Scorpio Gold Drills 41.22 Metres Grading 0.44 g/t Gold, from 91.29 Metres Along the Reliance Trend at the Manhattan District, Nevada
Scorpio Gold transitions from distressed operator to well-funded Nevada explorer under heavy-weight backing
The news release dated February 6, 2026, reports diamond drilling results from the Phase 2 program at the Manhattan District Project in Nevada. Highlighted results include hole 25MN-039, which intersected 41.22 metres grading 0.44 g/t Au starting from 91.29 metres. Other results from the West Pit and Stray Dog targets show narrower, higher-grade intervals such as 0.91 metres at 8.99 g/t Au (25MN-038) and 6.71 metres at 1.37 g/t Au (25MN-037). Currently, 42 holes (13,489m) of the planned 50,000m program have been completed, with 12 holes pending assay.
The most recent results are Routine - Positive. While the 41.22m intercept demonstrates the "scale potential" and continuity along the Reliance Trend, the grade (0.44 g/t Au) is significantly lower than the current Inferred Resource average grade of 1.26 g/t Au. These results appear to be "tonnage-building" rather than "grade-enhancing."
However, looking at the historical progression since early 2025: - The company successfully divested the non-core Mineral Ridge asset for $7.5M USD, eliminating carrying costs and providing non-dilutive capital. - A "Material - Game Changer" event occurred in September 2025 with an $8M private placement led by Ross Beaty and Eric Sprott at $0.25 per share. - The company has transitioned from a cash-poor status (bank overdraft in Dec 2024) to a robust treasury (~$9M as of Sept 2025). - Drill results from late 2025 (e.g., 3.23m @ 21.82 g/t Au in hole 25MN-022) were significantly higher quality than the most recent batch. The market had been pricing in these higher-grade expectations, leading to the run-up to $0.52. The current results may explain the recent price consolidation.
Scorpio Gold Corporation (TSXV: SGN) is a Nevada-focused gold explorer. - Flagship Project: Manhattan District Project, Nevada. It consists of the Goldwedge underground mine and the Manhattan West Pit. - Geological Setting: Low-sulfidation epithermal system located near Kinross’s Round Mountain mine. - Resource: Maiden Inferred Resource (Sept 2025) of 18.34M tonnes @ 1.26 g/t Au for 740,000 contained ounces. - Infrastructure: The project includes a permitted 400 ton-per-day mill and significant water rights, which are rare and valuable in Nevada.