Jul 15, 2011
Scorpio Mining Provides Exploration Update on its Projects in Mexico
Toronto, July 15, 2011 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Corporation") is pleased to provide an update on exploration activities at its projects in Mexico. The Corporation controls over 29,000 ha in the Cosalá district, Sinaloa, which is host to over 40 known exploration targets but is relatively unexplored by modern techniques. In addition, Scorpio Mining holds two advanced, high-grade silver properties in the Parral district, Chihuahua, that are drill-ready.
Parviz Farsangi, President & CEO reports, "Scorpio Mining benefits from a very large land position in a relatively unexplored area, which has proven to host economic deposits and contains an abundance of promising early-stage exploration targets. The opportunity to advance our known deposits and to make new discoveries is excellent. Our exploration programs complement a determined effort to grow Scorpio Mining by developing its own assets. We remain confident we have the projects and the people to reach this next stage of success."
Scorpio Mining's 2011 exploration and infill drilling program includes surface and underground diamond drilling on multiple deposits/targets, including:
More than 5,000 m of underground exploration and infill drilling have been completed to date at the Nuestra Señora mine. Drill holes targeting new mineralization in the Santa Teresa Extension zone have intersected visually mineralized skarn up to 40 m south of the previously delineated mineralization. Drilling will also target extensions to the Hoag zone and test for new mineralization adjacent to the Hoag shear zone.
Surface exploration to the north of Nuestra Señora processing plant is having success in several areas, including ground recently acquired from a subsidiary of Grupo Mexico. Initial results report widespread anomalous gold and silver in chip channel sampling at the Chilicotes and Santa Rita prospects, both of which are spatially associated with weakly magnetic diorite; a common association of mineralization in the Cosalá district. Both prospects are proximal to the El Cajón, San Rafael and La Verde deposits, which are located within 20 km by road from the Nuestra Señora processing plant.
Approximately 3,500 m of surface drilling is proposed for Chilicotes, located 2.4 km south of San Rafael. The prospect is a silicified structural zone in brecciated volcanics that is up to 70 m wide and has been traced over a 1.2-km strike length. Initial results of chip channel sampling across the breccia zone has returned 0.434 g/t Au, 27 g/t Ag, 0.002% Cu, 0.04% Pb and 0.16% Zn over 34 m.
Santa Rita, 4.4 km southwest from San Rafael, is made up of northwest-trending silicified structures in volcanics. Chip channel samples over 1-2 m widths have been collected over approximately 200 m of exposed mineralization, mainly from shallow underground workings less than 30 m from surface. Highly anomalous silver assays returned in the 57 samples collected were as follows: 39 samples assayed > 100 g/t, 18 samples > 300 g/t, 8 samples > 500 g/t and 3 samples > 1,000 g/t. Anomalous gold assays in the same 57 samples included: 45 samples > 0.1 g/t, 26 samples > 0.3 g/t, 13 samples > 0.5 g/t and 3 samples > 1.0 g/t. Mapping and sampling in the vicinity of the Santa Rita prospect has also uncovered multiple mineralized showings extending along a 3-km long northwest-trending corridor. Further work is planned to take this promising area to the drilling stage.
Exploration has also uncovered several historical surface workings southeast of the El Cajón Ag-Cu-Au deposit, presenting a new drill target as the southern extension of El Cajón. Drilling of the El Cajón and its extension will be incorporated into a future exploration program.
At the La Verde mine, underground drill stations are ready and the planned 2,800 m of drilling will commence following the arrival and installation of electrical cable for the drilling rigs, expected later this month. The La Verde mine, which is currently dormant, historically produced 1.4 million tonnes grading 105-180 g/t Ag, 0.53-0.65% Cu.
In addition to the above exploration drilling in the Cosalá district, the Corporation plans an 8,000-m surface drilling program that will cover infill and extension drilling of the San Rafael and La Verde mineralization, with the objective of adding to and upgrading mineral resources within these deposits.
Commencement of 7,000 m of surface drilling at the La Revancha and Tepozán projects in Parral, Chihuahua is pending the receipt of all permits. Drilling at La Revancha will expand oxide mineralization currently traced by drilling over a distance of 300 m and possibly encounter higher-grade sulphide mineralization more commonly exploited in the Parral district. At Tepozán, drilling will test a previously undrilled 1.3-km long quartz vein system believed to be related to mineralization in the Parral district.
Assay results from the various programs will be released once received and compiled.
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. All technical information for the Corporation's Mexico projects is obtained and reported under a formal quality assurance and quality control (QA/QC) program. Samples are shipped to the ALS Chemex preparation laboratory in Hermosillo, Mexico for drying, crushing and pulverizing. ALS Chemex, Hermosillo then sends the pulps for assaying to ALS Chemex, Vancouver, an ISO 9001:2000 accredited facility. Details of the QA/QC program are available on the Company's website 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)
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 the Corporation's exploration programs, operations, plans, estimates, expectations, forecasts, objectives, predictions and projections of the future. 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 Corporation's projects in Mexico, risks related to international operations, construction delays and cost overruns, 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, 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.