Scorpio Gold Corporation
TSX VENTURE : SGN

Scorpio Gold Corporation

January 13, 2015 08:00 ET

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

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 13, 2015) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) announces its operating results for full year and the fourth quarter ("Q4") of 2014 at its 70% owned Mineral Ridge project, located in Nevada.

Total gold production in 2014 was 40,814 ounces, an increase of 4% over the year 2013. Gold production in Q4 2014 totalled 10,258 ounces, representing a decrease of 10% from Q4 2013 and a 9% decrease from Q3 2014. Production challenges occurred in the fourth quarter of 2014 as the Company experienced a delay in receiving its mine permit for the satellite deposits. The delay created a shortfall in scheduled tons and ounces mined from those pits and had to be made up by mining in the Mary LC area. Looking forward, the Company is in the process of finalizing its 2015 budget and expects to provide guidance in Q1 2015 once the mine permit for the satellite deposits has been received.

Peter J. Hawley, CEO reports, "We are proud to report a record annual gold production of 40,814 ounces at Mineral Ridge in 2014, representing a 4% increase over 2013 and meeting our 2014 production guidance. Scorpio Gold has now completed three full years of production at Mineral Ridge and has fully transitioned production from the Drinkwater pit to the Mary pit. On behalf of the Company, I would like to thank the entire production team and contractors who continue to make the Mineral Ridge operation a success."

Key Operating Statistics

Three months ending
December 31
Twelve months ending
December 31
2014 2013 Change 2014 2013 Change
Mining operations
Mary pit
Ore tonnes mined 141,056 136,891 3.0% 443,343 285,688 55.2%
Waste tonnes mined 674,026 563,368 19.6% 2,266,625 1,986,738 14.1%
Total mined 815,082 700,259 16.4% 2,709,968 2,272,426 19.3%
Strip Ratio 4.8 4.1 17.1% 5.1 7.0 -27.1%
Drinkwater pit
Ore tonnes mined - 100,732 - 395,177 607,535 -35.0%
Waste tonnes mined - 441,244 - 834,938 2,102,002 -60.3%
Total mined - 541,976 - 1,230,115 2,709,537 -54.6%
Strip Ratio - 4.4 - 2.1 3.5 -40.0%
Total producing pits
Ore tonnes mined 141,056 237,623 -40.6% 838,520 893,223 -6.1%
Waste tonnes mined 674,026 1,004,612 -32.9% 3,101,563 4,088,740 -24.1%
Total mined 815,082 1,242,235 -34.4% 3,940,083 4,981,963 -20.9%
Strip Ratio 4.8 4.2 14.3% 3.7 4.6 -19.6%
Pits under development
Mary LC Pit
Ore tonnes mined 37,417 - - 73,718 - -
Waste tonnes mined (pre-stripping) 902,039 151,332 496.1% 2,346,051 213,411 999.3%
Total mined 939,456 151,332 520.8% 2,419,769 213,411 1033.9%
Satellite Pits
Ore tonnes mined 7,339 - - 7,339 - -
Waste tonnes mined (pre-stripping) 99,920 - - 118,332 - -
Total mined 107,259 - - 125,671 - -
Total mining operations
Ore tonnes mined 185,812 237,623 -21.8% 919,577 893,223 3.0%
Waste tonnes mined 1,675,985 1,155,944 45.0% 5,565,946 4,302,151 29.4%
Total mined 1,861,797 1,393,567 33.6% 6,485,523 5,195,374 24.8%
Processing
Tonnes processed 205,643 242,124 -15.1% 974,346 903,337 7.9%
Gold head grade (g/t) 1.68 2.28 -26.3% 1.72 2.32 -25.9%
Ounces produced
Gold 10,258 11,348 -9.6% 40,814 39,160 4.2%
Silver 4,387 4,154 5.6% 18,182 14,975 21.4%
Crusher throughput (tonnes per day) 2,235 2,632 -15.1% 2,891 2,681 7.8%
Recoverable(1) gold (ounces) placed on pad 7,207 11,554 -37.6% 35,086 43,845 -20.0%
(1) A 65% metallurgical recovery factor has been applied to the estimated contained ounces crushed and placed on the leach pad.

Upcoming Conference:

Scorpio Gold's President, Steve Roebuck, will be attending the Vancouver Resource Investment Conference held at the Vancouver Convention Centre on January 18-19, 2015. Management looks forward to meeting its shareholders and interested parties at booth 1506. Further information is available at: VRIC 2015

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 lenses 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. The Company is assessing its exploration plans for the Goldwedge property as well as the potential for toll milling at the Goldwedge plant, which is currently permitted for 400 tons per day.

Scorpio Gold's President, Steve Roebuck, P.Geo., 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

Steve Roebuck, 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 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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