This news release should be read in conjunction with the Company's news release dated October 29, 2014, which modifies the disclosure below.
Toronto, October 16, 2014 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Company") reports production from the Cosalá District Operations for the third quarter ended September 30, 2014 ("Q3 2014").
Q3 2014 throughput was 10.9% lower than Q2 2014, the latter having been an historic high for the operations. This lower throughput contributed to a decrease in silver equivalent production to 573,224 ounces. Nevertheless, Q3 2014 copper and lead production were higher than Q2 2014 due to higher head grades and recoveries.
Q3 2014 experienced a decline in quarterly plant throughput to 124,391 tonnes due to scheduled plant maintenance and unscheduled repairs to the secondary crusher. Silver recovery decreased to 82.6% in Q3 2014, while silver head grades decreased from 87 g/t in Q2 2014 to 84 g/t in Q3 2014. Head grades and recoveries for lead and copper increased in Q3 2014 compared to Q2 2014, while zinc head grade and recovery declined slightly.
Key Operating Statistics
|Q3 2014||Q2 2014||% Change|
|Total plant throughput (tonnes)||124,391||139,581||-10.9%|
|Head grade silver (g/t)||84||87||-2.3%|
|Head grade zinc (%)||1.45||1.49||-2.7%|
|Head grade copper (%)||0.20||0.18||11.1%|
|Head grade lead (%)||1.07||0.64||67.2%|
|Recovery silver (%)||82.6||83.4||-1.0%|
|Recovery zinc (%)||77.8||79.4||-2.0%|
|Recovery copper (%)||51.1||46.9||9.0%|
|Recovery lead (%)||78.7||68.7||14.6%|
|Total silver ounces produced||277,796||316,738||-12.3%|
|Total pounds zinc produced||2,830,816||3,477,458||-18.6%|
|Total pounds copper produced||274,212||256,828||6.8%|
|Total pounds lead produced||2,130,746||1,388,569||53.4%|
|Total silver equivalent ounces* produced||511,676||603,109||-15.2%|
* The metal prices used to calculate silver equivalent ounces recovered are based upon the following 2014 budget parameters: silver at US$19 per oz; zinc at US$0.95 per lb; copper at US$2.97 per lb and lead at US$0.99 per lb.
Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. The 100% owned Nuestra Señora Mine located in the Cosalá District of state of Sinaloa, has flexible mining methods and diversified metal production. It has a fully mechanized underground operation and a 1,600 tonnes per day processing facility with permitted capacity for expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead concentrates, with a significant payable silver component in the copper and lead concentrates.
In addition, the Company has numerous exploration targets in the vicinity of its current operations as well as the advanced El Cajón and San Rafael development projects. The Company's strategy for near-term growth is currently focused on mine development of the El Cajón deposit.
Scorpio Mining's President and CEO, Mr. Pierre Lacombe, Eng., is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
President & CEO
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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 the Company's operations, exploration and development plans, expansion plans, estimates, expectations, forecasts, objectives, predictions and projections of the future. 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 development and operation of the Company's projects in Mexico, 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, risks relating to completing acquisition transactions 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 13, 2014. 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.