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Thursday, Aug 28, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Scorpio Gold shifts Nevada mining priorities with US$7.5M sale
Scorpio Gold shifts Nevada mining priorities with US$7.5M sale
Crushing facility at Mineral Ridge. Photo credit: Scorpio Gold

Gold

Scorpio Gold shifts Nevada mining priorities with US$7.5M sale

Divesting the Mineral Ridge project will free up cash for Scorpio’s Manhattan operation

Scorpio Gold Corp (CVE: SGN) (OTCMKTS: SRCRF) (FRA: RY9) has finalized the sale of a non-core mining asset in the state of Nevada. It was sold to an anonymous buyer.

The junior gold producer/explorer has obtained US$7.5 million by divesting its Mineral Ridge project. Funding acquired will be used to propel exploration activities at its flagship Manhattan operation on the path to producing a mineral resource estimate by the end of the quarter.

“The successful closing of the Mineral Ridge sale marks a pivotal milestone for Scorpio Gold,” said CEO Zayn Kalyan.

Production ceased at Mineral Ridge in late 2017 due to economic factors, low precious metal prices and delays with new permits. It has historically produced approximately 575,000 ounces of gold. Just under half of that quantity came from Scorpio’s open pit operations from 2010 onward and the remainder from previous operators.

Scorpio is now shifting its focus to the Manhattan project with an improved balance sheet. A drill campaign has been ongoing at the site since April. The property is extensive, spanning over 6,070 hectares. Manhattan’s key features include two-past producing mines and two sizeable gold deposits.

The operation sits in close proximity to the Round Mountain operation run by Kinross Gold Corporation (TSE: K) (NYSE: KGC). Scorpio acquired four past-producing pits in the Manhattan District from the gold major in 2021 that form a significant portion of the broader mine site. 

“Manhattan could be host to a multi-million-ounce gold deposit, and we believe the transaction will allow us to accelerate our vision for defining that deposit,” said Kalyan on Jul. 24 before this week’s finalization of the sale.

Metallurgical studies are currently in progress. The company mascot, Bugaboo, has been a source of inspiration for ongoing activities.

Read more: Antimony recovery results from NevGold’s Limo Butte project exceed expectations

Scorpio intercepts long interval of gold mineralization

This week yielded another notable announcement from the company.

Scorpio just intercepted 1.24 grams per tonne gold over a considerable length of 92.81 metres. This hole contained richer intervals as well, including 3.96 g/t Au in a 4.06 metre section and 1.79 g/t Au throughout 11.89 metres.

These latest results were produced from a zone that has never been drilled, spanning 200 metres.

“This unexplored zone is the nearest term opportunity to add follow-on inventory to the upcoming compliant mineral resource estimate,” VP of Exploration, Harrison Pokrandt, highlighted in a press release on Aug. 25.

Eleven diamond drill holes have been completed since the campaign commenced, totalling 3,820 metres.

Scorpio isn’t the only Nevada junior to intercept lengthy intervals of gold mineralization in recent months.

In late June, NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) pulled 2.85 g/t gold equivalent (2.27 g/t Au and 0.13 per cent antimony) over 60.3 metres.

The unprecedented value of precious metals and antimony has made development-stage assets held by mining companies like these more economically feasible than years past.

Read more: NevGold’s latest Nevada drill results show exceptional gold mineralization

 

NevGold is a sponsor of Mugglehead news coverage 

 

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