.014 0.48
95 100 5 28.96 30.48 1.52 0.014 0.48
MR13563 0 -90 15 25 10 4.57 7.62 3.05 0.045 1.53
85 105 20 25.91 32.00 6.10 0.048 1.64
195 200 5 59.44 60.96 1.52 0.016 0.55
260 275 15 79.25 83.82 4.57 0.018 0.62
MR13564 0 -90 180 185 5 54.86 56.39 1.52 0.082 2.81
MR13565 225 -55 155 160 5 47.24 48.77 1.52 0.042 1.44
MR13566 0 -90 125 135 10 38.10 41.15 3.05 0.053 1.82
160 170 10 48.77 51.82 3.05 0.073 2.49
MR13567 225 -55 185 200 15 56.39 60.96 4.57 0.026 0.90
210 215 5 64.01 65.53 1.52 0.033 1.13

All holes presented in Table 1 were completed by reverse circulation (RC) drilling. True width is estimated at 90-100% of downhole width. Analytical results were performed by American Assay Laboratory Inc. in Sparks, Nevada, an ISO/IEC 17025:2005 accredited facility. External check assays to verify lab accuracy are routinely completed by ALS Chemex, an ISO 9001:2000 certified and ISO/IEC 17025:2005 accredited facility. Further details are presented in the Company's quality assurance and quality control program for the Mineral Ridge project at: www.scorpiogold.com/i/pdf/reports/QAQC-MR.pdf.

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 bodies at exploration, development and production stages. Scorpio Gold recently acquired the Goldwedge advanced exploration-stage property and processing facility in Manhattan, Nevada, and the Pinon advanced exploration-stage gold property near Carlin, Nevada. The Company is assessing its exploration plans for these properties 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, CEO

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 limitation, statements regarding the Company's plans with respect to the exploration, development and exploitation of its Mineral Ridge project. 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 such as delays related to completion of mineral resource estimates, exploration programs 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.

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