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Scorpio hits 1.17 g/t gold over 21 metress at Mineral Ridge

Published: 12:25 04 Jun 2012 EDT

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Scorpio Gold Corp. (CVE:SGN) disclosed further results from its drill program on the Brodie Northwest zone about 975 metres southwest of the Drinkwater Pit in Nevada.

The Vancouver-based company, which owns a 70 percent stake in the Mineral Ridge project, hit 1.17 grams per tonne (g/t) gold over 21.34 metres on the Brodie Northwest trend.

Scorpio went into commercial production status at Mineral Ridge earlier this year. The mine property hosts multiple gold-bearing veins and bodies at exploration and production levels.

"Drilling has allowed us to define the limits of the mineralized structural zone that trends through the Brodie corridor," Scorpio Gold's chief executive Peter Hawley said in a statement.

"The Brodie corridor mineralization lies immediately west of the leach pad and is well situated for cost-effective open pit extraction."

Further infill drilling is planned once results from the first pass 2012 drilling are compiled and modeled, Hawley added.

Past operators had thought the Bluelite and Brodie zones were two separate mineralized bodies, but results from last year and initial drilling in 2012 indicate they are one deposit, and connected by the Brodie Northwest zone.

The Mineral Ridge gold mine rests 56 kilometres southwest of Tonopah in Esmeralda County, Nevada. The acreage consists of 351 mining claims totalling 4,118-hectares. 

Historically, the mine has produced nearly 575,000 gold ounces. This includes 170,000 ounces from an open pit and 405,000 ounces from underground mining operations.

For the first three months of the year, total production reached 1.05 million tonnes including 122,993 tonnes of mineralized material with an average grade of 2.50 g/t from the Drinkwater Pit.

The company swung to a profit of $4.84 million, or two cents per share, compared with a year-ago loss of $1.6 million, or two cents per share. Revenue came in at $12.9 million, with gross margins of 66.2 percent.

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