Scorpio Gold Signs Letter of Intent with Lode-Star Mining Inc. for a Custom Toll Milling Agreement
TSX-V: SGN
1462 de la Québécoise
Val-d’Or, QC, J9P 5H4
T: 819-825-7618
www.scorpiogold.com
News Release No. 234
Scorpio Gold Signs Letter of Intent with Lode-Star Mining Inc.
for a Custom Toll Milling Agreement
Vancouver, February 21, 2017 - Scorpio Gold Corpor ation (“Scorpio Gold” or the “Company”) (TSX-V:
SGN; Frankfurt: Z3S) is pleased to announce the signing of a letter of intent (the “LOI”) with Lode-Star
Mining Inc. (“Lode-Star”) for a custom milling agreement (the “Agreement”) to provide custom milling of
mineralized material at the Company’s Goldwedge processing facility, located 75 miles north of Goldfield
in Manhattan, Nevada.
The Goldwedge mill is a 400 ton per day facility with an associated gravity recove ry circuit. Testing of
Lode-Star’s mineralized material is expected to commence in Q1 2017 and is pending receipt of approval
from the Nevada Division of Environmental Protectio n (“NDEP”). This testing will provide the baselines
for metallurgical recoveries and mill throughput data to support Lode Star’s mine permitting with the
NDEP. The coarse gold component of Lode-Star’s material will be recovered by the gravity circuit. Further
testing will be conducted on the tailings to determine the potential economics of shipping tailings to Scorpio
Gold's 70% owned Mineral Ridge heap leach operation for final recovery of cyanide-leachable precious
metals. Assaying services can be provided to Lode Star at Mineral Ridge.
The companies are moving forward with permitting requirements associated with the Agreement. The
Agreement requires completion of a cost analysis and other operational details which are expected to be
concluded upon completion of the testing. The parties believe this arrangement can be mutually economical
and operationally beneficial for their respective operations.
Lode-Star President, Mark Walmesley, comments, “Lode-Star has been working steadily with Scorpio Gold
on this milling solution for well over a year. The resu lts of our metallurgy work through Kappes Cassiday
indicate positive compatibility with Scorpio Gold's existing processes. Utilization of the Mineral Ridge
assaying lab is a key benefit that speeds up our overall production and milling timeline. We look forward
to working with the Scorpio Gold team and believe this is a great pairing between our operations.”
Chris Zerga, President of Scorpio Gold Corporat ion, comments, “We hope to develop a long-term
relationship with the Lode-Star team and we continue to look for other synergistic opportunities within our
surrounding area.”
About Lode-Star Mining Inc.
Lode-Star Mining Inc. (OTCQB:LSMG) is a U.S. based junior-tier mining company focused on the
exploration, development, and production of North American mineral assets.
Lode-Star is the operator of the Goldfield Bonanza property, acquired under an option for development on
December 11, 2014 from Lode-Star Gold, Inc., a private Nevada corporation. The property is located in the
historic gold producing district of Goldfield, NV, wh ich at one time was Neva da's largest gold producing
district. Historic production totaled better than 4 million ounces of gold.
Scorpio Gold Corporation | 2
About Scorpio Gold
Scorpio Gold holds a 70% interest in the produc ing 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. The Minera l Ridge property is host to multiple gold-bearing
structures, veins and lenses at exploration, developm ent and production stages. Sc orpio Gold also holds a
100% interest in the advanced exploration-stage Gold wedge 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 upon short notice.
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 news release.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Chris Zerga,
President
For further information contact:
Chris Zerga, President
Tel: (819) 825-7618
Email: [email protected]
Investor Relations
Jag Sandhu, JNS Capital Corp.
Tel: 778-218-9638
Email: [email protected]
Website: www.scorpiogold.com
Neither TSX Venture Exchange nor its Regula tion 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. Th is 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. Such forward-looking statements involve
known and unknown risks, uncertainti es and other factors that coul d cause actual events or results to differ materially from
estimated or anticipated events or results implied or expre ssed in such forward-looking stat ements, including receiving require d
permits to undertake the testing of Lode Star’s mineralized material; the results from the testing of Lode Star mineralized material
may prove to be not economically viable, potential toll milling c ontracts and shipping tailings to the Mineral Ridge heap leach
operation 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.