Measures in Response to Covid-19
Scorpio Gold Corporation announces voluntary reduction in wages and salaries throughout the company during the Covid-19 pandemic and until a major financing is achieved to build the Mineral Ridge Process Facility. Effective April 1st, 2020 with the full co-operation and understanding of the Company’s personnel, 1: US employees voluntarily agreed to salary and wage reduction of 20%.
2: CEO, CFO and Corporate Secretary voluntarily cut their salaries by 50%; and 3: Chairman and Directors agreed to waive all monetary compensation to zero. The Company will exercise other cash conservation measures wherever discretionary funding can be eliminated or postponed. The overall annual reduction in costs will be approximately Cdn $1.6m and will remain in place until the Company is financed.
The Company will continue to produce cash flow from the existing heaps at the Mineral Ridge Mine throughout 2020 whilst continuing to pursue financing in the form of gold loans, gold streams and direct loans to fund the expansion of production via construction of a new CIL process facility at the mine.
Recent gold prices have reached as high as US$1,700 per ounce of gold compared to the US$1,250 per ounce used in the Company’s 2018 Feasibility Study, an increase of up to $450 per ounce or 36%. Drilling has commenced underground at the Goldwedge mine in Nevada with results expected in early May.
Engineering of the new flotation circuit at the Goldwedge Mill Facility is complete and the Company will be submitting the project for approval this week. Lode-star is directly funding the cost of this addition (see news release dated January 27, 2020).
The world-wide coronavirus pandemic has not affected the operations at Mineral Ridge or the exploration at Goldwedge. Health and safety precautions have been implemented and are being strictly followed and monitored.
