Scorpio Gold advances to Phase 2 expanded 13-hole program, Nevada

Scorpio Gold Corp.  [TSXV-SGN; OTCQB-SRCRF; FSE-RY9] reported completion of its Phase 1 drilling campaign as a part of its 2024 exploration program at its Manhattan District Project, Nevada. Phase 1 began on June 4, 2024 and consisted of an initial five drill holes totalling 1,178 metres.

Phase 1 is being followed up with Phase 2, commencing immediately, with the already mobilized surface diamond drilling contractors. Phase 2 is anticipated to consist of 3,109 metres across 13 holes through the rest of 2024. Manhattan is a low-sulfidation epithermal gold deposit located in Nye County, Nevada, containing a higher-grade coarse gold deposit already identified through over 100,000 metres of historic reverse-circulation drilling.

Scorpio completed successful reverse-circulation drill campaigns in 2022 and 2021, both intercepting significant mineralization in multiple holes, including 16.8 metres of 27 g/t gold and 41.2 metres of 3.98 g/t. Both fire assay, and full suite multi-element inductively coupled plasma mass spectrometry (ICP) are being completed on the Phase 1 drillholes to create a multi-element library of near mine targets for understanding of mineralization and for long-term planning of grassroots targets within our claim package.

“The Phase 1 and Phase 2 holes have been planned in close coordination with our advisory team led by Daniel Kunz and his team at Daniel Kunz & Associates (DKA) with the dual purpose of being follow ups to historic drilling, alongside moderate step-outs of known structures to connect multiple zones of mineralization, particularly the Goldwedge underground and Manhattan West Pit,” stated Harrison Pokrandt, VP of Exploration for Scorpio Gold.

Phase 1 and Phase 2 intend to extend known mineralization along strike into untested areas and bridge the Goldwedge and Manhattan targets into one larger resource. Phase 1 and Phase 2 will provide data for a preliminary metallurgical testing program, confirm previously drilled intervals at the Manhattan and Goldwedge targets, and extend understanding of the known mineralized structures. New drilling data will also aide in planning and executing a claim-wide structural mapping campaign planned for early-September. The program’s ultimate goal is to support completion of a NI 43-101 compliant resource report, with metallurgical study and review, later this year.

Scorpio Gold has engaged DKA, a technical consulting firm founded and led by Daniel Kunz. DKA has played an integral role in the planning and execution of the 2024 Exploration Program, basing all the targeting for Phase 1 and 2 off the extensive current modelling of the over 1,200 drillholes, and the review and consolidation of historic data.

The Manhattan District comprises the advanced exploration-stage Goldwedge Project, with a 400 tonne per day gravity mill. Adjacent to Goldwedge is the 4,300-acre Manhattan Project, which was acquired from Kinross in 2021 and is centered on two past-producing pits. The consolidated Manhattan District presents an exciting late-stage exploration opportunity, with over 100,000 metres of historical drilling, demonstrating significant resource potential, alongside valuable permitting.

The company approved the settlement of $375,000 in debt owing to Matco Holdings Ltd., a company wholly-owned by Bruce Dawson, a former director of the company and $375,000 in debt owing to Ianco Holdings Ltd. and, together with Matco, a company wholly-owned by Ian Dawson, a director of the company  and together with the Matco debt settlement through the issuance of an aggregate of 5,000,000 common shares of the company at a deemed price of $0.15 per share. Completion of the debt settlements is subject to the approval of the TSX Venture Exchange.

Scorpio Gold holds a 100% interest in two past producing mines, the Manhattan Mine and the Mineral Ridge Mine, both located in the Walker Lane Trend of Nevada, USA. Scorpio produced over 222,440oz of gold at Mineral Ridge between 2010 and 2020. With a proven and probable resource, valuable permits, water rights, infrastructure, and the recently acquired adjacent North Star exploration target, Mineral Ridge has significant near-term development potential.