Scorpio Gold provides update for the mineral ridge operation
Tuesday, Nov 27, 2012
Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) announces additional drill results from its 2012 drilling program on the Drinkwater Highwall Zone; provides an update on advancing the exploration of its satellite deposits; and reports on a new discovery of high-grade gold and silver mineralization at the 70% owned Mineral Ridge project, Nevada.
Satellite Deposit Update
Telesto Nevada Inc. (Telesto) has completed block modelling and open pit design and optimization for the satellite Brodie, Bluelite, Wedge, Oromonte and Solberry deposits at Mineral Ridge. Following review of the data, Scorpio Gold has commissioned Telesto to proceed with a NI 43-101 compliant mineral resource estimate. Telesto has set a target date of mid-Q1 2013 for completion of the estimate.
Telesto's block modelling of the satellite deposits utilized 10-foot bench composites as the data source and a maximum search range of 80 feet. A cap of 0.25 ounces per ton (OPT) gold was applied to the models. Cut-off grades and economic parameters were based on AMEC's Life of Mine Plan Study dated July 15, 2012 (see October 1, 2012 news release), and a US$1,500 per ounce gold price. Based on these parameters, floating open-pit cones were draped over each deposit using an overall pit slope of 49 degrees. The pit shells produced in the analysis are currently being reviewed by the Company, with certain deposits intended to be the subject of aggressive drilling in 2013 to facilitate mine planning for open pit extraction. All of the satellite deposits lie to the west and southwest of the Drinkwater Pit and are situated within 400 metres of the leach pad.