Mar 09, 2011
Scorpio Mining Reports Nuestra Señora Mineral Reserve of 2.764 Mt @287 AgEq g/t
Toronto, March 9, 2011 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio Mining" or the "Corporation") is pleased to report an updated mineral resource and reserve estimate below the 4750 level at its Nuestra Señora mine, Sinaloa State, Mexico.
Parviz Farsangi, President & CEO reports, "We are very pleased with this latest estimate. Reserves alone at Nuestra Señora now support approximately six years of production at our existing processing facility. The mineral resources at Nuestra Señora and other nearby projects are expected to provide additional years of production and are all open to expansion. An aggressive 10,500-metre drilling program to test the exploration potential at Nuestra Señora is scheduled to commence in March 2011. Together with the known and expanding resources in our other mineral concessions in the district, we are building a solid base from which to support growth."
Mineral Resource and Reserve Estimate
Independent consultant, Genivar Inc. of Val d'Or, QC (Genivar), prepared the updated mineral resource and reserve estimate at Nuestra Señora in accordance with NI 43-101. The estimate includes the results of drilling performed since the Corporation's previous estimate (Sedar filing - Jul 9, 2008) and was updated for prevailing costs and metal prices. Genivar provided separate estimates for above and below the 4750 level of the Nuestra Señora mine (just above Level 8). The extent of historical mine workings by Asarco and later artisanal mining above the 4750 level is uncertain, and future development in this area needs further evaluation. The area below the 4750 level is accessed by current operations and will continue to be the focus of development and extraction. The mineral resource and reserve estimate for Nuestra Señora below the 4750 level is as follows:
Table 1. Nuestra Senora Mineral Resource Estimate below the 4750 level - October 31, 2010
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Table 2. Nuestra Senora Mineral Reserve Estimate below the 4750 level - October 31, 2010
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The general methodology used for the estimation includes the following:
Due to the polymetallic nature of Nuestra Señora, the disclosed mineral reserves are based upon the value of the contained metal. The conservative cut-off value of US$85/t is the metal content contained in one tonne of ore for which the net revenue (net of smelter and refining costs) is in excess of the average cash operating costs to mine and process one tonne of ore. This assumes current concentrate sales contract terms, concentrate grades and typical plant performance metal recoveries to calculate the net value. Total cash operating costs at Nuestra Señora, including mining, milling, administration and general costs, are currently under US$50/tonne.
The forecast average daily and annual plant throughput for 2011 is estimated at 1,273 tonnes per day and 464,600 tonnes respectively, and due to higher utilization represents an increase of 22% from 2010 actual plant throughput.
An independent NI 43-101 technical report supporting this mineral resource estimate will be filed on SEDAR within 45 days from the date of this press release.
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. Hugues de Corta, P.Geo., of Genivar Inc. is the independent Qualified Person for this mineral resource and reserve estimate and has also reviewed the content of this release.
Further information is available on the Corporation's web site at: www.scorpiomining.com.
ON BEHALF OF SCORPIO MINING CORPORATION
President & 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 mineral resource and reserve estimates, production, objectives, strategy, mine operations, exploration and future performance. 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.