Scorpio Gold Corporation
TSX VENTURE : SGN

Scorpio Gold Corporation

June 27, 2016 08:00 ET

Scorpio Gold Reports Final Results from 2016 Exploration Drilling on the NW Brodie Trend, Mineral Ridge Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 27, 2016) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) reports final results from 2016 exploration drilling on the NW Brodie trend at its 70% owned Mineral Ridge project, located in Nevada.

The NW Brodie trend extends over a 500 meter strike length between the Brodie and Bluelite deposits. Exploration drilling in 2014-2015 on the NW Brodie trend was based on a geological model of shallow dipping, multiple stacked veins, which is consistent with mineralization in the Bluelite and Brodie deposits. Inconsistencies in the drilling results prompted a detailed examination of the data and an oriented core drilling program. An updated geological model was completed in 2016. The mineralization within the NW Brodie trend is now interpreted as a corridor of multiple tensional quartz veins with an average strike and dip of 255°/-60°. Due to the more steeply dipping nature of the mineralization, prior drilling with vertically oriented RC holes intersected the mineralization at acute angles, resulting in thicker intersections than true widths.

Based on depths to mineralization and current gold prices, the NW Brodie area is not considered economic at this time and no further work is currently planned in the area.

A drill hole location map is available at: DH Plan

Table 1. NW Brodie Trend - Significant Drill Results
Hole Azm Dip From To Width From To Width Gold Gold
No. (deg) (deg) (ft) (ft) (ft) (m) (m) (m) (OPT) (g/t)
MR161936 0 -45 120 125 5 36.58 38.10 1.52 0.059 2.02
MR161956-957 180 -45 No Significant Results
MR161969 0 -75 145 150 5 44.20 45.72 1.52 0.010 0.34
MR161977 0 -75 140 145 5 42.67 44.20 1.52 0.049 1.68
MR162037 0 -75 10 15 5 3.05 4.57 1.52 0.026 0.89
195 200 5 59.44 60.96 1.52 0.018 0.62
MR162043 0 -45 No Significant Results
MR162044 180 -45 125 130 5 38.10 39.62 1.52 0.015 0.51
MR162045 0 -45 105 110 5 32.00 33.53 1.52 0.030 1.03
145 150 5 44.20 45.72 1.52 0.019 0.65
MR162047 0 -50 150 155 5 45.72 47.24 1.52 0.072 2.47
185 190 5 56.39 57.91 1.52 0.037 1.27
MR162048 0 -60 190 195 5 57.91 59.44 1.52 0.011 0.38
MR162049 0 -50 145 150 5 44.20 45.72 1.52 0.012 0.41
MR162050 0 -50 35 40 5 10.67 12.19 1.52 0.065 2.23
125 130 5 38.10 39.62 1.52 0.034 1.17
140 145 5 42.67 44.20 1.52 0.026 0.89
MR162051 0 -65 10 15 5 3.05 4.57 1.52 0.043 1.47
135 140 5 41.15 42.67 1.52 0.020 0.69
165 170 5 50.29 51.82 1.52 0.015 0.51
180 185 5 54.86 56.39 1.52 0.018 0.62
195 200 5 59.44 60.96 1.52 0.030 1.03
MR162052 0 -60 85 90 5 25.91 27.43 1.52 0.029 0.99
110 120 10 33.53 36.58 3.05 0.103 3.53
140 155 15 42.67 47.24 4.572 0.015 0.50
165 170 5 50.29 51.82 1.52 0.045 1.54
MR162053 0 -50 90 95 5 27.43 28.96 1.52 0.029 0.99
120 130 10 36.58 39.62 3.05 0.016 0.53
140 145 5 42.67 44.20 1.52 0.118 4.05
185 190 5 56.39 57.91 1.52 0.070 2.40
MR162054 0 -50 140 160 20 42.67 48.77 6.10 0.023 0.78
170 185 15 51.82 56.39 4.57 0.046 1.57
195 200 5 59.44 60.96 1.52 0.018 0.62
MR162055 0 -45 No Significant Results
MR162056 050 -50 60 65 5 18.29 19.81 1.52 0.041 1.41
165 175 10 50.29 53.34 3.05 0.021 0.72
190 200 10 57.91 60.96 3.05 0.030 1.01
245 250 5 74.68 76.20 1.52 0.021 0.72
MR162057 310 -50 80 85 5 24.38 25.91 1.52 0.026 0.89
180 185 5 54.86 56.39 1.52 0.096 3.29
210 220 10 64.01 67.06 3.05 0.024 0.81
MR162058 0 -45 200 205 5 60.96 62.48 1.52 0.017 0.58
285 290 5 86.87 88.39 1.52 0.061 2.09
MR162059 035 -45 195 200 5 59.44 60.96 1.52 0.020 0.69
220 225 5 67.06 68.58 1.52 0.055 1.89
MR162060 300 -35 275 295 20 83.82 89.92 6.10 0.019 0.63
MR162061 0 -75 120 125 5 36.58 38.10 1.52 0.015 0.51

All holes presented in Table 1 were completed by reverse circulation (RC) drilling. True width is estimated at 50-70% of downhole width. Scorpio Gold utilizes the analytical services of ALS Minerals (Reno, Nevada), an ISO/IEC 17025:2005 (CAN-P-4E, CAN-P-1579) accredited testing laboratory, and Bureau Veritas (Reno, Nevada), an ISO 9001 certified testing laboratory. External check assays to verify lab accuracy are routinely completed. Further details are presented in the Company's quality assurance and quality control program for the Mineral Ridge project, available at: MR QAQC.

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 President & 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, President & 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.

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