VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 8, 2015) – Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX VENTURE:SGN) reports results from the underground exploration drilling at the Company’s 100% owned Goldwedge project, located in Manhattan, Nevada.
The Goldwedge deposit lies within the Walker Lane Gold Belt and is situated on the southern periphery of the Manhattan Caldera, approximately 16 kilometers south of the operating Round Mountain Mine. The Goldwedge project includes a fully permitted underground mine with over 600 meters of underground development and a mill facility with gravity circuit that is currently permitted to process 400 tons per day.
The 2015 underground drilling program totalled 4,695 ft (1,431 m) in 21 NQ diameter core holes drilled from 6 underground drill stations. The majority of holes were drilled perpendicular to N60W trending Cambrian-Ordovician aged sedimentary host rocks. Results from the underground drilling indicate that mineralization at Goldwedge is related to the N30W trending Reliance Fault Zone, with mineralization occurring within and subparallel to the fault and as dilational lenses and veins extending outward from the fault zone along fractures oriented sub-parallel to bedding.
Mineralization of interest (0.03 OPT or 1.0 g/t and greater) was intersected in all 21 underground holes drilled in 2015. Results considered of significance for this deposit (0.01 OPT or 3.3 g/t and greater) were returned in 9 of the 21 holes (Table 1). Several of the holes were drilled to verify historical drilling results; however, Scorpio Gold was unable to replicate the more substantial downhole widths and grades reported in 2011-12 drilling by the project’s previous operator (as presented in the Company’s November 4, 2013 news release).
In 2015, the Company processed 1,392 tonnes of Mineral Ridge ore grading 8.89 g/t gold at the Goldwedge mill. In order to conserve funds, the Goldwedge mill facility has been placed on care and maintenance while Scorpio Gold focuses its attention on the Company’s Mineral Ridge operation.
Table 1. 2015 Goldwedge Underground Drilling – Significant Results
All holes presented in Table 1 were completed by diamond (core) drilling. Widths are presented as down hole 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. Further details are presented in the Company’s quality assurance and quality control program for the Goldwedge project available at: GW 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 Waterton Global Value L.P. (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 for the near-term 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.
Peter J. Hawley
President & CEO
Investor Relations: Torrey Hills Capital