Scorpio Gold Stock Rises on Expansion Drilling Results from NW Brodie Trend

Scorpio Gold (TSXV:SGN) kicked off the week with encouraging results from 2015 expansion drilling on the NW Brodie trend at its Mineral Ridge project in Nevada.
The program, which included infill, development and exploration drilling, was aimed at expanding and upgrading the current mineral reserve and resource base, as well as potentially extending the project’s mine life.
The company believes the results are very promising and could potentially allow for a new resource in the area. One key highlight is hole MR151451, which intersected 17.07 g/t gold over 1.5 meters. According to the company’s press release, further results are as follows:

• MR151452: 2.44 g/t gold over 6.10 meters
• MR151484: 2.91 g/t gold over 6.10 meters
• MR151522: 5.89 g/t gold over 6.10 meters
• MR151523: 1.09 g/t gold over 12.19 meters
• MR151562: 1.35 g/t gold over 22.86 meters
• MR151563: 2.63 g/t gold over 4.57 meters
• MR151564: 3.87 g/t gold over 4.57 meters
• MR151566: 2.93 g/t gold over 7.62 meters
• MR151569: 3.28 g/t gold over 6.10 meters

The company said that the exploration drilling in 2015 will continue along the NW Brodie trend, which is a semi-continuous mineralized corridor that is up to 300 meters wide and extends over a 500-meter strike length between the Brodie and Bluelite deposits. The area is well out of the current defined resources and modeled pit outlines.

More positive drill results

This isn’t the first expansion drill program the company has done. In fact, on July 20, Scorpio Gold released results from 2015 expansion drilling at the Bluelite satellite deposit target area; that program is also aimed at expanding and upgrading the current mineral reserve and resource base.
Highlights from this last phase of exploration drilling at Bluelite include hole MR151450, which intersected 2.03 g/t gold over 6.1 meters, and hole MR151511, which intersected 1.47 g/t gold over 7.62 meters. In addition, 4.18 g/t gold over 9.14 meters was found in hole MR151535.

Scorpio Gold stock up

Monday’s news sent Scorpio Gold stock up by 22.22 percent to hit $0.11; it later settled back at $0.09. And while that might sound a little discouraging, it’s worth noting that the company will likely be releasing more news in the near term.
For one, Bluelite is undergoing pre-production development work, with open-pit production scheduled to start there in the third quarter of this year. For another, the company recently ramped up gold production at Mineral Ridge, reporting a 7-percent increase in the first half of 2015 compared to the year-ago period. The company’s total production for Q2 2015 reached 8,738 ounces of gold and 3,591 ounces of silver, and for the whole year Scorpio anticipates total output of 40,000 to 45,000 ounces of gold.
 
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.