Nov 05, 2009
Scorpio Reports Drill Highlights of Platte River Gold's La Verde Project
Vancouver, November 5, 2009 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio" or the "Company") reports highlights of past drilling on the San Rafael deposit (Main, Upper, and 120 Zones), and the El Cajon deposit at the La Verde project, which is 100% owned by Platte River Gold Inc. ("Platte River"). Scorpio recently announced a proposed business combination with Platte River involving the issue of 74.8 million shares of the Company. The transaction remains subject to due diligence, definitive documentation and regulatory and shareholder approvals.
Selected drill results presented in Table 1 are from the San Rafael deposit, with the related Zn-Ag-Pb-Au massive sulphide "Main Zone", the Ag-Cu-Au ± Zn-Pb "120 Zone", the Ag-Au "Upper Zone", and the El Cajon Ag-Cu-Au deposit. All of these zones have been drilled out at 25-50 metre drill spacing and remain open to expansion. In addition, preliminary metallurgical work has been completed on the Main and 120 Zones at the San Raphael deposit and indicates normal recoveries. An internal study has reviewed the economics of exploitation of the deposits by open pit mining followed by underground extraction.
Table 1. La Verde Project - Significant Drill Intercepts
<< Drag to view table >>
The surface drill results presented above include reverse circulation (RC) and core holes completed by Minera Platte River Gold (PRG) between 2005 and 2008. In all cases, true widths are less than drilled widths. From 2004 to 2008, PRG completed 371 drill holes on the La Verde project, including 34,559 metres RC, 3,830 metres RC pre-collar to core, and 27,317 metres core, for a total of 65,706 metres.
The San Rafael Main Zone and Upper Zone are discrete tabular bodies, generally dipping 10-30º southwest and striking 320º. The San Rafael Main Zone is 700 metres in length and varies in width from 300-500 metres. On average, it is 15-20 metres thick and lies roughly 5 to 170 metres below the surface. The San Rafael Upper Zone lies 50 to 100 metres above the Main Zone and is sub-parallel. It has been defined over an area of approximately 300 x 100-250 metres and varies in thickness from 4 to 15 metres.
The San Rafael 120 Zone is skarn-related mineralization that occurs both peripheral to sub-vertical dikes and along bedding planes that dip roughly 50º northeast. The zone is exposed at surface where it intersects the San Rafael Main Zone and has been traced to at least 350 metres depth. Mineralization occurs within a lower-grade envelope roughly 500 metres long and 250 metres wide.
The El Cajon deposit is also skarn related and is aligned along the general 330º strike and 20º northeast dip of the limestone country rock. As is typical of many skarn deposits, the mineralization is irregular in orientation. Most of the drilling at El Cajon was completed with vertical core holes to depths generally less than 300 metres and mineralization has been outlined from surface to approximately 250 metres depth. Overall, the El Cajon deposit, as currently defined, is roughly circular in plan view spanning more than 200 metres.
PRG has performed quality assurance/quality control ("QA/QC") measures since drilling was initiated in 2004, utilizing standards, blanks, and drill rig duplicates. All RC and core samples were sent to ALS Chemex in Hermosillo, Mexico for sample preparation and sample pulps were subsequently sent to ALS Chemex in Vancouver, BC for analysis. Silver, copper, lead, and zinc were analyzed by four-acid (HF-HNO3-HClO4-HCl) leach digestion and gold was analyzed by 30g fire assay with an atomic absorption finish. ALS Chemex is an ISO 9001:2000 accredited facility.
A NI 43-101 technical report on the La Verde project will be filed on SEDAR on or before November 28, 2009. Further information is available on the Company's web site at: www.scorpiomining.com.
Scorpio's President, Mr. D. Roger Scammell, P.Geo., is the Qualified Person for the Company's Mexican projects 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 Platte River's La Verde 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 mineral projects, 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.