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Scorpio Gold intercepted 31.97 grams per tonne gold over 4.57 meters at the Physik target on its Mineral Ridge project. The news brought the company’s share price up nearly 15 percent Monday morning.
Scorpio Gold (TSXV:SGN) announced on Monday morning that it has intersected 31.79 grams per tonne (g/t) gold over 4.57 meters at the Physik target on its Mineral Ridge project in Nevada.
Scorpio has a 70-percent interest in Mineral Ridge, with Waterton Global Value holding the remaining 30 percent. Scorpio is entitled to receive 80 percent of the cash flow generated by the project.
The good news helped shoot Scorpio’s share price up nearly 15 percent, to $0.165 per share, on Monday morning.
Initial drill testing of the target was done over a 200-meter strike length and intersected significant mineralization in seven of nine drill holes. Drill hole MR141107 shows the most significant mineralization at 31.79 g/t gold over 4.57 meters within 15 meters of the surface. According to the company, the mineralization is believed to be along a northwest trend.
“The Physik discovery is a major achievement of our exploration team and represents the first blind discovery at Mineral Ridge. Unlike all of the previously known deposits and exploration targets on the property, there is no surface expression of gold mineralization in the Physik area,” said Peter J. Hawley, CEO of Scorpio Gold, in a statement.
The Physik target measures about 680 meters by 740 meters, and was discovered after the company started an 810 line kilometer heli-borne VTEM plus time domain survey — a form of electromagnetic surveying.
Monday’s discovery, Hawley said, was made using remote sensing techniques combined with geological interpretation, and has led the company to believe that there could be new mineralization across the property.
The other holes reported Monday range from 6.1 to 108.2 meters and hit ranges of 0.34 to 0.77 g/t gold.
The company expects to achieve commercial production of 40,000 to 45,000 ounces of gold this year at Mineral Ridge. The third quarter saw 11,228 ounces of gold and 4,911 ounces of silver produced. Gold production for the first nine months of 2014 is up 9.9 percent compared to the same time frame in 2013.
Securities Disclosure: I, Nick Wells, hold no direct or indirect investment in any of the companies mentioned in this article.
