Scorpio Gold Corp. (SRCRF)

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Lawrence Roulston recommends SGN:


Roulston says why to buy Scorpio Gold

2014-01-07 19:25 ET - In the News

Lawrence Roulston, in the Dec. 30, 2013, edition of Resource Opportunities, says why to buy Scorpio Gold Corp., recently 20.5 cents. This is the first time he has recommended the stock. Scorpio hopes to begin production soon at its second gold operation in Nevada, called Gold Wedge. It acquired this project for $1.25-million and three million shares after the previous operator ran into money troubles. Since then, it has been working on rehabilitating the mill. The near-term plan is to use the mill to treat ore from Scorpio's first Nevada gold operation, Mineral Ridge. This mine produced 35,000 to 40,000 ounces of gold in 2013. Between Gold Wedge, Mineral Ridge and a third Nevada project called Pinon, Mr. Roulston thinks Scorpio will achieve its goal of becoming a 100,000-plus-ounce gold producer within three years. He likes the company's management, which includes president Steve Roebuck, a geologist and production engineer, and chief executive officer Peter Hawley, the former CEO of Scorpio Mining until Scorpio Gold was spun out in 2010. Scorpio Gold had $2.3-million in cash as of Sept. 30, which management might use to acquire more projects. Mr. Roulston concludes that the stock offers "excellent value."