Scorpio Gold Executes the Kinross Manhattan Project Agreement
TSXV:SGN
Unit 1–15782 Marine Drive
White Rock, BC, V4B 1E6
T: (604) 536-2711
www.scorpiogold.com
News Release No. 298
Scorpio Gold Executes the Kinross
Manhattan Project Agreement
Vancouver, October 14, 2020 – Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSXV:
SGN) is pleased to announce it has executed a definitive agreement for the acquisition of the Manhattan
Project Properties (the “ Manhattan Property”) located in Nye Country, Nevada situated adjacent and
proximal to Scorpio Gold’s Goldwedge property (see July 20, 2020 news release).
This acquisition of 4,300 acres combined with the Goldwedge 1,771 acres gives Scorpio Gold complete
land control of 6,071 acres around the Goldwedge facility, providing the opportunity to expand surface
operations and the potential for expanding underground mining and exploration. It 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. The
Manhattan Property is comprised of 22 patented claims and 219 unpatented claims situated adjacent and
proximal to the Company’s Goldwedge property.
The Company is well funded to drive an extensive exploration program at the Goldwedge Mine, in the
Keystone-Jumbo deposit area and the Manhattan Property. An underground delineation drilling program is
in progress at the Goldwedge Mine and planning for surface drilling on high-priority targets over the entire
land package is underway.
The Manhattan Property is located within the Manhattan Mining District and centered ~17 km south of the
+15 million oz. Round Mountain Mine. It adjoins the southwest boundary of the 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.
Regionally, the Round Mountain and Manhattan- Goldwedge properties are situated on the northern and
southern periphery, r espectively, of the tertiary -aged Manhattan Caldera (24.4 Ma). Formation of the
caldera is thought to have a genetic relation to the formation of gold deposits in the district. Gold deposits
are primarily structurally controlled quartz -silver bearing veins and stockworks in Paleozoic-aged
metasediments. The predominate style and timing of mineralization in the region is epithermal low to
intermediate sulfidation systems ranging from 26 Ma to 16 Ma in age, although Carlin-style mineralization
has also been noted within the district (e.g. White Caps Mine).
Considerable exploration work has been conducted by various operators since production ended at the
Manhattan Mine in 1990. The consolidation of a large land package that includes the Goldwedge, Reliance
and Manhattan mines provides an exceptional exploration opportunity for the Company.
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Consideration of US$100,000 and the issue of the equivalent value of US$150,000 common shares will be
paid/issued at closing after all the closing conditions ha ve been met or waived. Upon closing, t he
Manhattan Property will be subject to an existing 2% net smelter returns royalty and certain reserved water
rights as defined in the agreement. Round Mountain Gold Corporation (“RMGC”) and KG Mining (Round
Mountain) Inc. (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 holds a 100% interest in 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.
In addition, as announced on August 31, 2020, Scorpio Gold entered into 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.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Brian Lock, CEO
For further information contact:
Brian Lock
Tel: (604) 889-2543
Email: [email protected]
Anthony Simone
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 effectiveness of the Agreement, the closing and planned use of proceeds of the Private Placement, receipt of the regulatory and
shareholder approvals discussed in this press release, the potential exercise of the Earn -in Option or the Purchase Option, and the
Company’s plans with respect to exp loration, development and exploitation at it s Goldwedge 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 and development programs, risks involved in mineral processing 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.
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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.