Jan 14, 2011
Scorpio Mining Reports Record 2010 and Fourth Quarter Production Results and Provides 2011 Operating Budget Guidance
Toronto, January 14, 2011 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio Mining" or the "Corporation") is pleased to report record production results for the year 2010, and provide 2011 operating budget guidance for its Nuestra Señora mining operation, Sinaloa State, Mexico.
Parviz Farsangi, CEO reports, "2010 was a record production year for Scorpio Mining, with the fourth quarter presenting a marked turning point in our operational success. As shown by our forecast estimates, we are expecting further significant improvements in performance in 2011. Nuestra Señora has proven to be a low-cost operation with the benefit of flexible mining methods and diversified metal production. With our strong team in place we are confident in delivering our commitments in 2011."
Yearly Production - 2010
The effective operating days in 2010 were adversely affected by the loss of one ball mill during second quarter, due to a failed trunnion. That failure represented the loss of 50% of processing capacity for a 90-day period.
Fourth Quarter Production - 2010
Production Forecast - 2011
Key Elements of the 2011 Operating Plan:
The 2011 budgeted production increases are based upon:
Capital and exploration spending for 2011 is budgeted at US$8.101 million and allocated as follows:
* Metal prices used to calculate silver equivalent ounces recovered are based upon the approximate weighted averages realized throughout 2010 and are as follows: lead US$0.96 per lb; zinc US$0.96 per lb; copper US$3.40 per lb and silver US$20 per oz. For direct comparison purposes, these metal prices have been used to calculate silver equivalent ounces for actual 2009 production and forecasted 2011 estimate.
Further information is available on the Company's web site at: www.scorpiomining.com. Scorpio Mining's Mexico Country Manager, John A. Sadek, B.Eng. (Mining), MAusIMM, is a Qualified Person for the Corporation's Mexico projects and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
CEO & Director
For further information contact:
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
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 production, objectives, strategy, mine operations, exploration, future performance, our management team, and plans. 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 Señora and La Verde projects, risks related to international operations, construction delays and cost overruns, equipment breakdowns, 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.