Scorpio Gold {TSX.V: SGN} CEO Peter Hawley “proud of record production achievement in 2014”

In a year that contained challenges both with grade and permitting issues, Scorpio Gold still managed to produce a record amount of gold, exceeding 40,000 ounces for the first time!

 Comment

Scorpio Gold have achieved guidance and produces a record amount of gold in a year that contained challenges, principally permitting delays on their satellite deposits, and a lower grade in their mining.

This is some achievement given the challenges mentioned above, and one would hope that once the permitting is completed, 2015 guidance will be for a significantly higher number.

Add in the potential for a LOM uplift via exploration drilling at Gold Wedge, and the opportunity to grind the high grade ore from Mineral Ridge at the Gold Wedge mill before returning to the leach pad, increasing recovery substantially, and Scorpio are one for even the most selective watchlist in 2015 in my view.

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 2015-01-13

 News Release

Mr. Steve Roebuck reports

Scorpio Gold reports record annual gold production at their Mineral Ridge operation, Nevada, USA.

Scorpio Gold Corp. has released its operating results for full year and the fourth quarter of 2014 at its 70-per-cent-owned Mineral Ridge project, located in Nevada.

Total gold production in 2014 was 40,814 ounces, an increase of 4 per cent over the year 2013. Gold production in fourth quarter 2014 totalled 10,258 ounces, representing a decrease of 10 per cent from fourth quarter 2013 and a 9-per-cent decrease from third quarter 2014. Production challenges occurred in the fourth quarter of 2014 as the company experienced a delay in receiving its mine permit for the satellite deposits. The delay created a shortfall in scheduled tons and ounces mined from those pits and had to be made up by mining in the Mary LC area. Looking forward, the company is in the process of finalizing its 2015 budget and expects to provide guidance in first quarter 2015 once the mine permit for the satellite deposits has been received.

Peter J. Hawley, chief executive officer, reported: “We are proud to report a record annual gold production of 40,814 ounces at Mineral Ridge in 2014, representing a 4-per-cent increase over 2013 and meeting our 2014 production guidance. Scorpio Gold has now completed three full years of production at Mineral Ridge and has fully transitioned production from the Drinkwater pit to the Mary pit. On behalf of the company, I would like to thank the entire production team and contractors who continue to make the Mineral Ridge operation a success.”

 

                          KEY OPERATING STATISTICS

Three months ending        12 months ending

Dec. 31,                Dec. 31,

2014        2013        2014        2013

Mining operations

Mary pit

Ore tonnes mined             141,056     136,891     443,343     285,688

Waste tonnes mined           674,026     563,368   2,266,625   1,986,738

Total mined                  815,082     700,259   2,709,968   2,272,426

Strip ratio                      4.8         4.1         5.1         7.0

Drinkwater pit

Ore tonnes mined                   –     100,732     395,177     607,535

Waste tonnes mined                 –     441,244     834,938   2,102,002

Total mined                        –     541,976   1,230,115   2,709,537

Strip ratio                        –         4.4         2.1         3.5

Total producing pits

Ore tonnes mined             141,056     237,623     838,520     893,223

Waste tonnes mined           674,026   1,004,612   3,101,563   4,088,740

Total mined                  815,082   1,242,235   3,940,083   4,981,963

Strip ratio                      4.8         4.2         3.7         4.6

 

Pits under development

 

Mary LC pit

Ore tonnes mined              37,417           –      73,718           –

Waste tonnes mined

(prestripping)               902,039     151,332   2,346,051     213,411

Total mined                  939,456     151,332   2,419,769     213,411

Satellite pits

Ore tonnes mined               7,339           –       7,339           –

Waste tonnes mined

(prestripping)                99,920           –     118,332           –

Total mined                  107,259           –     125,671           –

Total mining

operations

Ore tonnes mined             185,812     237,623     919,577     893,223

Waste tonnes mined         1,675,985   1,155,944   5,565,946   4,302,151

Total mined                1,861,797   1,393,567   6,485,523   5,195,374

Processing

Tonnes processed             205,643     242,124     974,346     903,337

Gold head grade

(g/t)                           1.68        2.28        1.72        2.32

Ounces produced

Gold                          10,258      11,348      40,814      39,160

Silver                         4,387       4,154      18,182      14,975

Crusher throughput

(Tonnes per day)               2,235       2,632       2,891       2,681

Recoverable gold

(ounces) placed on

pad                            7,207      11,554      35,086      43,845

 

We seek Safe Harbour.