Scorpio Gold Announces First Quarter 2013 Operating Results for the Mineral Ridge Project, Nevada
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/15/13 -- Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE: SGN) announces its operating results for the first quarter of 2013 ("Q1") at its 70% owned Mineral Ridge project, Nevada.
Production in Q1 from the Drinkwater and Mary pits totalled 7,411 ounces of gold and 2,740 ounces of silver. The Company's 2013 production forecast remains unchanged at 32,000 to 35,000 ounces of gold at a total cash cost of US$800 to US$900 per ounce of gold sold (see February 7, 2013 news release).
Peter J. Hawley, CEO reports, "The Company's Q1 operating results demonstrate a 33% increase in ore tonnes mined from the Drinkwater Pit compared to Q1 2012, and a continued increase in quarterly production from the developing Mary Pit. Recent key improvements to the Mineral Ridge operation include increased production capacity in the pits and a new crushing facility with multiple design improvements that is just weeks away from commissioning and will increase crusher throughput. In addition, a new water well on site is delivering an extra 150 gallon per minute to the leach pad, which is expected to accelerate the leaching process and delivery of gold and silver bearing solution to the ADR plant."
Key Operating Statistics
Q1 2013 Q1 2012 % Change
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Mining operations
Drinkwater pit
Ore tonnes mined 163,542 122,995 33%
Waste tonnes mined 613,066 656,770 -6.7%
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Total mined 776,608 779,765 -0.4%
Mary pit (in development)
Ore tonnes mined 34,941 - N/A
Waste tonnes mined 327,015 280,205 16.7%
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Total mined 361,956 280,205 29.2%
Processing
Tonnes processed 205,846 126,668 62.5%
Gold head grade (g/t) 2.42 2.34 3.4%
Ounces produced(1)
Gold 7,411 7,197 3.0%
Silver 2,740 3,174 -13.7%
Throughput (tonnes per day) 2,745 1,667 64.7%
Recoverable gold (ounces)
placed on pad 10,401 6,193 68%
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(1) Although tonnes processed in Q1 2013 increased by 62.5% over Q1 2012, precious metals produced in Q1 2013 do not show corresponding increases. This is due to the sale of loaded carbon in Q4 2012 to Waterton Global Value L.P. ("Waterton"), which increased reported gold production in Q4. The loaded carbon, which accounts for 1,878 ounces of gold and 759 ounces of silver, was otherwise scheduled for processing in Q1 2013. Waterton is a joint venture partner and secured creditor of the Company and has certain rights to purchase gold and silver produced by the Company.
Scorpio Gold's CEO, Peter Hawley, and President, Steve Roebuck, will be attending the European Gold Forum held at the Park Hyatt, Zurich, Switzerland from April 16-18, 2013. Mr. Roebuck looks forward to meeting shareholders and interested parties; further information is available at: www.europeangoldforum.org/egf13.
About Scorpio Gold Corporation
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 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 property is host to multiple gold-bearing structures, veins and bodies at exploration, development and production stages. Scorpio Gold recently acquired the Goldwedge advanced exploration-stage property and processing facility in Manhattan, Nevada, and the Pinon advanced exploration-stage gold property near Carlin, Nevada. The Company is assessing its exploration plans for these properties as well as the potential for toll milling at the 500 ton per day Goldwedge plant.
Scorpio Gold's CEO, Peter J. Hawley, P.Geo., is a Qualified Person for the Mineral Ridge operation and has reviewed and approved the content of this release. For additional information, please see the Company's website at www.scorpiogold.com.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley, CEO
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 with respect to the exploration and development of its Mineral Ridge 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 or anticipated events or results implied or expressed in such forward-looking statements, including risks such as delays related to completion of economic studies 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.
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.
Contacts:
Scorpio Gold Corporation
Steve Roebuck
President
(819) 825-7618
sroebuck@scorpiogold.com
Torrey Hills Capital
Jim Macdonald
Investor Relations
(858) 456-7300
jm@sdthc.com