Scorpio Gold Corporation

TSX VENTURE : SGN


Scorpio Gold Corporation

October 09, 2013 08:00 ET

Scorpio Gold Produces 9,632 Ounces Gold in Third Quarter 2013 at the Mineral Ridge Operation, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 9, 2013) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) announces its operating results for the third quarter ("Q3") of 2013 at its 70% owned Mineral Ridge project, located in Nevada.

Production in Q3 2013 totalled 9,632 ounces of gold and 3,702 ounces of silver for year-over-year increases of 44.6% and 27.7%, respectively, from Q3 2012. Total gold production for the first three quarters of 2013 now stands at 27,812 ounces.

Peter J. Hawley, CEO reports, "The Mineral Ridge operation posted another strong quarter with ore production, processing throughput and head grades in line with our updated 2013 operational guidelines. Overall results for the first nine months of 2013 put us in a good position to meet our 2013 production forecast of 35,000 to 40,000 ounces of gold."

Scorpio Gold is pleased to present a new video mine tour of the Mineral Ridge operation: www.scorpiogold.com/s/video_library.asp.

Key Operating Statistics

Q3 2013 Q3 2012 % Change
Mining operations
Drinkwater & Mary pits combined
Ore tonnes mined 214,359 164,734 30.1 %
Waste tonnes mined 1,131,253 1,021,047 10.8 %
Total mined 1,345,612 1,185,781 13.5 %
Strip Ratio 5.3 6.2 -14.9 %
Drinkwater pit
Ore tonnes mined 134,147 156,007 -14.0 %
Waste tonnes mined 478,927 738,890 -35.2 %
Total mined 613,074 894,897 -31.5 %
Strip Ratio 3.6 4.7 -23.4 %
Mary pit
Ore tonnes mined 80,212 8,727 819.1 %
Waste tonnes mined 652,326 282,157 131.2 %
Total mined 732,538 290,884 151.8 %
Strip Ratio 8.1 32.3 -74.9 %
Processing
Tonnes processed 247,105 186,858 32.2 %
Gold head grade (g/t) 2.08 2.10 -1.0 %
Ounces produced
Gold 9,632 6,663 44.6 %
Silver 3,702 2,900 27.7 %
Throughput (tonnes per day) 2,686 2,427 10.7 %
Recoverable(1) gold (ounces) placed on pad 10,764 8,210 31.1 %

(1) A 65% metallurgical recovery factor has been applied to the estimated contained ounces crushed and placed on the leach pad.

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 also holds a 100% interest in the advanced exploration-stage Goldwedge property and processing facility in Manhattan, Nevada, and the advanced exploration-stage Pinon 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 production forecast at 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 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.

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