Scorpio Gold Corp. (SRCRF)

[Belgie24]

Bo Chew likes Scorpio Gold, on the Gold Report:

BC: Scorpio Gold Corp. (SGN:TSX.V) is another one we like. Scorpio owns 70% of Mineral Ridge in Nevada, which has a history of gold mining dating back to the mid-1800s. There've been problems with this particular mine more recently. It sat dormant from 2005 to 2010 until Peter Hawley, founder of silver producer Scorpio Mining Corp. (SPM:TSX), took over in 2010. Insiders own 38%. Production started in May 2011 from the Drinkwater pit. Mining at the Mary Zone has just started increasing the production at Mineral Ridge to about 5 Koz per month. The ownership increases to 80% after four months of production above 3.5 Koz. The current resource is only 357 Koz, but it's only from two pits. There are another eight pits that are defined and another three pits outlined. Drilling between the pit areas should expand the resource and define a possible super pit that could be 3–5 Moz. If cash costs decline and production increases to 80 Koz, and if a super pit is defined, we expect Scorpio Gold to do very well.

http://www.theaureport.com/pub/na/12758