Scorpio Gold Expands Manhattan as Caldera Targets Continue to Deliver

0:15Zayn Kalyan: Welcome back to Mining Stock Daily. Ian Wagner here with a corporate update from our friends at Scorpio Gold. Scorpio is a gold developer in Nevada, currently developing the Manhattan Gold District. They have a previously published maiden resource estimate of 740 ,000 ounces of gold and are in the midst of 50 ,000 meters of drilling in calendar 2026. They're listed on the TSX Venture under the symbol SGN and on the OTCQB under the symbol SRCRF and hopefully soon on the NASDAQ, but we'll cover that shortly. We've covered the Scorpio story for quite some time now, so I would encourage any new listeners to go back and listen to previous episodes to dig deeper.

1:00Zayn Kalyan: Today with us, we have Zane Callian, the CEO of Scorpio Gold, to talk about today's new recent new drill results and other corporate developments. Zane, good to see you. Welcome back to the podcast. Great. Thanks for having me and excited to be here. Yeah, and since nobody but me can see you, I just know you are on site in Nevada and in the mine. How are things? Usually I'm talking to you in Vancouver, so give everybody kind of a sense of what you're down there doing, just what you're looking at, how things are going there. Yeah, no, I'm sitting here in the office at the Gold Wedge Mine today.

1:36It's exciting times. We obviously have gotten some great traction with the drill results over the last six months and especially with even in the last six weeks. We've had a lot of great results that have come out of the project, and we're very excited to kind of keep that going alongside, obviously, the financing that we closed nearly a month ago. Yeah, no, it's exciting times. The crew is very, very busy, really just trying to kind of get a handle on what our plans are for the next six months, how we're going to orientate the drill, where we're going to be focusing all of our efforts from a resource expansion perspective.

2:15Alongside that, we're also doing some work on really examining the tailings opportunity that I think we briefly discussed a couple weeks ago. And yeah, it's just, it's good to get down here, get with the team, really kind of hunker down and really make a plan for where we're going to take, where we're going to go for the rest of 2026 and then ultimately where we're going to go into 2027.

2:39Zayn Kalyan: Yeah, you guys have been putting out drill results very consistently this year. I know that was a goal of yours to be to increase your cadence of communication to the market. And at times, I think you've had three rigs on site for a while now with some thoughts about going, maybe going to five. What, where are the drills right now and how many do you have on site? Yeah, so we currently have three diamond drills on site, continuing that same cadence that we've been putting out results from the first half of this year. We want to continue that same cadence through the rest into the end of this year.

3:13Yeah, the three drills ongoing, really focused in and around the Gold Wedge area, Zanzibar trend, Black Mammoth. We're very anxious to get a drill out to Keystone Jumbo, which we hope will be imminent in the imminent future. And then there's obviously still some kind of areas in and around the past producing Manhattan pits, the ICP pit, and just to the edge of the West pit that still are low-hanging fruit and opportunities that I wouldn't necessarily categorize as infill, but are truly additive and have the potential to really add meaningful ounces towards our ultimate goals. All right.

3:54Zayn Kalyan: Well, yeah, let's jump into some of those drill results, right? You just put out news this week, more drill results coming from Gold Wedge, Zanzibar, Reliance Trend, four holes, a couple highlights, right? And then maybe you can unpack kind of the context of what you guys took away. Hole 109 at Gold Wedge, 2.83 grams per ton gold over 11.89 meters and 9.46 grams per ton gold over 8.72 meters from 126 meters down. uh hole 114 along the zanzibar trend 15.28 grams per ton gold over two and a half meters um and 0.98 grams per ton gold over 23 meters so good numbers here i guess and the big story right is these these volcanics right these volcanic volcanic are no longer barren the uh you know hole 109.

4:49Zayn Kalyan: Um, it, it, that's the, that Manhattan caldera volcanics, right? So you guys noted that, well, let me, let me ask it this way. How, how big of a deal is this internally? And like, you're calling those volcanic targets, its own target. Now, what does this sort of open up for you guys in terms of how you're thinking about the model? Yeah. So we're starting to kind of term that volcanic opportunity, which we've, we've kind of highlighted in the past is really being much closer to the style of mineralization that exists around Mountain, where you have these various, very porous volcanic units that have widely disseminated gold within them.

5:29And as we've kind of started to see more of these mineralized volcanic units in the north end of Gold Wedge drilling into the caldera margin and the same at Black Mammoth, it really has kind of changed the opportunity and really given us a lot of confidence that as we step further into the caldera, which is what we're ultimately calling this whole new opportunity, that there is the potential for a much larger scale system with much wider dissemination akin to the style of mineralization that exists at Kinross's Round Mountain. So how big of an opportunity? Today, our package of caldera, what is structurally mapped as caldera, is 4.37 square kilometers.

6:19So it's fairly significant. It has the potential to be very, very additive. It remains to be seen how much of that caldera is truly mineralized, and there still is a lot of work to be done to really unlock that, like really get a better understanding of how big it could be. But yeah, from a, call it, geographic kind of bulk size of how large this land package is and how much ground there is to explore, it's fairly significant. And if we can further define mineralization within that package, it will become, it does have the potential to be truly, truly transformative.

6:57Zayn Kalyan: So maybe just a strategy question then, in terms of your drills and what you've got, why not just stay there, drill out those calderas rather than going to Jumbo or Hooligan or April Fool? Talk through kind of that decision and maybe you have, you know, too many targets is a good thing, but how are you thinking about that? Yeah, so it does take some time to really understand. Like we obviously need more data on the caldera and really we do need to do more surface mapping and really have a better idea of how to actually target it. So it's still early days. There's also some permanent considerations with being able to get out there.

7:35But what I would say is that things like April Fool's, Black Mammoth, Keystone Jumbo, they are much better understood. They have historic resources on them. We're not kind of going into them completely blind. Whereas the caldera opportunity is previous operators have always thought the caldera, have always thought the mechanics to be barren. So there's significantly less historic work there. So the drilling and the work that we would be doing out there, we still need to do a lot more. And we'd be functionally significantly, we'd be operating with significantly less information than we are. So it's not as easy a layup in terms of being able to define mineralization, whereas April Fool's Keystone Jumbo, those are much more developed targets.

8:20Zayn Kalyan: Those would be that low hanging fruit where you have that historical work and you can kind of convert that with your drilling a lot easier than, say, just, you know, these brand new drilling right there instead of the Caldera. Is that right? Yeah, correct. Yeah. Okay. And so, you know, another hole, you guys have talked about this gap zone before. Hole 112 was a 50 meter step out in the gap zone, that area that ties gold wedge to the reliance trend and the historic West pit. Came in at a lower grades, the 0.28, 0.26, step down from what had been previously you guys had drilled. Is that continuity concern or problem or it just maybe clipped the edge of something?

9:01Zayn Kalyan: Like, how do you think about that and how does that treat what you guys are doing? Yeah, still above cutoff from our perspective. But yeah, it's really just trying to better understand exactly how the blocks hang and how the structure actually hangs. So it's kind of testing the edges of it and really, it just like with any kind of drilling, you kind of need to get a better understanding of structure. And it's kind of the nature of low sulfidation epithermal vein cell deposits that you have. The structure can be complex. So it's just really the more we drill, Like, obviously, we've started to get a much better understanding of the structure, and that's allowed us to be able to kind of deliver much stronger results consistently.

9:41But you're not going to hit those same wide intercepts in every hole without there being some risk and trying to understand everything.

9:49Zayn Kalyan: So you guys have drilled now 109 holes, I think, and about 32 ,000 meters of your phase two, 50 ,000 meter program. You've got some holes pending. Kind of walk us through kind of the back half. You know, are you still targeting that 50 ,000 meters? Where does the data cutoff kind of land for that resource update that you guys have targeted around either the end of the year or early 2027? Yeah, so still on track for, call it that, early 2027 resource update. Still targeting that 50 ,000 meters between now and the end of the year. So the total 50 ,000 and we're on track to do that with the same cadence drilling that we have going on today.

10:32So yeah, nothing really changes there. I think we're still very confident in that 2 million ounce target. And we just have to continue to perform and continue to deliver additive drill holes and additive ounces to the ultimate goal of expanding that resource.

10:50Zayn Kalyan: And 2 million ounces at that one gram per ton grade, right? that you've kind of noted. One gram per ton plus being kind of a core differentiator and what really makes this deposit special. Quick, while we're staying on resources, you know, silver, right? We talked a little bit about that. You know, in the news release, you guys repeated that you're analyzing the historic core and pulps for silver. And clearly that explained that no silver or gold equivalent has really been used in any results to date. kind of seeing any more silver come up? Have you got enough multi-element data back yet to say whether silver is going to be a real credit, you think, or still kind of open-ended question?

11:33It's TBD at this point. So we've recently received a significant amount of multi-element data for all of the drilling that we've done. And there was a little bit of a backlog with the lab on the multi-element. Now that we've received all of that data, we're in the process of analyzing and really try to understand it. there's some considerations to really understand kind of the association between gold and silver um and there's things to suggest that there's parts of the deposit where there's where there is association and parts of the deposit where you have silver that's somewhat independent so it's just really trying to get a better understanding all on all of that and it's still early days before we can really talk about that deeper okay and then um you know you guys

12:14Zayn Kalyan: had not noted that q3 you guys are going to be starting or maybe have started just metallurgy kind of looking at your metallurgical program. Still on track for that in Q3, 2026 and anything? I would say it's more realistic towards the end of this year, Q4, but it is all in process. The metallurgy is underway. And as we've kind of talked about historically, like there's so much historic production data, so much historic network, even the most recent modern network being done in 2012 by Kappas Cassidy, which is a prolific Nevada metallurgical lab. So by no means do we believe metallurgy to be a fatal flaw, but now that we are looking at a fully consolidated district that was historically separate, we do need to kind of look at the land package as a whole and really understand the stratigraphy a little bit better and what that ultimately looks like in terms of processing and what that will ultimately flow down to economics as we move into 2027.

13:12Okay.

13:13Zayn Kalyan: We'll catch up on that here later this year. NASDAQ listing, you guys announced plans for a NASDAQ listing, but not just your sort of regular shares. You're going to do American depository shares, depository shares. Kind of explain what that is, why that approach and just go and talk about what that will open up for you guys in terms of a new investor base. Yeah, so we recently put out some news regarding it that we are underway in pursuing that listing of the American Depository receipts or American Depository shares. We are hopefully getting very close to being able to complete that. Ultimately, the goals there are really to get a better exposure to the U.S.

14:00investor, both institutional and retail. We do feel that being a U.S. asset, we will be able to stand apart from many of our call it Canadian listed peers, whereas we'll be able to attract a much more domestic U.S. domestic audience to what's a very, what we believe is a very exciting growth story from an exploration perspective in Nevada. Yeah.

14:23Zayn Kalyan: All right. Makes sense. And then catalyst for the rest of the summer. I know we're almost into fall already, Zane, but what should investors or potential investors look for for you guys as we kind of round out the summer and move into fall? Yeah, just continue to draw results, continue to show the growth of that or work towards the growth of that resource. And then alongside that, obviously the NASDAQ listing, as we've highlighted, and network and ultimately working towards that resource update. I think we all hope that with the recent kind of uptick in gold that maybe we'll see a little bit of broader upward momentum in the market as a whole.

15:05And we hope to kind of be there to deliver, show that we're actively delivering a creative growth to the company in that climate. So it's hopefully going to be an exciting fall. Great.

15:18Zayn Kalyan: Well, we'll look to catch up with you as you guys release more results. And hopefully that, yes, that rising gold price and silver price kind of lifts, rising tide that can lift all boats. Thank you so much, Zane. I appreciate you coming by and giving us an update on where things stand. We'll catch up with you again soon. Great. Thanks. Sounds good, Ian. Thank you. That's Zane Callion, CEO of Scorpio Gold. They are listed on the TSX Venture under the symbol SGN and on the OTCQB under the symbol SRCRF.

15:57Zayn Kalyan: from any investment decision in connection with the material presented herein. Please do your own research or speak with a licensed financial representative before making any investment decisions.