Mar 17, 2011
Scorpio Mining Acquires Additional Mineral Concessions in Cosalá District and Outlines 2011 Exploration Plans
Toronto, March 17, 2011 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio Mining" or the "Corporation") is pleased to announce the acquisition of important mineral concessions in the Cosalá District, Sinaloa, Mexico, and outlines exploration plans for the remainder of 2011.
On March 16, 2011 the Corporation signed an agreement to acquire mineral concessions totalling 1,387 ha (13.87 km2) from a subsidiary of Grupo Mexico S.A.B. de C.V. ("Grupo Mexico") for a cash payment of US$615,000. Grupo Mexico retains a 1.25% Net Smelter Return.
This acquisition further consolidates the Corporation's extensive land position in the Cosalá District, totalling 29,161 ha and spanning an area of ~23 km by 19 km. The newly acquired concessions are adjacent and/or close to several important resource areas and exploration targets, including the San Rafael, El Cajón and Los Venados deposits, and the El Simon target.
Exploration plans for the remainder of 2011 include surface and underground diamond drilling on multiple deposits/targets in the Cosalá District, Sinaloa and on projects in the Parral District, Chihuahua. Exploration drilling will include:
Parviz Farsangi, President & CEO reports, "Scorpio Mining is very fortunate to hold such a large land position in a relatively unexplored area, which is proven to host economic deposits and contains an abundance of promising early-stage exploration targets. We believe the potential to advance our known deposits and to make new discoveries is excellent. The upcoming aggressive exploration programs complement a determined effort to grow Scorpio Mining by developing its own assets. We are confident we have the projects and the people to reach this next stage of success."
Further information about Scorpio's projects in the Cosalá and Parral districts is available on the Corporation's web site at: www.scorpiomining.com.
Scorpio Mining's Senior Exploration Geologist, Will Strong, B.S., P.G., is a Qualified Person for the Corporation's Mexico projects and has reviewed the content of this release.
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 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.