Exploration Drilling Results At The Oromonte Satellite Deposit

VANCOUVER, BC - Scorpio Gold Corporation reports initial results from its 2016 exploration drilling program on the Oromonte satellite deposit at the 70% owned Mineral Ridge project, located in Nevada.

The Oromonte target occurs over a 300 x 500 meter area situated between the Solberry and Wedge deposits. A small mineral resource estimate containing almost entirely Indicated resources was reported for Oromonte based on 53 reverse circulation ("RC") drill holes.

Drilling in 2014-2015 intersected significant mineralization at vertical depths ranging from near surface to 80 meters depth across the target area. A notably higher-grade zone of mineralization occurs along the western edge, ranging in vertical depth from 100 to 150 meters. Drilling in 2016 is targeting extension of the mineralization along strike and down dip.

The mineralization at Oromonte is interpreted to be a continuation of the mineralized horizon(s) between the Solberry and Wedge deposits that have been offset by normal faulting. The occurrence of a higher-grade zone of mineralization at depth is thought to be related to a rheological contrast between the basement granite and a later intrusion of alaskite (leucogranite). The difference in deformational behavior of the two rock types under stress may have caused greater structural damage and fluid flow within the mineralizing structures in this area, resulting in a higher-grade zone of mineralization. The Toromont deposit was subsequently down-dropped by late-stage normal faulting. A generalized geological model of the mineralization is presented here: Oromonte Cross Section.

Although not accessible by open pit mining, the deeper mineralization at Oromonte may be amenable to underground extraction should further results support underground development. Historical underground workings occur in the Wedge deposit area approximately 180 meters to the east.