Scorpio Gold Updates Goldwedge Project
November 04 2013 - 6:00AM
Marketwired Canada
Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN)
provides an update on its 100% owned Goldwedge project, located 54 km
north-northeast of Tonopah within the Manhattan Mining District of south-central
Nevada. The Goldwedge property covers three separate claim blocks and
encompasses the Goldwedge, Keystone and Jumbo gold deposits.
Goldwedge Deposit
The Goldwedge deposit lies within the Walker Lane Gold Belt and is situated on
the southern periphery of the Manhattan Caldera, approximately 16 kilometers
south of the 15 million ounce Round Mountain Mine. Historic mining in the
Manhattan Mining District dates back to the 19th century, with district-wide
gold production from both lode and placer deposits estimated at 566,000 ounces.
The largest gold production came from the Manhattan Mine East & West pits
located within a kilometer south of the Goldwedge deposit, where Echo Bay Mines
reportedly produced an estimated 236,000 ounces.
A number of companies have explored the underground potential of the Goldwedge
deposit, beginning in 1983 with Freeport Exploration followed by Sunshine
Mining, Crown Resources, New Concepts Mining, Royal Gold and most recently,
Royal Standard Minerals ("RSM"). To date, the deposit been tested by 89 surface
holes and 30 underground core holes for a total of 16,994 meters. RSM undertook
underground development, exploration and bulk sampling of the deposit over
several campaigns from 2004 to 2012, and constructed a 400 ton per day mill
facility with a gravity recovery system. Gold mineralization is outlined over a
strike length of 335 meters and to a vertical depth of over 150 meters, and is
open along strike, down-dip and down-plunge toward the northwest. Several
resource estimates were prepared for the deposit from 1997 to 2011, none of
which are NI 43-101 compliant. Scorpio Gold acquired the property from RSM in
December 2012.
Scorpio Gold recently completed a preliminary 3-D geological model of the
deposit based on structural and lithological data obtained from sections
prepared by the previous operators. The Company is currently in the process of
compiling the assay and lithology data base from all historical surface and
underground drilling and sampling of the deposit. Although the majority of the
historical drilling was by reverse circulation (RC) drilling, drill core from
RSM's 2011-2012 underground drilling campaign (30 core holes) is available for
evaluation and re-assaying if required.
The Goldwedge deposit exhibits several styles of gold mineralization from fault
breccia and vein hosted to stratabound replacement style in limestone and
pervasive quart-sericite-pyrite alteration hosted. Part of the Company's
evaluation process is to understand the geological nature and controls to both
the high-grade and broader pervasive gold mineralization in context with
prominent structural fault and shear domains, including the regionally
significant N30W trending Reliance Fault Zone.
Once interpretation and modelling of the mineralized system has been completed,
the Company plans to proceed with a surface core drilling and/or underground
core drilling program. Scorpio Gold has authorization from the U.S. Forest
Service to set up on six existing drill sites to provide for twinning of six
historic RC holes, and there is potential for drilling three to four additional
angle holes from each site. With the results of the twinning and additional
intercepts into the deposit, the Company can move toward preparing a NI 43-101
compliant mineral resource estimate and evaluate potential mine development.
Historical drilling (Table 1) has reportedly intersected substantial down hole
widths and grades, some of which will be tested by Scorpio Gold's core hole
twinning program.
Map links:
Permitted Drill Sites: www.scorpiogold.com/i/maps/goldwedge/Goldwedge_DHsite.jpg
Historic Drill Holes (Table 1):
www.scorpiogold.com/i/maps/goldwedge/Goldwedge_DHplan.jpg
Table 1. Goldwedge Deposit - Select Historical Surface and Underground Drill Results
----------------------------------------------------------------------------
Hole From To Width From To Width Gold Gold
No. Drill Type (ft) (ft) (ft) (m) (m) (m) (OPT) (g/t)
----------------------------------------------------------------------------
GW-05 RC 295 405 110 89.92 123.44 33.53 0.126 4.32
----------------------------------------------------------------------------
GW-06 RC 420 545 125 128.02 166.12 38.10 0.066 2.26
----------------------------------------------------------------------------
GW-15 RC 335 400 65 102.11 121.92 19.91 0.234 8.02
----------------------------------------------------------------------------
GW-16 RC 405 465 60 123.44 141.73 18.29 0.065 2.23
----------------------------------------------------------------------------
MH-16 RC 550 770 220 167.64 234.70 67.06 0.364 12.48
----------------------------------------------------------------------------
MH-90-92 RC 135 185 50 41.15 56.39 15.24 0.112 3.84
----------------------------------------------------------------------------
225 305 80 68.58 92.96 24.38 0.104 3.57
----------------------------------------------------------------------------
370 410 40 112.78 124.97 12.19 0.062 2.13
----------------------------------------------------------------------------
GWUG-11-16 Core 72 162 90 21.92 49.38 27.43 0.116 3.98
----------------------------------------------------------------------------
GWUG-11-18 Core 53 118 65 16.15 35.97 19.81 0.092 3.15
----------------------------------------------------------------------------
GWUG-12-2 Core 165 175 10 50.29 53.35 3.05 0.387 13.28
----------------------------------------------------------------------------
GWUG-12-6 Core 300 335 35 91.44 102.11 10.67 0.209 7.17
----------------------------------------------------------------------------
Widths presented are down hole core lengths; true widths are not known at this
time. Based on a review of available information, the drilling and sampling
procedures and quality assurance and quality control (QA/QC) measures undertaken
by the past operators (New Concept Mining, Freeport Exploration and RSM) are
consistent with standards and acceptable practice in the mining and exploration
industry.
Goldwedge Mill Facility
Surface site work at Goldwedge has included the removal of gold bearing sludge
in the settling pond left over from previous operations, and repair and relining
of the settling pond liner. Over 80% of the pond has been completely relined.
Upon completion of this work, a QA/QC report was prepared by SRK Consulting and
submitted to the Nevada Division of Environmental Protection - Bureau of Mining
Regulation and Reclamation and approved on August 28, 2013. The settling pond is
now fully authorized for use.
Improvements to the 400 ton per day mill facility include the inspection and
repair of circuit pumps, sealing of the building's concrete floor and review of
the process equipment to improve circuit efficiencies.
Recent testing of the grinding circuit utilizing tailings material previously
processed through the facility by RSM yielded further recoveries of the
contained precious metals, confirming that higher recoveries can be achieved
from the Goldwedge mineralized material. Future testing will include the
optimization of the recovery circuit, improvements to the thickener and tailings
circuit and further testing of the grinding circuit to achieve optimal
throughput and recovery rates.
Photos of the recently completed site work and upgrades are presented in the
Goldwedge Photo Gallery at:
www.scorpiogold.com/s/photo_gallery.asp?ReportID=606386.
Jumbo and Keystone Deposits
The Jumbo and Keystone deposits are located 3.8 and 4.3 km southeast
respectively from the Goldwedge deposit. The deposits occur along the margin of
a Cretaceous granite intrusion and mineralization is controlled by high-angle
N30W faults that are transected by N30E shear zones. Gold mineralization is
hosted within brecciated and silica-flooded quartzite at Keystone, and within
brecciated quartzite and brecciated granite at Jumbo, where stockwork quartz
veinlets host both fine-grained gold bearing pyrite and free gold.
Limited historic surface drilling at Keystone reported substantial down hole
widths and grades, leading Nevada Goldfields to undertake a small open pit
excavation in 1990 that recovered 5,750 ounces of gold. A preliminary review of
the available data indicates that significant drill intercepts lie below the
base of the open pit. A small open pit was also excavated around the same time
on the Jumbo deposit. New Concept Mining reported mineral resource estimates for
both the Jumbo and Keystone deposits in May 1997; however, neither estimate is
compliant with NI 43-101 and remain to be verified.
Scorpio Gold considers both deposits to have considerable exploration merit
given their style of mineralization and location along strike of the regionally
significant N30W trending Reliance Fault Zone, which trends through Goldwedge
and the Manhattan Mine East and West pits.
Photos of the Jumbo and Keystone pits are presented in the Goldwedge Photo
Gallery at: www.scorpiogold.com/s/photo_gallery.asp?ReportID=606386.
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 bodies 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, and the advanced exploration-stage Pinon 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 Goldwedge plant, which is
currently permitted for 400 tons per day.
Scorpio Gold's CEO, 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 limitation, statements regarding 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 or anticipated events or
results implied or expressed in such forward-looking statements, including risks
such as delays related to completion of mineral resource estimates, risks
involved in 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
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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