Scorpio Gold Corporation
TSX VENTURE : SGN

Scorpio Gold Corporation

October 13, 2016 16:34 ET

Scorpio Gold Produces 9,981 Ounces of Gold in Third Quarter 2016 at the Mineral Ridge Operation, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 13, 2016) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) announces its operating results for the third quarter ("Q3") of 2016 at its 70% owned Mineral Ridge project, located in Nevada.

Production at Mineral Ridge in Q3 2016 totalled 9,981 ounces of gold and 4,630 ounces of silver compared to 9,497 ounces of gold and 4,927 ounces of silver in Q3 of 2015. Gold and silver production for the first nine months of 2016 totalled 28,578 ounces of gold and 12,876 ounces of silver, representing decreases of 5.3% and 13.2%, respectively, over the same period in 2015.

Peter J. Hawley, CEO, comments, "The Company is pleased to report another solid quarter of production at Mineral Ridge with a 5.1% increase in total ounces of gold produced in Q3 2016 compared to the same period in 2015. The Company remains on target to meet its 2016 production guidance of 30-35,000 ounces of gold at a total cash cost of $900-$950 per ounce."

Key Operating Statistics

Three months ending
September 30
Nine months ending
September 30
2016 2015 Change 2016 2015 Change
Mining operations
Mary LC pit
Ore tonnes mined 119,574 83,577 43.1 % 405,241 83,577 384.9 %
Waste tonnes mined 919,556 941,334 -2.3 % 2,542,039 941,334 170.0 %
Total mined 1,039,130 1,024,911 1.4 % 2,947,280 1,024,911 187.6 %
Strip Ratio 7.7 11.3 -31.9 % 6.3 11.3 -44.2 %
Satellite pits
Ore tonnes mined 48,029 127,546 -62.3 % 190,774 241,665 -21.1 %
Waste tonnes mined 152,883 990,728 -84.6 % 519,603 1,276,601 -59.3 %
Total mined 200,912 1,118,274 -82.0 % 710,377 1,518,266 -53.2 %
Strip Ratio 3.2 7.8 -59.0 % 2.7 5.3 -49.1 %
Mary pit
Ore tonnes mined - 5,695 -100.0 % - 202,002 -100.0 %
Waste tonnes mined - 10,311 -100.0 % - 1,053,992 -100.0 %
Total mined - 16,006 -100.0 % - 1,255,994 -100.0 %
Strip Ratio - 1.8 -100.0 % - 5.2 -100.0 %
Total producing pits
Ore tonnes mined 167,603 216,818 -22.7 % 596,015 527,244 13.0 %
Waste tonnes mined 1,072,439 1,942,373 -44.8 % 3,061,642 3,271,927 -6.4 %
Total mined 1,240,042 2,159,191 -42.6 % 3,657,657 3,799,171 -3.7 %
Strip Ratio 6.4 9.0 -28.9 % 5.1 6.2 -17.7 %
Pits under development
Ore tonnes mined - - 0.0 % - 92,146 -100.0 %
Waste tonnes mined (pre-stripping) 25,876 - 100.0 % 149,230 1,995,432 -92.5 %
Total mined 25,876 - 100.0 % 149,230 2,087,578 -92.9 %
Total mining operations
Ore tonnes mined 167,603 216,818 -22.7 % 596,015 619,390 -3.8 %
Waste tonnes mined 1,098,315 1,942,373 -43.5 % 3,210,872 5,267,359 -39.0 %
Total mined 1,265,918 2,159,191 -41.4 % 3,806,887 5,886,749 -35.3 %
Processing
Tonnes processed 176,901 213,957 -17.3 % 704,039 626,980 12.3 %
Gold head grade (g/t) 1.35 1.59 -15.1 % 1.45 1.46 -0.7 %
Ounces produced
Gold 9,981 9,497 5.1 % 28,578 30,187 -5.3 %
Silver 4,630 4,927 -6.0 % 12,876 14,837 -13.2 %
Crusher throughput (tonnes per day) 1,923 2,326 -17.3 % 2,569 2,297 11.8 %
Recoverable(1) gold (ounces) placed on pad 5,215 7,327 -28.8 % 22,249 19,755 12.6 %
(1) A weighted average metallurgical recovery factor has been applied to the estimated contained ounces crushed and placed on the leach pad based on the pit from which the ore was mined.

About Scorpio Gold

Scorpio Gold holds a 70% interest in the producing Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Elevon, LLC (30%). Mineral Ridge is 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 in Manhattan, Nevada, with a fully permitted underground mine and 400 ton per day mill facility. The Goldwedge mill facility has been placed on a care and maintenance basis and can be restarted immediately when needed.

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 restriction, any statements regarding the Company achieving production forecasts for 2016, or planned future production schedules. 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, unanticipated changes in the mineral content of materials being mined; unanticipated changes in recovery rates; changes in project parameters; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; availability of skilled labour and the impact of labour disputes; delays in obtaining governmental approvals; changes in metals prices; the availability of cash flows or financing to meet the Company's ongoing financial obligations; unanticipated changes in key management personnel; changes in general economic conditions; other risks of the mining industry; 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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