Scorpio Gold Corporation (TSXV:SGN) announced its operating results for Q2 of 2014 at its 70 percent owned Mineral Ridge project in Nevada. Scorpio intends to release an updated mineral reserve estimate and Life of Mine Study which will incorporate the Drinkwater, Mary/LC and satellite deposits on July 21, 2014.
As quoted in the press release:
Production at Mineral Ridge in Q2 2014 totalled 9,034 ounces of gold and 3,771 ounces of silver. Total gold production for the first half (“H1″) of 2014 stands at 19,328 ounces; an increase of 6.3% from H1 of 2013. The 2014 production forecast for Mineral Ridge remains unchanged at 40,000 to 45,000 ounces of gold (as reported in the Company’s February 13, 2014 news release).
Scorpio CEO, Peter J. Hawley, said:
We are in a planned period of transition at Mineral Ridge, as production from the Drinkwater pit winds down and production from the Mary pit increases, resulting in a dip in gold ounces produced during Q2 2014 compared to the previous year. In addition, gold head grades in Q2 2014 were lower than the same period in 2013, but not unexpected based on the mine plan for this transition period. Head grades are expected to return to average levels as per the current Life of Mine plan in H2 2014. Overall, we are very pleased with the operation’s performance in H1 2014.A stronger second half of 2014 is expected based on the above, and as gold inventory on the leach pad is further drawn down by a new, higher capacity carbon column recently installed in the ADR plant. We confirm our guidance of 40,000 to 45,000 ounces gold production at Mineral Ridge in 2014.