The Mineral Ridge mine has a very short mine life and Scorpio gold is racing to find the resources needing to keep the mine operating.
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VANCOUVER, BRITISH COLUMBIA–(Marketwired – Aug. 11, 2014) – Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX VENTURE:SGN) reports additional results from its 2014 satellite deposit drilling program at the 70% owned Mineral Ridge project, located in Nevada. The Bluelite deposit lies west of the currently producing Drinkwater and Mary/LC pits and 400 meters northwest of the leach pad.
[box type=”note” align=”aligncenter” ]Scorpio gold is a junior mining company currently operating the Mineral Ridge mine located in Nevada, USA. We last reported about this company in September 2013 as they began drilling their Osmonte satellite deposit located outside their currently producing Drinkwater and Mary/LC pits. Nevada is well known for its carlin-type gold deposits, however the Mineral Ridge mine consists of structurally hosted gold-bearing quartz veins. The mine’s history began when gold was discovered in the area in 1865 and was mined underground as high grade quartz-veins. The mine shut down prior to World War II and was reactivated in 1989 before closing down again in 2005. The Mineral Ridge mine reopened in January 2012 and is expected to operate until the middle of 2016. Its impressive for a mine to have operated for nearly 150 years and that Scorpio Gold has the drive to further develop the area. The mine is 70% owned and operated by Scorpio Gold and the remainder by Waterton Global Value BP. [/box]
On July 21, 2014, the Company reported an updated Life of Mine Plan (“LOM”) for the Mineral Ridge Operation, which encompasses the currently producing Drinkwater and Mary/LC pits and five adjacent satellite deposits, including the Bluelite deposit. The cut-off date for the LOM was March 31, 2014. Continued drilling since the March 31, 2014 cut-off date is designed to potentially upgrade and increase the reported mineral reserve and resource estimate and potentially extend life of mine. Drilling on the Bluelite deposit continues to meet with success, returning significant intercepts both within and extending outside of the pit shell outline modelled in the updated LOM.
Highlights from this latest phase of RC drilling on the Bluelite deposit include:
- MR14880: 1.27 grams per tonne (“g/t”) gold over 6.10 meters
- MR14972: 6.51 g/t gold over 3.05 meters
- MR14973: 1.45 g/t gold over 4.57 meters
- MR14977: 7.68 g/t gold over 6.10 meters
- MR14978: 5.28 g/t gold over 6.10 meters
- MR141045: 12.42 g/t gold over 4.57 meters
| Table 1. Bluelite Deposit – 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) |
| MR14879 | 0 | -90 | 165 | 170 | 5 | 50.29 | 51.82 | 1.52 | 0.017 | 0.58 |
| 190 | 195 | 5 | 57.91 | 59.44 | 1.52 | 0.027 | 0.93 | |||
| 210 | 220 | 10 | 64.01 | 67.06 | 3.05 | 0.019 | 0.66 | |||
| 240 | 245 | 5 | 73.15 | 74.68 | 1.52 | 0.013 | 0.45 | |||
| 295 | 300 | 5 | 89.92 | 91.44 | 1.52 | 0.011 | 0.38 | |||
| 320 | 330 | 10 | 97.54 | 100.58 | 3.05 | 0.031 | 1.06 | |||
| MR14880 | 0 | -90 | 200 | 205 | 5 | 60.96 | 62.48 | 1.52 | 0.02 | 0.69 |
| 245 | 250 | 5 | 74.68 | 76.20 | 1.52 | 0.035 | 1.20 | |||
| 225 | 250 | 25 | 68.58 | 76.20 | 7.62 | 0.030 | 1.01 | |||
| 260 | 280 | 20 | 79.25 | 85.34 | 6.10 | 0.037 | 1.27 | |||
| 330 | 335 | 5 | 100.58 | 102.11 | 1.52 | 0.036 | 1.23 | |||
| MR14972 | 0 | -90 | 40 | 50 | 10 | 12.19 | 15.24 | 3.05 | 0.190 | 6.51 |
| 65 | 70 | 5 | 19.81 | 21.34 | 1.52 | 0.092 | 3.15 | |||
| 105 | 110 | 5 | 32.00 | 33.53 | 1.52 | 0.017 | 0.58 | |||
| MR14973 | 0 | -90 | 60 | 75 | 15 | 18.29 | 22.86 | 4.57 | 0.042 | 1.45 |
| MR14974 | 0 | -90 | 115 | 125 | 10 | 35.05 | 38.10 | 3.05 | 0.040 | 1.25 |
| 140 | 145 | 5 | 42.67 | 44.20 | 1.52 | 0.010 | 0.41 | |||
| MR14975 | 0 | -90 | 175 | 185 | 10 | 53.34 | 56.39 | 3.05 | 0.014 | 0.46 |
| 195 | 200 | 5 | 59.44 | 60.96 | 1.52 | 0.010 | 0.35 | |||
| 220 | 225 | 5 | 67.06 | 68.58 | 1.52 | 0.020 | 0.70 | |||
| 285 | 290 | 5 | 86.87 | 88.39 | 1.52 | 0.017 | 0.60 | |||
| 315 | 320 | 5 | 96.01 | 97.54 | 1.52 | 0.013 | 0.44 | |||
| 335 | 340 | 5 | 102.11 | 103.63 | 1.52 | 0.030 | 1.01 | |||
| 365 | 375 | 10 | 111.25 | 114.30 | 3.05 | 0.028 | 0.96 | |||
| 440 | 450 | 10 | 134.11 | 137.16 | 3.05 | 0.034 | 1.16 | |||
| MR14976 | 0 | -90 | 190 | 195 | 5 | 57.91 | 59.44 | 1.52 | 0.062 | 2.13 |
| 225 | 235 | 10 | 68.58 | 71.63 | 3.05 | 0.029 | 0.98 | |||
| 425 | 430 | 5 | 129.54 | 131.06 | 1.52 | 0.038 | 1.30 | |||
| MR14977 | 0 | -90 | 45 | 65 | 20 | 13.72 | 19.81 | 6.10 | 0.224 | 7.68 |
| 265 | 270 | 5 | 80.77 | 82.30 | 1.52 | 0.011 | 0.38 | |||
| 280 | 285 | 5 | 85.34 | 86.87 | 1.52 | 0.010 | 0.34 | |||
| 290 | 295 | 5 | 88.39 | 89.92 | 1.52 | 0.018 | 0.62 | |||
| 345 | 360 | 15 | 105.16 | 109.73 | 4.57 | 0.023 | 0.79 | |||
| 375 | 380 | 5 | 114.30 | 115.82 | 1.52 | 0.020 | 0.69 | |||
| 440 | 445 | 5 | 134.11 | 135.64 | 1.52 | 0.022 | 0.75 | |||
| MR14978 | 0 | -90 | 50 | 70 | 20 | 15.24 | 21.34 | 6.10 | 0.154 | 5.28 |
| 175 | 180 | 5 | 53.34 | 54.86 | 1.52 | 0.030 | 1.03 | |||
| 260 | 265 | 5 | 79.25 | 80.77 | 1.52 | 0.013 | 0.45 | |||
| 290 | 295 | 5 | 88.39 | 89.92 | 1.52 | 0.011 | 0.38 | |||
| 390 | 395 | 5 | 118.87 | 120.40 | 1.52 | 0.015 | 0.51 | |||
| MR141041 | 0 | -90 | 195 | 205 | 10 | 59.44 | 62.48 | 3.05 | 0.019 | 0.65 |
| MR141042 | 0 | -90 | No Significant Results | |||||||
| MR141043 | 0 | -90 | 160 | 180 | 20 | 48.77 | 54.86 | 6.10 | 0.029 | 1.01 |
| MR141044 | 0 | -90 | No Significant Results | |||||||
| MR141045 | 0 | -90 | 35 | 50 | 15 | 10.67 | 15.24 | 4.57 | 0.362 | 12.42 |
| incl. | 40 | 45 | 5 | 12.19 | 13.72 | 1.52 | 1.030 | 35.31 | ||
| MR141061 | 0 | -90 | No Significant Results | |||||||
| MR141062 | 0 | -90 | 30 | 40 | 10 | 9.14 | 12.19 | 3.05 | 0.067 | 2.30 |
| 110 | 115 | 5 | 33.53 | 35.05 | 1.52 | 0.018 | 0.62 | |||
| MR141063 | 0 | -90 | 135 | 140 | 5 | 41.15 | 42.67 | 1.52 | 0.018 | 0.60 |
All holes presented in Table 1 were completed by reverse circulation (RC) drilling. True width is estimated at 90-100% of downhole width. 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.
[box type=”note” align=”aligncenter” ]As is typical in this area, the company is using RC drilling for its exploration program. This drilling method is fast and cost effective for evaluating near surface targets. Employing exploration teams to find feed for the mill and expand the current reserves are typical in most mine environments (e.g. Perseus) . It’s also typical for a company to focus on a smaller deposit area when developing a project and then to branch out to some of the inferred or prospective areas once operations begin. Developing a new source of ore can only help and is usually part of the longer term plan.
These drill results appear include a mixture of moderate and low grades typical of Carlin-type deposits. Note that the results are reported in both Ounces Per Ton (OPT) and grams per tonne (g/t) and are reportedly within 90-100% of the true width. Given that these are chip samples and are usually sampled over 5 foot intervals, true widths could be difficult to report. Diamond drilling could be employed to provide a much more accurate representation of the thickness of the deposit and the nature of the contacts, but it may not be necessary.[/box]
About Scorpio Gold
[box type=”note” align=”aligncenter” ]Scorpio’s stock is at $0.21 and has been hovering between $0.20 and $0.25 over the last 5 months.
The Mineral Ridge mine has a very short mine life and Scorpio gold is racing to find the resources needing to keep the mine operating. No pressure.[/box]
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%), and Scorpio Gold is currently entitled to receive 80% of cash flow generated. 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 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, PGeo, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the content of this release.
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