Scorpio Gold Reports Financial Results for Second Quarter of 2019
TSX-V: SGN
Unit 1 – 15782 Marine Drive
White Rock, B.C. V4B1E6
T: (604) 536-2711
www.scorpiogold.com
News Release No. 277
Scorpio Gold Reports Financial Results for Second Quarter of 2019
Vancouver, August 2 8, 2019 – Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX -V:
SGN) announces its financial results for the six months ended June 30, 2019.
During the six months ended June 30, 2019, Scorpio Gold raised gross proceeds of $7.0 million from the
issuance of secured subordinated convertible debentures by way of a private placement which allowed the
Company to eliminate its $6 million senior secured debt with Waterton Global Resources Management in
exchange for an upfront payment of $3 million in cash, and resulted in increasing the Company’s ownership
of the Mineral Ridge Gold Mine from 70% to 100%.
The Company is now focusing its efforts on re-engaging with lenders who had previously expressed interest
in funding the proposed new processing facility at the Mineral Ridge project. This new facility will allow
the Company to capture the value in the gold reserves contained in the heap leach pad and unmined portions
of the mine. The Company sees potential to increase those reso urces by further exploration within and
outside the area of operations. The Scorpio Gold operating team at Mineral Ridge has proved its excellence
over the past eight years and once financed, will build and operate the new processing facility with an
expected mine life of at least seven years.
On June 6, 2019, the Company announced the commencement of drilling at its 100% owned Goldwedge
property located in Manhattan Nevada. The drilling program will focus on the Keystone -Jumbo claim
block. The program calls for drilling of up to 29 exploration holes with the intention of building on historic
drilling and previously reported surface sampling results (December 15, 2016 news release) within the
Keystone-Jumbo claim block.
On June 24, 2019 the Company announced the receipt and approval of its Water Pollution Control Permit
(WPCP), issued by the State of Nevada, that will allow Scorpio Gold to advance its exploration activities
at Mineral Ridge.
Management expects to gener ate limited revenues from Mineral Ridge until approximately Q4 of 2019
from residual but diminishing gold recoveries from the leach pads and will use cash flow from the operation
of the Mineral Ridge along with current cash on hand to fund the Company’s op erations until further
financing is raised.
This press release should be read in conjunction with the Company’s condensed interim consolidated
financial statements for the six months ended June 30, 2019 and Management’s Discussion Analysis
(“MD&A”) for the same period, available on the Company’s website at www.scorpiogold.com and under
the Company’s SEDAR profile at www.sedar.com. All monetary amounts are expressed in US dol lars
unless otherwise specified. On April 15, 2019, the Company completed a 2 for 1 consolidation of its
outstanding common shares. All share and per share amounts are shown on a post -consolidated basis
retroactively throughout this news release.
OPERATION HIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2019 AND 2018
• 1,999 ounces of gold and 1,282 ounces of silver were produced at the Mineral Ridge mine,
compared to 4,560 ounces of gold and 2,211 ounces of silver produced during 2018.
• Revenue of $2.5 million, compared to $5.5 million during 2018.
• Total cash cost per ounce of gold sold (1) of $1,324, compared to $849 during 2018.
• Mine operating loss of $0.2 million, compared to earnings of $2.0 million during 2018.
• Net earnings of $2.6 million ($0.04 basic and diluted per share), compared to earnings of $0.4
million ($0.01 basic and diluted per share) during 2018.
• Adjusted net earnings (1) of $0.04 million ($0.00 basic and diluted per share), compared to earnings
of $0.7 million ($0.01 basic and diluted per share) during 2018.
• Adjusted EBITDA (1) of $0.4 million ($0.00 basic and diluted per share) compared to $1.2 million
($0.02 basic and diluted per share) million during 2018.
(1) This is a non-IFRS measure; please see Non-IFRS performance measures section.
About Scorpio Gold Corporation
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, th e 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’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, Interim CEO
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 sim ilar
words or statements that certain events or conditions “may” or “will” occur, and include, without limitation, statements regardin g
the Company’s plans with respect to the exploration of its Goldwedge project. 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 o r
anticipated events or results implied or expressed in such forward -looking statements, including risks involved in mineral
exploration programs 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.