Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN)
announces its operating results for the second quarter ("Q2") of 2014 at its 70%
owned Mineral Ridge project, located in Nevada.
Production at Mineral Ridge in Q2 2014 totalled 9,034 ounces of gold and 3,771
ounces of silver. Total gold production for the first half ("H1") of 2014 stands
at 19,328 ounces; an increase of 6.3% from H1 of 2013. The 2014 production
forecast for Mineral Ridge remains unchanged at 40,000 to 45,000 ounces of gold
(as reported in the Company's February 13, 2014 news release).
Peter J. Hawley, CEO, reports, "We are in a planned period of transition at
Mineral Ridge, as production from the Drinkwater pit winds down and production
from the Mary pit increases, resulting in a dip in gold ounces produced during
Q2 2014 compared to the previous year. In addition, gold head grades in Q2 2014
were lower than the same period in 2013, but not unexpected based on the mine
plan for this transition period. Head grades are expected to return to average
levels as per the current Life of Mine plan in H2 2014. Overall, we are very
pleased with the operation's performance in H1 2014.A stronger second half of
2014 is expected based on the above, and as gold inventory on the leach pad is
further drawn down by a new, higher capacity carbon column recently installed in
the ADR plant. We confirm our guidance of 40,000 to 45,000 ounces gold
production at Mineral Ridge in 2014."
Key Operating Statistics
Three months Six months
ending June 30 ending June 30
-------------------------------------------------------
2014 2013 Change 2014 2013 Change
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Mining operations
Drinkwater pit
Ore tonnes mined 165,882 209,114 -20.7% 320,834 372,656 -13.9%
Waste tonnes
mined 326,304 568,765 -42.6% 724,537 1,181,831 -38.7%
----------------------------------------------------------------------------
Total mined 492,186 777,879 -36.7% 1,045,371 1,554,487 -32.8%
Strip Ratio 2.0 2.7 -25.9% 2.3 3.2 -28.1%
Mary pit
Ore tonnes mined 79,394 33,644 136.0% 172,142 68,585 151.0%
Waste tonnes
mined 612,511 444,029 37.9% 1,027,872 771,044 33.3%
----------------------------------------------------------------------------
Total mined 691,905 477,673 44.8% 1,200,014 839,629 42.9%
Strip Ratio 7.7 13.2 -41.7% 6.0 11.2 -46.4%
Total producing
pits
Ore tonnes mined 245,276 242,758 1.0% 492,976 441,241 11.7%
Waste tonnes
mined 938,815 1,012,794 -7.3% 1,752,409 1,952,875 -10.3%
----------------------------------------------------------------------------
Total mined 1,184,091 1,255,552 -5.7% 2,245,385 2,394,116 -6.2%
Strip Ratio 3.8 4.2 -9.5% 3.6 4.4 -18.2%
Pits under
development
Mary LC Pit
Ore tonnes mined 6,915 - - 6,915 - -
Waste tonnes
mined (pre-
stripping) 411,162 - - 668,558 - -
----------------------------------------------------------------------------
Total mined 418,077 - - 675,473 - -
Total mining
operations
Ore tonnes mined 252,191 242,758 3.9% 499,891 441,241 13.3%
Waste tonnes
mined 1,349,977 1,012,794 33.3% 2,420,967 1,952,875 24.0%
----------------------------------------------------------------------------
Total mined 1,602,168 1,255,552 27.6% 2,920,858 2,394,116 22.0%
Processing
Tonnes processed 247,073 208,262 18.6% 491,846 414,108 18.8%
Gold head grade
(g/t) 1.80 2.56 -29.7% 1.87 2.49 -24.9%
Ounces produced
Gold 9,034 10,769 -16.1% 19,328 18,180 6.3%
Silver 3,771 4,379 -13.9% 8,884 7,119 24.8%
Crusher
throughput
(tonnes per day) 3,168 2,670 18.7% 3,215 2,707 18.8%
Recoverable(1)
gold (ounces)
placed on pad 9,297 11,126 -16.4% 19,263 21,527 -10.5%
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(1) A 65% metallurgical recovery factor has been applied to the estimated
contained ounces crushed and placed on the leach pad.
The Company plans to release an updated mineral reserve estimate and Life of
Mine Study incorporating the Drinkwater, Mary/LC and satellite deposits on July
21, 2014.
About Scorpio Gold
Scorpio Gold holds a 70% interest in the Mineral Ridge gold mining operation
located in Esmeralda County, Nevada with joint venture partner Waterton Global
Value L.P. (30%), and is currently entitled to receive 80% of cash flow
generated. Mineral Ridge is currently in production as a conventional open pit
mining and heap leach operation. 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 and processing facility in Manhattan,
Nevada. The Company is assessing its exploration plans for the Goldwedge
property as well as the potential for toll milling at the Goldwedge plant, which
is currently permitted for 400 tons per day.
Scorpio Gold's Chief Executive Office, 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
Peter J. Hawley, CEO
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 restriction, any statements regarding the Company achieving production
forecasts for 2014. 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 related to open
pit mining and heap leach operations, including 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 governmental approvals; changes in metals prices; the availability of
cash flows or financing to meet the Company's ongoing financial obligations;
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Scorpio Gold Corporation
Steve Roebuck, President
(819) 825-7618
sroebuck@scorpiogold.com
Investor Relations:
Jim Macdonald, Torrey Hills Capital
(858) 456-7300
jm@sdthc.com
www.scorpiogold.com
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