Scorpio Gold Corp. (CVE:SGN), a junior Canadian miner operating in the US, released final results from its 2016 exploration drilling program at the Custer, Drinkwater Highwall and Mary LC phase 4 target areas at its 70%-owned Mineral Ridge project, located in Nevada on Friday.
The Custer deposit lies along trend of and approximately 400 metres southeast of the Mary LC deposit. Reverse circulation drilling in 2016 followed up on a highly successful first-pass drilling program in 2015, defining the Custer deposit over a 150-metre-by-200-metre area at depth. Two additional core holes drilled near the middle of the deposit confirmed the mineralization intersected by reverse circulation drilling. The Custer deposit is in the permitting process for future consideration of open-pit mining.
The Drinkwater Highwall target area is located at the northwest end of the Drinkwater pit. Previous drilling had reported significant mineralization left behind in the wall of the pit. A review and modelling of the data from all three drilling campaigns and further definition of existing underground mining voids have determined that the mineralization remaining in the Drinkwater Highwall target is not economic at current gold prices.
The Mary LC phase 4 target area is a northeastern extension of the mineralization in the Mary LC deposit. Reverse circulation drilling in 2016 intersected mineralization in all eight holes drilled; however, a review and modelling of the data have determined that the mineralization in the phase 4 area is not economic at current gold prices and will require additional drilling.
The Drinkwater Highwall and Custer holes presented in the attached table were completed by core drilling and the Mary LC phase 4 holes by reverse circulation drilling.
Estimates of true width range from 42% to 100% of actual downhole width.
Scorpio Gold holds a 70% interest in the producing Mineral Ridge gold mining operation located in Esmeralda county, Nevada, with joint venture partner Elevon LLC (30%). Scorpio Gold also holds a 100% interest in the advanced-exploration-stage Goldwedge property in Manhattan, Nev., with a fully permitted underground mine and 400-tonne-per-day mill facility.