Scorpio Gold Commences 50,000 Metre Phase 2 Drilling Program at the Manhattan District, Nevada
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On October 22, 2025, Scorpio Gold announced the commencement of a 50,000-metre Phase 2 drilling program at its 100%-owned Manhattan District project in Nevada. The program will utilize three rigs (both diamond core and reverse circulation) and is designed to build upon the recently announced maiden Mineral Resource Estimate (MRE). The company's stated goal is to expand the resource towards a "multi-million-ounce gold system."
Additionally, the company has retained Sideways Frequency LLC for marketing services for an initial three-month term at a cost of US$150,000, plus 400,000 stock options exercisable at C$0.35 for three years.
This news is a positive and expected operational update, confirming the company is immediately deploying the capital raised in its recent high-profile financing. Reviewing the historical news flow reveals a company that has undergone a complete transformation in 2025.
- Q1-Q2 2025 (The Turnaround): The company started the year in a precarious financial position, evident from its year-end 2024 financials. It shored up its balance sheet with a $7.07 million financing at $0.08 per share (closed in April), appointed key technical personnel including Leo Hathaway, and began its 2025 Phase 1 drill program in June.
- Q3 2025 (Strategic Execution & De-risking): Scorpio Gold made two pivotal moves. First, it sold its non-core Mineral Ridge project for US$7.5 million (announced July, closed August), providing significant non-dilutive funding and sharpening its focus on the Manhattan District. Second, and most significantly, it closed an $8 million private placement at $0.25 per share, backed by renowned mining investors Ross Beaty ($4.4M) and Eric Sprott ($3.0M). This financing was a massive endorsement of the project and new management, providing more than enough capital for aggressive exploration.
- Key Milestones: Following the financing, the company delivered on two key promises:
- Maiden MRE (Sept 11, 2025): The company announced an inferred resource of 740,000 ounces of gold at 1.26 g/t. Critically, this estimate did not include any of the 2025 drill results, establishing a solid baseline with clear near-term expansion potential.
- Phase 1 Drill Results (Aug & Oct 2025): Results from the initial drill program were positive, confirming and expanding known mineralization with intercepts like 92.81 m of 1.24 g/t Au and 5.94 m of 10.07 g/t Au.
The latest news of the 50,000-metre Phase 2 program starting is the logical and necessary next step. It demonstrates that management is executing the well-funded exploration strategy endorsed by its strategic investors. While the commencement itself is not a surprise and is therefore "routine," it is positive as it officially kicks off the next major value-creation phase for the company. The market has already reacted to the potential, with the stock price rising from sub-$0.10 levels in early 2025 to a high of $0.50 after the financing and MRE. The current phase is about execution, and this news confirms the drills are turning.
Scorpio Gold Corp. is a Canadian-based gold exploration company focused on its 100%-owned flagship Manhattan District project in the prolific Walker Lane trend of Nevada, USA. The project is a consolidated land package of past-producing mines. The company recently established a maiden NI 43-101 compliant inferred mineral resource of 740,000 ounces of gold. The property is subject to a 2.0% net smelter returns (NSR) royalty.