Nevada Step-Out Drill Hole Delivers 45.23 Meters of Gold

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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) reported results from three step-out holes completed as part of the Phase Two drill program at its Manhattan District Project in Nevada, including drill holes 26MN-082, 26MN-084, and 26MN-086 at the Goldwedge target area.

The company highlighted results from hole 26MN-086, which returned 1.27 g/t gold over 45.23 meters from 137.95 meters, including 2.40 g/t gold over 7.47 meters from 160.26 meters and 8.06 g/t gold over 2.80 meters from 172.31 meters.

According to the company, Scorpio Gold has drilled 92 holes totaling 25,919 meters as part of its Phase Two diamond drilling program. Assay results have been reported for 76 holes totaling 22,362 meters, while assays remain pending for 16 holes totaling 3,557 meters. The company also stated that it has begun reviewing historic core available at Manhattan and said any new significant results will be reported as they become available.

Harrison Pokrandt, VP Exploration for Scorpio Gold, said in a company news release, "Hole 26MN-086 is a good example, returning 45.23 meters of 1.27 g/t gold built around a high-grade feeder of 8.06 g/t over 2.80 meters that appears to bleed outward into the surrounding tuffs."

Drill hole 26MN-086 was completed as a 50-meter step-out north of previously reported holes 26MN-048 and 24MN-009 at Goldwedge. Drill holes 26MN-082 and 26MN-084 were also completed as 50-meter step-outs northeast of hole 26MN-048. The company stated that both holes tested inside and beyond the Inferred Resource Constraining Pit, targeting mineralization outside the 2025 mineral resource estimate block model.

Hole 26MN-082 intersected three mineralized intervals hosted in Ordovician Zanzibar Formation limestone units, including 0.54 g/t gold over 6.10 meters from 9.75 meters, 0.14 g/t gold over 15.24 meters from 21.95 meters, and 0.60 g/t gold over 8.60 meters from 40.78 meters.

Hole 26MN-084 encountered a void from 49.23 meters to 78.00 meters and was terminated. The company interpreted the void as a likely stope in the Goldwedge Underground mine. No significant intervals were reported from the hole.

In addition to the broad interval reported from 137.95 meters, hole 26MN-086 returned 0.16 g/t gold over 6.10 meters from 12.95 meters, 0.31 g/t gold over 5.58 meters from 104.85 meters, and 0.68 g/t gold over 7.16 meters from 115.83 meters. The company stated that the 45.23-meter interval was hosted within Cambrian Gold Hill Formation meta-sediments and Oligocene Round Rock Formation volcanic units, while the higher-grade sub-intervals were hosted within the Cambrian Gold Hill Formation.

According to Scorpio Gold, the Goldwedge intervals reported in the current batch of results represent new mineralization both inside and outside the current Inferred Resource Constraining Pit.

Gold Market Commentary Focused on Technical Signals, Rates, and Macro Trends

According to a June 6 market update from Couloir Capital, precious metals finished the week lower after a stronger-than-expected U.S. May employment report reduced expectations for near-term Federal Reserve rate cuts. The firm stated that stronger jobs data boosted the U.S. dollar and pushed Treasury yields higher, creating headwinds for non-yielding assets such as gold and silver.

Couloir Capital reported that gold prices fell 4.6% during the week, noting that the employment data increased expectations that interest rates could remain higher for longer. The report stated that the stronger U.S. dollar and rising Treasury yields weighed on demand for gold. The firm also noted that silver declined 9.9% during the week, with the metal's greater exposure to industrial demand making it more sensitive to concerns about tighter financial conditions and slower economic growth.

A June 7 analysis from Captain Ewave focused on technical patterns in the gold market. The publication stated that a "very powerful wave (iii) of iii" had been completed at a high of 5,595.40 and that gold was moving through a multi-month corrective phase. The analysis stated that "we should expect gold to move higher in wave -b- over the next couple of weeks," while noting that the correction could take additional time to develop depending on the pattern that ultimately emerged.

The report outlined several potential technical scenarios and retracement levels, including 4,702.00 and 4,149.40, while stating that gold had likely completed one phase of its correction and was advancing through another. Captain Ewave wrote that "in all cases, we should expect gold to move higher in wave -b- over the next couple of weeks."

Writing on June 8, Matthew Piepenburg of VON GREYERZ highlighted the distinction between short-term trading and longer-term investing in precious metals. He wrote that "since 2000, gold has outperformed the S&P," adding that gold had "demonstrably outperformed fiat 'money'" when measured against major global paper currencies over the same period.

Piepenburg argued that historical periods of geopolitical and economic stress had often followed a recurring pattern in which gold initially weakened before subsequently recovering. He wrote that "gold tends to drop early in every crisis only to then recover at newer all-time-highs as the crisis plays out."

The report also examined technical indicators, particularly long-term moving averages. Piepenburg stated that both gold and silver had fallen below their 200-day moving averages, describing this as "a powerfully bullish rather than bearish signpost." Discussing gold specifically, he wrote that "equally bullish technical signals are ringing from gold's recent dip beneath its 200-day moving average."

Piepenburg also pointed to central bank activity as a factor influencing the gold market. He wrote that central banks were now net buyers of gold and stated that "since the USA weaponized the world reserve currency in 2022, central bank gold purchasing has increased by 5X." According to the report, these purchases represented "a structural bid in the metals."

Across the reports, analysts cited a combination of macroeconomic factors, interest-rate expectations, technical market signals and central bank buying activity as key influences on gold market conditions during the period.

Commentary Focused on Expanding Results at Black Mammoth

According to a June 2 report from The Gold Advisor, senior analyst Jeff Valks discussed recent Phase Two drilling results from the Black Mammoth area at the Manhattan District Project. Valks wrote that "the focus shifts to Black Mammoth" following the latest results from two step-out holes drilled more than 250 meters beyond the current Inferred Resource Constraining Pit.

The report stated that the drilling program was testing areas outside the existing model, noting that "Scorpio is not just polishing the known model here. It is testing fresh ground outside the old fence."

Valks characterized the latest intercepts as "not the loudest" and wrote that "the useful part is geology and location." He stated that hole 26MN-078 intersected mineralization in volcanic units of the Manhattan Caldera and noted that Black Mammoth had "a different flavor" than results previously reported from other target areas.

The report referenced earlier drill results from Black Mammoth, including intervals of 0.75 g/t gold over 24.69 meters, 1.02 g/t gold over 40.23 meters, 0.62 g/t gold over 62.21 meters, and 0.91 g/t gold over 15.79 meters. Based on those results, Valks wrote that "that is a steady pattern that's proving up a mineable bulk tonnage asset."

Discussing the ongoing Phase Two program, Valks noted that the company had drilled 91 holes, with assays reported for 73 and 18 still pending. He wrote that "Zanzibar has been the louder headline machine lately, but Black Mammoth is starting to earn its own seat at the table."

The report disclosed that "the stock remains a Buy, especially at today's prices." Jeff Valks also stated that he and Jeff Clark both held long positions and had "no plans to sell."

Manhattan District Work Programs and Development Timeline

According to the investor presentation, Scorpio Gold is targeting an expanded drill program of more than 50,000 meters over a 12-month period at the Manhattan District Project.

The presentation states that ongoing resource expansion drilling of more than 50,000 meters is planned during 2026. The program is intended to continue defining mineralization in historical resource zones that include Keystone Jumbo, Black Mammoth, Hooligan, and April Fool.

The investor presentation also outlines a modern metallurgical program scheduled for Q3 2026, including preparation of a draft process flow sheet and plan.

For Q4 2026, the investor presentation states that the company plans to evaluate historical estimates through additional drilling and technical work.

Drilling is planned at Goldwedge and the Manhattan open-pit areas to define additional inferred resources. Exploration work is also planned to test historical estimates at Black Mammoth, April Fool, Hooligan, Keystone, and Jumbo. 

According to materials, the company plans to continue drilling targets near Goldwedge and the Manhattan open pits as part of its broader exploration activities at the Manhattan District Project.

Ownership & Share Information¹

Scorpio Gold Corp. has a market cap of CA$102.91 million, with 302.66 million shares outstanding. The company's 52-week range is CA$0.16-CA$0.64.

Institutions own 7.21% of shares, while Management and Insiders own 6.77%. The remaining 86.03% of shares are held by Retail.