Revamped company now unlocking two Nevada treasure chests….

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Unlocking Two Nevada Treasure Chests

After a recent makeover that brought in new management and injected C$6 million into the company, Scorpio Gold (SGN.V; SRCRF.OTC) is poised to unlock the potential of not one, but two rich gold deposits along Nevada’s Walker Lane Trend.
 

With plans to quickly release a resource estimate on one project and drill test the exploration potential of the other, now is the time to begin taking a closer look at Scorpio Gold.

Sometimes a company needs a reboot.

That’s certainly the case with Scorpio Gold (SGN.V; SRCRF.OTC), which despite having two advanced-stage gold assets in Nevada, had been languishing.
 

Then, this past February, the company underwent a three-way amalgamation with Altus Gold that injected C$6 million in new capital into the company and brought in a fresh management team determined to take a new approach to those assets.

With the funds and the vision to power ahead, Scorpio Gold looks on the verge of a short-term price re-rating.
 

More importantly, it has a long-term vision for exceptional growth through the drill bit.

As you’re about to see, Scorpio is aggressively working towards putting out a resource estimate for its Manhattan Goldwedge project and has a fully permitted mine at Mineral Ridge that it is able to grow through drilling and further exploration.

It’s a pair of underappreciated assets in a terrific mining jurisdiction that finally look like they’re going to get their due.

Sharp-eyed investors need to pay attention to this opportunity, as Scorpio Gold is primed for big things.

Manhattan Goldwedge:
A Long-Awaited Resource On The Way

Scorpio’s Manhattan Goldwedge project is located along Nevada’s Walker Lane Trend and is the result of a combination of the Goldwedge project with the 4,300-acre Manhattan project acquired from Kinross in 2021.
 

The 2021 acquisition included the historic Echo Bay open-pit mine. Kinross liked the Manhattan project. It held it for 25 years and invested millions in exploration. The major only sold it as part of a process of slimming its North American portfolio.

Between Kinross’ work and Scorpio’s two-phase, 2021-2022 drilling program, the project has been plied with over 1,200 holes and 100,000 meters of drilling. That work has outlined multiple, closely-stacked lenses of gold starting at surface.

As it stands, all the new Scorpio needs to do is model all drill and historic data and conduct the necessary confirmation drilling to fully understand the structure and metallurgy.

The goal is to publish a resource that the new team believes will wake up the market to this project’s reality and potential and ultimately spark a rerating for the company.

Tremendous Room To Expand

Better still, there’s significant room for growth via the drill bit at Manhattan Goldwedge. The pits on the property have only tapped the most obvious surface lenses.

Additional mineralization abounds and, critically, the entire project lies on the southern end of the Manhattan Caldera structure.

That’s key, because a newer, important setting for gold in Nevada is where major structures cut the rim of a caldera.

Kinross’s prolific Round Mountain Mine (15 million ounces of gold produced and counting) is located on the north side of the Manhattan Caldera, and Manhattan Goldwedge is located on the south side.

The Reliance Fault Gold Trend and its splay transect the Manhattan Caldera on its southern end.

As the map above shows, the Reliance Fault zone and its splay run through the Manhattan Goldwedge project and cut the same caldera as Round Mountain, which raises the question: How much more gold lies on the Manhattan Caldera’s southern end?

Scorpio Gold is about to find out.

Mineral Ridge:
Existing Resource, Big Undrilled Potential

Meanwhile Scorpio’s other project, Mineral Ridge, has full permitting and licenses and has produced more than one million ounces of gold since the mid-19th century.

The most recent production was by Scorpio, which produced 293,000 ounces of gold from the mine between 2010 and 2017.
 

The problem was the project had expensive and complex metallurgy that made it difficult to turn a profit.

That said, a 2018 feasibility study on Mineral Ridge showed the potential to recover 250,500 ounces of gold using a 4,000 tpd ball mill and carbon-in-leach cyanidation based on a $1200/oz gold price.

Moreover, the study showed a 106% increase in NPV with a 20% increase in gold price to $1,500/oz. At current trading levels of between $2,000 and $2,200, the economics and in-ground resource increase extraordinarily.

Scorpio plans to update the feasibility study based on the current gold price. The resulting increase in potential production and economic returns stand to make a big splash in the market.

Then there’s the undrilled exploration potential at the adjacent North Star property: Scorpio sees the potential to locate the source of Mineral Ridge’s gold at North Star.

With the concerted drilling effort it plans, Scorpio hopes to find the feeder for Mineral Ridge at North Star and to find it hosted in less metallurgically challenging rocks than that historic mine.