Gold Explorer Targets 2 Moz Resource in 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 the assay results from three drill holes from its 2025 drilling initiative at the Manhattan District Project in Nevada, according to a February 11 release.

To date, Scorpio Gold has completed 44 drill holes in its Phase Two diamond drilling program, from 25MN-011 through 25MN-045 and 26MN-046 through 26MN-054, totaling 14,324 meters, the company said.

With the current results, Scorpio has reported assays for 33 of these holes (25MN-011 through 25MN-043), covering 10,406 meters. Assays for 11 holes (25MN-044 through 25MN-045 and 26MN-046 through 26MN-054), totaling 3,924 meters, are still pending and will be shared as they become available.

"Results from our current three-rig diamond drilling program continue to reinforce the presence of strong grades along the main mineralized trend at Manhattan," said Vice President of Exploration Harrison Pokrandt. "As the program advances, we will continue stepping out along the Reliance Trend with the objective of adding ounces ahead of the next resource update. We have also planned several more aggressive step-outs designed to rapidly test the broader strike potential of the system, including pending results from exploration drill holes targeting new areas such as Black Mammoth."

One hole was drilled along the Reliance Trend (25MN-042), another in the Gap Zone (25MN-041), and a third in the East Pit area (25MN-043), Scorpio said. These holes aimed to add Inferred category resource blocks in areas where drill density was previously insufficient to classify them as Inferred in the June 2025 estimate.

The holes explored laterally and below the Inferred Resource Constraining Pit modeled at a gold price of US$2,500 with a 0.3 grams per tonne (g/t) gold-only cutoff grade. Other parameters included a mill recovery of 90%, a 50-degree pit slope angle for in-situ rock, mining costs of US$3 per tonne for both ore and waste, milling costs of US$15 per tonne processed, general administration costs of US$3.50 per tonne processed, and 2% royalty costs, with no ore loss and dilution applied.

Highlights include:

• Hole 25MN-042 yielded 5.22 g/t gold over 36.82 meters, including 19.86 g/t gold over 4.88 meters.
• Hole 25MN-043 returned 0.36 g/t gold over 32.16 meters and 9.03 g/t gold over 7.01 meters, including 41.21 g/t gold over 1.37 meters.
• Hole 25MN-041 showed 0.58 g/t gold over 16.15 meters.

Ongoing Initiatives

In its February 2026 presentation, Scorpio Gold outlined plans for a 50,000-meter drilling campaign over the next year at Manhattan. This initiative includes ongoing efforts to expand resources and define mineralization in several historically productive zones, such as Keystone Jumbo, Black Mammoth, Hooligan, and April Fool.

The company's 12-month strategy aims to convert 400,000 ounces to the Inferred category in the Goldwedge and Manhattan open pit areas. Additionally, Scorpio Gold intends to bring 300,000 ounces of historical resources across five target areas into compliance with NI 43-101 standards 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 to confirm that the mineralization is suitable for cyanidation and to develop a preliminary flow sheet. Historical recovery results from flotation and gravity testing have exceeded 90%, while previous heap leach operations achieved a 77% gold recovery rate.

'Strong Operational Momentum'

On November 24, analysts Jeff Clark and Jeff Valks from The Gold Advisor provided insights on Scorpio Gold Corp. following results from seven drill holes at the company's Manhattan District Project. The report emphasized several notable intervals, such as 1.85 g/t gold over 24.67 meters, 1.52 g/t gold over 18.14 meters, and 0.94 g/t gold over 36.97 meters. A particularly impressive intercept recorded 21.82 g/t gold over 3.23 meters, with a 0.43-meter subinterval grading 159.94 g/t gold, capped at 9.95 g/t using a 70 g/t top cut.

The analysts pointed out that Scorpio Gold discovered a new mineralized zone at Mustang Hill, which could serve as a near-surface target adjacent to the existing resource.

According to their report, findings from Mustang Hill, the Gap Zone, and the Reliance Trend showed "significant expansion capability near the current Resource," with some step-out holes hitting mineralization up to 100 meters beyond the current model.

Scorpio Gold Chief Executive Officer Zayn Kalyan stated, "Encountering new zones of mineralization both near surface and at depth speaks to the true scale of the system, as well as the continuity we are rapidly defining across multiple target areas." He added, "Our confidence in a significantly expanded resource envelope continues to grow."

Clark and Valks also noted that the company was still early in its 50,000-meter drill program, with only 10% of results released at that time. They highlighted the company's strong stock performance, up over 268% year-to-date, and reiterated their belief that the Manhattan Project could develop into a multi-million-ounce gold asset.

A follow-up report by Jeff Valks, dated January 23 focused on additional Phase Two drill results. The update highlighted hole 25MN-036, which intersected 0.76 g/t gold over 25.02 meters, including 2.23 g/t gold over 7.47 meters starting at 138.35 meters downhole. Valks noted that the intercept added both thickness and continuity to mineralization along the Reliance Trend, within the Inferred Resource Constraining Pit.

Two other holes were discussed: Hole 25MN-034 revealed three mineralized zones: 0.51 g/t gold over 19.39 meters, 0.20 g/t gold over 5.49 meters, and 0.24 g/t gold over 9.8 meters, with the deepest intercept extending roughly 47 meters below the modeled pit. Hole 25MN-035 encountered 0.25 g/t gold over 7.01 meters near the southern edge of the historic West Pit.

"We have started the year with strong operational momentum, with drilling progressing steadily across the Manhattan District," Kalyan said.

Valks concluded that the new results supported both the scale and continuity of mineralization within the existing resource shell, while pending assays remained a key focus. He reported that the stock was up 4% on U.S. trading that day and described it as still reading like a Buy. He disclosed no personal holdings, while Clark maintained his existing position.

The Catalyst: US$6,000 Gold Not Out of the Question

Gold futures increased by 0.9% to US$5,077.20 per troy ounce, while spot prices edged up 0.2% to US$5,055.34 at the time of writing, according to a February 11 piece by Pedro Goncalves for Yahoo! Finance UK.

Recent U.S. data indicated a slowdown in economic activity, raising expectations that the Federal Reserve might have more flexibility to loosen monetary policy. Since gold does not generate income, falling yields tend to make it more attractive compared to interest-bearing assets.

"Yields being lower are obviously supportive of gold today. ... After soft retail sales numbers, there's the expectation that perhaps, further and deeper rate cuts may be needed more imminently than previously thought," stated Kyle Rodda, senior market analyst at Capital.com. Markets are anticipating at least two 25 basis point cuts in 2026, with June seen as the most likely starting point.

Gold remains 10% below its all-time high reached on January 29, reported Vaamanaa Sethi for Live Mint on February 11.

Despite a downturn at the end of the month, gold closed January with a 9% increase, building on last year's significant 72% surge. The bull market in gold has been fueled by safe-haven demand amid geopolitical tensions, concerns about the Federal Reserve’s independence, and a shift away from traditional assets like currencies and government bonds, Vaamanaa  wrote.

However, intense speculative buying overheated the market, resulting in a sharp 13% drop between January 30 and February 2. Since then, gold has regained about half of those losses and is hovering near US$5,000 an ounce.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, attributes gold’s strength to both structural and cyclical factors, the article noted. Banerjee said that since the 2008 financial crisis, the world has been moving away from a single-currency reserve system, with emerging-market central banks accumulating gold while developed-market central banks have ceased selling.

"At the same time, Western institutional and retail portfolios remain significantly underweight gold, which creates a powerful allocation-driven demand story over the next few years," he added. "Cyclically, rising consumer credit stress in the U.S., combined with the likelihood of easier monetary policy and continued fiscal deficits, is supportive for gold."

Aamir Makda, Commodity and Currency Analyst at Choice Broking, believes that the notion of gold reaching US$6,000 per ounce is not far-fetched, Vaamanaa wrote. He suggests that a combination of structural changes and macroeconomic pressures will support this path. However, Makda also cautioned that while the outlook for gold prices is positive, reaching US$6,000 is not guaranteed.

"Factors that could put pressure on prices include: the conclusion of geopolitical conflicts, such as Russia-Ukraine or those in the Middle East, which would eliminate the geopolitical risk premium; a strong rebound of the U.S. dollar, making gold more expensive for international buyers; and last but not the least increased margin requirements on gold futures by exchanges like CME, potentially leading to liquidations and short-term price declines,” he said.

Conversely, Banerjee of Kotak Securities expects gold to reach the US$6,000 level in 2026.

"Over the next six months, volatility may persist, but the medium-term bias remains constructive, and we believe gold could move beyond the US$6,000 level in 2026, driven by dollar debasement," Banerjee added, according to Vaamanaa.

Ownership and Share Structure¹

About 6.72% of Scorpio Gold is held by the institution Euro Pacific Asset Management LLC.

About 3.41% is held by management and insiders, with Michael Townsend holding 1.2%, Ian Dawson with 0.92%, and Peter Hathaway with 1.01%.

The rest is retail.

The company has about 285.87 million shares outstanding. Scorpio Gold has a market cap of approximately CA$100.06 million and a 52‑week trading range of CA$0.08 to CA$0.52.