Scorpio Gold Corp. (SGN:TSX.V) has announced further assay results from Phase 1 of its 2025 drilling program at the Manhattan District Project in Nevada. The results included high-grade intervals from both the Gap Zone and Mustang Hill targets, two of the four primary zones tested during this initial phase.
Drill hole 25MN-016 at Mustang Hill returned 0.91 grams per metric tonne (g/t) gold over 36.39 meters, including 3.33 g/t gold over 4.08 meters. Hole 25MN-017, drilled within the Gap Zone, returned 0.80 g/t gold over 33.13 meters, including a higher-grade interval of 10.07 g/t gold over 5.94 meters. Additional intercepts included 5.49 g/t gold over 7.32 meters in hole 25MN-015 and 0.49 g/t gold over 30.48 meters in hole 25MN-013.
The Gap Zone lies between the historic Goldwedge Underground and West Pit mines. Phase 1 drilling at this target confirmed continuity of mineralization across a previously undrilled 200-meter section of the Reliance Trend. The Mustang Hill target, located east of the West Pit, also returned multiple near-surface high-grade intercepts and builds on previous drilling results.
Twelve diamond drill holes totaling 4,216 meters were completed in Phase 1, with assays pending for four remaining holes. The program builds on Scorpio Gold's maiden Mineral Resource Estimate announced in September 2025.
According to VP Exploration Harrison Pokrandt in the news release, "These first results at Mustang Hill and additional results within the Gap Zone add ounces to open areas that are along strike of our maiden resource."
Gold Surpasses US$4,000 as Central Banks Drive Demand and Investors Shift Toward Hard Assets
Gold's climb past US$4,000 per ounce in October marked a historic moment, driven by a combination of global monetary shifts, central bank strategies, and changing investor priorities. On October 6, spot gold broke through the US$4,000 threshold for the first time, with much of the momentum attributed to early trading in Asia. Analysts described the move as both "structural and symbolic," reflecting broader economic uncertainty and a reassessment of financial risk in an evolving global landscape.
One of the key drivers behind the rally was sustained buying from central banks. By 2023, approximately 68% of gold-buying central banks stored their reserves domestically, up from 50% in 2020. This trend, aimed at enhancing control over national reserves, has continued to gain momentum. Official sector demand has prioritized stability and security over yield, prompting a shift in reserve strategies.
Despite recent share price fluctuations, Clark stated that the stock remains 22% below its September high and framed the pullback as a "Buy on weakness" opportunity.
A report published on October 8 by Bruno Venditti outlined a significant milestone: for the first time since 1996, foreign central banks collectively held more gold than U.S. Treasuries. Nearly 20% of all gold ever mined is now owned by the official sector, according to the analysis. This shift reflects a broader rebalancing away from dollar-denominated assets and toward physical stores of value.
Further coverage by Anthony Keane on October 10 noted that gold had gained 123% over the previous two years, outperforming most asset classes. Lower interest rates, geopolitical tensions, and supply constraints were cited as major contributors. Kyle Rodda of Capital.com observed that "the supply of money grows at a much faster pace than we can pull gold out of the ground," while noting that geopolitical risk also played a role. Tony Catt of Catapult Wealth emphasized continued central bank interest, stating, "Gold is an asset class where there is a lot of central bank buying."
A separate research note from UBS reported widespread optimism in the gold market, commenting that it was "hard to find anyone who isn't a gold bull." However, historical data from Dimensional Fund Advisors served as a reminder of gold's volatility, showing that the metal has delivered positive annual returns in just over half of all calendar years since 1980.
Analyst Sees Growing Momentum in Scorpio Gold's Gap Zone
Early results from Scorpio Gold's 2025 drill program at the Manhattan District project in Nevada have drawn continued attention. Jeff Clark of TheGoldAdvisor.com initially reviewed the program on August 25, citing strong headline intercepts, including 1.24 grams per tonne (g/t) gold over 92.81 meters, with a high-grade interval of 19.01 g/t over 3.05 meters. Additional holes returned 1.79 g/t over 11.89 meters and 1.50 g/t over 25.15 meters.
Clark emphasized the significance of the Gap Zone, a 200-meter corridor between the historic Goldwedge and West Pit mines that had not previously been drilled. Eleven diamond drill holes totaling 3,820 meters confirmed gold mineralization across this corridor and suggested growing potential for near-term resource expansion.
Clark noted that these results are expected to contribute directly to expanding the maiden mineral resource. He cited Scorpio Gold's Vice President of Exploration, Harrison Pokrandt, who stated that the results "continue to support our objective of expanding the maiden resource at Manhattan to achieve our next goal of two-million-ounces of high-grade gold."
Clark also shared insight from his direct communication with management, reporting that the company sees potential for a resource "well north of 2 million ounces, and potentially even more (3 to 5 million ounces)." He pointed to the district's 8.5 kilometers of continuously mineralized strike, with the current resource defined over just 2.5 kilometers, describing it as a district-scale asset. Strategic investments of CA$4.4 million from Ross Beaty and CA$3 million from Eric Sprott were also noted as key indicators of confidence in the project's scale and grade.
Despite recent share price fluctuations, Clark stated that the stock remains 22% below its September high and framed the pullback as a "Buy on weakness" opportunity. He maintained his full position and encouraged readers to consider doing the same if they had not yet reached a full allocation.
Additional support came from Chen Lin of What is Chen Buying? What is Chen Selling? In the August 26 edition, Lin highlighted the 92.81-meter intercept at 1.24 g/t and praised the US$7.5 million sale of Scorpio's Mineral Ridge project as a transaction that significantly strengthened the company's balance sheet.
Scorpio Positioned For Expansion
Scorpio Gold is preparing to launch Phase 2 of its 2025 drill campaign, which is expected to include more than 50,000 meters of diamond and reverse circulation drilling. The program will systematically test extensions of the current mineralized zones and target infill and step-out drilling at the core of the Manhattan Mineral Resource Estimate, particularly northwest of the West Pit.
The Manhattan District hosts a recently announced resource of 740,000 ounces of gold at 1.26 g/t, which Scorpio Gold highlighted as significantly higher than Nevada's average of 0.6 g/t. The project encompasses a consolidated land package located approximately 15 kilometers south of Kinross's Round Mountain Gold Mine.
Streetwise Ownership Overview*The company previously disclosed US$7.5 million in proceeds from the sale of the Mineral Ridge Mine and secured a CA$8 million private placement from strategic investors Ross Beaty and Eric Sprott in August 2025. According to the October 2025 investor presentation, Scorpio Gold is well-funded to execute its drill program and pursue its stated goal of achieving a two-million-ounce inferred gold resource.
Management is expected to provide updates on drilling and other corporate developments at upcoming investor events, including The Hidden Gems Conference in New York City and the Kinvestor Day Virtual Investor Conference later in October.
Ownership and Share Structure
According to Refinitiv, 8.65% of Scorpio Gold is held by the institution Euro Pacific Asset Management LLC.
4.12% is held by management and insiders, with Michael Townsend holding 1.54%, Ian Dawson with 1.18%, and Peter Hathaway with 1.03%.
The rest is retail.
Scorpio Gold has a market cap of CA$106.57 million, 212.99 million free-float shares, and a 52-week trading range of CA$0.08 to CA$0.50.
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