Scorpio Gold Corporation

Scorpio Gold Corporation

October 19, 2015 08:00 ET

Scorpio Gold Reports Results From 2015 Exploration Drilling at the Copiosus, Tehillah and Tarantula Target Areas, Mineral Ridge Project, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 19, 2015) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) reports results from the 2015 exploration drilling at the Copiosus, Tehillah and Tarantula target areas at its 70% owned Mineral Ridge project, located in Nevada.

Exploration drilling in 2015 has tested a number of outlier target areas to the main deposits at Mineral Ridge. The Copiosus target area lies ~500-750 meters northeast of the Drinkwater pit. Field investigation of a geophysical anomaly at Copiosus identified a post-mineral pipe-like structure in the northeast corner of the target area. Two holes were drilled at Copiosus; MR151728 tested the down-dip extension of the mineralized Drinkwater horizon 500 meters northeast of the Drinkwater pit and MR151734 targeted the intersection of the horizon with the pipe-like structure a further 250 meters to the northeast. MR151728 intersected 3 meters of low-grade mineralization at the expected target depth (Table 1). The geological interpretation is that the mineralizing shear zone flattened in this area, which resulted in less dilation and potential for mineralization compared to the Drinkwater deposit. MR151734 intersected mineralization ~200 meters above the targeted Drinkwater horizon. Unfortunately, rough topography prevented collaring the hole in close proximity to the pipe-like structure and it was not intersected at depth.

The Tehillah target is a high-grade silver prospect in the Reed Dolomite formation located ~1,200 meters northeast of the Mary LC pit. Multiple historic shallow shafts and small stopes have been excavated in the area. Six holes (MR151737-742) were drilled across the structure but no significant gold or silver mineralization was encountered.

The Tarantula target lies ~1,200 meters south of the Brodie deposit in an area of multiple historic high-grade adits. Exploration drilling in 2015 was constrained by the Company's existing drill permit, which did not allow for drill set ups proximal to the highest-grade underground workings. The mineralized structure was intersected in several holes (Table 2) but returned relatively low grades compared to the historical workings. The Company plans to file for an amendment to its permitted drill plan to allow for testing of the known higher-grade areas in 2016.

Map Links:

Operations area including Copiosus & Tehillah targets: DH Plan (PDF 8 Mb)

Tarantula target: DH Plan

Table 1. Copiosus Target - 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)
MR151728 0 -90 805 815 10 245.36 248.41 3.05 0.017 0.57
MR151734 30 -70 1120 1125 5 341.38 342.90 1.52 0.024 0.82
1165 1170 5 355.09 356.62 1.52 0.041 1.41

Table 2. Tarantula Target - 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)
MR151678 0 -90 No Significant Results
MR151686 0 -90 75 80 5 22.86 24.38 1.52 0.021 0.72
MR151735 40 -70 No Significant Results
MR151736 220 -70 No Significant Results
MR151743 220 -70 295 300 5 89.92 91.44 1.52 0.015 0.51
MR151744 40 -70 No Significant Results
MR151745 40 -70 225 230 5 68.58 70.10 1.52 0.026 0.89
MR151746 0 -90 215 220 5 65.53 67.06 1.52 0.013 0.45
MR151747 220 -70 230 235 5 70.10 71.63 1.52 0.011 0.38

All holes presented in Tables 1 and 2 were completed by reverse circulation (RC) drilling. Widths are presented as downhole core lengths; true widths are unknown at this time. Analytical results were performed by American Assay Laboratory Inc. in Sparks, Nevada, an ISO/IEC 17025:2005 accredited facility. External check assays to verify lab accuracy are routinely completed by ALS Chemex, an ISO 9001:2000 certified and ISO/IEC 17025:2005 accredited facility. 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.


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.

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 limitation, statements regarding the Company's plans with respect to the exploration, development and exploitation of its Mineral Ridge project, including potential amendment to its drilling permit in the Tarantula exploration target area. 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 involved in mineral exploration and development programs 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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