Scorpio Gold (SGN.V) announced it expects to produce 40-45,000 ounces of gold at its 70% owned Mineral Ridge project in 2014 at a total cash cost of $800-850/oz. Just like last year, Scorpio Gold is taking a conservative approach in its cash cost guidance, and we wouldn’t be surprised to see the company revise its cost guidance downward later this year. An updated resource estimate and mine plan is expected later this quarter.
The company has also guided for a $11M capital expenditures program which includes $3.9M to be spent on exploration as Scorpio expects to drill between 18,000 and 24,000 meters this year in order to further increase the resources at Mineral Ridge. New drill results of 9 meters at in excess of 9 g/t gold and 6 meters of 3.57g/t gold will obviously help to expand the resource estimate and increase the average grade.
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Disclosure: The author holds no position in Scorpio Gold. Please see our disclaimer for current positions.
