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Scorpio Gold Reports Fourth Quarter and Provides Year-End Financial Results for 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 17, 2014) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) is pleased to announce its financial results for the fourth quarter ("Q4") and year ended December 31, 2013. This press release should be read in conjunction with the Company's consolidated financial statements for the year ended December 31, 2013 and Management's Discussion & Analysis ("MD&A") for the same period, available on the Company's website at www.scorpiogold.com and under the Company's name on SEDAR at www.sedar.com. All monetary amounts are expressed in US dollars unless otherwise specified.
PERFORMANCE HIGHLIGHTS:
Q4 2013 Q4 2012 2013 2012
-------------------------------------- ------- ------- ------ ------
$ $ $ $
Revenue ($000's) 13,739 15,498 54,646 52,615
Mine operating earnings ($000's) 1,819 5,041 10,841 17,086
Net earnings (loss) ($000's) (1,976) 3,673 (6,843) 12,601
Basic and diluted earnings (loss) per
share (0.02) 0.02 (0.05) 0.07
Adjusted net earnings(1) (000's) 774 4,515 6,346 13,759
Adjusted basic and diluted net
earnings per share(1) 0.00 0.03 0.03 0.08
Adjusted EBITDA(1) (000's) 4,829 7,996 25,248 25,710
Adjusted basic and diluted EBITDA per
share(1) 0.03 0.05 0.14 0.15
Cash flow from operating activities
(000's) 4,829 6,122 22,894 23,078
Adjusted cash flow from operating
activities(1) (000's) 4,829 6,122 22,894 24,745
Total cash cost per ounce of gold
sold(1) 732 815 734 890
Gold ounces produced(2) 11,348 10,812 39,160 32,066
-------------------------------------- ------- ------- ------ ------
(1) This is a non-IFRS measure; refer to Non-IFRS
Measures section of this press release and the Company's
Management Discussion & Analysis for a complete definition
and reconciliation to the Company's financial statements.
(2) Production and revenue numbers for Q4 of 2012
include approximately 1,878 ounces of gold and 759
ounces of silver that were part of a sale of loaded
carbon to Waterton Global Value L.P., a company related
to Scorpio Gold.
Peter Hawley, the Company's CEO, comments, "Our 2103 financial results are solid despite a very challenging year for the gold sector. The lower gold price realized in 2013 created our biggest challenge resulting in a loss for the year due to a non-cash impairment charge, but the Mineral Ridge team responded with record high production levels, driving the cost per ounce of gold sold down to record low levels. The mine is running very well and we are forecasting production of 40,000 to 45,000 ounces of gold in 2014 at a conservative estimate of cash costs of $800 to $850 per ounce of gold sold."
2013 HIGHLIGHTS AND SUBSEQUENT EVENTS
-- 39,160 ounces of gold produced at the Mineral Ridge mine, compared to
32,066 ounces during 2012, an increase of 22%.
-- Increased revenue of $54.6 million compared to $52.6 million during 2012,
mainly due to a 24% increase in ounces of gold sold, offset by a lower
average gold price during 2013.
-- Improved total cash cost per ounce of gold sold(1) of $734 compared to
$890 during 2012. This reduction of 18% is mainly attributable to higher
production levels.
-- Mine operating earnings(1) of $10.8 million compared to $17.1 million
during 2012, mainly due to increased depletion and amortization during
2013, as a result of increased production levels.
-- Net loss of $6.8 million ($0.05 basic and diluted per share) after
non-cash impairment charges of $12.6 million ($0.08 basic and diluted per
share), compared to net earnings of $12.6 million ($0.07 basic and
diluted per share) during 2012.
-- Adjusted net earnings(1) of $6.3 million ($0.03 basic and diluted per
share) compared to $13.8 million ($0.08 basic and diluted per share)
during 2012, mainly due to increased depletion and amortization during
2013.
-- Adjusted EBITDA(1) of $25.2 million ($0.14 basic and diluted per share)
compared to $25.7 million ($0.15 basic and diluted per share) during
2012.
-- Adjusted cash flow from operating activities(1) of $22.9 million compared
to $24.7 million during 2012.
-- Receipt of approval for the new plan of operations at the Mineral Ridge
mine in February 2014 which allows for expansion of the Mary pit.
-- Sale of the Pinon property on March 5, 2014, with approximately $5.2
million of the proceeds applied to reduce the Company's long term debt
(see the Company's news release of March 5, 2014 for more details).
FOURTH QUARTER 2013 ("Q4") HIGHLIGHTS
-- 11,348 ounces of gold produced at the Mineral Ridge mine compared to
10,812 ounces in Q4 of 2012, an increase of 5%.
-- Revenue of $13.7 million compared to $15.5 million during Q4 of 2012.
This 12% decrease is mainly due to the significant decrease in gold price
for ounces sold despite an 18% increase in gold ounces sold during Q4 of
2013.
-- Improved total cash cost per ounce of gold sold(1) of $732 compared to
$815 during Q4 of 2012. This reduction of 14% is mainly attributable to
higher production levels during Q4 of 2013.
-- Improved cash cost per ounce and higher production levels did not
completely offset the decrease in the average gold price which
consequently negatively impacted the following:
-- Mine operating earnings(1) of $1.8 million compared to $5.0 million
during Q4 of 2012.
-- Net loss of $2.0 million ($0.02 basic and diluted per share), compared to
earnings of $3.7 million ($0.02 basic and diluted per share) during Q4 of
2012. During Q4 of 2013 a non-cash impairment charge of $2.7 million has
been recorded.
-- Adjusted net earnings(1) of $0.8 million ($0.00 basic and diluted per
share) compared to $4.5 million ($0.03 basic and diluted per share)
during Q4 of 2012.
-- Adjusted EBITDA(1) of $4.8 million ($0.03 basic and diluted per share)
compared to $8.0 million ($0.05 basic and diluted per share) during Q4 of
2012.
-- Adjusted cash flow from operating activities(1) of $4.8 million compared
to $6.1 million in Q4 of 2012.
(1) This is a non-IFRS measure; refer to Non-IFRS
Measures section of this press release and the Company's
Management Discussion & Analysis for a complete definition
and reconciliation to the Company's financial statements.
NON-IFRS MEASURES
The discussion of financial results in this press release includes reference to Adjusted EBITDA, Cash Cost per Ounce of Gold Sold, Adjusted Cash Flow from Operating Activities and Adjusted Net Earnings, which are non-IFRS measures. The Company provides these measures as additional information regarding the Company's financial results and performance. Please refer to the Company's MD&A for the year ended December 31, 2013 for definitions of these terms and a reconciliation of these measures to reported IFRS results.
About Scorpio Gold Corporation
Scorpio Gold holds a 70% interest in the Mineral Ridge gold mining operation located in Esmeralda County, Nevada with joint venture partner Waterton Global Value L.P. (30%), and is currently entitled to receive 80% of cash flow generated. Mineral Ridge is currently in production as a conventional open pit mining and heap leach operation. The property is host to multiple gold-bearing structures, veins and bodies at various exploration, development and production stages. Scorpio Gold also owns the Goldwedge advanced exploration-stage property and processing facility in Manhattan, Nevada. The Company is assessing its exploration plans for the Goldwedge property as well as the potential for toll milling at the Goldwedge plant currently permitted for 400 ton per day.
Scorpio Gold's CEO, Peter J. Hawley, P.Geo., is a Qualified Person as defined in National Instrument 43-101 and has reviewed and approved the content of this release.
ON BEHALF OF THE BOARD
SCORPIO GOLD CORPORATION
Peter J. Hawley, CEO
Quarterly Report just released. :)
Scorpio Qtrly Report
New PR today. 1st of 2014 drill program results. Stock popped in Canada before settling lower on the day. Stock wallowed closing lower in USA.
Another final 2013 Drill program PR re:SGN's holdings in last 5 biz days.
BLUELIGHT deposit: Scorpio Gold Reports Final Results From 2013 Expansion Drilling at the Bluelite Satellite Deposit, Mineral Ridge Project, Nevada
Bluelight Deposit Final results 2013 Drill program
Scorpio Gold Reports Final Results from 2013 Expansion Drilling at the Brodie Satellite Deposit, Mineral Ridge Project, Nevada
Press Release: MINING DRILLING RESULTS – 8:55 AM EDT
Pinion deal CLOSED as of 3.5 -- No wonder US$ price shot up 2.6c on the close.
More +drill results today, @ Brodie Satellite Deposit.
Scorpio Gold Reports on Expansion Drilling at the Brodie Satellite Deposit, Mineral Ridge Project, Nevada
Expansion Drilling-Brodie
Company Guidance for 2014 + budget out today.
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 13, 2014) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) provides its 2014 guidance and budget for the 70% owned Mineral Ridge project, located in Nevada.
Peter J. Hawley, CEO reports:
Another +P/R re: drill results today. High of C$0.2975 today. :)
S.T. ARBITRAGE PLAY HERE!!!
Fleshing out Belgie's Headsup: Transaction Highlights
* Gold Standard agrees to pay Scorpio Gold a total of CAD$8,500,000 in cash and issue Scorpio Gold 5,500,000 common shares in its capital stock
* Of the cash consideration, CAD$6,000,000 is to be paid at closing (inclusive of the Deposit), and CAD $2,500,000 is to be paid one year after closing
Peter J. Hawley, CEO comments:
Scorpio Gold has an agreement to sell Pinion, I find the terms positive, and the management performance outstanding. They adjusted to a challenging environment, shored up the balance sheet and created the opportunity to advance their near term properties.
Kudos to Peter Hawley.
MexicoMike.weighs.in.w.POSITIVE:::SGN/SRCRF.looking.forward.comments.1.14.2014; on his forum.
Annual increase in production of 22%. Q report just out.
VANCOUVER, BC--(Marketwired - Jan. 14, 2014) - Scorpio Gold Corporation (TSX VENTURE:SGN) ("Scorpio Gold" or the "Company") announces its operating results for the fourth quarter ("Q4") of 2013 at its 70% owned Mineral Ridge project, located in Nevada.
Gold production in Q4 2013 totalled 11,348 ounces, representing an increase of 5% from Q4 2012
and an 18% increase from Q3 2013.
Total gold production in 2013 was 39,160 ounces, an increase of 22% over the year 2012.
Peter J. Hawley, CEO reports,
Thanks, Bone! I knew I liked that feller! LOL
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."
put a marker on 22.6c per share. 12.31.2013 last trading day of a rough year in SRCRF share pricing.
a 100% move from the low in this stock before the 717K shares anchor on this stock's shareprice finally threw in his towel ---
yes, a stellar SHORT-TERM, 100% move higher is sweet, very very sweet indeed.
Onward and upward in 2014 for this little producer, who just keeps self-funding and drilling and self-funding even more drilling.
Stuff dreams are made of!
Yearly range: as in market on close...does not reflect intraday action
$0.135 - $0.725
Next stop: $0.30's?
Scorpio Gold Updates Expansion Drilling at the Bluelite Satellite Deposit, Mineral Ridge Project, Nevada
Vancouver, December 16, 2013 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) reports additional results from its 2013 satellite deposit drilling program at the 70% owned Mineral Ridge project, located in Nevada. The Bluelite deposit lies west of the currently producing Drinkwater and Mary pits and 400 meters northwest of the leach pad.
The 2013 satellite drilling program is designed to upgrade and potentially increase the mineral resource estimate completed by Telesto Nevada Inc. ("Telesto") for a number of satellite deposits including Bluelite, which was reported in the Company's August 16, 2013 news release. As of June 1, 2013, the Inferred mineral resource estimate for the satellite deposits totalled 513,000 tons grading 0.078 ounces per ton (opt) gold totalling 40,200 contained ounces gold. The Bluelite deposit was estimated to contain 193,000 tons grading 0.079 opt gold for 15,200 contained ounces gold, or approximately 37.8% of the total Inferred mineral resource for the four satellite deposits.
The drilling program continues to meet with success, returning significant intercepts both within and extending outside of the floating cone pit shells modelled by Telesto for the Bluelite deposit, and continuing to extend the near-surface mineralized trend westward toward undrilled ground. Previous results of the expansion drilling on the Bluelite deposit were reported in the Company's September 11, 2013 and November 20, 2013 news releases.
continued at:
http://www.scorpiogold.com/s/news.asp?ReportID=615785
Hey Jim, the first time I met you, I knew you were special, the son of a dairy farmer, what could be finer?
We met, we liked each other, we just knew the future was bright, with moly and gold to come. We did our due diligence, we explored each and every angle. We shared the mine tour at Ashdown, tasted the BBQ, and the home made pies made by the employee's wives. We believed and it worked until the moly prices crashed and the ball rolled downhill.
Resurrected by one TK at Mineral Ridge, we were reborn, and GPXM share price rose to the sky. We signed a great deal with Scorpio Gold and Peter Hawley, and he was one we agreed could get the job done. He has done just such, but without Golden Phoenix, due to a greed that went beyond.
A lot of great people got hurt in the process of that greed, but we remain the people our parents created.
We will live to shine another day.
Happy holidays, my friend, you are the best!
Dave
Hey Dave,
As I was doing some Christmas cleaning a black hat with gold writing fell to the floor and visions of great wealth danced in my head. Memories of a mine tour flashed before me, with many men standing high atop a hill salivating at the thought of the gold that would be extracted from the Ridge. The massive figure of one TK smugly grinning at what we all were viewing. The little man in the silk suit on the bus declaring that Scorpio at .75 was a no brainer. The thought that Scorpio along with their junior partner would soon be mid tier producers danced in our heads.
That was then, this is now.
A very successful man was once asked what the key to success was and he replied "good judgment". When asked how you acquire good judgment he replied "with experience". When asked how do you get experience, he replied "by using bad judgment".
Well Dave, I saw the hat, thought of you and the rest of the great people that took the ride over the years and wanted to at least give a Merry Christmas shout out to all and wish the very best for the future.
The selling pressure is gone, IMO. There has been someone loading up at the ask the last few days. Good to see, considering that the company is performing well.
Let's get to next year, and let's get the price of gold performing again, then the juniors will recover.
Reviewing Nov's wind down trading in this stock, there are several things to be gleaned. This is an attempt at a discussion starter, sharing what I've observed. Feel free to chime in.
The "wash rule" selling pressure seems to be behind us now for those who wished to sell before Nov 30, would appear to have done so, at least those of "size."
The rumor of someone having a position in excess of 1,000,000 long shares to liquidate for whatever reason turned out to be true. I'd like to hear more from the "person" who knew and then posted that. Wonder what my chances are? LOL
The final dump of over 700,000 shares which drove us to the $0.11 handle was catharic for the rest of us longs. Kind of like blasting a beaver dam to remove the more normal channel flow in a dammed creek.
The final dump of the remainder of that rumored position of size was a good reminder of the pratfalls of buying in size in an illiquid stock and switching up and wanting out--in an orderly fashion so as not to disturb the market--which selling into strength would have accomplished but then that is a pro move not an amateurish one like we've just witnessed--that was a good lesson to all who among us who like to accumulate million share positions in a very thin stock.
Possibility exists that that seller will return--in size--in 2014 after the 30 day wash rule tax planning strategy for dealing with losers has been cleared---since Scorpio has already caught their eye, is a producer, and just keeps plowing positive cash flow back into expanding Scorpio resources (and not proliferating shares by dilutive financing.) And maybe that seller will bring other buyers with him when they return. Possibility, not foregone conclusion.
Glad that is over.
Glad that Hawley is sticking to his game plan. As long as this stock is unloved and mis-understood because of Hawley's smart strategy, it will take time to see the share price appreciation we all are positioned for, time which allows patient acquistion on weakness and man but have we ever seen weakness NOT justified by fundamentals.
Have a good weekend, longs. GLTY
Missed one--sorry. PR/Brodie(11/13)drill.Update: details here:
Scorpio Gold Updates Expansion Drilling at the Brodie Satellite Deposit, Mineral Ridge Project, Nevada
http://finance.yahoo.com/news/scorpio-gold-updates-expansion-drilling-130000544.html
Also, found this map elsewhere on net, shows floating cones SRCRF is exploring. X marks spots with this drilling update topographical references.
http://www.scorpiogold.com/i/maps/mr/Brodie_DHplan.jpg
2013 Drilling (reference) Map Brodie Area covered
in this 11/13 PR
Happy Thanksgiving to all.
That was me who sold yesterday!
Just kidding, not sure what happened. Canaccord was dumping on CDN side, not sure who was dumping on USA side.
They are reporting total cash costs of less than $800.
Total cash costs:
total cash costs include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes, net of by-product revenues earned from all metals other than the primary metal produced at each unit. Total cash costs provide management and investors an indication of net cash flow, after consideration of the realized price received for production sold
These juniors are only as good as their shareholders. There are few buyers these days so any selling will depress the price. From what I can tell the company has about 3 years or more of mining with current reserves possibly more if you include expanding the current mary pit.
The company doesn't seem too concerned about the low gold price. They continue exploring the property.
This year is worst than 2008 in my opinion. I never have seen such negative sentiment on miners. Hopefully that will change soon.
Likewise, and back at you. Hanging tough with this one.
And a handshake and champagne down the road...with Peter Hawley making the toast.
OT: Just for fun in these gold/silver harder times, here's a sweet and natural acoustic group, Lake Street Dive, doing the pop/rock standard, Dedicated to the One I Love. They totally nail the harmonies.
Thanks starboy, it has been a pleasure reading your posts and getting to know you here, although it would be much better to meet you all at a Scorpio Gold shareholder meeting and shake your hand. The internet is so impersonal.
But it is great to have a board here that keeps it real and above board, which is so RARE these days.
I post over on the Raging Bull SGN board, and what a difference. Barely one step above Yahoo. Just a bunch of nonsense basically.
Let's keep it going here. Eventually value should win out.
Same thoughts here, Belgie. Will ride along with this company and it's diligent methods.
Reposted Talldudes post on the GOLDBUGS board, in case anyone there wants to take a closer look, notwithstanding the downtrodden state of the PM sector at present.
Though most on that board have their favorites already it seems.
I had not seen that piece, but enjoyed the article, thanks for posting it. Scorpio Gold has been trashed, share price wise, along with all the other juniors, but do they deserve it? Not IMHO.
I have not sold a share, and will ride this downturn out.
The company has performed admirably, and I remain a shareholder for the future.
Nice find, Talldude. Still like this company's (SRCRF) long-term prospects, and they way they've developed and moved forward shows smarts and diligence; not to mention staying in the black.
Mudbone1, Belgie 24, did you all happen to catch this positive write-up from the 11th?
Obviously somebody bailed BIG TIME today....717K shares traded--SO FAR on this day? WHEW! Just look at the blocks of 25K shares traded!!! Someone thought the kitchen was too hot and left, that part is really obvious.
We saw an 11c handle this AM. If I would have known an 11c handle was on the horizon, I would have waited. WHAT an opportunity to average down!
Thank you so much to whomever it is who finally bailed! That's what stops are for. Yes, even mental ones! The Marketmakers know they are there and go gunning for them, making fears come true.
Longs: the drinks are on me!
Scorpio Gold Updates Goldwedge Project
Press Release: MINING DRILLING RESULTS – 11.4.2013
from finance.yahoo.com
SGN.V
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 4, 2013) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) provides an update on its 100% owned Goldwedge project, located 54 km north-northeast of Tonopah within the Manhattan Mining District of south-central Nevada. The Goldwedge property covers three separate claim blocks and encompasses the Goldwedge, Keystone and Jumbo gold deposits.
Goldwedge Deposit
The Goldwedge deposit lies within the Walker Lane Gold Belt and is situated on the southern periphery of the Manhattan Caldera, approximately 16 kilometers south of the 15 million ounce Round Mountain Mine. Historic mining in the Manhattan Mining District dates back to the 19th century, with district-wide gold production from both lode and placer deposits estimated at 566,000 ounces. The largest gold production came from the Manhattan Mine East & West pits located within a kilometer south of the Goldwedge deposit, where Echo Bay Mines reportedly produced an estimated 236,000 ounces.
A number of companies have explored the underground potential of the Goldwedge deposit, beginning in 1983 with Freeport Exploration followed by Sunshine Mining, Crown Resources, New Concepts Mining, Royal Gold and most recently, Royal Standard Minerals ("RSM"). To date, the deposit been tested by 89 surface holes and 30 underground core holes for a total of 16,994 meters. RSM undertook underground development, exploration and bulk sampling of the deposit over several campaigns from 2004 to 2012, and constructed a 400 ton per day mill facility with a gravity recovery system. Gold mineralization is outlined over a strike length of 335 meters and to a vertical depth of over 150 meters, and is open along strike, down-dip and down-plunge toward the northwest. Several resource estimates were prepared for the deposit from 1997 to 2011, none of which are NI 43-101 compliant. Scorpio Gold acquired the property from RSM in December 2012.
Scorpio Gold recently completed a preliminary 3-D geological model of the deposit based on structural and lithological data obtained from sections prepared by the previous operators. The Company is currently in the process of compiling the assay and lithology data base from all historical surface and underground drilling and sampling of the deposit. Although the majority of the historical drilling was by reverse circulation (RC) drilling, drill core from RSM's 2011-2012 underground drilling campaign (30 core holes) is available for evaluation and re-assaying if required.
The Goldwedge deposit exhibits several styles of gold mineralization from fault breccia and vein hosted to stratabound replacement style in limestone and pervasive quart-sericite-pyrite alteration hosted. Part of the Company's evaluation process is to understand the geological nature and controls to both the high-grade and broader pervasive gold mineralization in context with prominent structural fault and shear domains, including the regionally significant N30W trending Reliance Fault Zone.
Once interpretation and modelling of the mineralized system has been completed, the Company plans to proceed with a surface core drilling and/or underground core drilling program. Scorpio Gold has authorization from the U.S. Forest Service to set up on six existing drill sites to provide for twinning of six historic RC holes, and there is potential for drilling three to four additional angle holes from each site. With the results of the twinning and additional intercepts into the deposit, the Company can move toward preparing a NI 43-101 compliant mineral resource estimate and evaluate potential mine development.
Historical drilling (Table 1) has reportedly intersected substantial down hole widths and grades, some of which will be tested by Scorpio Gold's core hole twinning program.
Map links:
Permitted Drill Sites: http://www.scorpiogold.com/i/maps/goldwedge/Goldwedge_DHsite.jpg
Historic Drill Holes (Table 1): http://www.scorpiogold.com/i/maps/goldwedge/Goldwedge_DHplan.jpg
Table 1. Goldwedge Deposit - Select Historical Surface and Underground Drill Results
Hole
No. Drill Type From
(ft) To
(ft) Width
(ft) From
(m) To
(m) Width
(m) Gold
(OPT) Gold
(g/t)
GW-05 RC 295 405 110 89.92 123.44 33.53 0.126 4.32
GW-06 RC 420 545 125 128.02 166.12 38.10 0.066 2.26
GW-15 RC 335 400 65 102.11 121.92 19.91 0.234 8.02
GW-16 RC 405 465 60 123.44 141.73 18.29 0.065 2.23
MH-16 RC 550 770 220 167.64 234.70 67.06 0.364 12.48
MH-90-92 RC 135 185 50 41.15 56.39 15.24 0.112 3.84
225 305 80 68.58 92.96 24.38 0.104 3.57
370 410 40 112.78 124.97 12.19 0.062 2.13
GWUG-11-16 Core 72 162 90 21.92 49.38 27.43 0.116 3.98
GWUG-11-18 Core 53 118 65 16.15 35.97 19.81 0.092 3.15
GWUG-12-2 Core 165 175 10 50.29 53.35 3.05 0.387 13.28
GWUG-12-6 Core 300 335 35 91.44 102.11 10.67 0.209 7.17
Widths presented are down hole core lengths; true widths are not known at this time. Based on a review of available information, the drilling and sampling procedures and quality assurance and quality control (QA/QC) measures undertaken by the past operators (New Concept Mining, Freeport Exploration and RSM) are consistent with standards and acceptable practice in the mining and exploration industry.
Goldwedge Mill Facility
Surface site work at Goldwedge has included the removal of gold bearing sludge in the settling pond left over from previous operations, and repair and relining of the settling pond liner. Over 80% of the pond has been completely relined. Upon completion of this work, a QA/QC report was prepared by SRK Consulting and submitted to the Nevada Division of Environmental Protection - Bureau of Mining Regulation and Reclamation and approved on August 28, 2013. The settling pond is now fully authorized for use.
Improvements to the 400 ton per day mill facility include the inspection and repair of circuit pumps, sealing of the building's concrete floor and review of the process equipment to improve circuit efficiencies.
Recent testing of the grinding circuit utilizing tailings material previously processed through the facility by RSM yielded further recoveries of the contained precious metals, confirming that higher recoveries can be achieved from the Goldwedge mineralized material. Future testing will include the optimization of the recovery circuit, improvements to the thickener and tailings circuit and further testing of the grinding circuit to achieve optimal throughput and recovery rates.
Photos of the recently completed site work and upgrades are presented in the Goldwedge Photo Gallery at: http://www.scorpiogold.com/s/photo_gallery.asp?ReportID=606386
Jumbo and Keystone Deposits
The Jumbo and Keystone deposits are located 3.8 and 4.3 km southeast respectively from the Goldwedge deposit. The deposits occur along the margin of a Cretaceous granite intrusion and mineralization is controlled by high-angle N30W faults that are transected by N30E shear zones. Gold mineralization is hosted within brecciated and silica-flooded quartzite at Keystone, and within brecciated quartzite and brecciated granite at Jumbo, where stockwork quartz veinlets host both fine-grained gold bearing pyrite and free gold.
Limited historic surface drilling at Keystone reported substantial down hole widths and grades, leading Nevada Goldfields to undertake a small open pit excavation in 1990 that recovered 5,750 ounces of gold. A preliminary review of the available data indicates that significant drill intercepts lie below the base of the open pit. A small open pit was also excavated around the same time on the Jumbo deposit. New Concept Mining reported mineral resource estimates for both the Jumbo and Keystone deposits in May 1997; however, neither estimate is compliant with NI 43-101 and remain to be verified.
Scorpio Gold considers both deposits to have considerable exploration merit given their style of mineralization and location along strike of the regionally significant N30W trending Reliance Fault Zone, which trends through Goldwedge and the Manhattan Mine East and West pits.
Photos of the Jumbo and Keystone pits are presented in the Goldwedge Photo Gallery at: http://www.scorpiogold.com/s/photo_gallery.asp?ReportID=606386
One of the historic holes, MH-16 was 67 metres @ 12.48 g/t gold.
An intersect like that would have caused a buying frenzy a couple of years ago. Now nobody even mentions it.
Excellent points. Investing in junior gold miners has taught me patience the hard way! LOL
It certainly has appeared all along that Peter Hawley knows his way around gold fields and claims, and is totally thorough in his approaches to the drilling aspects of mining; to ascertain value in the workable claims.
Due to the pummeling of gold prices and uncertainties regarding the industry over these last couple of years, it's a patient man's investment.
The reams of stories and articles about global debt levels, which I've mentioned in many of my IHub posts, still seem to be relevant.
Central banks can't stimulate and print their way out of those debt levels, and from what I see in my part of the real world, prices continue to climb for the consumer; in everything from groceries to clothes, to rents.
Specific corporations and the invested wealthy may be prospering due to cheap money giving stocks a tailwind upwards, but the average Joe has, and continues to, be taking a financial hit.
Scorpio Gold Updates Goldwedge Project
Vancouver, November 4, 2013 - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX-V: SGN) provides an update on its 100% owned Goldwedge project, located 54 km north-northeast of Tonopah within the Manhattan Mining District of south-central Nevada. The Goldwedge property covers three separate claim blocks and encompasses the Goldwedge, Keystone and Jumbo gold deposits.
Continued at:
http://www.scorpiogold.com/s/news.asp?ReportID=609876
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Progress is being made, toll milling still in the works. My take is going a little slower may not be a bad thing IMO, until the negative sentiment on the junior miners passes.
Oil collapsing would help the miners if true. Clive has made some pretty good calls on PM's in the last couple of years. I hope he is correct on these ones.
Not sure if anyone follows Gold Standard Ventures V.GSV, but they have had some drilling success on their claims north of SGN's Pinon deposit. Hopefully some of the market enthusiasm for GSV will come Scorpio's way !
Have to correct you Talldude, SGN gets 80% of cashflow.
Mexico Mike's comment posted 10.9, noted the following:
Another SGN article
Metal News interviews Roebuck
Scorpio posts NEW Q3 throughput today. Still going the right direction! Production that is....the share price: not so much....YET!
PR from Company, 9AM EDT today:
3Q2013--->9.632K t/o Au; 3.702K t/o Ag
There is a school of concurrent thought which claims "since implementation of ETFs 25yrs ago, why buy miners at all?"
Thanks for your proferred links. Good job.
BTW,
12.5% spread between Bid/Ask just plain sucks...for buyers. Talk about greedy marketmakers!
And for perusal and study of various articles see:
http://www.silverseek.com/
http://www.goldseek.com/
http://dollarcollapse.com/ (Articles by categories) Metals, Economy, etc
Yes, it was better at .57 cents and climbing.
Perhaps this article will give you some clarity going forward.
Clive's been around a long time if you haven't followed or found him before...One man's opinion, but he's been around the block a time or two.
Gold Market Update
originally published October 6th, 2013
Full article link:
http://www.clivemaund.com/article.php?art_id=68
Final paragraph, though it's better to view the entire article with charts and commentary.
"I am going to end this with a very important message. We have seen that gold and silver are very probably completing Head-and-Shoulders bottom reversals, with prices having dropped down to suspected Right Shoulder low buy spots. In addition, and most importantly, we have seen for ourselves in this update the insane undervaluation of stocks relative to bullion, which is characteristic of a major sector bottom. What this means is that you can go ahead and buy large and mid-cap gold stocks now, and juniors with strong balance sheets that are either producers or close to production, with confidence, and quit worrying about day to day price movements afterwards, because you know that you are buying either at or very close to a major low. So rather than buy the sector and then sit on the edge of your chair biting your nails as you staring at changing prices on the screen, do what Smart Money does, buy them, bank them, and then go fishing or playing golf or whatever you enjoy doing with your leisure time, confident that you have bought stocks that are ludicrously undervalued and that it is only a matter of time before they rally to become more fairly valued."
Excellent thoughts, for sure. Value yet to be realized.
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