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Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE: SGN) announces its operating results for the first quarter ("Q1") of 2016 at its 70% owned Mineral Ridge project, located in Nevada.
Gold and silver production in Q1 2016 totalled 8,569 ounces and 3,921 ounces, respectively, representing 28% and 38% decreases over Q1 2015. The decreased metal production in Q1 2016 is attributed to slower leach pad recoveries while equipment was being relocated in order to utilize new areas of the pad for leaching. Both gold and silver recoveries from the leach pad are expected to improve in Q2 2016.
Peter J. Hawley, President & CEO, reports, "We are very pleased to report another strong quarter of production at Mineral Ridge, wherein total ore mined increased 16.4%, processed material increased 15.2% and head grade increased 17%, compared to Q1 2015. This strong start to the year puts Scorpio Gold in a very good position to meet our 2016 production forecast of 30,000 to 35,000 ounces of gold while transitioning toward production growth in 2017."
Production in 2016 is scheduled from the Mary LC pit and from the Bluelite, Solberry, Brodie and Missouri satellite pits. Pre-stripping began in the Missouri pit during Q1, and ore production commenced in Q2.
Key Operating Statistics
Q1 2016 Q1 2015 % Change
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Mining operations
Mary LC pit
Ore tonnes mined 146,872 - 100.0%
Waste tonnes mined 703,030 - 100.0%
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Total mined 649,902 - 100.0%
Strip Ratio 4.8 - 100.0%
Satellite pits
Ore tonnes mined 103,252 58,073 77.8%
Waste tonnes mined 227,056 172,352 31.7%
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Total mined 330,308 230,425 43.3%
Strip Ratio 2.2 3.0 -26.7%
Mary pit
Ore tonnes mined - 117,964 -100.0%
Waste tonnes mined - 744,977 -100.0%
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Total mined - 862,941 -100.0%
Strip Ratio - 6.3 -100.0%
Total producing pits
Ore tonnes mined 250,124 176,037 42.1%
Waste tonnes mined 930,086 917,329 1.4%
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Total mined 1,180,210 1,093,366 7.9%
Strip Ratio 3.7 5.2 -28.8%
Pits under development
Ore tonnes mined - 38,882 -100.0%
Waste tonnes mined (pre-stripping) 55,622 804,549 -93.1%
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Total mined 55,622 843,431 -93.4%
Total mining operations
Ore tonnes mined 250,124 214,919 16.4%
Waste tonnes mined 985,708 1,721,878 -42.8%
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Total mined 1,235,832 1,936,797 -36.2%
Processing
Tonnes processed 251,587 218,372 15.2%
Gold head grade (g/t) 1.65 1.41 17.0%
Tonnes milled at Goldwedge facility - 1,392 -100.0%
Gold head grade (g/t) - 8.87 -100.0%
Ounces produced
Gold 8,569 11,952 -28.3%
Silver 3,921 6,319 -37.9%
Recoverable(1) gold ounces placed on pad 9,032 6,490 39.2%
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(1) A weighted average metallurgical recovery factor has been applied to the
estimated contained ounces crushed and placed on the leach pad, based on the
pit from which the ore was mined.
About Scorpio Gold
Scorpio Gold holds a 70% interest in the producing Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Elevon, LLC (30%). Mineral Ridge is 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 in Manhattan, Nevada with a fully permitted underground mine and 400 ton per day mill facility. The Goldwedge mill facility has been placed on a care and maintenance basis and can be restarted immediately when needed.
Scorpio Gold's President and 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, President & 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 plans with respect to the exploration, development and exploitation of its Mineral Ridge project and its Goldwedge property and mill. 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 involved in mineral exploration and development programs, risks involved in mineral processing; risks related to open pit mining and heap leach processing operations, obtaining the required permits to expand and extend mining activities 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.
Contacts:
Scorpio Gold Corporation
Peter J. Hawley
President & CEO
(819) 825-7618
phawley@scorpiogold.com
www.scorpiogold.com
SOURCE: Scorpio Gold Corporation
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