VANCOUVER, BRITISH COLUMBIA–(Marketwired – April 28, 2017) – Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX VENTURE:SGN) announces its operating results for the first quarter (“Q1”) of 2017 at its 70% owned Mineral Ridge project, located in Nevada.
Gold and silver production in Q1 2017 totalled 5,741 ounces and 2,854 ounces, respectively. The lower metal production in Q1 2017 is attributed to fewer tons being mined and processed from the existing pits, due to higher strip ratios that constrain how quickly benches can be mined.
Brian Lock, interim CEO, reports, “The first quarter production at Mineral Ridge was affected by a slowdown in mining and processing while the project awaits approval of the amendment to its revised Plan of Operations, which is pending from applicable regulatory authorities. The Custer pit and other areas for which permitting is outstanding, will be evaluated for economics of associated mining timelines when permits are received.”
Production in 2017 is scheduled from the Mary LC pit and from the Bluelite and Brodie satellite pits.
| Key Operating Statistics | ||||||||
| Q1 2017 | Q1 2016 | % Change | ||||||
| Mining operations | ||||||||
| Mary LC pit | ||||||||
| Ore tonnes mined | 130,446 | 146,872 | -11.2% | |||||
| Waste tonnes mined | 927,786 | 703,030 | 32.0% | |||||
| Total mined | 1,058,232 | 849,902 | 24.5% | |||||
| Strip Ratio | 7.1 | 4.8 | 47.9% | |||||
| Satellite pits | ||||||||
| Ore tonnes mined | 7,255 | 103,252 | -93.0% | |||||
| Waste tonnes mined | 67,208 | 227,056 | -70.4% | |||||
| Total mined | 74,463 | 330,308 | -77.5% | |||||
| Strip Ratio | 9.3 | 2.2 | 322.7% | |||||
| Total producing pits | ||||||||
| Ore tonnes mined | 137,701 | 250,124 | -44.9% | |||||
| Waste tonnes mined | 994,994 | 930,086 | 7.0% | |||||
| Total mined | 1,132,695 | 1,180,210 | -4.0% | |||||
| Strip Ratio | 7.2 | 3.7 | 94.6% | |||||
| Pits under development | ||||||||
| Ore tonnes mined | 178 | – | 100.0% | |||||
| Waste tonnes mined | 212,595 | 55,622 | 282.2% | |||||
| Total mined | 212,773 | 55,622 | 282.5% | |||||
| Total mining operations | ||||||||
| Ore tonnes mined | 137,879 | 250,124 | -44.9% | |||||
| Waste tonnes mined | 1,207,589 | 985,708 | 22.5% | |||||
| Total mined | 1,345,468 | 1,235,832 | 8.9% | |||||
| Processing | ||||||||
| Tonnes processed | 138,392 | 251,587 | -45.0% | |||||
| Gold head grade (g/t) | 1.70 | 1.65 | 3.0% | |||||
| Ounces produced | ||||||||
| Gold | 5,741 | 8,508 | -32.5% | |||||
| Silver | 2,854 | 3,921 | -27.2% | |||||
| Recoverable(1) gold ounces placed on pad | 5,175 | 9,032 | -42.7% | |||||
| (1) A weighted average metallurgical recovery factor has been applied to the estimated contained ounces crushed and placed on the leach pad, based on the pit from which the ore was mined. |
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 on short notice.
Scorpio Gold’s Chairman, Peter J. Hawley, P.Geo., is a Qualified Person as defined in National Instrument 43-101 and has reviewed and approved the content of this release.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Brian Lock, Interim 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 restriction, any statements regarding the Company receiving approval of its pending amendment to its revised Plan of Operations. 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, risks involved in mineral processing; risks related to open pit mining and heap leach processing operations, obtaining the required permits to expand and extend mining activities and the life of mine, the availability of cash flows or financing to meet the Company’s ongoing financial obligations 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.
Chris Zerga
President
(819) 825-7618
czerga@scorpiogold.com
www.scorpiogold.com
Investor Relations
JNS Capital Corp.
Jag Sandhu
778-218-9638
JAGJNS@outlook.com