Jul 02, 2010
Scorpio Mining Announces Second Quarter 2010 Guidance
Vancouver, July 2, 2010 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Corporation") announces operation expectation guidance for the second quarter 2010 as a result of a ball mill failure at the Corporation's Nuestra Señora mill facility in Sinaloa State, Mexico.
Peter J. Hawley, Chairman, CEO reports, "An unfortunate crack in the ball mill A trunnion at the Nuestra Señora mill facility has required a shut down of that ball mill and limiting of the processing throughput to ball mill B. Equipment failure and breakdown is an anticipated occurrence at mine and mill facilities; but due to the immediate action taken by the Scorpio Mexico operational team, we expect to resume processing with both ball mills by mid July 2010. This being the case, the Corporation wishes to inform its shareholders that throughput for the second quarter is expected to be approximately 23% lower than the previously targeted 90,000 tonnes. Accordingly, mill head grades have been increased in order to offset the decrease in total metal production and lessen the impact on revenues for the second quarter."
The Corporation notes the following:
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: [email protected]
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 enhancing mine operations and Scorpio Mining Corporation's commitment to, and plans for developing the Nuestra Senora 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 development and operation of the Nuestra Senora 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, 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 29, 2010. 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.