Scorpio hits gold beyond Nevada resource

Scorpio Gold (TSXV, Nasdaq: SGLD) has hit high-grade gold 850 metres from the core resource area at its Manhattan project in Nevada, opening a new target for drilling beyond the ground that has anchored its exploration program.

Drill hole 26MN-133 at April Fool cut 13.05 metres at 9.4 grams gold per tonne from 78.63 metres depth, the company said Tuesday. It is the target’s first deep diamond drill hole in a systematic program.

“That opens the potential to extend the mineralized system well beyond the current resource footprint,” CEO Zayn Kalyan said in the statement.

The result gives Scorpio a target beyond Manhattan’s existing gold inventory. Further holes must establish its size and continuity: the latest intersection doesn’t demonstrate continuous mineralization across the 850-metre gap, and its true width remains unknown.

Historical ground

Manhattan covers about 4,780 hectares in Nevada’s Walker Lane mineral belt, 53 km north-northeast of Tonopah and roughly four hours by road from Las Vegas. Scorpio owns the district outright, including Goldwedge and four former open pits acquired from Kinross Gold (TSX: K; NYSE: KGC) in 2021.

The June 2025 resource covering Goldwedge and the Manhattan pit areas holds 18.34 million inferred tonnes at 1.26 grams gold, containing 740,000 ounces. Historical estimates covering April Fool and other satellite areas are excluded from that current resource.

Earlier exploration at April Fool included reverse-circulation drilling used for a 1997 estimate, but detailed drill logs, collar coordinates and assay records have not survived, Scorpio said. The target is historical exploration ground now being tested with new core drilling.

Scorpio’s broader program targets at least 50,000 metres of drilling across Manhattan. The district’s past-producing operations, historical drilling database and existing water rights provide a starting point for testing extensions and additional targets.

Scorpio’s American depositary shares rose 0.8% stronger to $3.38 (C$4.73) Tuesday morning on Nasdaq, valuing the company at about $58 million. They’ve traded between $3.21 and $14.15 in the past year.