en.Wedoany.com Reported - Scorpio Gold Corp. (SGN:TSX.V) has released results from the second phase of drilling at its Manhattan District Project in Nevada, USA, with multiple holes encountering significant gold grades across various geological units. Notably, hole 26MN-086 intersected 45.23 meters grading 1.27 g/t gold starting at a depth of 137.95 meters, including higher-grade intervals of 7.47 meters at 2.40 g/t and 2.80 meters at 8.06 g/t, demonstrating the potential for both bulk tonnage and localized high-grade mineralization.
These results come from three expansion holes in the Goldwedge target area, including 26MN-082, 26MN-084, and 26MN-086. Other holes from the same batch tested the northeast of previously intersected zones and encountered mineralization in the Ordovician Zanzibar Formation limestone unit, further confirming the metallogenic potential of the area. Harrison Pokrandt, Vice President of Exploration at Scorpio Gold, stated in the company's press release that this broad intersection reflects mineralization spreading from high-grade conduits into surrounding volcanic tuff, supporting efforts to expand resource boundaries beyond the current constrained pit of inferred resources.
In the second phase of diamond drilling, Scorpio Gold completed a total of 92 holes, with cumulative footage of 25,919 meters. Assay results are currently available for 76 holes totaling 22,362 meters, while results for the remaining 16 holes, totaling 3,557 meters, are pending. Meanwhile, the company is reviewing historical core from the Manhattan area, which may provide additional data for future work.
Analysts have also focused on the overall potential of the Manhattan District Project. According to a June 2 report from Gold Advisor, senior analyst Jeff Valks discussed the second-phase drilling results from the Black Mammoth area within the district. The commentary emphasized that drilling is testing new zones beyond existing models, with intersections in the Manhattan Caldera volcanic tuff unit showing characteristics distinct from earlier target areas. Previous results from the Black Mammoth area include intersections of 24.69 meters at 0.75 g/t and 40.23 meters at 1.02 g/t, supporting the project's direction toward a bulk-tonnage asset.
According to an investor presentation, Scorpio Gold plans an expanded drilling program of over 50,000 meters at the Manhattan District Project within 12 months, covering resource expansion drilling throughout 2026 in areas such as Keystone Jumbo, Black Mammoth, Hooligan, and April Fool. A modern metallurgical program is planned for the third quarter of 2026, followed by evaluation of historical estimates through additional drilling and technical studies in the fourth quarter of 2026. Exploration will also target areas near Goldwedge and the Manhattan open pit, while testing historical estimates at multiple prospects to systematically expand the resource base across the entire project area and improve metallurgical understanding.
In the broader market environment, precious metal prices have recently been influenced by macroeconomic factors. Market observers note that stronger U.S. employment data, changes in interest rate expectations, and central bank purchases have collectively impacted gold and silver prices. Reports indicate that gold fell 4.6% over the past week after employment data reduced the likelihood of near-term rate cuts, while silver declined 9.9% due to concerns over industrial demand sensitivity. Analysts believe that gold has outperformed the S&P 500 Index and major fiat currencies since 2000, and net central bank purchases have risen significantly since 2022, providing structural buying support for gold.
Scorpio Gold Corp. has a market capitalization of C$102.91 million based on 302,660,000 shares outstanding. The 52-week trading range is C$0.16 to C$0.64. Institutional investors hold 7.21% of shares, management and insiders hold 6.77%, and retail investors hold the remaining 86.03%.
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