Scorpio Gold Corporation

TSX VENTURE : SGN


Scorpio Gold Corporation

February 11, 2014 08:00 ET

Scorpio Gold Intersects 3.10 g/t over 9.14 meters at the Mary LC Zone, Mineral Ridge Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 11, 2014) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) reports 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 Mary LC lies immediately southeast of the currently active Mary pit.

The 2013 program targeted 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. The drilling has had a very high success rate, with over 85% of the holes to date intersecting mineralization in areas previously accorded zero grade within the block model. Completion of a new reserve estimate and Life of Mine assessment, which will incorporate the Drinkwater, Mary and Mary LC, is expected in Q1 2014.

Scorpio Gold recently received approval from the Nevada Bureau of Land Management for its Amended Plan of Operations, allowing the Company to proceed with the planned expansion of the Mary pit to incorporate the Mary LC zone. The new Mary/LC pit will have dimensions far exceeding the currently operating Drinkwater pit.

Highlights from the 2013 drilling program on the Mary LC include:

  • MR13702: 3.10 g/t gold over 9.14 meters
  • MR13711: 2.86 g/t gold over 6.10 meters
  • MR13624: 2.18 g/t gold over 7.62 meters
  • MR13626: 3.94 g/t gold over 4.57 meters

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

Table 1. Mary LC - 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)
MR13702 0 -90 220 250 30 67.06 76.20 9.14 0.091 3.10
MR13703 0 -90 150 160 10 45.72 48.77 3.05 0.153 5.23
190 200 10 57.91 60.96 3.05 0.012 0.41
MR13704 0 -90 75 80 5 22.86 24.38 1.52 0.012 0.41
170 180 10 51.82 54.86 3.05 0.017 0.58
MR13705 0 -90 195 200 5 59.44 60.96 1.52 0.027 0.93
MR13706 225 -55 No Significant Results
MR13707 0 -90 45 50 5 13.72 15.24 1.52 0.012 0.41
MR13708 0 -90 15 20 5 4.57 6.10 1.52 0.024 0.82
90 95 5 27.43 28.96 1.52 0.084 2.88
115 125 10 35.05 38.10 3.05 0.015 0.51
MR13709 0 -90 30 35 5 9.14 10.67 1.52 0.010 0.34
105 115 10 32.00 35.05 3.05 0.022 0.74
MR13711 225 -66 175 195 20 53.34 59.44 6.10 0.084 2.86
270 280 10 82.30 85.34 3.05 0.076 2.61
MR13712 225 -70 255 265 10 77.72 80.77 3.05 0.021 0.70
MR13713 0 -90 160 165 5 48.77 50.29 1.52 0.014 0.48
280 295 15 85.34 89.92 4.57 0.087 2.99
MR13617 0 -90 155 160 5 47.24 48.77 1.52 0.016 0.55
180 185 5 54.86 56.39 1.52 0.046 1.58
230 235 5 70.10 71.63 1.52 0.028 0.96
MR13618 225 -50 70 75 5 21.34 22.86 1.52 0.030 1.03
125 130 5 38.10 39.62 1.52 0.061 2.09
MR13619 225 -60 165 170 5 50.29 51.82 1.52 0.055 1.89
MR13620 0 -90 0 5 5 0.00 1.52 1.52 0.013 0.45
165 185 20 50.29 56.39 6.10 0.030 1.04
MR13621 0 -90 165 170 5 50.29 51.82 1.52 0.012 0.41
MR13622 0 -90 155 160 5 47.24 48.77 1.52 0.106 3.63
195 200 5 59.44 60.96 1.52 0.019 0.65
MR13623 0 -90 145 155 10 44.20 47.24 3.05 0.015 0.51
MR13624 225 -60 110 135 25 33.53 41.15 7.62 0.064 2.18
MR13625 0 -90 195 215 20 59.44 65.53 6.10 0.055 1.89
MR13626 225 -55 170 185 15 51.82 56.39 4.57 0.115 3.94
MR13627 0 -90 155 175 20 47.24 53.34 6.10 0.033 1.12
MR13628 0 -90 125 135 10 38.10 41.15 3.05 0.019 0.65

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 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, and has entered into a letter of intent to sell the advanced exploration-stage Pinon gold property near Carlin, 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, 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, including plans for the Mary LC pit expansion and the completion of an updated mineral reserve estimate and life of mine assessment for the Mineral Ridge property. 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 involved in 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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