The reader is cautioned that inferred resources are considered too speculative geologically to have economics applied and there is no certainty that the economic results can be achieved.
Key Assumptions, Parameters & Methods Used
The mineral resource study used the current mining, processing and G&A costs at the Mineral Ridge operation of $21.72 per ton of ore, and a long-term gold price of $1,400 per ounce. The mineral resources reported are constrained within a floating cone pit shell and are compliant with CIM Definition Standards of "reasonable prospects for economic extraction".
Grade zone shells used for resource modeling are based on a geologic interpretation of mineralization controls. Separate resource grade and background grade models for gold were generated using ordinary kriging. A diluted gold model was then created based on the percent of mineralized material and background material in each block. The mineralized envelopes were constructed on 25 foot spaced E-W sections and were combined into wire-frames that defined the extent of mineralization for all the near resource development targets. These wireframes were used to assign a percent mineralized zone value to 5x5x2 foot grade blocks.
A single floating cone was run on the combined model using an overall pit slope of 49 degrees. The goal of the floating cone analysis is to identify material within the resource areas that may be amenable to economic extraction by open pit mining techniques. A 65% gold metallurgical recovery was applied when evaluating the economic viability of the satellite deposits.
The mineral resource estimate was prepared by Telesto personnel, Patricia Maloney, SME-RM, Douglas Willis, C.P.G and Randall Martin, SME-RM. Ms. Maloney, Mr. Willis and Mr. Martin are qualified persons as defined by NI 43-101 and have reviewed and approved the contents of this news release with respect to the mineral resource estimate on the Mineral Ridge satellite deposits.
A NI 43-101 compliant technical report supporting the disclosure of the mineral resource estimate is in final preparation by Telesto and will be filed on SEDAR within 45 days of this press release.
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 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 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 NI 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 potential expansion or upgrading of any mineral resource estimates and Company's plans with respect to the filing of a technical report in support of the mineral resource estimate included herein and the exploration, development and exploitation of the satellite deposits 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 exploration, development and exploitation of the Mineral Ridge satellite deposits 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.
Scorpio Gold Corporation
(819) 825-0977 (FAX)
Investor Relations: Torrey Hills Capital
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