Purchase Of Kinross Manhattan Property In Nevada

VANCOUVER - Scorpio Gold Corporation has purchased from affiliates of Kinross Gold Corporation, the 4,300-acre (1,740-hectare) Kinross Manhattan Property located adjacent and proximal to the it’s Goldwedge property in Nye County, Nevada. Scorpio Gold now controls 6,071 acres (2,457 hectares) around the Goldwedge facility, providing the opportunity to expand surface operations and the potential for expanding underground mining and exploration. The acquisition also consolidates a large land position along the Reliance Fault Zone, which has significant exploration potential for high-grade gold targets at the intersections of the Reliance structure and ring faulting related to the Manhattan Caldera.

The Manhattan Property is located within the Manhattan Mining District and centered ~17 km south of the +15 million oz. Kinross Round Mountain Mine. It adjoins the southwest boundary of Scorpio Gold’s Goldwedge property and includes 2 former producing mines. The Reliance Mine, located within 600 meters of the Goldwedge deposit, reportedly produced ~59,000 tons grading 0.435 oz/ton from 1932 to 1941. The Manhattan Mine East and West pits situated 600-1,000 meters southwest of Goldwedge produced ~236,000 oz. from 1974-1990. The deposits lie along the northwest-trending Reliance Fault Zone, which is considered the most predominant ore controlling structure in the region. The Reliance trend continues 4 km southeast to Scorpio Gold’s Keystone-Jumbo project area. Within the Manhattan West Pit, the northwest-trending structures controlling mineralization are referred to as the “Little Gray Fault”.

Exploration work by various operators since production ended at the Manhattan Mine in 1990 has outlined the potential continuity of mineralization to the north of the West Pit toward the Goldwedge deposit as well as the potential extension of mineralization to the north and south of the East Pit.