Scorpio Gold pulls C$10.8 million together to propel Nevada exploration

On site this year with Ben Frieman from the Colorado School of Mines and Larry Martin, who worked at Manhattan for former operator HIMCO decades ago. Photo credit: Scorpio Gold

Gold

Scorpio Gold pulls C$10.8 million together to propel Nevada exploration

The company is aiming to grow its gold resource from a defined 740,000 ounces to 2 million

Rowan Dunne

Published

1 hour ago

Scorpio Gold Corp (CVE: SGN) (OTCMKTS: SRCRF) (FRA: RY9) is aiming to bring gold production back to a past-producing site in Nevada. The company controls the Manhattan District in the Walker Lane Trend and currently works to develop it into a functioning operation again.

It holds several former open pits along with a mill site and supporting infrastructure. The goal centres on using modern exploration to define and expand gold resources at the location.

On Jul. 23, Scorpio closed a public offering that raised C$10.8 million in gross proceeds. It plans to direct most of these funds toward exploration activities at Manhattan to increase the size of the defined gold resource.

Teams have carried out extensive drilling at the site in recent months, generating data that supports this next phase of work. It is currently 26,000 metres into a 50,000 metre campaign.

The project has a lengthy production history that started in the late 1890s and continued with interruptions into the 2000s. Scorpio Gold acquired and consolidated the main assets in recent years, gaining permitting approvals and water rights in the process.

Funding builds on site’s MRE release

This financing comes after the company’s inaugural mineral resource estimate for Manhattan, which it released in September. The estimate covered the Goldwedge and Manhattan Pit areas and included 18.34 million tonnes grading 1.26 grams per tonne gold for a total of 740,000 ounces in the inferred category. This is more than double the average grade in the state, the company says.

Observers noted the grade level compared with many other open-pit projects in Nevada, and the results prompted positive interest from investors who saw scope for additional drilling to expand the resource. Scorpio aims to grow the defined precious metal resource to 2 million ounces by the end of 2026.

Similar resource developments have taken place at other sites across Nevada in recent months. NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) just published a maiden gold-antimony MRE at its Limo Butte project. Additionally, McEwen Inc (TSE: MUX) (NYSE: MUX) (FRA: US8) has reported progress on resource work at the Gold Bar complex, supported by ongoing drilling. Integra Resources Corp (NYSEAMERICAN: ITRG) (CVE: ITR) (FRA: IRV) also completed an updated resource and reserve statement at Florida Canyon that informed a feasibility study outlining planned production.