Scorpio Gold Corporation

Scorpio Gold Corporation

July 18, 2011 20:00 ET

Scorpio Gold Provides Operations Update at the Mineral Ridge Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 18, 2011) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) is pleased to announce that since start-up of operations at the 70% owned Mineral Ridge gold deposit, Nevada, precious metals sales from its production of gold and silver in loaded carbon now total 1,472 ounces of gold and 790 ounces of silver to Waterton Global Resource Management, as per its sales agreement. The Company's production shipments of loaded carbon now total 28.67 tons containing an estimated 2,550 ounces of gold and 1,500 ounces of silver. Scorpio Gold currently has additional precious metals available for sale and will continue to monitor gold and silver markets to take maximum advantage of rising metal prices.

During the month of June, the final 260,000 tons of mineralized material left on the leach pad by the previous operator was reprocessed and re-placed on the leach pad and is currently under leach. Mineralized material mined from the Drinkwater pit during the month totalled 22,704 tons with an average grade of 0.066 ounces per ton (opt) gold. Waste material mined during the month totalled 309,000 tons. A large portion of the material delivered to the crusher was from pit clean-up of blasted material from previous operators.

Initial evaluation of the material in the bottom of the Wedge B open pit has identified gold values of interest. Ripping by a D-6 bulldozer of the bottom of the pit has allowed for grab sampling over the entire 5,900-sq. metre exposed area, with 40 samples collected (Table 1). The Company is now in the process of excavating six trenches across the mineralized area to determine its thickness and if the material warrants excavation for crushing and leaching.

Table 1. Wedge B Pit Sampling

Sample No. Gold
Sample No. Gold
WB-1 0.025 0.71 WB-21 0.015 0.43
WB-2 0.012 0.34 WB-22 0.008 0.23
WB-3 0.026 0.73 WB-23 0.014 0.40
WB-4 0.054 1.53 WB-24 0.028 0.79
WB-5 0.036 1.02 WB-25 0.051 1.45
WB-6 0.087 2.47 WB-26 0.013 0.37
WB-7 0.018 0.51 WB-27 0.055 1.56
WB-8 0.034 0.96 WB-28 0.036 1.02
WB-9 0.126 3.57 WB-29 0.012 0.34
WB-10 0.029 0.82 WB-30 0.011 0.31
WB-11 0.045 1.28 WB-31 0.048 1.36
WB-12 0.063 1.79 WB-32 0.017 0.48
WB-13 0.042 1.19 WB-33 0.016 0.45
WB-14 0.036 1.02 WB-34 0.002 0.06
WB-15 0.040 1.13 WB-35 0.002 0.06
WB-16 0.040 1.13 WB-36 0.000 0.00
WB-17 0.032 0.90 WB-37 0.012 0.34
WB-18 0.032 0.91 WB-38 0.003 0.09
WB-19 0.044 1.25 WB-39 0.025 0.71
WB-20 0.025 0.71 WB-40 0.021 0.60

Systematic evaluation of potential additional mineralized areas on the 4,118-hectare (10,176-acre) Mineral Ridge property continues, with the latest results from first-pass grab sampling of the State Bank area, situated approximately 1 kilometre north of the leach pad. Encouraging gold assays have been received from the area (Table 2) and the Company will now incorporate this data into its drill target program for further evaluation.

Table 2. State Bank Initial First Pass Surface Sampling

Sample Number Gold (AA
Gold (Grav
MR13-034 0.314 8.90 0.325 9.21
MR13-034 Re-Check 0.305 8.65
MR13-035 0.048 1.36
MR13-035 Re-Check 0.046 1.30
MR13-036 0.427 12.11 0.430 12.19
MR13-036 Re-Check 0.419 11.88

Samples are analyzed by fire assay using an atomic absorption finish. A re-assay with gravimetric finish is applied to all samples returning >2.5 g/t gold. Analytical results were performed by American Assay Laboratory Inc. (AAL) in Sparks, Nevada, USA. AAL does not have ISO/IEC 17025 accreditation but implements a quality management system following ISO/IEC 17025 standards and maintains a paperwork trail for ISO/IEC 17025 accreditation. AAL participates in a number of testing and certification programs, details of which are presented in the Company's quality assurance and quality control (QA/QC) program for the Mineral Ridge project at: External check assays to verify lab accuracy are routinely completed by ALS Chemex, an ISO 9001:2000 certified and ISO/IEC 17025:2005 accredited laboratory.

For additional information please see the Company's website at President & CEO, Peter J. Hawley, PGeo, is the Qualified Person for the Mineral Ridge project and has reviewed the content of this release.



Peter J. Hawley, President & CEO

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, including statements as to future operations and metal sales. 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 and development of its projects. 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 operational risks, metal price fluctuations and those risk factors outlined in the Company's Management Discussion and Analysis for the year ended December 31, 2010 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 therein.

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.

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