Jun 22, 2009
Scorpio Provides May 2009 Update
Vancouver, June 22, 2009 - Scorpio Mining Corporation (TSX:SPM) is pleased to provide an operations update for May 2009 for the 100% owned Nuestra Señora mine, Sinaloa State, Mexico.
Peter J. Hawley, Chairman, CEO reports, "May 2009 was a milestone month with approximately 84,000 ounces of pure silver shipped or sold. The company continues to be cost-efficient with Mexican cash operating costs for mining, milling and administration being US$37.98 per tonne versus budgeted of US$44.66 per tonne. New lower 2009 zinc and copper off take agreements are now in place and lead off take for 2009 come into effect July 1, 2009. As per the Company's plan to increase grades, mining and milling throughput as the total value of the metals contain increase due to metal prices the Company expects that these factors plus the new 2009 off take contract terms will only increase cash flows."
The Nuestra Señora operational details for the month of May are as follows:
May 2009 Concentrate Synopsis
May 2009 Update
Further information is available on the Company's web site at: www.scorpiomining.com.
President, Mr. D. Roger Scammell, PGeo, is the Company's Qualified Person for the Nuestra Señora project and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO
For further information contact:
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
(1) Cash operating costs per tonne is a non GAAP measure. The Company believes that, in addition to cost of sales, cash operating costs per tonne is a useful and complementary benchmark for performance and is well understood and widely reported in the silver mining industry. However, cash operating costs per tonne does not have a standardized meaning prescribed by Canadian GAAP. Investors are cautioned that cash operating costs per tonne should not be construed as an alternative to cost of sales determined in accordance with Canadian GAAP as an indicator of performance. The Company's method of calculating cash costs per tonne may differ from the methods used by other entities and, accordingly, the Company's cash operating costs per tonne may not be comparable to similarly titled measures used by other entities. Cash operating costs per tonne is calculated as the cost of sales adjusted for change in inventories.
This news release includes certain statements that may be deemed "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to concentrate shipments, off-take agreements, mining plans and Scorpio Mining Corporation's commitment to, and plans for developing and optimizing the Nuestra Señora Project. Generally, these forward-looking statements can be identified by the forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "projects", "intends", "anticipates", or "does not anticipate", or "believes", or "variations of such words and phrases or state that certain actions, events or results "may", "can", "could", "would", "might", or "will" be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Scorpio Mining Corporation to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the exploration and potential development and construction of the Nuestra Señora Project, risks related to international operations, construction delays and cost overruns, the actual results of current exploration, development and construction activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of silver, zinc, copper, lead and gold, as well as those factors discussed in the sections relating to risk factors of our business filed in Scorpio Mining Corporation's required securities filings on SEDAR, including its Annual Information Form dated March 27, 2009. Although Scorpio Mining Corporation has attempted to identify important factors that could cause results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements will prove accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Scorpio Mining Corporation does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.