Scorpio Gold Receives Permit to Advance Mining, Processing & Exploration Activities at its 100% owned Mineral Ridge Operation, Nevada
TSX-V: SGN
506-595 Howe Street
Vancouver, BC, V6C 2T5
T: (604) 678-9639
www.scorpiogold.com
News Release No. 276
Scorpio Gold Receives Permit to Advance Mining, Processing & Exploration
Activities at its 100% owned Mineral Ridge Operation, Nevada
Vancouver, June 24, 2019 – Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX-V: SGN)
is pleased to announce the receipt and approval of its previously submitted Water Pollution Control Permit
(WPCP) that will allow Scorpio Gold to advance its mining, processing, and exploration activities at its
Mineral Ridge project located in Esmerelda County, Nevada. This major modification was approved by the
Nevada Division of Environmental Protection (NDEP) and authorizes the following activities:
• Addition of 1,500 acres to the existing project boundary for exploration purposes
• Expansion of the existing open pits (Mary, Last Chance, Drinkwater and Brodie)
• Development of four new pits (Custer, Custer South, Oromonte 1 and Oromonte 2)
• Development and advancement of underground mining below existing and new pits
• Construction of a 4,500 TPD processing facility with CIL recovery and tailings filtration circuits
• Expansion of the existing heap leach pad to accommodate for the conversion of the facility to a dry
stack tailings facility
The addition of the milling circuit to the Mineral Ridge operation will provide Scorpio Gold the ability to
recover ~250,000 ounces of gold from its open pit and heap leach reserves based on the Company’s updated
feasibility study as announced January 4, 2018. The study outlined 6,855 kT grading 0.017 oz/T proven &
probable reserves on the heap leach pad and 3,713 kT gra ding 0.042 oz/T proven & probable reserves in
other open-pit areas on the Mineral Ridge property. The positive feasibility study indicate d average gold
sales of 33,400 oz/yr over an operating period of 7.5 years, with a net present value (NPV) discounted a t
5% (after-tax) of US$35.1 million and an internal rate of return (IRR) of 30.0%. A technical report to
support the feasibility study was filed on SEDAR on January 9, 2018 . The expansion of the project
boundary will also allow for drill testing of near mine exploration targets, which were previously considered
off limits due to their proximity to the existing project boundary.
Chris Zerga, President and General Manager, comments “This is a game changer for the Mineral Ridge
operation. We now have all the required permits in hand for this expansion and can proceed with sourcing
project financing. The addition of a conventional milling circuit to the operation will improve recoveries
while lowering mining cutoff grades and increase overall mining volumes. Th is should aide in the
conversion of other existing resources to reserves as well as provide additional toll milling opportunities.”
About Scorpio Gold
Scorpio Gold holds a 100% interest in the Mineral Ridge gold mining operation located in Esmeralda
County, Nevada. 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 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 mill facility has been placed on a care
and maintenance basis and can be restarted immediately when needed.
Scorpio Gold Corporation | 2
Scorpio Gold’s Chairman, Peter J. Hawley, P.Geo., is a Qualified Person as defined in 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:
Brian Lock
Tel: (604) 889-2543
Email: [email protected]
Chris Zerga, President
Tel: (604) 536-2711
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”, “intend”, “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 to seek and obtain sufficient financing to construct a new processing facility at Mineral Ridge,
plans to re-commence mining operations and to plans with respect to the development and exploitation of its Mineral Ridge mine,
including any forecasts regarding future production. 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 relating to operation of a gold mine, including the
availability of cash flows or financing to meet the Company’s ongoing financial obligations; 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 imp act of
labour disputes; changes in metals prices; 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 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 guarantees of
future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty thereof.