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Apr 22, 2009
Scorpio Provides March 2009 Update

Vancouver, April 22, 2009 - Scorpio Mining Corporation (TSX:SPM) is pleased to provide an operations update for March 2009 for the 100% owned Nuestra Señora mine, Sinaloa State, Mexico.

Peter J. Hawley, Chairman, CEO reports, "March 2009 was not only another productive and cost-efficient month for the Company, but our best operational month yet. The Scorpio team continues to outperform expectations set for 2009 and underground development continues on schedule in preparation for greater access to mineable, low-cost, high-grade stopes. Underground delineation drilling was recently initiated to define new stopes for extraction, expanding the Company's long-term ability to respond to future increases in metal prices by increasing the number and variety of potential active headings in the mine. The Company is currently negotiating the offshore sale of its concentrates at very reasonable terms for the next six months, commencing May 2009.

The Nuestra Señora operational details for the month of March are as follows:

March 2009 Concentrate Synopsis

Concentrate Shipped
2009 March
Contained Silver Ounces
Lead Concentrate(1) (tonnes)
0
0
Zinc Concentrate(2) (tonnes)
1,034
4,388
Copper Concentrate (tonnes)
106
8,247
Total
1,140 tonnes
12,635 ounces
(1) No lead concentrate was shipped during the month of March as the smelter contract had not been finalized. The contract was signed in late March and shipments of the 500 tonnes of concentrate will begin after the Easter holidays and be completed by the end of this month.
(2) Zinc concentrate shipped in lots of 250 tonnes or greater.


Concentrate Inventory at Month End
2009 March
Contained Silver Ounces
Lead Concentrate (tonnes)
432
42,745
Zinc Concentrate (tonnes)
153
635
Copper Concentrate (tonnes)
33
3,169
Copper/Lead Concentrate (tonnes)
214
20,551
Total
832 tonnes
67,100 ounces


Concentrate Produced During the 20 Days of March Operations
2009 March
Contained Silver Ounces
Calculated Lead Concentrate (tonnes)
286
34,698
Calculated Zinc Concentrate  (tonnes)
499
1,963
Calculated Copper Concentrate (tonnes)
134
14,013
Total
919 tonnes
50,674 ounces


Total Tonnes Mined & Milled
2009 March
2009 Budget
Tonnes Mined
7,848
5,750
Tonnes Milled
15,260
11,500
Days Milling
20
17


Average Mill Recoveries
2009 March
2009 Budget
Silver (%)
89.4%
84 %
Lead (%)
86.7%
79 %
Copper (%)
83.1%
67 %
Zinc (%)
79.3%
83 %


March 2009 Update
  • Mexican cash operating costs for mining, milling and administration for March 2009, were US$35.71(3) per tonne (budgeted US$37.11 per tonne).
  • Mill throughput in March reached 15,260 tonnes (budgeted 11,500 tonnes) for the 20 days of milling, or 763 tonnes per day.
  • Recoveries at the mill increased to 86.7% for lead (78.5% budgeted), 83.1% for copper (66.5% budgeted), 79.3% for zinc (83% budgeted) and 89.4% for silver (83.5% budgeted).
  • High-grade ore extracted from the mine totalled 7,848 tonnes and was mixed at a 3:2 ratio with lower-grade development ore. At month end, total stockpiled ore was 40,503 tonnes including 36,981 tonnes of development ore in stockpile #1 and 3,522 tonnes of high-grade ore in stockpile #2.
  • A total of 50,674 ounces of silver were recovered for the month in addition to lead, zinc, copper credits.
  • A total of 12,635 ounces of silver were shipped / sold for the month in addition to lead, zinc, copper credits.
  • The Scorpio Mining team has balanced revenues and spending at the Nuestra Señora operation. The Company's plan is to produce a consistent tonnage and grade for the year ahead and is executing the plan accordingly. Development was initially planned at 130 metres per month, but as with the previous two months, March exceeded the budgeted amount with an advance of 175.8 metres. This increase will allow for more ore production from the cut & fill stopes for the remainder of the year. By accessing and developing a variety of working headings, the Company will have the option to increase the head grade at the mill by changing the mixing ratios of the ores from different areas. Ore production from the cut & fill stopes was 9,658 tonnes for the month of March.
  • As a result of the strike at its smelter in México, Peñoles had sent a "Force Majeure Notice" informing the Company that they will not be able to receive our lead concentrate until the dispute is resolved. In the interim, the Company has committed to deliver 500 wet metric tonnes ("wmt") of lead concentrate for shipment to China by April 30, 2009. Apparently Peñoles has settled with the union and will be resuming operations later this month; however, the Company has not received a cancellation notice of the "Force Majeure". Accordingly, the Company is negotiating a lead off-take contract to cover the 6-month period of May through October 2009, should Peñoles have further problems resuming operations.
  • The Company will complete its commitment to deliver 1,500 wmt of zinc concentrate for shipment to a second smelter facility in China by the end of April 2009.
  • In addition to the lead concentrate, the Company is finalizing six month (May to October) off-take contracts for its other concentrates of copper and zinc for delivery to the loading facility in Manzanillo, Mexico, located 700 km by road from the mill site.
  • On March 30, 2009, an underground diamond drilling program was initiated to better define future high-grade cut and fill stopes. These stopes are scheduled for mining in the next few months and will provide more flexibility for mixing with lower-grade stopes and/or assuring constant production when ongoing stopes reach their backfill cycle.


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

(3) 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, mining plans and Scorpio Mining Corporation's commitment to, and plans for developing 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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