scorpio stings Scorpio should be viewed as an exploration story with a small amount of production to fund exploration without dilution.
That being said, they need to show mineral ridge is capable of producing for a 7-10 year mine life. The other zones are due in 2013. Right now they have a 3 year mine life at mineral ride.
Interesting info on Pinon at much lower gold prices (400.00). If they can add to the ounces here it looks like a very economical open pit.
| Orebody |
| Tonnage | 3.3 million tons | Minimum Average Grade* | 0.05 opt Au |
| Recovery | 67% (based on current data) | Recovered Ounces | 110,550 |
| | | | |
| Mining/Processing |
| Annual Production | 730,000 tons | Striping Ratio (W:O) | 2:1 |
| Project Life | 4.5 yrs Payback – Year 4 | Internal Cutoff Grade | 0.025 opt |
| Production | 24,455 oz/yr | Design Cutoff Grade | 0.032 opt |
| | | | |
| Mining/Processing Cost/Ton |
| Heap Leach | $2.50/ton | Estimated Project Capital Costs | US $6,700/tpd |
| Admin O/H | $1.50/ton | Total for Project | ~US $13.4 million |
| Ore | $1.00/ton | Estimated Cash cost $/oz. | ~US $194 |
| Waste | $1.50/ton | | |