Scorpio Gold Corp (CVE:SGN) has started 2017 with gusto and the newsflow looks set to continue.
Recent activity has seen it draw a line under a legal dispute and begin work in a bid to increase output from its Mineral Ridge gold project.
So what are its assets?
The miner holds 70% of the producing Mineral Ridge gold mine in Esmeralda county, Nevada, while joint venture partner Elevon has 30%.
It is a conventional open-pit mining and heap-leach operation, which has produced over 188,000 ounces of the yellow metal since it reached commercial production in 2012.
Scorpio also has all of the Goldwedge property in Manhattan, Nevada, which has a fully permitted underground mine and 400-tonne-per-day mill facility.
The firm has now kicked off drilling on a heap leach pad at Mineral Ridge in a bid to potentially recover up to 130,000 ounces of gold as there is a short remaininbgb mine life
The work involves sinking 34 holes to sample around 6.3mln tonnes of mineralized material contained within the pad. These will then be analysed to decide if the material is amenable for further gold recovery using milling processes.
Based on its own estimates, the miner reckons that the pad contains around 6.3 million tonnes of material grading 0.61 gram per tonne, for an estimated remaining gold inventory of between around 120,000 and 130,000 ounces of gold.
Looking to expand at Mineral Ridge
Reporting 2016 results, the group noted the short remaining mine life at Mineral Ridge and that it currently anticipates mining to August this year, and due to permitting timelines, expects output of 20 - 25,000 ounces..
Due to this short remaining life of mine, the group said it was taking initiatives to extend the life through additional drilling to expand its resources, applying for permits to expand and extend current operations of new and existing pits, expanding the heap leach pad, and conducting a drilling program on its leach pad to determine if the leach pad material is amenable for further gold recovery using milling processes.
The miner produced 36,879 ounces of gold in 2016 compared to 39,690 ounces during 2015. Net earnings for the year were $339,000 versus a loss of $17.9mln in 2015.
Custom mill deal could lead to long term relationship
Last month the group inked a letter of intent with Lode-Star Mining Inc for a custom milling deal at its Goldwedge processing facility, 75 miles north of Goldfield in Manhattan, Nevada.
The Goldwedge mill is a 400 ton per day facility with an associated gravity recovery circuit. Testing of Lode-Star's mineralized material is expected to begin in first quarter 2017 and is pending receipt of approval from the Nevada Division of Environmental Protection (NDEP).
"We hope to develop a long-term relationship with the Lode-Star team and we continue to look for other synergistic opportunities within our surrounding area," Scorpio had said.
Drawing a line under legal proceedings
In February, Scorpio reached a settlement with National EWP Inc.
It emerged that Scorpio will pay US$1mln to end the dispute between National and Mineral Ridge LLC, the70%-owned subsidiary of Scorpio and the operator of the Mineral Ridge gold operation. A prior ruling indicated that Scorpio may have had to fork out US$2.3mln to bring the litigation to a close.
The company and its lawyers appealed the verdict but had to provide the cash as a deposit pending the outcome.
As a result, the courts have returned US$1.3mln to Scorpio , which it said would be used to further advance its Nevada properties.
Shares added over 6% on the day, to $0.08.