Scorpio Gold drills 45 ft of 0.352 opt Au at Mineral
2009-10-19 20:52 ET - News Release
stockwatch.com
Mr. Peter Hawley reports
SCORPIO GOLD'S SURFACE RC DRILLING ON THE MINERAL RIDGE GOLD DEPOSIT, NEVADA REPORTS 45 FEET GRADING 0.352 OZ PER TON GOLD IN SURFACE PIT AREA
Scorpio Gold Corp. is releasing initial drill results from reverse circulation (RC) drilling in the pit areas of the Mineral Ridge gold deposit in Nevada. Additional results of RC and diamond drilling will be reported on a timely basis once received and compiled.
Peter J. Hawley, chief executive officer and dDirector, reports: "We are very pleased with the initial assay results from our reconfirmation drilling, which to date are presenting higher grades that the average historical mined grade of 0.056 ounces per ton. The company believes that the lower historical grade was a result of excessive dilution by the previous operators. The initial higher grades bode well for enhancing the economics of this project, especially in light of the recent strength in the gold price, currently in excess of $1,000 (U.S.) per ounce, and the company's recent purchase of the underlying 8-per-cent net smelter royalty."
The Mineral Ridge project is located approximately 30 miles west of Tonopah, Nev., and has historically produced almost 575,000 ounces of gold, including approximately 170,000 ounces from open pit and approximately 405,000 ounces from underground mining operations. The property is currently bonded and permitted for heap leach gold processing and production, and was in production as recently as 2005. The mine project comprises 54 patented and 279 unpatented mining claims covering 5,921 acres, and hosts multiple gold-bearing structures, veins and bodies. It features a well-developed infrastructure, including roadways, power grid, heap leach pad, crushing circuit, ADR plant, water supply, maintenance shop, refuelling and storage facilities, and administrative buildings.
Drill program
A total of 8,911 feet consisting of 2,026 feet of core diamond drilling and 6,885 feet of RC drilling was completed on the Mineral Ridge pit areas in the summer of 2009. Systematic drill spacing was employed from the near-pit floor mineralization toward the downstrike/downdip mineralized extensions. The drill program was designed to reconfirm previously reported mineralization and build a database in compliance with NI 43-101 standards for resource estimation. In addition, the program has delineated sterile areas where pit waste material can be placed.
Drinkwater deposit overview
The Drinkwater deposit is the largest known mineral deposit, and is located on the northeastern side of the metamorphic and intrusive core complex. It was partially mined by underground methods from the 1860s to the early 1940s and by open-pit methods from 1989 to 2005. The mineralized zones in the Drinkwater deposit have a general strike of N45W and dip approximately 20 to 25 degrees to the northeast. Drill-defined mineralized zones have a strike length of 2,500 feet, downdip extension of over 2,000 feet, two or more gold-bearing shear zones with an individual thickness of five to 40 feet and an overall thickness of more than 100 feet. Reverse circulation drill holes reported in the table on the Drinkwater deposit, mineralized pit area, were designed to target the main mineralized pit area to reconfirm previous drilling and resource estimates.
DRINKWATER DEPOSIT -- MINERALIZED PIT AREA
Drill hole No. Target From (ft) To (ft) Width (ft) Gold (opt)
MR-09-006 Drinkwater pit 0 50.0 50.0 0.078
MR-09-16 Drinkwater pit 20.0 40.0 20.0 0.087
MR-09-13 Drinkwater pit 25.0 65.0 40.0 0.117
MR-09-14 Drinkwater pit 25.0 70.0 45.0 0.352
MR-09-001 Drinkwater pit 35.0 120.0 85.0 0.155
150.0 165.0 15.0 0.024
MR-09-002 Drinkwater pit 0 10.0 10.0 0.019
35.0 100.0 65.0 0.219
115.0 165.0 50.0 0.070
Reverse circulation drill holes reported in the table on the Drinkwater deposit, low-grade or sterile pit area, were designed to target low-grade and sterile areas in the pit area to determine new, tighter-pit design shells.
DRINKWATER DEPOSIT -- LOW GRADE OR STERILE PIT AREA
Drill hole No. Target From (ft) To (ft) Width (ft) Gold (opt)
MR-09-003 Drinkwater pit 140.0 145.0 5.0 0.015
edge of pit 155.0 180.0 25.0 0.020
205.0 215.0 10.0 0.042
245.0 255.0 10.0 0.054
MR-09-004 Drinkwater pit no values reported
MR-09-005 Drinkwater pit 0 20.0 20.0 0.014
MR-09-007 Drinkwater pit 0 15.0 15.0 0.037
40.0 50.0 10.0 0.013
65.0 70.0 5.0 0.018
MR-09-008 Drinkwater pit 15.0 30.0 15.0 0.045
70.0 90.0 20.0 0.037
MR-09-009 Drinkwater pit 30.0 40.0 10.0 0.021
50.0 55.0 5.0 0.054
135.0 150.0 15.0 0.042
MR-09-010 Drinkwater pit 0 5.0 5.0 0.015
55.0 60.0 5.0 0.088
165.0 200.0 35.0 0.026
MR-09-011 Drinkwater pit 35.0 40.0 5.0 0.022
55.0 140.0 85 0.037
MR-09-012 Drinkwater pit 125.0 155.0 30.0 0.041
MR-09-015 Drinkwater pit 50 55 5.0 0.017
175 190 15.0 0.093
195 210 15.0 0.026
Mary deposit overview
The Mary deposit is the southeast continuation of the Drinkwater, with the connection eroded away by Elizabeth Canyon. The drill-defined mineralized zones have a strike length of 2,000 feet, downdip extension of over 1,500 feet, with mineralized zones generally thinner and less continuous but higher in grade than those in Drinkwater.
Reverse circulation drill holes reported in the table on the Mary deposit were designed to target the main mineralized pit area to reconfirm previous drilling and mineralized estimates.
MARY DEPOSIT -- MINERALIZED PIT AREA
Drill hole No. Target From (ft) To (ft) Width (ft) Gold (opt)
Mr-09-17 Mary pit 0 55.0 55.0 0.193
For additional information on the Mineral Ridge project, please see the company's website.
All RC holes presented in the tables were drilled at 90 degrees vertical dip; true width is estimated at approximately 95 per cent of downhole width. Analytical results were performed by American Assay Laboratory Inc. in Sparks, Nev. All samples were submitted as bulk RC drill samples and standard preparation procedures were used to create a homogeneous sample. Samples were fire assayed with an AA (atomic absorption) finish at one assay ton (30 grams). Results of 0.29 ounce per ton (10 parts per million) and greater were repeated with a gravimetric (weighed) finish. Standard quality control procedures were followed, which included random insertion of certified standards and blanks in the sample stream, as well as routine duplicate sample analysis. American Assay Laboratories is an ISO/IEC 17025-accredited assay laboratory.
Mr. Hawley, PGeo, is the company's qualified person for the various company projects. Mr. Hawley is responsible for the current exploration and development programs, and has reviewed the content of this release. |
