Scorpio Gold Corporation (TSX-V: SGN & OTC Other: SRCRF) released an operations update at its 70% owned Mineral Ridge gold deposit in Nevada today, and also announced the proceeds of warrants exercised prior to the September 10, 2011 expiry date.
Since the start-up of operations in Q2 2011, the Company has placed a total of 407,399 tons of mineralized material on the leach pad grading on average 0.044 ounces per ton (OPT) gold.
During the month of August 2011, 76,156 tons of mineralized material grading 0.058 OPT gold was mined from the Drinkwater pit and delivered to the crushing circuit. During the same period, 79,427 tons of material grading 0.057 OPT gold were processed through the crushing circuit and placed on the leach pad. As of August 31, 2011, the mineralized stockpile at the crusher totalled 8,352 tons grading 0.058 OPT gold.
As of June 30, 2011, Scorpio Gold had 11,125,181 warrants (including broker warrants) set to expire on September 10, 2011. Of these, 11,124,824 warrants were exercised for total proceeds of $6,658,229. Since issue of these warrants, a total of 14,998,383 warrants (including broker warrants) have been exercised for total proceeds of $8,832,430.
In the release, Peter J. Hawley, President and CEO stated, “We are very pleased to have met the target we set for reaching a steady rate of gold production by August 2011. The Company remains focused on increasing both production and processing rates and expects further improvements in performance in the coming months. We would like to thank our shareholders for their continued support and confidence in Scorpio Gold, as demonstrated by the recent exercise of warrants that has added significantly to our cash position.”