VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 14, 2016) - Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) announces its operating results for the second quarter ("Q2") of 2016 at its 70% owned Mineral Ridge project, located in Nevada.
Production at Mineral Ridge in Q2 of 2016 totalled 10,089 ounces of gold and 4,325 ounces of silver, representing increases of 16% and 20% respectively over Q2 2015 production levels. The increased metal production is primarily attributed to higher crusher throughput, resulting in increased recoverable ounces placed on the heap leach pad and expected improvement in leach pad recoveries, as previously reported. Total gold production for the first half ("H1") of 2016 now stands at 18,597 ounces, a decrease of 10% from H1 of 2015. The Company's 2016 production forecast remains unchanged at 30,000 to 35,000 ounces of gold (as reported in the Company's March 23, 2016 news release).
Peter J. Hawley, President & CEO, comments, "The Company is pleased to report another solid quarter of production at Mineral Ridge. We continue to focus on operational excellence while meeting our production forecast for 2016. The Company continues to evaluate ways to enhance the economics of the Mineral Ridge project without affecting safety and overall performance."
Production in the second half of 2016 is scheduled from the Mary LC pit and from the Missouri satellite pit.
| Key Operating Statistics | ||||||||||||||||
| Three months ending | Six months ending | |||||||||||||||
| 2016 | 2015 | Change | 2016 | 2015 | Change | |||||||||||
| Mining operations | ||||||||||||||||
| Mary LC pit | ||||||||||||||||
| Ore tonnes mined | 138,795 | - | 100.0 | % | 285,667 | - | 100.0 | % | ||||||||
| Waste tonnes mined | 919,453 | - | 100.0 | % | 1,622,483 | - | 100.0 | % | ||||||||
| Total mined | 1,058,248 | - | 100.0 | % | 1,908,150 | - | 100.0 | % | ||||||||
| Strip Ratio | 6.6 | - | 100.0 | % | 5.7 | - | 100.0 | % | ||||||||
| Satellite pits | ||||||||||||||||
| Ore tonnes mined | 39,493 | 56,046 | -29.5 | % | 142,745 | 114,119 | 25.1 | % | ||||||||
| Waste tonnes mined | 139,664 | 113,521 | 23.0 | % | 366,720 | 285,873 | 28.3 | % | ||||||||
| Total mined | 179,157 | 169,567 | 5.7 | % | 509,465 | 399,992 | 27.4 | % | ||||||||
| Strip Ratio | 3.5 | 2.0 | 75.0 | % | 2.6 | 2.5 | 4.0 | % | ||||||||
| Mary pit | ||||||||||||||||
| Ore tonnes mined | - | 78,343 | -100.0 | % | - | 196,307 | -100.0 | % | ||||||||
| Waste tonnes mined | - | 298,704 | -100.0 | % | - | 1,043,681 | -100.0 | % | ||||||||
| Total mined | - | 377,047 | -100.0 | % | - | 1,239,988 | -100.0 | % | ||||||||
| Strip Ratio | - | 3.8 | -100.0 | % | - | 5.3 | -100.0 | % | ||||||||
| Total producing pits | ||||||||||||||||
| Ore tonnes mined | 178,288 | 134,389 | 32.7 | % | 428,412 | 310,426 | 38.0 | % | ||||||||
| Waste tonnes mined | 1,059,117 | 412,225 | 156.9 | % | 1,989,203 | 1,329,554 | 49.6 | % | ||||||||
| Total mined | 1,237,405 | 546,614 | 126.4 | % | 2,417,615 | 1,639,980 | 47.4 | % | ||||||||
| Strip Ratio | 5.9 | 3.1 | 90.3 | % | 4.6 | 4.3 | 7.0 | % | ||||||||
| Pits under development | ||||||||||||||||
| Ore tonnes mined | - | 53,264 | -100.0 | % | - | 92,146 | -100.0 | % | ||||||||
| Waste tonnes mined | 67,732 | 1,190,883 | -94.3 | % | 123,354 | 1,995,432 | -93.8 | % | ||||||||
| Total mined | 67,732 | 1,244,147 | -94.6 | % | 123,354 | 2,087,578 | -94.1 | % | ||||||||
| Total mining operation | ||||||||||||||||
| Ore tonnes mined | 178,288 | 187,653 | -5.0 | % | 428,412 | 402,572 | 6.4 | % | ||||||||
| Waste tonnes mined | 1,126,849 | 1,603,108 | -29.7 | % | 2,112,557 | 3,324,986 | -36.5 | % | ||||||||
| Total mined | 1,305,137 | 1,790,761 | -27.1 | % | 2,540,969 | 3,727,558 | -31.8 | % | ||||||||
| Processing | ||||||||||||||||
| Tonnes processed | 275,551 | 194,651 | 41.6 | % | 527,138 | 413,023 | 27.6 | % | ||||||||
| Gold head grade (g/t) | 1.33 | 1.37 | -2.9 | % | 1.48 | 1.39 | 6.5 | % | ||||||||
| Tonnes milled at Goldwedge facility | - | - | - | - | 1,392 | -100.0 | % | |||||||||
| Gold head grade (g/t) | - | - | - | - | 8.87 | -100.0 | % | |||||||||
| Ounces produced | ||||||||||||||||
| Gold | 10,089 | 8,738 | 15.5 | % | 18,597 | 20,690 | -10.1 | % | ||||||||
| Silver | 4,325 | 3,591 | 20.4 | % | 8,246 | 9,910 | -16.8 | % | ||||||||
| Recoverable(1) gold (ounces) placed on pad | 8,002 | 5,769 | 38.7 | % | 17,034 | 12,428 | 37.1 | % | ||||||||
| (1) | A weighted average metallurgical recovery factor has been applied to the estimated contained ounces crushed and placed on the leach pad based on the pit from which the ore was mined. |
Change to cash flow distributions from the Mineral Ridge project
On July 4, 2016, the settlement price of gold on the LBMA PM fix exceeded $1,350, and as such under the terms of the Mineral Ridge operating agreement, the Company's entitlement to cash flows distributed from the Mineral Ridge mine reverted to 70% from the previous 80% entitlement. Under the terms of the operating agreement, the 10% additional amount distributed to Scorpio, representing an amount of $35,714, from distributions made after the operating agreement amendment in August, 2015, was repaid in full to Elevon, LLC. For more information, see the Company's news release dated August 17, 2015.