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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

Concentrate Shipped

2009
May

Contained
Silver Ounces

Lead Concentrate (tonnes)

352

42,468

Zinc Concentrate (tonnes)

414 

2,269

Copper Concentrate (tonnes)

312 

39,260

Total

11,078 tonnes

83,997 ounces


Concentrate Inventory at Month End

2009
May

Contained
Silver Ounces

Lead Concentrate (tonnes)

17

1,898

Zinc Concentrate(1) (tonnes)

0

0

Copper Concentrate (tonnes)

93

10,250

Total

963 tonnes

2,148 ounces


Concentrate Produced During the 21 Days of May Mill Operations

2009
May

Contained
Silver Ounces

Calculated Lead Concentrate (tonnes)

273

28,984

Calculated Zinc Concentrate  (tonnes)

400

2,001

Calculated Copper Concentrate (tonnes)

118

14,229

Total

791 tonnes

45,214 ounces


Total Tonnes Mined & Milled

2009
May

2009
Budget

 

 

 

Tonnes Mined

15,136

5,922

Tonnes Milled

15,387

12,000

Days Milling

21

17


Average Mill Recoveries

2009
May

2009
Budget

Silver (%)

86.7

84

Lead (%)

69.1

78.5

Copper (%)

53.3

50

Zinc (%)

68.8

79



May 2009 Update
  • Underground development for the month of May stands at 154.2 metres; ore tonnage produced was 9,036 metric tonnes (tm) in the cut & fill stopes and ore moved to the mill was 15,136 tm.
  • Mexican cash operating costs(1) for mining, milling and administration for May 2009, were US$37.98 per tonne (budgeted US$44.66 per tonne).
  • The Company completed a surface stockpile sampling/surveying program to evaluate the metal content and value of the stockpiled Candelaria mine development ore. Results indicate that approximately 4,200 tm of broken ore is currently available at an estimated grade of 155 g/t Ag, 0.27% Cu, 1.00% Pb and 1.96% Zn. The estimated NSR value of this material is considered similar to average mine grade. This material is expected to be hauled to the mill within the next few months and blended with the Nuestra Senora mined ore stockpile.
  • Mill throughput in May reached 15,387 tonnes (budgeted 12,000 tonnes) for the 21 days of milling, or 733 tonnes per day.
  • Recoveries at the mill were 86.7% for silver (83.5% budgeted), 69.1% for lead (78.5% budgeted), 53.3% for copper (50% budgeted) and 68.8% for zinc (79% budgeted). Modifications of the mill circuit to improve copper recovery caused slight decreases in lead and zinc recoveries. Further modifications have now been completed and recoveries for these metals have returned to normal.
  • High-grade mine ore processed totalled 11,463 tonnes and was mixed at a 3:1 ratio with lower-grade development ore. At month end, total stockpiled ore was 38,121 tonnes including 28,225 tonnes of development ore in stockpile #1 and 9,896 tonnes of high-grade ore in stockpile #2.
  • A total of 45,214 ounces of silver were recovered for the month in addition to lead, zinc, copper credits.
  • A total of 83,997 ounces of silver were shipped / sold for the month in addition to lead, zinc, and copper credits.
  • Under the existing off-take contract which is in effect until October 2009, the Company shipped 312 tonnes of copper concentrates and 414 tonnes of zinc concentrates to the loading facility in Manzanillo, México. It also delivered 352 tonnes of lead concentrate to the Peñoles smelter facility in Torreon, México under its current contract which will expire June 30th, 2009.
  • The Company, through its concentrate brokers, has concluded negotiations with Peñoles for a further one year contract to smelt the lead concentrate at the Torreon smelter. The new contract is effective July 1st, 2009 and under the terms of the contract the company will supply a minimum of 200 tonnes of concentrate per month.
  • On March 30, 2009, an underground diamond drilling program was initiated to better define future high-grade cut and fill stopes. The program was completed on May 29th and totalled 1,073 metres. Assays remain pending for most of the holes although based on visual assessments (which remain subject to assay analysis) significant additional tonnage is expected in the M-01 Zone (Level 9) and the Santa Teresa Zone (Level 9.5). Further diamond drilling will be scheduled depending on grade control and mine planning requirements at the mine.
  • The Company continues to aggressively look at near term development and/or operating mining assets located in Mexico for possible acquisition.


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)
Email: yes@yesinternational.com

(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.
 

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