Scorpio Gold Reports on Mine Plan Study

 

VANCOUVER, BC - Scorpio Gold Corporation reported results of the Life of Mine Plan Study (LOM) completed by AMEC E&C Services Inc. (AMEC) of Sparks, Nevada dated July 15, 2012 for the Drinkwater and Mary pits at the 70% owned Mineral Ridge Gold Operation, Nevada. Scorpio Gold attained commercial production status at Mineral Ridge on January 1, 2012.

The mine plan projects a current 3 year mine life at 66,000 tons per month (t/m) based on estimated Measured and Indicated Mineral Resources of 3.2 million tons (MT) grading 0.059 ounces per ton (oz/ton) gold (190,800 oz contained gold) including Probable Mineral Reserves of 2.1 MT grading 0.062 oz/ton gold (131,000 oz contained gold).

This mine plan study is exclusive of ongoing studies by Telesto Nevada Inc., which includes deposit modelling and a NI 43-101 compliant Mineral Resource estimate for the satellite deposits, Brodie, Wedge B, Bluelite, Solberry and Oromonte.

Peter Hawley, CEO comments, "This snapshot view of the LOM provides a strong base for the Company to grow at Mineral Ridge. Already the study's quoted throughputs, grades and produced ounces have been exceeded in operations to date at Mineral Ridge. The completed 2012 Mary LC drilling and the present drilling of the Drinkwater highwall zone will be incorporated into the 2013 mine reserve plan later this fall, which is expected to add additional years to the LOM. We are pleased to receive this economic study that solidly places over 68% of the total Measured and Indicated Resources into the Probable Reserve category, and provides good recommendations for improving the operation as we have already done and for advancing our satellite deposits to development and production stages.