Scorpio Gold’s 98-Metre Gold Hit Sets Up Manhattan Resource Growth

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 this year. They are listed on the TSX Venture under the symbol SGN. And we've covered the Scorpio story now for some time, so I would encourage any listeners new to Scorpio to go back and listen to previous episodes to get an understanding of kind of how we got to where we are today.

0:52Zayn Kalyan: With us today is Zane Callion, CEO of Scorpio Gold. Appreciate the time. Zane, good to see you. Welcome back to the podcast. Thanks for having me and happy to be here. Yeah, it's been a few weeks since we spoke and a lot of news flow coming out of you guys. Let's kind of kick it off, I think, actually, just with kind of the biggest hole of this drill program for the year. Hole 110 at Gold Wedge, and you put out a press release a little bit ago, So 2.05 grams per ton over 97.99 meters from 64 meters. And that includes some very, you know, some really high grade sections or intervals there. 18.19 grams per ton gold over three meters, 11.4 grams per ton, 8.98 grams per ton.

1:37Zayn Kalyan: So why does continuous mineralized interval that you guys have put out today, maybe talk about the impact of that? Just this change how you think about gold wedge. I mean, just where does this kind of hole sit relative to the current pit shell? Just talk about that. Yeah, so obviously very good hole, very happy with those results. Gold wedge is the highest grade part of our current existing resource. Hole 110 was basically targeting an area where we had uncategorized blocks that we were if actually upgrading, upgraded them at a much higher grade profile than what we previously had there. There's still a lot.

2:19I think there's still areas within the Gold Wedge structure that can be further additive to the resource that can be upgraded and we're continuing to drill holes in that zone. But very happy with those results, just kind of show the contiguous grade that can be found within the Manhattan deposit. And the area in which we've been exploring with Zanzibar, Tran, Gold Wedge, and then Black Mammoth to the north into the caldera is really kind of all in that same trending zone. So it's just been, it's been great to kind of get those results. It's been great to kind of be able to show that contiguous nature.

2:52And we're very happy with kind of how things are progressing. Yeah.

2:55Zayn Kalyan: You mentioned Zanzibar. I mean, across the batch of holes that you released to 90, 99, 104, you're repeatedly hitting mineralization kind of right at that Zanzibar Gold Hill formation inside those breccias. Just talk about that, what that means as you build out the resource model. And then I guess, is it really crystallizing that that gold wedge Zanzibar Black Mammoth, that's really the focal point kind of for you guys right now as you drill out kind of the rest of this campaign? Yeah. So, well, I wouldn't say necessarily the rest of this campaign, but where we're currently focused is in that zone.

3:29Black Mammoth is the first distal target to the main resource that we've started to focus on. We've obviously had some success there starting to kind of target this volcanic opportunity where these are previously what was thought to be barren units in the volcanic as you get into the caldera. And we're starting to obviously see mineralization with that. The result I often highlight is that 0.6 over 62 meters that we put out a couple of months ago. And that was all in the volcanic unit at Black Mammoth. So continuing to kind of target that area. And then obviously getting to the end of Zanzibar trend, I think there's roughly about 50 meters, 75 meters of Zanzibar trend kind of left to drill of the total 300 meters of strike that we kind of defined as the core target.

4:13And then Gold Wedge just continuing to kind of drill some holes of Gold Wedge. Stepping back from that, though, our goal is by the end of August that we will be drilling up at Keystone Jumbo, which is a high grade target for us. Definitely a lot of historic, very promising historic results, promising historic resource that we would need to follow up on. So getting out to Keystone will kind of be that next step. But again, the core area that we have been really focus on has just been that that main Zanzibar Goldwedge Black Mammoth area.

4:43Zayn Kalyan: Yeah. And Black Mammoth, the calderas. I mean, that's what you've noted before that that type of mineralizations, you know, I don't know what legal term you can use. It certainly reminds you of that Round Mountain Kinross style just up the road. Right. And you're still seeing that as you guys get results. Is that is that fair to say? That is fair. Yeah, exactly. And like it's still early days and the scope of how large that potential, like the volcanic potential can be is remains to be seen, but it is very promising. The kind of contiguous nature of the, of the intervals that we've seen thus far.

5:17Um, and if that really does continue, then we'll be, it'll be very, there's a big opportunity for gross vault tonnage with that. Okay.

5:26Zayn Kalyan: Okay. Uh, switching gears a little bit, um, historic core, um, you know, back, I think in June, you kind of told us you, You are starting to review some historic core. You've got a result now. Hole 11-11, I think, drilled underground about 15 years ago at Gold Wedge in 2011. It looks like it was re-logged, re-sampled to return 8.59 grams per ton gold over six meters. I think you described it as kind of a gap fill in the Manhattan database. What color can you kind of add around that? and how many more of those gaps do you kind of expect to find as you kind of drill there and review that? Yeah, there was 400 ,000 ounces of uncategorized blocks across the entire resource that were being upgraded through drilling.

6:14A lot of that was in the Reliance Trends, some of which was in Gold Wedge. There's still a couple holes to go. There's still some areas within Gold Wedge that still have promise, especially to kind of get to the edges of it, into that caldera margin and towards Black Mammoth. So yeah, it's just continuing to drill those areas and continuing to kind of try and define more contiguous intervals in those zones. But there is opportunity for further expansion within that area, no question.

6:39Zayn Kalyan: I mean, had to be happy with that number, right? Very happy, yeah. On a gram meter basis, it was one of our best holes that Scorpio drilled since we started in 2024 at Manhattan. And we're very, very happy with the results. Got to be happy, too, about another word entering play, silver. I'm thinking when I read your press release, that was the first time that sort of silver came up to me. I mean, you guys have noted that you're seeing some silver in some drill results. You're running a multi-element ICP on both new and historic samples. What could that mean? Is it something that you think could be a real byproduct or is it more of kind of a nice to have right now?

7:19Zayn Kalyan: How should we think about that entering the conversation? Yeah, I think the potential of it is early. Understanding exactly how economic the silver rates can be remains to be seen. Now, there's specific zones that do appear to have very good ratios and potentially could be very additive. And then historically, Manhattan was producing silver. So we have records of historic production of silver at Manhattan alongside the gold production. And that kind of gives us promise that we will be able to kind of determine, especially at today's prices. These are prices from like the 80s where the price of silver was significantly lower.

7:56So yeah, we feel that there will be an opportunity for some silver byproduct. It's just how much and how big that is remains to be seen. But as we work towards this next resource update, and now that we are armed with all of the state multi-element data, because of the 180 ,000 meters of historic drilling, there was no silver in any of those results. any of those results because it was all just single element, just gold assay. So having that data today is very valuable and we're going to work through that and hopefully towards in this next resource update, we'll be able to deliver a clear picture of how economic the silver opportunity really is.

8:33Zayn Kalyan: Yeah. So just to clarify so everyone knows, like when you say that, it's like there wasn't silver, it didn't appear because no one looked for it, right? It was just modeling for the gold there. They were just looking at those gold numbers when they were looking at that 180 ,000 meters. Is that right? Yes, correct. Yeah. Okay. Financing. You guys closed to financing today. I think you upsized an initial offering of from$8 million to$10 million US, I believe, priced at 25 cents a share. So public deal versus sort of another strategic placement. Kind of talk about the decision to finance now. Is it something where you want to bring in money before you need it?

9:12Zayn Kalyan: Or is it kind of something where you want to, you know, is this going, is this specifically earmarked for something on the drill campaign or corporate, you know, general corporate purposes or kind of talk us through that? Yeah. So it's not been a, um, like we are financed through here to the end of October prior to this financing. And this is kind of just, there was an opportunity with the capital where it was there today. Um, I'm, I wouldn't necessarily say cagey, but it's kind of the market is, is definitely volatile. So just understanding exactly where sentiment is, where we're going to be in 30 days from now, 60 days, 90 days, who knows?

9:50Obviously, there's a lot of turmoil in the markets and kind of volatility driven mostly by the war in the Middle East, from my perspective. So those things just kind of create uncertainty. And when the capital is on the table, even though it is at a fairly diluted price to more dilutive than we would like it to be. I will be very candid about that. Um, it's, it is, um, it's not ideal, but that said, um, we did the deal at the current market price with no warrant. So it was very like everyone who's investing is very, like very committed to the story. These are not people just trading up. Um, and we had a lot of participation from existing shareholders very, and that speaks to the strength of our cap table in that respect too.

10:33And then And on top of that, we also brought in some new institutional ownership with the financing as well. And that was great to see institutions who are long only institutions who are obviously committed to what we're building at Manhattan see the upside in this current market and definitely see a deal with kind of where we're trading today and being very undervalued. So very happy with that participation. this financing is kind of somewhat bittersweet just in that it wasn't uh it wasn't accrued to our last financing that we did last year but at the same time um just very happy to kind of get get past it and doing on terms that i think were um minimized ups minimize dilution and overhang and doing a warrant and um yeah ultimately it is what it is yeah yeah absolutely i'm glad you put

11:22Zayn Kalyan: some color around that happy you gotta be happy to do it without the warrant and you know to your point, I think this gold price at 4 ,000 is interesting because it does seem like sentiment is not strong right now, but it also maybe requires a little bit of perspective, right? Like if you were, sure, if you're comparing it to 5 ,000 or 5 ,500, or maybe some people are talking about 6 ,000, it doesn't look great. But two years ago, if you'd said 4 ,000, people would be pretty happy, right? So to your point, I think, right, it is volatile. And, you know, anybody projecting where this market's going to be in 30 or 90 days, I think is kidding themselves.

12:03Zayn Kalyan: So, you know, I can certainly understand the desire to secure and lock in some financing in favorable terms. Yeah. And be financed and financed enough that we can get the resource update the next MRE out by I call it Q1 of 2027. So end of this year, early next year, that will truly in our minds be the next re-rate opportunity, showing that true growth from 740 ,000 ounces towards that 2 million ounce target. And then ultimately set us up for where exploration will go beyond that. Yeah, I'm glad you kind of transitioned over there. So you're setting that day to kind of Q1, I think of 2027. And then, you know, you've always mentioned that the 2 million ounce figure, how confident are you in both the timeline and sort of then and that initial target yeah i think like end of the year and and the target like the two million dollars target we're still very confident in those numbers um and just ultimately continuing to push forward towards that um drilling has gone well i think the results that we put out over the last couple weeks speak for themselves and if we can continue that same cadence and same um that same level of uh contiguous intervals i think we'll be uh we'll be very rewarded as we get towards the end of the year here.

13:17Zayn Kalyan: Yeah. And I guess one, one more quick question on that. I mean, the part of the one thing that you've, you've noted or highlighted the differentiator for you guys is that grade, right? And wanting to keep that 2 million ounce above a one gram per ton grade. Are you seeing that and expecting that to kind of hold true? Yeah, for sure. So the grade has been kind of the core, core differentiator, no question. And it's really what, from our perspective, what makes Manhattan special and the one piece to all of that that we are missing is scale. So relatively modest in size, but being able to maintain that grade is great.

13:49If we can continue to show that same resource growth, maintaining that grade, which is our core goal, I think we will be very unique amongst our peers in Nevada in general and in the US for that matter.

14:02Zayn Kalyan: Yeah. All right. Well, as you look to round out the summer then, you mentioned a little bit of you're going to be switching or getting a drill over, I'd say to Jumbo Keynote. Is that right? Keystone Jumbo. Keystone Jumbo, right. Okay. And so you still have, what, Hooligan, April Fool, Betty East, Barrel Springs, so many different targets with fun names. What should people expect in terms of you guys, the drills on the ground and I guess an asterisk there. Is it still three or do you guys move up to five or where does that kind of sit right now? I think for the time being, we're going to stick with three.

14:32Just keep drilling at the same pace that we have. And then, yeah, just towards this next resource. update, you'll kind of see results start to kind of, we'll move a drill out to Keystone Jumbo, it'll be another distal target and start to kind of build out and then go from there.

14:49Zayn Kalyan: Excellent. Well, we'll look to catch up with you more as those drill results come back and further news flow. Appreciate the time coming by today, Zane. No, appreciate it, Ian. Thank you. That's Zane Callion, CEO of Scorpio Gold. They are listed on the TSX venture under the symbol SGN. Thank you.

15:38investment decisions.