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Scorpio Gold Announces Phase 1 Soil Sampling Program Results from Keystone-Jumbo Project at Goldwedge Property

Scorpio Gold Corporation ("Scorpio Gold" or the "Company") (TSX VENTURE:SGN) is pleased to report results from Phase 1 of its 2016 soil sampling program in the Keystone-Jumbo project area at its 100% owned Goldwedge property.

Scorpio Gold initiated a three-phased soil sampling program and ground magnetic/VLF electromagnetic survey over the Keystone-Jumbo project area in mid-2016. The geophysical survey was designed to assist in structural interpretation of the area and utilized 50 meter line spacing to provide high resolution of structural breaks. The soil sampling program is being conducted at 100 meter sampling intervals to detect anomalous gold mineralization in areas covered by overburden. In the Keystone-Jumbo area, overburden covers approximately 85% of the land position and typically ranges from 0 to 2 meters depth.

Phase 1 of the soil sampling program was conducted over the main area of interest that surrounds the historic Keystone and Jumbo mine workings. Geochemical analyses of the 149 samples collected have produced very promising results (Table 1). The original success criterion for this program was considered to be the discovery of a >15 ppb gold ("Au") soil anomaly. For reference, the average crustal abundance in this area is 1-5 ppb Au.

Table 1. Phase 1 Soil Sampling Program - Samples Returning 50 ppb Au

B Samples (2-80 mesh) C Samples (+80 mesh)
Sample ID Au (ppb) Sample ID Au (ppb)
GWSS-16-0017B 59.1 GWSS-16-0038C 86.8
GWSS-16-0022B 2640.1 GWSS-16-0042C 63.6
GWSS-16-0038B 132.7 GWSS-16-0058C 191.5
GWSS-16-0042B 75.9 GWSS-16-0070C 83.8
GWSS-16-0052B 409.1 GWSS-16-0078C 59.1
GWSS-16-0058B 216.1 GWSS-16-0079C 63.9
GWSS-16-0069B 62.2 GWSS-16-0081C 153.4
GWSS-16-0070B 85.6 GWSS-16-0082C 138.5
GWSS-16-0081B 457.1 GWSS-16-0098C 117.0
GWSS-16-0082B 101.9 GWSS-16-0106C 75.2
GWSS-16-0098B 97.1 GWSS-16-0117C 60.9
GWSS-16-0099B 83.6 GWSS-16-0132C 75.4
GWSS-16-0106B 90.7
GWSS-16-0117B 231.0
GWSS-16-0124B 50.2
GWSS-16-0132B 2844.7

The Phase 1 sampling results are particularly promising in light of the structural interpretation from the magnetometer survey. Results to date outline a 1,100 meter long soil anomaly that follows a distinct N30-45W trending structural break. This trend sub-parallels the N30W structure mapped in the Keystone pit, which is determined to be the main structural control to mineralization. These data correlate well with Scorpio Gold's surface geological mapping that has identified previously unknown NW trending structures in the same corridor. Documentation of prior exploration work does not recognize these significant structures, and they have yet to be tested despite the decades of prospecting in the region. Step-out soil sampling, additional detailed mapping and modeling is underway in support of actionable exploration targets within the mineralized corridor.

Phase 2 of the sampling program (completed) and Phase 3 (ongoing) will cover the remainder of the Keystone-Jumbo project area that was not subjected to ground disturbance during historical mining operations. Results will be released once received and compiled.

Plan maps showing the structural interpretation, soil sampling grids and results to date can be viewed in the following links:

Sampling Grids & Structural Interpretation: Grids & Structures

Phase 1 Soil Samples ≥ 50 ppb from B fraction (2-80 mesh): B Samples

Phase 1 Soil Samples ≥ 50 ppb from C fraction (+80 mesh): C Samples

The Jumbo and Keystone deposits are located approximately 4 km southeast of the Company's Goldwedge deposit. The Keystone open pit was mined by Nevada Goldfields in 1990 and reported 5,750 ounces recovered at 0.32 opt gold. The Jumbo underground mine/pit has no historically reported recovered gold ounces associated with it. New Concept Mining reported mineral resource estimates for both the Jumbo and Keystone deposits in May 1997; however, neither estimate is compliant with NI 43-101 and await verification.

Soil Samples - B and C Fractions

The soil samples are sieved into three size fractions, coarser than 2 mesh (A Sample), 2 mesh to 80 mesh (B Sample) and finer than 80 mesh (C Sample). The A samples were retained as a lithological reference, while the B and C samples were analyzed for both Au and tracer elements. The C samples are considered to be the better indicators for Au mineralization as Au is preferentially adsorbed onto clay minerals and the finer particle size reduces statistical errors and nugget effect. The coarser B samples, while also indicative for Au, are better representatives of geochemical tracer elements such as As, Hg, Sb, as their associated minerals are part of the host rock alteration assemblage that is better sampled using a coarser fraction.

Soil samples were prepped at Bureau Veritas in Reno, Nevada and pulps analysed at Bureau Veritas, Vancouver. Both are ISO 9001 certified testing laboratories and operate in compliance with ISO/IEC 17025:2005 standards. Further details are presented in the Company's quality assurance and quality control program for the Keystone-Jumbo project, available at: QAQC-KJ.


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