Press release from Marketwire
Scorpio Gold Intersects 5.17 g/t gold over 21.34 meters and Extends Mary/LC Zone at the Mineral Ridge Operation, Nevada
Wednesday, June 05, 2013
Scorpio Gold Intersects 5.17 g/t gold over 21.34 meters and Extends Mary/LC Zone at the Mineral Ridge Operation, Nevada08:00 EDT Wednesday, June 05, 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 5, 2013) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) announces initial drill results from its 2013 drilling program, which targeted undrilled areas in the vicinity of the proposed Mary LC Zone super pit at the 70% owned Mineral Ridge project, Nevada.
Prior to this drilling campaign, drill results for the Mary LC area were incorporated into an in-house wire frame resource block model, which formed the basis of the proposed new Mary LC super pit design using floating cone methodology and economic parameters based on current operating costs. Within this pit design, areas that were not drilled due to topographic challenges, or which contained drill spacing deemed too wide for resource determination, or which extended outside of the floating cone boundary, were treated as waste with zero grade. The purpose of the current 2013 drill program is to target these areas to determine if mineralization exists; to tighten up drill hole spacing for resource estimation; and to follow up on mineralized trends either below the proposed pit shell floor or outside of the existing cone boundary.
The results to date are highly encouraging, including intersections of 5.17 g/t over 21.34 meters; 1.53 g/t over 12.19 meters; and a high-grade intersection of 15.09 g/t over 1.52 meters. These results were obtained in three holes located at the southeastern margin of the Mary LC area, with the zone remaining open to the southeast and to depth.
As part of the planning for this drill program, the trends of the various mineralized wire frames were projected into the undrilled areas to guide targeting and to determine if the trends are consistent. Results to date indicate good consistency, with mineralization intersected where expected. It is important to note that every successful drill hole intercept converts previously deemed waste material into mineralization, potentially adding to the resource base and increasing confidence levels.
Scorpio Gold's drilling to date has determined that the Drinkwater Highwall, Drinkwater, Mary and Mary LC zones represent one continuous zone of mineralization. The holes presented in Table 1 were drilled in previously deemed waste areas and/or where little to no previous drilling had been performed. A 40 g/t cutoff grade has been applied. Drill hole locations may be viewed on the Company's website at: www.scorpiogold.com/i/maps/mr/MaryLC_DHplan2.jpg.
|Table 1. Mary/LC Zone - Significant Drill Results|
|MR13523||225||-50||No Significant Results|
|MR13529||0||-90||No Significant Results|
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. ("AAL") in Sparks, Nevada, USA. AAL does not have ISO/IEC 17025 accreditation but implements a quality management system following ISO/IEC 17025 standards and maintains a paperwork trail for ISO/IEC 17025 accreditation. AAL participates in a number of testing and certification programs, details of which are presented in the Company's quality assurance and quality control (QA/QC) program for the Mineral Ridge project at: www.scorpiogold.com/i/pdf/reports/QAQC-MR.pdf. External check assays to verify lab accuracy are routinely completed by ALS Chemex, an ISO 9001:2000 certified and ISO/IEC 17025:2005 accredited laboratory.
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 bodies at exploration, development and production stages. Scorpio Gold recently acquired the Goldwedge advanced exploration-stage property and processing facility in Manhattan, Nevada, and the Pinon advanced exploration-stage 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, PGeo, is a Qualified Person for the Mineral Ridge project and has reviewed and approved the content of this release. For additional information please see the Company's website at www.scorpiogold.com.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley, CEO
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. 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 such as delays related to completion of mineral resource estimates, exploration 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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