Apr 18, 2011
Scorpio Mining Reports Record Quarterly Production in First Quarter 2011
Toronto, April 18, 2011 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio Mining" or the "Corporation") is pleased to report record production results for the first quarter of 2011 ("Q1").
Parviz Farsangi, President and CEO, reports: "First quarter 2011 was a record production quarter for Scorpio Mining. The Nuestra Señora operation overcame some set-backs to produce better than forecasted overall metal. Combined with the current high metal price environment and cash proceeds of $5,171, 695 from sale of over 8.1 million shares of Scorpio Gold during the quarter, we are well placed to eliminate our debt during the coming month. Nuestra Señora has now delivered solid performance in two consecutive quarters and we are confident that our 2011 commitments will be met."
First Quarter Production - 2011
Performance Issues of Q1 2011
Difficulties with the availability of key mobile mining equipment during Q1 2011 caused some divergence from the mining plan as well as the delivery of stockpiled low-grade ore to the processing plant. That situation was resolved by the end of February and enabled overall metal production to return to forecast.
At the end of Q1 2011, zinc and silver production was significantly ahead of forecast (+25% and +7%, respectively) and copper was slightly behind (-6%). Some lead production was sacrificed in the effort to maximize silver. At the end of Q1 2011, lead was 14% behind forecast.
Confirmation of 2011 Guidance & Production Forecast
Notwithstanding the drop in Q1 lead production, the Corporation confirms that the previous guidance for its 2011 production forecast remains unchanged at this time; specifically:
Depending on actual metal prices, the Corporation may vary the planned mining sequence such that revenues are maximized. Should that occur, the actual make up of metal production may vary from this guidance.
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
President & CEO
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 and forecasts, 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 30, 2011. 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.