Scorpio Gold Corporation
TSX VENTURE : SGN
FRANKFURT : Z3S

Scorpio Gold Corporation

January 11, 2017 08:00 ET

Scorpio Gold Reports Annual Gold Production Exceeding Guidance at the Mineral Ridge Operation, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 11, 2017) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN)(FRANKFURT:Z3S) announces its operating results for the full year and the fourth quarter ("Q4") of 2016 at its 70% owned Mineral Ridge project, located in Nevada.

Total gold production in 2016 was 36,879 ounces, exceeding the Company's high end guidance of 35,000 by 1,879 ounces, or 5%. The annual production for 2016 of 36,879 ounces represented a decrease of 7% over the prior year. Gold production in Q4 2016 totalled 8,301 ounces representing a decrease of 13% from Q4 2015. Mine production decreased in 2016 due to mining 24% fewer ore tonnes at 5% lower grades in the Mary LC and satellite pits, as compared to the prior year. Ore tonnes crushed and placed on the pad were 5% lower in 2016 compared to 2015 as a result of fewer tonnes mined which was offset by a larger initial ore stockpile inventory at the beginning of 2016.

Chris Zerga, President, comments, "We are proud to report that we have exceeded the high end of our production guidance of 30,000-35,000 ounces for 2016 with 36,879 gold ounces produced at Mineral Ridge in 2016. Scorpio Gold has now completed five years of production at Mineral Ridge, consistently meeting or exceeding annual guidance, while maintaining a safe working environment for our employees and contractors. I would like to thank the entire production team who continue to make the Mineral Ridge operation a success."

Key Operating Statistics

Three months ending
December 31
Twelve months ending
December 31
2016 2015 Change 2016 2015 Change
Mining operations
Mary LC pit
Ore tonnes mined 148,161 119,891 23.6 % 553,402 203,468 172.0 %
Waste tonnes mined 977,246 743,394 31.5 % 3,519,285 1,684,728 108.9 %
Total mined 1,125,407 863,285 30.4 % 4,072,687 1,888,196 115.7 %
Strip Ratio 6.6 6.2 6.5 % 6.4 8.3 -22.9 %
Satellite pits
Ore tonnes mined 6,028 245,569 -97.5 % 196,802 487,234 -59.6 %
Waste tonnes mined 5,888 769,186 -99.2 % 525,491 2,045,787 -74.3 %
Total mined 11,916 1,014,755 -98.8 % 722,293 2,533,021 -71.5 %
Strip Ratio 1.0 3.1 -67.7 % 2.7 4.2 -35.7 %
Mary pit
Ore tonnes mined - - 0.0 % - 202,002 -100.0 %
Waste tonnes mined - - 0.0 % - 1,053,992 -100.0 %
Total mined - - 0.0 % - 1,255,994 -100.0 %
Strip Ratio - - 0.0 % - 5.2 -100.0 %
Total producing pits
Ore tonnes mined 154,189 365,460 -57.8 % 750,204 892,704 -16.0 %
Waste tonnes mined 983,134 1,512,580 -35.0 % 4,044,776 4,784,507 -15.5 %
Total mined 1,137,323 1,878,040 -39.4 % 4,794,980 5,677,211 -15.5 %
Strip Ratio 6.4 4.1 56.1 % 5.4 5.4 0.0 %
Pits under development
Ore tonnes mined - - 0.0 % - 92,146 -100.0 %
Waste tonnes mined (pre-stripping) 160,672 - 100.0 % 309,902 1,995,432 -84.5 %
Total mined 160,672 - 100.0 % 309,902 2,087,578 -85.2 %
Total mining operations
Ore tonnes mined 154,189 365,460 -57.8 % 750,204 984,850 -23.8 %
Waste tonnes mined 1,143,806 1,512,580 -24.4 % 4,354,678 6,779,939 -35.8 %
Total mined 1,297,995 1,878,040 -30.9 % 5,104,882 7,764,789 -34.3 %
Processing
Tonnes processed 142,101 265,017 -46.4 % 846,140 891,997 -5.1 %
Gold head grade (g/t) 1.37 1.66 -17.5 % 1.44 1.52 -5.3 %
Ounces produced
Gold 8,301 9,503 -12.6 % 36,879 39,690 -7.1 %
Silver 4,074 4,905 -16.9 % 16,950 19,742 -14.1 %
Crusher throughput (tonnes per day) 1,545 2,881 -46.4 % 2,312 2,444 -5.4 %
Recoverable(1) gold ounces placed on pad 4,301 9,434 -54.4 % 26,549 29,189 -9.0 %
(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 Chairman, Peter J. Hawley, PGeo, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the content of this news release.

ON BEHALF OF THE BOARD, SCORPIO GOLD CORPORATION

Chris Zerga, President

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. 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 processing 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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