VANCOUVER, British Columbia, Jan. 10, 2018 (GLOBE NEWSWIRE) -- Scorpio Gold Corporation (“Scorpio Gold” or the “Company”) (TSX-V:SGN) announces its operating results for the full year and the fourth quarter (“Q4”) of 2017 at its 70% owned Mineral Ridge project, located in Nevada.
Total gold production in 2017 was 19,045 ounces, which slightly exceeded the Company’s low-end guidance of 19,000 ounces. The annual production for 2017 of 19,045 ounces represents a decrease of 48% over the prior year. Gold production in Q4 2017 totalled 3,709 ounces representing a decrease of 55% from Q4 of 2016. Mine production decreased in 2017 due to mining 47% fewer ore tonnes, although average grades were 9% higher as compared to the prior year.
Brian Lock, CEO, comments, “As previously announced, mining was suspended in the first week of November 2017. Earlier this month, the Company announced results from Mine Technical Services on the mineable, higher-grade mineralization in the existing pits at Mineral Ridge and a positive updated feasibility study, which supports the Company’s plans for the construction of a 4,000 TPD milling facility with CIL recovery and dry stack tailings circuit. Construction of the milling facility will begin once financing is obtained and the Plan of Operations Amendment and Water Pollution Control permit are approved and issued.”
Key Operating Statistics
| Three months ending December 31 |
Twelve months ending December 31 |
|||||||
| 2017 | 2016 | Change | 2017 | 2016 | Change | |||
| Mining operations | ||||||||
| Mary LC pit | ||||||||
| Ore tonnes mined | - | 148,161 | -100.0 | % | 315,242 | 553,402 | -43.0 | % |
| Waste tonnes mined | - | 977,246 | -100.0 | % | 1,805,218 | 3,519,285 | -48.7 | % |
| Total mined | - | 1,125,407 | -100.0 | % | 2,120,460 | 4,072,687 | -47.9 | % |
| Strip Ratio | - | 6.6 | -100.0 | % | 5.7 | 6.4 | -10.9 | % |
| Satellite pits | ||||||||
| Ore tonnes mined | 24,290 | 6,028 | 303.0 | % | 78,854 | 196,802 | -59.9 | % |
| Waste tonnes mined | 113,972 | 5,888 | 1,835.7 | % | 665,226 | 525,491 | 26.6 | % |
| Total mined | 138,262 | 11,916 | 1,060.3 | % | 744,080 | 722,293 | 3.0 | % |
| Strip Ratio | 4.7 | 1.0 | 370.0 | % | 8.4 | 2.7 | 211.1 | % |
| Total producing pits | ||||||||
| Ore tonnes mined | 24,290 | 154,189 | -84.2 | % | 394,096 | 750,204 | -47.5 | % |
| Waste tonnes mined | 113,972 | 983,134 | -88.4 | % | 2,470,444 | 4,044,776 | -38.9 | % |
| Total mined | 138,262 | 1,137,323 | -87.8 | % | 2,864,540 | 4,794,980 | -40.3 | % |
| Strip Ratio | 4.7 | 6.4 | -26.6 | % | 6.3 | 5.4 | 16.7 | % |
| Pits under development | ||||||||
| Ore tonnes mined | - | - | 0.0 | % | 772 | - | 100.0 | % |
| Waste tonnes mined | - | 160,672 | -100.0 | % | 249,085 | 309,902 | -19.6 | % |
| Total mined | - | 160,672 | -100.0 | % | 249,857 | 309,902 | -19.4 | % |
| Total mining operations | ||||||||
| Ore tonnes mined | 24,290 | 154,189 | -84.2 | % | 394,868 | 750,204 | -47.4 | % |
| Waste tonnes mined | 113,972 | 1,143,806 | -90.0 | % | 2,719,529 | 4,354,678 | -37.5 | % |
| Total mined | 138,262 | 1,297,995 | -89.3 | % | 3,114,397 | 5,104,882 | -39.0 | % |
| Processing | ||||||||
| Tonnes processed | 30,259 | 142,101 | -78.7 | % | 398,898 | 846,140 | -52.9 | % |
| Gold head grade (g/t) | 1.92 | 1.37 | 40.1 | % | 1.57 | 1.44 | 9.0 | % |
| Ounces produced | ||||||||
| Gold | 3,709 | 8,301 | -55.3 | % | 19,045 | 36,879 | -48.4 | % |
| Silver | 2,256 | 4,074 | -44.6 | % | 10,203 | 16,950 | -39.8 | % |
| Crusher throughput (tonnes per day) | 672 | 1,545 | -56.5 | % | 1,254 | 2,312 | -45.8 | % |
| Recoverable(1) gold ounces placed on pad | 1,212 | 4,301 | -71.8 | % | 13,668 | 26,549 | -48.5 | % |
(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 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. Mining at Mineral Ridge was suspended in November 2017; however, the Company continues to generate limited revenues from residual but diminishing recoveries from the leach pads. 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 Chairman, Peter J. Hawley, PGeo, is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the content of this news release.
