Scorpio Gold Closes Purchase of Kinross Manhattan Property,
TSXV:SGN
Unit 1–15782 Marine Drive
White Rock, BC, V4B 1E6
T: (604) 536-2711
www.scorpiogold.com
News Release No. 305
Scorpio Gold Closes Purchase of Kinross Manhattan Property,
Nye County, Nevada
Vancouver, March 25, 2021 – Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSXV:
SGN) is pleased to announce the purchase from affiliates of Kinross Gold Corporation ( the “Sellers”) of
the 4,300-acre (1,740-hectare) Kinross Manhattan Property located adjacent and proximal to the
Company’s Goldwedge property in Ny e County, Nevada. Scorpio Gold now controls 6,071 acres (2,457
hectares) around the Goldwedge facility, providing the opportunity to expand surface operations and the
potential for expanding underground mining and exploration. The acquisition also consolidates a large land
position along the Reliance Fault Zone, which has significant exploration potential for high- grade gold
targets at the intersections of the Reliance structure and ring faulting related to the Manhattan Caldera.
Figure 1: Aerial view of the Manhattan Property showing East & West pits and Goldwedge facility)
The Manhattan Property is located within the Manhattan Mining District and centered ~17 km south of the
+15 million oz. Kinross Round Mountain Mine. It adjoins the southwest boundary of Scorpio Gold’s
Goldwedge property and includes 2 former producing mines. The Reliance Mine, located within 600 metres
of the Goldwedge deposit, reportedly produced ~59,000 tons grading 0.435 oz/ton from 1932 to 1941. The
Manhattan Mine East and West pits situated 600-1,000 meters southwest of Goldwedge produced ~236,000
oz. from 1974-1990. The deposits lie along the northwest-trending Reliance Fault Zone, which is considered
the most predominant ore controlling structure in the region. The Reliance trend continues 4 km southeast
to Scorpio Gold’s Keystone-Jumbo project area. Within the Manhattan West Pit, the northwest -trending
structures controlling mineralization are referred to as the “Little Gray Fault”.
Exploration work by various operators since production ended at the Manhattan Mine in 1990 has outlined
the potential continuity of mineralization to the north of the West Pit toward the Goldwedge deposit as well
as the potential extension of mineralization to the north and south of the East Pit (Figures 2 and 3).
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Figure 2. Significant historic drill hole intercepts for mined-out and unmined areas at the Manhattan
project with assay cut-off of ≥0.05 oz/t.
Figure 3. Long section (A-A’- facing NE) indicating the continuity and trend of mineralization to the
north and below the current asbuilt pitshell.
Past operators have undertaken block modelling of the mineralization and completed in-house preliminary
mineral resource estimates for the area encompassing the Manhattan East and West pits. None of the
resource estimates are compliant with NI 43-101 guidelines. The most recent study was prepared by Lynn
Canyon Geological as part of an internal review for Kinross in 2008. The preliminary estimate utilizes
various cut-off grades (“COG”) and classifies the resources into Indicated and Inferred categories (Table
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1). The resource classification was based on average distance to samples and the number of composites
used for the estimation of the blocks. Indicated r esources were assigned to a block if the average distance
to sample was less than 125 feet (38.1 metres) and at least 3 composites were used. All other blocks
estimated within these domains are considered Inferred. (Ref: Remaining Resources and Exploration
Potential Manhattan Mine Property Nye County, Nevada ; prepared for Round Mountain Gol d Corp. by
Registered Geologist, Russ White, dated March 31, 2008).
Scorpio Gold considers the historical resource estimate as relevant but has yet to conduct sufficient work
to verify the resource estimate and is not treating the estimate as a current resource. Infill drilling to verify
and potentially upgrade the resource is planned as well as step-out exploration drilling along the structural
trends.
Figure 4. 2008 preliminary block model showing areas of potential exploration below the current asbuilt
pitshell. All block grades ≥ 0.015 oz/t.
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Table 1: Kinross Historical Mineral Resource Estimate from 2008 Block Model
COG
(oz/t)
Indicated Inferred
Tons Au (oz/t) Ounces (oz) Tons Au (oz/t) Ounces (oz)
0.006 11,846,620 0.020 242,709 5,513,153 0.023 128,514
0.010 8,589,599 0.025 218,423 4,292,022 0.028 119,581
0.015 5,692,087 0.032 184,098 3,206,452 0.033 106,589
0.020 3,903,756 0.039 154,068 2,441,999 0.038 93,785
0.025 2,759,848 0.047 129,136 1,827,856 0.044 80,264
0.030 2,040,168 0.054 109,822 1,420,693 0.049 69,341
0.035 1,537,915 0.061 93,857 1,124,628 0.053 59,921
Note: Technical information in relation to these estimates has not been verified by a qualified person and there has been insufficient
work to classify the historical estimate as a current resource. Scorpio Gold is not treating th is historical estimate as a curr ent
resource.
Transaction
Consideration of US$100,000 and the issue of 2,091,149 common shares being the equivalent value of
US$150,000 on July 20, 2020. The Manhattan Property will be subject to a total 2% net smelter returns
royalty. In addition, to being subject to certain reserved water rights and other permitted encumbrances as
defined in the agreement. The Sellers will also provide copies of all non-interpretive geologic data, mining
records and land status information and any drill core samples relating to the Manhattan Property that the
Sellers own or control. In addition, the Company has arranged for substitute surety arrangements in a form
acceptable to each of the government authorities in the amount of US$191,188.
About Scorpio Gold
Scorpio Gold now holds a 100% interest in the consolidated Manhattan District in Nevada comprising the
advanced exploration-stage Goldwedge property in Manhattan, Nevada with a fully permitted underground
mine and a 400 ton per day mill facility and a 100% interest of the Manhattan Property situated adjacent
and proximal to the Goldwedge property.
Scorpio Gold is party to an earn- in option agreement with Titan Mining Corporation whereby Titan can
earn an 80% joint venture interest on the Company’s 100% owned Mineral Ridge gold project located in
Esmeralda County, Nevada. To maintain the option Titan must spend a total of US$35 million over a staged
period of five years. If Titan spends the initial US$7 million of expenditures by January 1, 2022, it will also
have the right to acquire a 100% interest by paying Scorpio Gold US$35 million on or before December
31, 2022.
The technical information contained within this release has been reviewed and approved by independent
geological consultant, Mohan R Vulimiri, M.Sc., P.Geo., a Qualified Person as defined by NI 43-101.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Brian Lock,
CEO & Director
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For further information contact:
Brian Lock, CEO
Tel: (604) 889-2543
Email: [email protected]
Diane Zerga, General Manager
Tel: (775) 401-1637
Email: [email protected]
Anthony Simone, Investor Relations
Tel: (416) 881-5154
Email: [email protected]
Website: www.scorpiogold.com
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”, “inte nd”, “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 exp loration of its Goldwedge and Manhattan projects. 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 programs and those ri sk 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 a guarantee of future performance and
accordingly undue reliance should not be put on such statements due to the inherent uncertainty thereof.