Scorpio Gold Corporation

TSX VENTURE : SGN


Scorpio Gold Corporation

February 18, 2014 08:00 ET

Scorpio Gold Intersects 9.21 g/t Over 9.14 Meters at the Mary LC Zone, Mineral Ridge Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 18, 2014) - Scorpio Gold Corporation (TSX VENTURE:SGN) ("Scorpio Gold" or the "Company") reports final assay results from its 2013 drill program in the vicinity of the planned 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.

Final results from the 2013 drilling complete a highly successful program that was designed to test areas previously accorded zero grade in the wireframe resource block model and tighten up drill hole spacing for resource estimation. 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.

As previously reported, Scorpio Gold 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 final results of the 2013 drilling program on the Mary LC include:

  • MR13626: 3.57 g/t gold over 6.10 meters
  • MR13632: 9.21 g/t gold over 9.14 meters
  • MR13647: 2.99 g/t gold over 6.10 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)
MR13629 225 -63 160 180 20 48.77 54.86 6.10 0.104 3.57
MR13630 0 -90 160 165 5 48.77 50.29 1.52 0.014 0.48
185 215 35 56.39 65.53 9.14 0.019 0.66
MR13631 225 -55 180 190 10 54.86 57.91 3.05 0.026 0.89
MR13632 0 -90 190 220 30 57.91 67.06 9.14 0.269 9.21
325 330 5 99.06 100.58 1.52 0.013 0.45
MR13633 225 -59 185 205 20 56.39 62.48 6.10 0.031 1.07
MR13634 0 -90 215 225 10 65.53 68.58 3.05 0.102 3.48
MR13635 225 -50 215 220 5 65.53 67.06 1.52 0.058 1.99
MR13636 0 -90 200 210 10 60.96 64.01 3.05 0.048 1.65
MR13637 225 -50 195 200 5 59.44 60.96 1.52 0.099 3.39
220 225 5 67.06 68.58 1.52 0.020 0.69
MR13638 0 -90 210 225 15 64.01 68.58 4.57 0.056 1.91
MR13639 0 -90 No Significant Results
MR13640 225 -64 115 120 5 35.05 36.58 1.52 0.013 0.45
190 200 10 57.91 60.96 3.05 0.027 0.91
MR13641 0 -90 0 10 10 0.00 3.05 3.05 0.015 0.50
180 185 5 54.86 56.39 1.52 0.018 0.62
215 220 5 65.53 67.06 1.52 0.045 1.54
MR13642 225 -50 0 10 10 0.00 3.05 3.05 0.014 0.46
140 145 5 42.67 44.20 1.52 0.014 0.48
160 170 10 48.77 51.82 3.05 0.095 3.26
MR13643 0 -90 235 245 10 71.63 74.68 3.05 0.011 0.36
MR13644 0 -90 245 255 10 74.68 77.72 3.05 0.029 0.99
290 300 10 88.39 91.44 3.05 0.039 1.32
MR13645 0 -90 No Significant Results
MR13646 0 -90 No Significant Results
MR13647 225 -50 0 20 20 0.00 6.10 6.10 0.041 1.40
155 175 20 47.24 53.34 6.10 0.087 2.99
MR13648 0 -90 190 195 5 57.91 59.44 1.52 0.019 0.65
MR13649 45 -60 305 325 20 92.96 99.06 6.10 0.053 1.80
425 465 40 129.54 141.73 12.19 0.021 0.73
485 490 5 147.83 149.35 1.52 0.012 0.41

All holes presented in Table 1 were completed by reverse circulation (RC) drilling. True width is estimated at 80-100% 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, P.Geo., 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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