About
Scorpio Gold Corporation (TSX-V: SGN) a Canadian-based explorer and gold producer. The
Company holds a 70% interest in the Mineral Ridge gold project in Nevada with joint venture partner
Elevon, LLC (30%).
Mineral Ridge is a conventional open pit heap leach operation, located 6 km northwest of the town of
Silver Peak and 56 km west of Tonopah in Esmeralda County, Nevada. The property is host to
multiple gold-bearing structures, veins and lenses at exploration, development and production levels.
Scorpio Gold achieved commercial production status at Mineral Ridge on January 1, 2012 and as of
September 2016 total production has exceeded 180K ounces of gold.
Production in 2016 is forecast at 30,000-35,000 ounces of gold at an estimated total cash cost of
US$900-$950 per ounce of gold sold.
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 that is
currently on care and maintenance.
INVESTMENT HIGHLIGHTS
2016 production forecast: 30,000-35,000 oz. gold
2016 estimated total cash cost: US$900-$950 per oz. of gold sold.
Strong cash flow to support exploration and development.
A successful exploration and delineation drilling program in 2016 is expected to increase mine
life.
Mineral Ridge Operation
Mineral Ridge is a conventional open pit heap leaching operation located 6 km northwest of the town
of Silver Peak and 56 km west of Tonopah in Esmeralda County, Nevada. The project area
encompasses 5,010 hectares (12,380 acres) and is host to multiple deposits at exploration,
development and production stages. Prior to Scorpio Gold and dating back to the late-nineteenth
century, the property historically produced an estimated 575,000 oz. of gold, including 170,000 oz.
from open pit and 405,000 oz. from underground mining operations.
Scorpio Gold acquired a 70% interest in the Mineral Ridge project in March 2010. Under the terms of
the joint venture agreement, Scorpio Gold is currently entitled to receive 70% of the cash flow
generated.
Following major site rehabilitation and refinement of the heap leaching and processing operations,
Scorpio Gold achieved commercial production status on January 1, 2012.
Mineral Ridge gold production:
2012 - 32,066 oz.
2013 - 39,160 oz.
2014 - 40,814 oz.
2015 – 39,690 oz.
2016 projection – 30,000 – 35,000 oz.
All gold is unhedged and there are no underlying royalties in areas currently being mined.
Mineral Ridge Life of Mine Plan
In 2016, a majority of the mining occurred in the Mary LC deposit, with mining also occurring the
Brodie, Bluelite, Solberry and Missouri satellite areas which are all located west of the Mary LC pit
and lie in close proximity to the leach pad. The Bluelite and Brodie satellite pits have remaining
resources associated with them and are scheduled to be mined in 2017 along with continued mining
in the Mary LC pit. Exploration drilling in 2015 followed by infill drilling in 2016 further defined the
Custer resource which was the first new discovery at Mineral Ridge and is currently being permitted
for mining to begin in Q4 of 2017. The LOM projects the mine life at Mineral Ridge extending into Q2
2018.
Scorpio Gold’s management fully expects that positive results from 2016 exploration will extend the
current life of mine at Mineral Ridge.
Goldwedge Project
The Goldwedge project is located 54 km north-northeast of the town of Tonopah within the
Manhattan Mining District of south-central Nevada. Scorpio Gold holds a 100% interest in the
project, with the property covering three separate claim blocks and encompassing the Goldwedge,
Keystone and Jumbo gold deposits.
The Goldwedge project includes a fully permitted underground mine with over 600 meters of
development and a 400 ton per day mill facility with gravity circuit. Scorpio Gold has completed
rehabilitation of the plant and surrounding infrastructure and commenced testing of the milling circuit
with high-grade ore from Mineral Ridge to ensure optimal recoveries of coarse gold.
The Goldwedge deposit is situated on the southern periphery of the Manhattan Caldera,
approximately 16 kilometers south of the 15 million oz. Round Mountain Mine. Historic mining in the
Manhattan Mining District dates back to the nineteenth century, with district-wide gold production
estimated at 566,000 oz. The largest gold production came from the Manhattan Mine East & West
pits located within a kilometer south of the Goldwedge deposit, where Echo Bay Mines reportedly
produced an estimated 236,000 oz.
Also included in the Goldwedge property are the Jumbo and Keystone deposits, located 3.8 km and
4.3 km southeast respectively from the Goldwedge deposit. Scorpio Gold considers both deposits to
have considerable exploration merit given their style of mineralization, location along strike of the
regionally significant northwest trending Reliance Fault Zone and both have been previously mined
on a small scale via open pit method.
Scorpio Gold initiated a three-phased soil sampling program and ground magnetic/VLF
electromagnetic survey over the Keystone-Jumbo project area in mid-2016. The geophysical survey
was designed to assist in structural interpretation of the area and utilized 50 meter line spacing to
provide high resolution of structural breaks. The soil sampling program was conducted at 100 meter
sampling intervals to detect anomalous gold mineralization in areas covered by overburden. In the
Keystone-Jumbo area, overburden covers approximately 85% of the land position and typically
ranges from 0 to 2 meters depth.
Phase 1 of the soil sampling program was conducted over the main area of interest that surrounds
the historic Keystone and Jumbo mine workings. Results outlined a 1,100 meter long soil anomaly
that follows a distinct N30-45W trending structural break. This trend sub-parallels the N30W
structure mapped in the Keystone pit, which is determined to be the main structural control to
mineralization.
Phases 2 and 3 of the sampling program covered the remainder of the Keystone-Jumbo project area
that was not subjected to ground disturbance during historical mining operations. Results have
extended the soil anomaly's strike length 130 meters to the southeast, outlining a 1,230 meter
mineralized trend that crosses nearly the entire NW length of the Keystone Jumbo land holdings.
Results from this soil sample program correlate well with the interpreted structural geology from the
field mapping and the ground magnetic/VLF electromagnetic geophysical surveys recently
processed. Of note is the spatial association of high-grade soil samples from all 3 phases with the
granite-metasediment contact, especially where favorable structural orientations are found. This
lithological contact is considered a promising exploration target in addition to the multiple NW
trending structures recognized in the area.
Scorpio Gold's management considers the Keystone-Jumbo project area to have exceptional
exploration merit. Additional detailed mapping and modeling is underway to define drill targets within
the mineralized corridor.All three phases of the soil sampling program were conducted over the main
area of interest that surrounds the historic Keystone and Jumbo mine workings.
SUMMARY
Scorpio Gold continues its successful operation of its Mineral Ridge gold property while meeting its
production goals and maintaining costs within forecasted limits.
Scorpio Gold is very proud to have an exceptionally dedicated team that is committed to pursuing
operational improvements and constraining costs in all sectors.
Scorpio Gold also owns 100% of the fully permitted Goldwedge mine and mill facility in nearby
Manhattan, Nevada, where a successful surface sampling, field mapping and ground magnetic/VLF
electromagnetic geophysical surveys program has proven the potential for future exploration and
production opportunities within its wholly owned land package.
