Scorpio Gold Produces 1,627 Ounces of Gold in Third Quarter 2018 at the Mineral Ridge Operation, Nevada And Receives Debt Extension
TSX -V: SGN
206-595 Howe St.
Vancouver, British Columbia
Canada, V6C 2T5
Tel: (604) 678-9639
www.scor piog old .com
News Release No. 262
Scorpio Gold Produces 1,627 Ounces of Gold in Third Quarter 2018 at the
Mineral Ridge Operation, Nevada And Receives Debt Extension
Vancouver, October 9, 2017 - Scorpio Gold Corporation (“Sco rpio Gold” or the “Company”) (TSX-V:
SGN) announces that the forebearance agreement on its $6 million debt originaly expiring on October 15,
2018 was extended to November 16, 2018. The Company also announces its operating results for the third
quarter (“Q3”) of 2018 at its 70% owned Mineral Ridge project, located in Nevada.
Production at Mineral Ridge in Q3 2018 totalled 1,627 ounces of gold and 655 ounces of silver compared
to 4,395 ounces of gold and 2,588 ounces of silver in Q3 of 2017. Gold and silver production for the first
nine months of 2018 totalled 6,187 ounces of gold and 2,866 ounces of si lver, representing decreases of
59.7% and 63.9%, respectively, over the same period in 2017. As p reviously reported, mining was
suspended in the first week of November 2017, which has resulted in lower gold ounces produced.
The Company is currently evaluating various business alternatives including a potential sale transaction,
business combination, refinancing its long-term debt, raisi ng financing through an equity financing or
through other types of financing.
Key Operating Statistics
Three months ending
September 30
Nine months ending
September 30
2018 2017 Change 2018 2017 Change
Mining operations
Ore tonnes mined - 80,629 -100% - 370,578 -100%
Waste tonnes mined - 669,610 -100% - 2,605,557 -100%
Total mined - 750,239 -100% - 2,976,135 -100%
Processing
Tonnes processed - 78,759 -100% - 368,636 -100%
Gold head grade (g/t) - 1.34 - - 1.54 -
Ounces produced
Gold 1,627 4,935 -67.0% 6,187 15,336 -59.7%
Silver 655 2,588 -74.7% 2,866 7,947 -63.9%
Crusher throughput
(tonnes per day) - 856 -100% - 1,350 -100%
Recoverable (1) gold
(ounces) placed on pad - 2,299 -100% - 12,456 -100%
(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 Ri dge 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. Mining at Mineral Ridge was suspended in
November 2017; however, the Company continues to generate limited revenues from residual but
diminishing recoveries from the leach pads. Scorpio Gold als o holds a 100% interest in the advanced
exploration-stage Goldwedge property in Manhattan, Nevad a 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 immediately when needed.
Scorpio Gold’s Chairman, Peter J. Hawley, PGeo, is a Qualified Person as defined by 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
For further information contact:
Chris Zerga, President
Tel: (604) 678-9639
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-l ooking statements. This news release contains forward-lo oking
statements that are based on the Company’s current expe ctations and estimates. Forward-looking statements are f requently
characterized by words such as “plan”, “expect”, “projec t”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate”
and other similar words or statements that certain event s or conditions “may” or “will” occur, and include, without r estriction,
any statements regarding a potential sale transaction , a business combination, refinancing of its long-term debt and equity or
other types of financing. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that
could cause actual events or results to differ material ly from estimated or anticipated events or results i mplied or expressed in
such forward-looking statements, including 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 requir ed 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 ot herwise. 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.