VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/16/13 -- Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE: SGN) today announced its preliminary operating results for the fourth quarter of 2012 ("Q4") at its 70% owned Mineral Ridge project, Nevada.
Peter J. Hawley, CEO reports; "The Company continued to ramp up operations and track positively in Q4 with the strongest quarterly performance to date at Mineral Ridge. Ore production from the Drinkwater pit remained close to static while waste removal decreased by 18% compared to third quarter 2012 ("Q3"). Ore production from the start-up Mary pit increased by 73% compared to Q3. Gold head grade processed in Q4 increased by 27%, while ounces produced increased 59% and gold ounces sold increased 25% compared to Q3.
In its first year of declared commercial production the Company produced a total of 31,852 ounces of gold. We are continuing with an aggressive growth strategy both internally and by acquisition. During Q4, the Scorpio Gold completed its acquisition of the Goldwedge gold property and milling facility located in Manhattan, Nevada, and the Pinon gold property located near Carlin, Nevada, from Royal Standard Minerals."
Key Operating Statistics
---------------------------------------------------------------------------- Q4 Q3 Q2 Q1 Total 2012----------------------------------------------------------------------------Mining operations Drinkwater pit Ore tonnes mined 161,699 156,007 160,664 122,995 601,365 Waste tonnes mined 606,047 738,890 700,523 656,770 2,702,230 --------------------------------------------------- Total mined 767,746 894,897 861,187 779,765 3,303,595 Mary pit Ore tonnes mined 15,072 8,727 3,156 - 26,955 Waste tonnes mined 340,576 282,157 244,927 280,205 1,147,865 --------------------------------------------------- Total mined 355,648 290,884 248,083 280,205 1,174,820Processing Tonnes processed 176,500 186,858 160,759 126,668 650,785 Gold head grade (g/t) 2.67 2.10 2.09 2.34 2.30 Ounces produced (1) Gold 10,598 6,663 7,394 7,197 31,852 Silver 4,688 2,900 2,930 3,174 13,693 Throughput (tonnes per day) 2,292 2,427 2,115 1,667 2,127Precious Metal Sales (ounces)(1) Gold 9,052 7,234 7,803 7,774 31,863 Silver 3,775 3,135 2,956 3,429 13,295Exploration Drilling Holes 42 35 63 51 191 Meters 6,826 5,880 6,436 5,104 24,246----------------------------------------------------------------------------
(1) Production and sales numbers for Q4 are preliminary estimates and include approximately 1,660 ounces of gold and 580 ounces of silver that were part of a sale of loaded carbon to Waterton Global Value L.P. ("Waterton"), for which final settlement is expected to occur in early February 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.
