Issue link: http://resourceworld.uberflip.com/i/162873
The plant can serve as a profit centre, enabling Scorpio Gold to commence toll milling for other mines in the area. Raw ore from Mineral Ridge may be trucked for processing at Goldwedge, while tailings from Goldwedge may generate additional production on the leach pad at Mineral Ridge. A number of options are being considered. Meanwhile, the company also plans to carry out confirmation drilling and complete a resource estimate to bring the historic Goldwedge resource up to compliant reporting standards. The longer term objective is to move the project forward to enable mining activity to resume at Goldwedge. The second new acquisition in the deal was the Pinon property, located at the southern edge of the historic Carlin Trend. This project also features a historic near surface gold resource that has attractive economic potential and will eventually be updated with a compliant resource report as the first stage towards a future development plan. Scorpio Gold has been cash flow positive and profitable for the last five consecutive quarters, and is emerging as a solid growth story in Nevada. The company was able to report much higher total gold production numbers in the first quarter of 2013, while at the same time unit costs have dropped. This is even more impressive considering that most of the peer group of junior producers have seen operating costs increasing. The new crushing plant only recently commenced operation and should contribute to even lower unit costs going forward. The final icing on the cake has come from higher grade gold zones that are being extracted compared to the documented mineral inventory at Mineral Ridge. The earnings generated by this improved operating strength have contributed to a working capital position of $6.5 million. This will help serve as an added measure of security during this prolonged correction that has put pressure on the entire sector. The company has issued production guidance for at least 32,000 ounces of gold during the year while it moves ahead with its longer term growth plan that was secured by the acquisition of Goldwedge and Pinon. n SEPTEMBER 2013 TSX.V: KTN Promontorio Silver Project, Sonora, Mexico A MINE IN THE MAKING • Drill and Resource Expansion Program Underway • Targeting Newly Identified High-Grade Silver Zone • 92 Million Ounce M&I NI 43-101 Silver Equivalent Resource Established • M&I = 44,504,000 tonnes grading avg. 64.32 gpt Ag Eqv. (27.77 gpt Ag, 0.35 gpt Au and 0.87% Pb+Zn) • Diatreme System, Closing in on 100+ Million oz. Silver Eqv. Milestone • Recent $4.75M Investment by Mining Leader Agnico-Eagle www.kootenaysilver.com For more information call 604.601.5652 or toll free 1.888.601.5650 www.resourceworld.com 37