Underground Definition Drilling Campaign Underway At Goldwedge Project

 

VANCOUVER, BC - Scorpio Gold Corporation reported the commencement of an underground drilling campaign at the Company's Goldwedge project located in Manhattan, Nevada. The Goldwedge project includes a fully permitted underground mine with over 600 meters of underground development and a 400 ton per day mill facility with modifications underway to add a flotation circuit through a toll milling contract with Lode-Star Mining Inc.

Scorpio Gold plans to conduct resource definition drilling in areas where the Company's 2014 surface drilling intersected higher-grade mineralization proximal to existing underground workings. If successful, this will provide a potential source of mineralized mineable material to the Goldwedge milling circuit. The drilling program will utilize the Company's Atlas Copco 262 skid-mounted drill rig which recently underwent extensive modifications to improve its overall performance for underground operations.

Scorpio Gold's President, Chris Zerga, comments, "The toll milling contract recently signed with Lode-Star that includes the addition of a flotation circuit has provided the impetus to accelerate our evaluation and resource definition of the Goldwedge deposit. We look forward to the results of the drilling program and further development of the project."

In addition to the Company's 2014 surface drilling, in 2015 Scorpio Gold drilled 21 core holes from 6 underground drill stations totaling 1,431 meters (September 8, 2015 news release). Drilling by previous operators totals 89 surface holes and 30 underground core holes for a total of 16,994 meters. 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 mineral resource estimates were prepared for the deposit from 1997 to 2011, none of which are NI 43-101 compliant.