Scorpio Gold Drilling Intersects 6.10 Metres Grading 5.82 g/t Gold on Mary Zone, Mineral Ridge Project

March 21, 2012

Scorpio Gold Corporation (TSX-V: SGN; OTC: SRCRF) announced today final results of their 2011 drilling program on the Mary Zone, located southwest of the current mining in the Drinkwater pit at the 70% owned Mineral Ridge project, Nevada.

Peter J. Hawley, President and CEO reports, “The 2011 drilling program has successfully defined the extent of mineralization for the final pit design over the Mary Zone. In addition, drill results have increased the overall width of the zone and confirmed that gold mineralization extends southwest from the Mary Zone to the adjacent Mary LC Zone, encompassing a strike length of 780 metres. All assays for the Mary Zone drill program have been received and incorporated into the overall database for a planned NI 43-101 compliant mineral resource and reserve estimate and Mine Plan Study to be completed by AMEC. Completion of this study continues to be on target for May of this year.”

Scorpio Gold is also pleased to announce that under International Financial Reporting Standards, the property is being treated for accounting purposes as if commercial production commenced effective January 1, 2012.

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Scorpio Gold Drilling Intersects 12.20 Metres Grading 4.22 g/t Gold on Mary Zone, Mineral Ridge Project

February 28, 2012

 Scorpio Gold Corporation  (TSX-V: SGN; OTC Other: SRCRF) announced today additional drill results from the Mary Zone, located southwest of the current mining in the Drinkwater pit at the 70% owned Mineral Ridge project, Nevada.

Peter J. Hawley,  Scorpio Gold’s President & CEO commented in the release, “Drill results continue to support an increase in the overall width of the Mary Zone and to confirm that gold mineralization extends southwest from the Mary Zone to the adjacent Mary LC Zone, encompassing a strike length of 780 metres. Assays for the final 11 holes of the Mary Zone drill program are pending and will be incorporated into the overall database for a NI 43-101 compliant mineral resource and reserve estimate in conjunction with a Mine Plan Study by AMEC. Completion of the study is expected in Q2 2012.”

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Scorpio Gold Highlights from 2011

February 8, 2012

Scorpio Gold (OTC Other: SRCRF; TSX-V: SGN) accomplished a great deal in 2011 and is expected to achieve even more in 2012.  According to Peter Hawley, the Company’s President and CEO, “2011 was a milestone year for the Company, with the Mineral Ridge Gold Mine coming on line approximately one year from acquisition. Our success in such a short period of time is a product of the dedication and hard work demonstrated by our entire team. We are also grateful to our shareholders for their continued confidence and support that allowed us to accomplish the aggressive goals we set for production and gold sales.”

Production highlights from 2011 include the following:

  • Material mined from the Drinkwater Pit totalled 387,568 tons grading 0.066 ounces per ton (OPT) gold(i), equivalent to 2.26 grams per tonne (g/t) gold.
  • Reprocessed gold-bearing material left on the heap leach pad by the prior operator totalled 328,027 tons grading 0.027 OPT gold(i) (0.93 g/t gold) with an estimated recovery of 45%.
  • Material crushed and placed on the leach pad totalled 715,595 tons grading 0.050 OPT gold(i) (1.71 g/t gold).
  • End of year stockpile balance totalled 1,500 tons grading 0.050 OPTgold(i) (1.71 g/t gold).
  • The established stable recovery rate of gold exceeded 65% by year end.Shipments of loaded carbon totalled 121 tons with an average grade of 106.539 OPT gold (3,652.76 g/t gold) and 60.205 OPT silver(i) (2064.17 g/t silver).
  • In total, 8,125 ounces of gold and 4,843 ounces of silver were sold at an average realized price of US$1,619 per ounce gold and US$34 per ounce silver.

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Dr. Copper In The House: Thom @ Large

January 27, 2012

By Thom Calandra

www.babybulls.com

VANCOUVER, Canada — Vancouver’s two January resources get-ups, Cambridge House for investors and B.C. Round Up for geos & technicians, gave us flogging five-day rains, one superb NHL hockey match … and plenty of hard-asset bravado:

  • “I don’t own stocks any more; I own colored diamonds,” diamond seller Colin Ferguson told me at a private party I hosted with Cambridge House‘s Joe Martin. (I invite the guests and Joe entertains ’em.)  Mr. Ferguson, a 51-year-old Vancouver Island resident, says we’ll see reports of diamond warehousing by aggressive hedge funds. Worldwide demand for diamonds is on track to exceed supply by 7 million carats. The “coloreds,” champagnes (cognac hues), pinks, blues and greens, are beginning to flash in fashion-minded markets. Colin will be at Mr. Martin’s Palm Springs investment conference at Indian Wells, California, in two weeks. I want to see more of these stones. (See: www. cambridgehouse.com)

    Dr. Clarke At PMI Gold Booth

  • “Poly-metallic mines and properties are always in demand,” Tom Macneill says. I came across Mr. Macneill, a lifelong  Saskatchewan resident and longtime chief of 49 North Resources (FNR in Canada), across the street from Waterfront at lunchtime. Tom, sitting at a lunch counter, is sitting on his merchant bank’s 10-percent-plus ownership of surging DNI Metals (DNI). DNI is a northern Canada smorgasbord of elements in an expansive property portfolio. I am fortunate to own FNR and DNI after a fishing trip a couple years back with Tom, Bob Bishop, Doug Casey and others, way up there in Saskatchewan. (By the way, Mr. Macneill is hot on uranium prospectors right now — especially one big one whose first letter is C and its last O.)
  • I tested my latest think on the exhibit floor at the Joe show; copper-gold porphyrys will outpace market gains of all metals equities in coming weeks. “When Dr. Copper is in the house, it’s a very, very, very good house,” says Don Mosher. Don represents Riverstone Resources (RVS), a Burkina Faso prospector whose shares look ready to bust out after a largely ignored resource report. A geologist I rely on for analysis, Dr. Peter Megaw of Minaurum (Gold (MGG), Candente Gold and others, told me, “Copper is a big-company business. A billion tonnes of half-percent copper with the gold credit blended in, that takes care of a lot of the risk of taking on a development.”

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Scorpio Gold Intersects 12.2 Metres of 3.99 g/t Gold and 7.62 Metres of 3.71 g/t Gold on Mary Zone at Mineral Ridge

January 17, 2012

Scorpio Gold Corp. (OTC Other: SRCRF; TSX-V: SGN) continues to expand the width of the Mary Zone and further confirm that gold mineralization extends southwest from the Mary Zone to the adjacent Mary LC Zone, encompassing a strike length of 780 metres. Commencement of open pit mining at the Mary Zone is on schedule for later in January 2012, adding to current production from the Drinkwater Pit and increasing the overall production at Mineral Ridge.

Highlights from the most recent assay results include the following:

  • In drill hole MR11317, 3.99 g/t gold across 12.2 metres and 3.71 g/t across 7.62 metres;
  • In drill hole MR11313, 2.78 g/t gold across 7.62 metres;
  • In drill hole MR11310, 3.11 g/t gold across 7.62 metres; and
  • In drill hole MR11303, 21.53 g/t gold across 1.52 metres.

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Nevada’s Scorpio: Wind Cries Mary: Thom @ Large

January 6, 2012

Image

Cranes Keep Bringing Nevada Gold To Scorpio's Treasury

By Thom Calandra

BabyBulls.com

MINERAL RIDGE, NEVADA — Peter Hawley’s current gold producer, Scorpio Gold Corp. (TSX-V: SGN and OTC: SRCRF), hits the ground running.

Scorpio, a client of our Torrey Hills Capital, is starting off the new year with pit results from its Mineral Ridge project in western Nevada. The Mary Pit shows 10.67 meters of 3.65 g/t gold and 4.57 meters of 13.06 g/t silver.

Our takeaway: an overburden removal at the Mary Pit began in late autumn 2011 and it appears to be working. Scorpio CEO Peter Hawley says the pit looks on track to nail a general target for 2012 production rate of 60,000 to 80,000 ounces of gold equivalent.

We’ll see a revised mineral estimate at Mineral Ridge sometime soon.

Our team at Torrey Hills and I have been to Mineral Ridge several times.  Investors seeking a solid gold producer eventually will see Scorpio account for far more gold ounces produced (and sold) in its quarterly reports than is the case now. And in a producer category.

Currently, Scorpio Gold is not classified as a “producer” so it accounts  for sales of metal on the balance sheet as mining assets.” The trigger for this change is four consecutive months of 4,500 ounces or better per month.  Thus, sales become net income.

Based on what we see happening at Mineral Ridge in terms of tonnes moved to the processing plant and average grades, we believe that Scorpio should cross that line well within the first half of 2012.

At a cost of $600 per ounce (this estimate from a recent Jennings Research Report), a target of 60,000 ounces creates a quarterly top-line earnings  number in the neighborhood of around $15 million. Current market cap of Scorpio is $100 million. I am an owner of the shares.

Recent Travel Digest from Mineral Ridge here:  http://www.babybulls.com/PDF/Scorpio_Gold-Mineral_Ridge_Travel_Dispatch_Oct_2011_FINAL.pdf

Recent Q & A with Peter Hawley, CEO of Scorpio Gold here:  http://youtu.be/uMCtQKPqNl4

VANCOUVER: I’ll be speaking at Cambridge House’s January gathering of 500 hard asset companies in two weeks. See: www.cambridgehouse.com.

— Thom Calandra is a lifelong author whose work has appeared in dozens of newspapers, newsletters, magazines and across the Web. He is a founder of CBS MarketWatch, now Dow Jones MarketWatch. He is a member of Torrey Hills Capital. Scorpio Gold is a client and provides stock options to Torrey Hills in return for investor outreach services. Your comments are welcome, but please, no foul language. (Photos — Thom Calandra)


Scorpio Gold Intersects 3.65 g/t Gold Over 10.67 Metres at Mineral Ridge

January 5, 2012

Scorpio Gold Corp. (OTC Other: SRCRF; TSX-V: SGN) has released assay results from the Mary Zone, which is Southwest of the current mining inthe Drinkwater Pit at the Company’s 70% owned Mineral Ridge property.  Highlights from the drill program include: (i) 3.65 g/t gold over 10.67 metres; (ii) 13.06 g/t gold over 4.57 metres; and (iii) 3.59 g/t gold over 10.67 metres.

According to Peter Hawley, President & CEO of Scorpio Gold, “In November 2011, the Company commenced pre-stripping of the Mary Zone in preparation for commencing open pit mining. The Mary Zone is located immediately southwest of the Drinkwater Pit where mining is currently in progress. A 58 hole drill program to define the extent of mineralization for final pit design is underway. Results to date have increased the width of the Mary Zone and also confirm that gold mineralization extends southwest from the Mary Zone to the adjacent Mary LC Zone, encompassing a strike length of 780 metres. Mining of the Mary Zone is expected to commence later in January 2012, adding to current production from the Drinkwater Pit and increasing the overall production at Mineral Ridge.”

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