Drill Hole Hits 41 Meters of Gold as Market Tensions Put Spotlight Back on Nevada

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Scorpio Gold Corp. (SGN:TSX.V) announced assay results from four additional drill holes as part of its ongoing 2025 Phase Two diamond drilling program at the Manhattan District Project in Nevada. Of these, hole 25MN-039, drilled along the Reliance Trend, returned 0.44 grams per tonne (g/t) gold over 41.22 meters from a downhole depth of 91.29 meters. Two other holes, 25MN-038 and 25MN-040, were drilled in the Stray Dog area, while 25MN-037 targeted the southern end of the West Pit.

In total, Scorpio Gold has drilled 42 holes (numbered 25MN-011 through 25MN-045 and 26MN-046 through 26MN-052) totaling 13,489 meters. Of these, 30 holes totaling 9,658 meters have now been reported. Assays remain pending for 12 holes totaling 3,831 meters.

In a company news release, Harrison Pokrandt, Vice President of Exploration, stated, "These drill results continue to reinforce the geological model at Manhattan, particularly along the Reliance Trend, where we're seeing broad zones of consistent gold mineralization. Hole 25MN-039 demonstrates the scale potential along this structure, and with twelve additional holes now completed and awaiting assays, we believe we are well positioned to deliver a steady flow of results as we advance the project across multiple target areas."

The reported holes intersected various mineralized intervals. Highlights include 25MN-037 with five intervals grading between 0.20 g/t and 1.37 g/t gold over widths ranging from 5.88 to 11.45 meters, and 25MN-038 with five intervals including 8.99 g/t gold over 0.91 meters and 3.74 g/t gold over 1.52 meters. Hole 25MN-039 returned additional intervals of 1.30 g/t gold over 4.72 meters and 0.20 g/t gold over 14.42 meters. Hole 25MN-040 intersected 0.20 g/t gold over 6.86 meters.

The company noted that these holes tested mineralization both laterally and beneath the Inferred Resource Constraining Pit (IRCP), which was modeled using a gold price of US$2,500 per ounce and other operational parameters. Geologic mapping and oriented core drilling have supported increased confidence in the district's structural framework, consistent with a low-sulfidation epithermal system hosted in preferred lithologies and controlled by intersecting structural trends.

Gold Faces a Supply Strain as Demand Holds Strong and Prices Swing

According to a February 4 report from Bloomberg, George Efstathopoulos of Fidelity International said that "a lot of the froth has been taken out, and the structural sort of medium-term themes are very much in place" for gold to continue its rally. He noted inflation and dollar weakness as key contributors, and emphasized that central bank buying and investor diversification from U.S. assets continued to support the metal. "Gold makes sense because it just creates a more robust portfolio," he stated.

On February 8, Richard Mills of Ahead of The Herd reported that mine production continued to fall short of meeting global demand without the inclusion of recycled gold. In 2024, mine production reached 3,661.2 tonnes, while overall gold demand totaled 4,974.5 tonnes. Excluding jewelry recycling, the supply-demand gap stood at 1,312.8 tonnes. The report described this as a sign of "peak gold," emphasizing that "mining all the best gold and leaving the rest" still failed to satisfy demand. It added that a few new discoveries were capable of filling the production gap and warned that "our gold industry is in trouble."

Mills stated that "inflation not only raises consumer and producer prices, but it also devalues the currency," reinforcing gold's role as a monetary hedge. He added that "there have been no major discoveries, no meaningful supply response, while demand continues to rise structurally." The World Gold Council noted that 2024 marked the highest mine production on record, but the need for recycled gold to meet demand persisted.

French bank Société Générale also increased its gold allocation from 7% to 10% in response to inflation and falling real yields. According to its analysts, "the key drivers supporting gold remain firmly intact." They highlighted the global trend of central bank diversification away from the U.S. dollar as another factor supporting gold's status as a monetary asset.

A February 4 article from Mining.com described the 2026 price correction as a "healthy" pullback after an aggressive early-year rally. Hedley Widdup of Lion Selection Group commented that "you're either in an environment that's really supportive for gold or you're not, and I don't think we've shifted out of it." He said the macroeconomic backdrop — including government debt and global monetary trends — continued to support higher gold prices.

Gold's recent selloff followed the nomination of Kevin Warsh as the next Federal Reserve Chair, which briefly fueled expectations of more aggressive monetary policy. However, analysts remained focused on long-term fundamentals. Stephen Gorenstein of Ari Funds Management noted that "it was very clear that things had gotten ahead of themselves," but did not see the correction as a turning point.

Meanwhile, Euroz Hartleys reported that the ASX gold sector continued to deliver strong quarterly cash flows, generating US$1.53 billion in free cash in Q4 2025. Analyst Michael Scantlebury said, "gold producers generated another strong quarter of cash flows in the quarter," and noted that gold prices rose 20.1% quarter-over-quarter in U.S. dollar terms. Despite some hedging losses, free cash flow remained robust, and further upside was expected as hedges were cleared.

Ongoing Drilling and Resource Growth Initiatives

Scorpio Gold's February 2026 presentation confirmed that the company is targeting a 50,000-meter drill campaign over a 12-month period at the Manhattan District Project. The program includes ongoing resource expansion drilling and work to define mineralization at several historically productive zones including Keystone Jumbo, Black Mammoth, Hooligan, and April Fool.

The company's 12-month plan includes converting 400,000 ounces to the Inferred category in the Goldwedge and Manhattan open pit areas. Additionally, it plans to bring 300,000 ounces of historical resource across five target areas into NI 43-101 compliance and continue drilling near the Manhattan open pits to support a targeted inferred resource of 2 million ounces at a grade above 1 g/t gold.

Scorpio Gold is also conducting a metallurgy program designed to confirm that mineralization is amenable to cyanidation and to develop a preliminary flow sheet. Historical recovery results from flotation and gravity testing exceeded 90%, while prior heap leach operations achieved 77% gold recovery.

Ownership and Share Structure¹

8.65% of Scorpio Gold is held by the institution Euro Pacific Asset Management LLC.

4.12% is held by management and insiders, with Michael Townsend holding 1.54%, Ian Dawson with 1.18%, and Peter Hathaway with 1.03%.

The rest is retail.

The company has about 282.83 million shares outstanding. Scorpio Gold has a market cap of approximately CA$130.1 million and a 52‑week trading range of CA$0.08 to CA$0.50.