Scorpio Gold Signs First Toll Milling Contract for its Wholly Owned Goldwedge Mill in Manhattan Nevada
TSX-V: SGN
Unit 1–15782 Marine Drive
White Rock, BC, V4B 1E6
T: (604) 536-2711
www.scorpiogold.com
News Release No. 282
Scorpio Gold Signs First Toll Milling Contract for its Wholly Owned
Goldwedge Mill in Manhattan Nevada
Vancouver, January 27, 2020 – Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX -V:
SGN) is pleased to announce the signing of a Toll Milling Agreement (the “Agreement”) between the
Company’s affiliate, Goldwedge LLC, and Lode-Star Mining Inc. (“Lode-Star”). The Agreement will allow
for the processing of ore delivered from Lode-Star’s mining properties to Scorpio Gold’s 400 ton per day
Goldwedge milling facility located in Manhattan, Nevada.
Under the terms of the Agreement, Lode -Star will ad vance funds required for the design engineering,
permitting and mill modifications required for processing of Lode -Star’s ore. Based on previous
metallurgical testing, Lode-Star’s ore require s gravity combined with flotation for optimal recoveries of
contained precious metals. The Goldwedge milling circuit is currently configured with a gravity recovery
circuit. The modifications to the Goldwedge milling facility will include the addition of a flotation circuit,
supporting reagent tanks/silos, secondary lin ing of process containment ponds, leak detection and
monitoring wells associated with fluid containments. The Agreement provides for Lode-Star to recoup the
advanced funds through a reduction in toll milling rates until all advanced funds have been repaid.
Following repayment, the toll charges will revert to standard rates.
This Agreement is mutually beneficial for both parties. Goldwedge LLC will transition from temporary
closure into production. With the addition of a flotation circuit the Goldwedge milling facility will have the
capability of processing carbonaceous/sulfidic ores, expanding its availability for toll milling in addition to
the Lode-Star arrangement. The new flotation circuit will also result in improved recoveries for mineralized
material within the Goldwedge deposit, potentially allowing for lower mining cut -off grades. Lode -Star
benefits from having a long -term processing agreement for their ores at a location operated by an
experienced processing team. The mill is in close proximity to their mine, thus minimizing haulage costs,
and will have a milling circuit optimized for peak metallurgical recoveries.
Scorpio Gold’s President, Chris Zerga, comments, “This toll milling agreement is the achievement of many
hours of work between Lode -Star and Scorpio Gold’s management and both parties will greatly benefit
from it. We look forward to working with the Lode -Star team and positioning the Goldwedge mill for
additional toll-milling opportunities.”
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 400 ton per day mill facility. Scorpio Gold also 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 t o generate limited revenues from residual but
diminishing recoveries from the leach pads.
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.
Scorpio Gold Corporation | 2
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 rega rding
the Company’s plans with respect to toll milling at its Goldwedge milling facility. 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 mill
modifications, toll milling operations 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 res ults 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.