Scorpio Gold Corporation (SGN) announced the company has found "significant results" from sampling at its Goldwedge Mine.
The project is located in Manhattan, Nevada.
Scorpio owns a 100 per cent interest in the gold project.
Results from underground channel sampling follow completion of the bulk sampling program
Results from the sampling have confirmed that high-grade gold mineralization is "associated with subparallel quartz and calcite veins and veinlets within foliation and bedding," according to the company.
It says in a release that the "mode of occurrence of mineralization appears to show significant potential."
Significant gold mineralization was encountered in two zones from 9.2 to 10.7 metres and 21.3 to 24.4 metres along the drift.
Scorpio Gold will continue its underground drilling at the Goldwedge Mine using its own core drill.
The company intends to employ another surface drill between the Goldwedge Mine and the Kinross property once government approval is received for the purchase of the 43-hundred-acre Kinross land adjacent to the Goldwedge property.
The property in Manhattan, Nevada is a fully-permitted underground mine and a 400 ton per day mill facility. The company is in the process of finalizing the acquisition of the adjacent Kinross Manhattan property.
Scorpio Gold Corporation is down 7.41 per cent on the day, with shares trading at C$0.12 at 1:10 p.m. EST.