Jul 13, 2011
Scorpio Mining Maintains Strong Production Levels in Second Quarter 2011
Toronto, July 13, 2011 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio Mining" or the "Corporation") is pleased to report a second strong production quarter in 2011 ("Q2 2011"), representing significant increases over Q2 2010 and maintaining production levels attained in the first quarter of 2011.
Parviz Farsangi, President and CEO, reports: "Scorpio Mining's production in the second quarter of 2011 continued to demonstrate solid performance at our Nuestra Señora operations. We set a record for tonnes processed and lead produced, while silver and zinc approximated last quarter's record production. During the quarter we eliminated our debt using operating cash flows and are now ideally positioned to advance the growth initiatives announced in our June 27, 2011 news release, which include increased processing capacity, optimization of existing resource base and aggressive exploration of our extensive land holdings in Mexico."
Second Quarter Production - 2011
While comparisons to the second quarter of 2010 show large production increases, it should be noted that Q2 2010 suffered from a significant throughput reduction due to a ball mill failure.
Performance of Q2 2011
Mining during 2011 has diverged from the budgeted sequence as difficulties were encountered with the availability of some mobile mining equipment and the delivery of equipment to assist with the back-filling of stopes was also delayed. These issues are being corrected and high-density definition drilling has mitigated much of the impact on production. Notwithstanding that, the copper grade in some of the current mining areas has been lower than projected from drilling.
At the end of Q2 2011, zinc and silver production was significantly ahead of forecast (+22% and +7%, respectively), whereas lead and copper were -13% and -25% respectively behind forecast. Contingent plans are currently being evaluated to recover the year-to-date deficit of lead and copper; however, the overall objective of the Corporation is to maximize silver production.
Scorpio Mining's President and CEO, Parviz Farsangi, MEng, MBA, PhD, PEng, 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.