Scorpio Gold Corporation

TSX VENTURE : SGN


Scorpio Gold Corporation

January 14, 2014 08:00 ET

Scorpio Gold Sets Quarterly Production Record at the Mineral Ridge Operation, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 14, 2014) - Scorpio Gold Corporation (TSX VENTURE:SGN) ("Scorpio Gold" or the "Company") announces its operating results for the fourth quarter ("Q4") of 2013 at its 70% owned Mineral Ridge project, located in Nevada.

Gold production in Q4 2013 totalled 11,348 ounces, representing an increase of 5% from Q4 2012 and an 18% increase from Q3 2013. Total gold production in 2013 was 39,160 ounces, an increase of 22% over the year 2012.

Peter J. Hawley, CEO reports, "We are very pleased to report a record quarterly gold production at Mineral Ridge for the fourth quarter of 2013 and an exceptional year overall, with total gold production increasing 22% from 2012 and approaching the upper range of our 2013 forecast. Scorpio Gold has now completed two full years of production at Mineral Ridge. Our production team and contractors have done a remarkable job and deserve recognition for their contribution to the Company's success and continued growth. Looking forward to 2014, the Company is in the process of finalizing its 2014 budget and expects to provide guidance in February 2014."

Key Operating Statistics

Q4 2013 Q4 2012 % Change Total 2013 Total 2012 % Change
Mining operations
Total producing pits
Ore tonnes mined 237,623 161,699 47.0% 893,223 601,365 48.5%
Waste tonnes mined 1,004,612 606,047 65.8% 4,088,740 2,702,230 51.3%
Total mined 1,242,235 767,746 61.8% 4,981,963 3,303,595 50.8%
Strip Ratio 4.2 3.7 13.5% 4.6 4.5 2.2%
Drinkwater pit
Ore tonnes mined 100,732 161,699 -37.7% 607,535 601,365 1.0%
Waste tonnes mined 441,244 606,047 -27.2% 2,102,002 2,702,230 -22.2%
Total mined 541,976 767,746 -29.4% 2,709,537 3,303,595 -18.0%
Strip Ratio 4.4 3.7 18.9% 3.5 4.5 -22.2%
Mary pit
Ore tonnes mined 136,891 - 100.0% 285,688 - 100.0%
Waste tonnes mined 563,368 - 100.0% 1,986,738 - 100.0%
Total mined 700,259 - 100.0% 2,272,426 - 100.0%
Strip Ratio 4.1 - 100.0% 7.0 - 100.0%
Processing
Tonnes processed 242,124 176,500 37.2% 903,337 650,785 38.8%
Gold head grade (g/t) 2.28 2.67 -14.6% 2.32 2.30 0.9%
Ounces produced
Gold 11,348 10,812 5.0% 39,160 32,066 22.1%
Silver 4,154 4,867 -14.6% 14,975 13,871 8.0%
Throughput (tonnes per day) 2,632 2,292 14.8% 2,681 2,127 26.0%
Recoverable(1) gold (ounces) placed on pad 11,554 9,835 17.5% 43,845 31,257 40.3%
(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 19-20, 2014. Management looks forward to meeting its shareholders and interested parties at booth 1506. Further information is available at: www.cambridgehouse.com/event/vancouver-resource-investment-conference-2014.

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, and the advanced exploration-stage Pinon gold property near Carlin, Nevada. The Company is assessing its exploration plans for these properties as well as the potential for toll milling at the Goldwedge plant, which is currently permitted for 400 tons per day.

Scorpio Gold's CEO, Peter J. Hawley, P.Geo., 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, 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. 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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