Scorpio Gold Produces 4,935 Ounces of Gold in Third Quarter 2017 at the
TSX-V: SGN
1462 de la Québécoise
Val-d’Or, QC, J9P 5H4
T: 819- 825-7618
www.scorpiogold.com
News Release No. 249
Scorpio Gold Produces 4,935 Ounces of Gold in Third Quarter 2017 at the
Mineral Ridge Operation, Nevada
Vancouver, October 27 2017 - Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX -V:
SGN) announces its operating results for the third quarter (“Q3”) of 2017 at its 70% owned Mineral
Ridge project, located in Nevada.
Production at Mineral Ridge in Q3 201 7 totalled 4,935 ounces of gold and 2,588 ounces of silver
compared to 9,981 ounces of gold and 4,630 ounces of silver in Q3 of 201 6. Gold and silver production
for the first nine months of 201 7 totalled 15,336 ounces of gold and 7,947 ounces of silver, representing
decreases of 46.3% and 38.3%, respectively, over the same period in 2016. The lower metal production is
attributed to fewer tons being mined and processed as a result of the decreasing size of the Mary LC and
Brodie pits and slower mining rates as current production in these pits winds down.
Current mining is expected to continue through the first week of November 2017 , at which time mining
will be suspended while evaluations are conducted by Mine Technical Services (“MTS”) on the mine’s
remaining internal resources for a NI -43-101 compliant resource and reserve estimate and updated mine
plan. Based on the positive results from the recently completed feasibility study, t he Company intends to
pursue financing for the construc tion of a 4,000 TPD milling facility with CIL recovery and dry stack
tailings circuit. The Company also intends to add additional run of mine resources, when confirmed by
MTS, to the already confirmed heap leach resource for processing and recovery of the contained precious
metals. Construction of the milling facility will begin once financing is obtained and the Plan of
Operations Amendment and Water Pollution Control permit are approved and issued. Permit approval is
expected in early 2018.
The Company will provide further updates on its Q4 activities at Mineral Ridge in due course.
Key Operating Statistics
Three months ending
September 30
Nine months ending
September 30
2017 2016 Change 2017 2016 Change
Mining operations
Mary LC pit
Ore tonnes mined 61,555 119,574 -48.5% 315,242 405,241 -22.2%
Waste tonnes mined 309,207 919,556 -66.4% 1,805,218 2,542,039 -29.0%
Total mined 370,762 1,039,130 -64.3% 2,120,460 2,947,280 -28.1%
Strip Ratio 5.0 7.7 -35.1% 5.7 6.3 -9.5%
Satellite pits
Ore tonnes mined 19,074 48,029 -60.3% 54,564 190,774 -71.4%
Waste tonnes mined 360,403 152,883 135.7% 551,254 519,603 6.1%
Three months ending
September 30
Nine months ending
September 30
2017 2016 Change 2017 2016 Change
Total mined 379,477 200,912 88.9% 605,818 710,377 -14.7%
Strip Ratio 18.9 3.2 490.6% 10.1 2.7 274.1%
Total producing pits
Ore tonnes mined 80,629 167,603 -51.9% 369,806 596,015 -38.0%
Waste tonnes mined 669,610 1,072,439 -37.6% 2,356,472 3,061,642 -23.0%
Total mined 750,239 1,240,042 -39.5% 2,726,278 3,657,657 -25.5%
Strip Ratio 8.3 6.4 29.7% 6.4 5.1 25.5%
Pits under development
Ore tonnes mined - - - 772 - 100.0%
Waste tonnes mined
(pre-stripping) - 25,876 -100.0% 249,085 149,230 66.9%
Total mined - 25,876 -100.0% 249,857 149,230 67.4%
Total mining operations
Ore tonnes mined 80,629 167,603 -51.9% 370,578 596,015 -37.8%
Waste tonnes mined 669,610 1,098,315 -39.0% 2,605,557 3,210,872 -18.9%
Total mined 750,239 1,265,918 -40.7% 2,976,135 3,806,887 -21.8%
Processing
Tonnes processed 78,759 176,901 -55.5% 368,636 704,039 -47.6%
Gold head grade (g/t) 1.34 1.35 -0.7% 1.54 1.45 6.2%
Ounces produced
Gold 4,935 9,981 -50.6% 15,336 28,578 -46.3%
Silver 2,588 4,630 -44.1% 7,947 12,876 -38.3%
Crusher throughput
(tonnes per day) 856 1,923 -55.5% 1,350 2,569 -47.5%
Recoverable(1) gold
(ounces) placed on pad 2,299 5,215 -55.9% 12,456 22,249 -44.0%
(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 Ridge 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. Current mining is expected to continue through
the first week of November 2017 and the Company intends to proceed with financing and construction of
a mill facility for the processing of the heap leach resource and expected run of mine resources upon
permit approval. The Mineral Ridge property is host to multiple gold -bearing structures, veins and lenses
at exploration, development and production stages. 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. The Goldwedge mi ll 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: 819- 825-7618
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 fr equently
characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indica te”
and other similar words or statements that certain events or conditions “may” or “will” occur, and include, without re striction,
any statements regarding the suspension of mining activities; the Company achieving production forecasts for 2017, planned
financing and construction activities, or planned future production schedules. Such forward -looking statements involve kno wn
and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estima ted or
anticipated events or results implied or expressed in such forward -looking statements, including risks related to open pi t mining
and heap leach operations, unanticipated changes in the mineral content of materials being mined; unanticipated changes in
recovery rates; changes in project parameters; failure of equipment or processes to operate as anticipated; the failure of contracted
parties to perform; availability of skilled labour and the impact of labour disputes; delays in obtaining approval to the revised
Plan of Operations, permits and governmental approvals; changes in metals prices; the availability of cash flows or financing to
meet the Company’s ongoing financial obligations or to finance the construction of the mill facility; unanticipated changes in key
management personnel; changes in general economic conditions; other risks of the mining industry; 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 a ny
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.