Step-Out Drilling Hits 16.49m of Gold, Expands Mineralization Beyond Pit

Scorpio Gold Corp. (SGN:TSX.V) reported results from three step-out holes, 26MN-064 through 26MN-066, as part of its Phase Two drill program at the Manhattan District Project in Nevada. The company stated that hole 26MN-066 returned 2.74 g/t gold over 16.49 meters from 45.45 meters, along with 1.89 g/t gold over 6.31 meters from surface along the Zanzibar Trend. Hole 26MN-065 returned 0.54 g/t gold over 22.49 meters from 41.64 meters and 4.39 g/t gold over 5.67 meters from 121.07 meters at the Gap Zone.

The company reported that it has drilled 75 holes totaling 21,706 meters as part of the Phase Two program. Assay results have been received for 56 holes totaling 18,231 meters, while assays remain pending for 15 holes totaling 3,475 meters.

Drill holes 26MN-064 and 26MN-066 were completed as approximately 50-meter step-outs along the Zanzibar Trend, while hole 26MN-065 was drilled as a 50-meter step-out within the Gap Zone. The company stated that all reported intervals represent new mineralization outside the Inferred Resource Constraining Pit and targeted uncategorized mineralization within the 2025 mineral resource estimate block model.

Hole 26MN-066 intersected multiple mineralized intervals, including 2.74 g/t gold over 16.49 meters from 45.45 meters, with a higher-grade interval of 7.45 g/t gold over 4.15 meters. Additional intervals included 1.89 g/t gold over 6.31 meters from surface and 0.47 g/t gold over 20.06 meters from 123.6 meters.

Hole 26MN-065 returned several intervals within the Gap Zone, including 0.54 g/t gold over 22.49 meters from 41.64 meters, 4.39 g/t gold over 5.67 meters from 121.07 meters, and 1.20 g/t gold over 11.31 meters from 152.31 meters. Higher-grade sub-intervals included 25.66 g/t gold over 0.85 meters and 6.07 g/t gold over 1.37 meters.

Hole 26MN-064 intersected multiple intervals along the Zanzibar Trend, including 2.10 g/t gold over 3.66 meters from surface and additional lower-grade intervals at depth within the Cambrian Gold Hill Formation.

Harrison Pokrandt, VP Exploration of Scorpio Gold, stated in a company news release, "These results continue to strengthen our understanding of the geologic controls underpinning mineralization along the Zanzibar Trend and its relationship to the broader Reliance corridor."

Gold Market Dynamics and Macroeconomic Drivers

According to an April 27 Reuters report by Ishaan Arora, gold prices moved lower as "a lack of diplomatic progress to end the U.S.-Israeli war on Iran kept oil prices and inflation concerns high," while market participants also focused on upcoming central bank meetings. In the same report, Bart Melek, global head of commodity strategy at TD Securities, said "what we're seeing is the market continuing to have doubts that a robust agreement that will open up the Strait of Hormuz is going to happen imminently," adding that "with inflation double what the target is, it's going to be very difficult for the U.S. central bank to cut rates in the months to come, and that is a negative for gold."

A separate April 27 report from Kitco News cited Lorenzo Portelli of Amundi Investment Institute, who stated that "looking ahead over the next 12 months, we remain constructive on gold and see potential for prices to move toward US$5,500." He also noted that "core inflation remains more subdued and better contained, reducing the need for central banks to pursue an even more hawkish stance," and added that "central bank demand is likely to remain strong, especially among emerging market authorities that continue to diversify reserves away from traditional currencies."

Also on April 27, Rob Badman wrote in a market wrap that "gold stocks dominated the top end of the market," as "investors leaned into that side of safer ground," noting that broader precious metals names followed gains in the sector during the trading session.

District Expansion and Analyst Commentary on Land Position

According to an April 16 report from The Gold Advisor authored by Jeff Clark and Jeff Valks, the company signed an agreement to option 32 unpatented lode mining claims at the Betty East property in Nye County, Nevada, described as "ground interpreted to be geologically contiguous with the southern portion of the Manhattan District and now tied directly into Scorpio's existing claim block through newly staked connecting claims."

In the same report, Jeff Valks wrote that "the map is starting to look cleaner," and stated that "that improves how the whole district can be explored."

The report described historical work at the property, noting that "earlier reverse-circulation work identified near-surface gold mineralization and outlined deeper conceptual targets," while soil surveys "highlighted a north-south epithermal gold-arsenic signature and a second east-northeast trend extending more than 1.5 km long and up to 1 km wide."

Regarding the transaction terms, the report stated that "to earn 100%, Scorpio will make staged payments totaling US$900,000, issue 950,000 shares, and spend US$1,000,000 on exploration over five years."

Jeff Valks also wrote that "the company now controls continuous land tenure across a favorable corridor," adding that "that allows targets to be evaluated as parts of a system rather than isolated dots on a map."

The report included a statement attributed to the company's CEO, describing the option as "a strategic addition that strengthens our long-term exploration optionality in one of Nevada's most productive gold belts."

The report further stated that "at this stage, the stock reads as a Buy; it's currently sitting undervalued at its 200-day moving average."

Ongoing Drilling and Program Expansion Across Manhattan District

The company outlined an ongoing resource expansion drilling program targeting more than 50,000 meters during 2026, focused on defining mineralization across historical resource zones, including Keystone Jumbo, Black Mammoth, Hooligan, and April Fool, as stated in the investor presentation.

A modern metallurgical program is being conducted with the objective of developing a draft process flow sheet and plan.

The company also stated that it plans to evaluate historical estimates through additional drilling and technical work. 

Further steps outlined include advancing drilling at Goldwedge and Manhattan open pit areas to define additional inferred resources, along with advancing exploration to test historical estimates at Black Mammoth, April Fool, Hooligan, Keystone, and Jumbo.

Scorpio indicated it intends to continuously drill targets near Goldwedge and the Manhattan open pits as part of its ongoing exploration activities.