Scorpio Gold Announces Sonic Drilling and Metallurgical Program to Evaluate Reprocessing Opportunity at Manhattan

Original announcement by newsfile on

Company
Scorpio Gold Corporation
Ticker
SGLD
Exchange
Unavailable
Region
Nevada, USA
Primary commodity
Gold
Secondary commodities
Silver
Document categories
Resource update, Metallurgy, Drill results
Extracted
2026-09-17 09:47:30 UTC

Analysis by Minestarters Atlas

Minestarters Atlas analysis

Summary

Scorpio Gold has engaged SLR International to conduct a sonic drilling and metallurgical program at its Manhattan District in Nevada. The program aims to evaluate the reprocessing potential of historic tailings, waste dumps, heap leach pads, and low-grade stockpiles for potential toll milling opportunities.

Reasoning: The company is initiating a two-phase program to quantify and characterize historic waste material for potential toll milling, representing a low-capex growth opportunity.

Positive factors

  • Near-term organic growth potential via reprocessing
  • Use of industry-standard sonic drilling for unconsolidated material
  • Strategic proximity to operating mills

Negative factors

  • Surface material not yet categorized as a mineral resource
  • Uncertainty regarding economic viability of reprocessing

Facts used in scoring: 3

Classification and evidence

Nearology Playneutral

Value premise rests on proximity to a known deposit rather than own results.

Why it applies: The project is located 15km south of the operating Round Mountain Gold Mine.

Evidence · text

“lies approximately 15 kilometers south of the operating Round Mountain Gold Mine”

Inferred Resourcenegative

Speculative category — limited drilling, geological continuity assumed but not confirmed. Cannot support economic studies alone.

Why it applies: The Maiden MRE for the Goldwedge and Manhattan Pit areas is entirely in the inferred category.

Evidence · text

“comprised of 18,343,000 tonnes grading 1.26 g/t gold for a total of 740,000 oz contained gold in the inferred category”

Historical Estimate Onlynegative

Estimate pre-dates or does not comply with current JORC/NI 43-101 standards — requires verification drilling.

Why it applies: The release mentions a Historical MRE that is not being treated as current due to lack of modern QA/QC.

Evidence · text

“The Company is not treating the Historical MRE as current.”

Heap Leach Routeneutral

Processing via heap leach — lower CAPEX and OPEX, lower recovery expected.

Why it applies: the document describes a heap_leach route ("heap leach")

Mill Routeneutral

Processing via mill or concentrator (CIL, CIP, tank leach, flotation).

Why it applies: the document describes a flotation route ("flotation")

Gravity Routeneutral

Gravity separation forms a material part of the flowsheet.

Why it applies: the document describes a gravity route ("gravity")

Single Domain Onlynegative

Testing limited to one composite or domain — representativeness not established.

Why it applies: only one composite was tested

Extracted facts

Stored fact records: 3. Some facts used in scoring do not have a stored record.

Resource Estimates (2)

inferredManhattan · goldTonnes: 18343000Grade: 1.26Grade Unit: g/tContained Metal: 740000Contained Unit: ozView all details
Link to this fact

Identity

Project
Manhattan
Commodity
gold
Region
usa_nv
Reported Region
Nevada, USA
Ticker
SGLD

Resource scope

Estimate type
resource
Effective date
2025-06-04T00:00:00.000Z
Reporting standards
ni_43_101
Resource group id
resource:121a0981e254b7d5f762
Deposit or zone
Goldwedge and Manhattan Pit areas
Mining method
open_pit
Ownership percent
100 %

Resource Data

Category
inferred
Tonnes
18343000
Grade
1.26
Grade Unit
g/t
Contained Metal
740000
Contained Unit
oz

Prior Estimate

Resource Date
2025-06-04

Review

Needs Review
No
Historical
No

Dates

Event date
2026-09-17T00:00:00.000Z

Reasoning: Maiden MRE for Goldwedge and Manhattan Pit areas.

Positive factors

  • Large tonnage reported

Negative factors

  • 100% Inferred category

Evidence · text

“comprised of 18,343,000 tonnes grading 1.26 g/t gold for a total of 740,000 oz contained gold in the inferred category”

Tags used in scoring

Inferred Resourcenegative

Speculative category — limited drilling, geological continuity assumed but not confirmed. Cannot support economic studies alone.

Why it applies: category is "inferred"

Cut-off Undisclosednegative

High-grade interval reported without stating the cut-off grade used for compositing.

Why it applies: no cutoff_grade was stated

NI 43-101 Compliantpositive

Resource estimate prepared in compliance with NI 43-101 (Canada) — high reporting standard.

Why it applies: reporting_standards includes ni_43_101

inferredManhattan · goldTonnes: 1652325Grade: 5.89Grade Unit: g/tContained Metal: 312900Contained Unit: ozHistorical resultNeeds review: historical_restatementView all details
Link to this fact

Identity

Project
Manhattan
Commodity
gold
Region
usa_nv
Reported Region
Nevada, USA
Ticker
SGLD

Resource scope

Estimate type
resource
Resource group id
resource:9d8f315f6e98db5d1194
Deposit or zone
Black Mammoth, April Fool, Hooligan, Keystone, and Jumbo areas

Resource Data

Category
inferred
Tonnes
1652325
Grade
5.89
Grade Unit
g/t
Contained Metal
312900
Contained Unit
oz

Review

Needs Review
Yes
Review Reason
historical_restatement
Historical
Yes
Historical Source Date
1997-01-01T00:00:00.000Z

Dates

Event date
2026-09-17T00:00:00.000Z

Reasoning: Historical MRE covering multiple areas.

Negative factors

  • Not treated as current
  • Prepared prior to current CIM standards

Evidence · text

“comprises 1,652,325 tonnes grading 5.89 g/t gold for a total of 312,900 oz contained gold”

Tags used in scoring

Inferred Resourcenegative

Speculative category — limited drilling, geological continuity assumed but not confirmed. Cannot support economic studies alone.

Why it applies: category is "inferred"

Cut-off Undisclosednegative

High-grade interval reported without stating the cut-off grade used for compositing.

Why it applies: no cutoff_grade was stated

Stale Estimatenegative

Effective date is >2 years old — data currency concern, may not reflect current geological understanding.

Why it applies: effective date is 29.7 years before this release

Metallurgical Results (1)

cyanide shake testingManhattan · goldView all details
Link to this fact

Identity

Project
Manhattan
Commodity
gold
Region
usa_nv
Reported Region
Nevada, USA
Ticker
SGLD

Test Work

Program Status
scoping
Test Type
cyanide shake testing
Sample
Surface material from heap leach pad, tailings, waste dump, and low-grade stockpile

Lab

Laboratory
SLR International Corporation

Review

Needs Review
No
Historical
No

Dates

Event date
2026-09-17T00:00:00.000Z

Reasoning: Planned head characterization to determine suitability for toll milling.

Positive factors

  • Comprehensive testing suite planned (Au, Ag, S, cyanide amenability)

Negative factors

  • Testwork is in early characterization stage

Evidence · text

“Head characterization test work consisting of total gold and silver assays, LECO sulfur analysis, and cyanide shake testing”

How Atlas produces this analysis

Minestarters Atlas uses automated extraction to summarize mining announcements, identify reported measurements, and classify supporting evidence. Sentiment reflects the extracted narrative and classification rules; it is an interpretation, not a reported measurement. Evidence quotes and context are provided where available. Missing data, low-confidence results, and review flags indicate limitations. Check the original publisher announcement before relying on an interpretation.