Nov 07, 2011
Scorpio Mining Announces High-Grade Results from San Rafael Drilling; Six Rigs Operating on Multiple Projects
Toronto, November 7, 2011 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio" or the "Corporation") is pleased to report that a total of six diamond drills are currently active on the Corporation's projects in the Cosalá District, Sinaloa and Parral District, Chihuahua. In Cosalá District, two drills are active at each of Nuestra Senora and San Rafael deposits; while one drill is active at the La Verde Mine. The sixth rig has commenced drilling at the La Revancha project, Parral District.
Drilling at the San Rafael silver-lead-zinc-copper-gold deposit has focused thus far on defining proposed open pit boundaries of the Main Zone and in-fill drilling of widely-spaced intersections from prior drilling campaigns. The Corporation expects these drill results to add to the existing resource base as well as increase overall grade estimations. Completion of the current program is expected early in the first quarter of 2012. Table 1 summarizes the results of holes intersecting strong mineralization. A drill hole location map is available at www.scorpiomining.com/i/maps/pr/SanRafael-DHplan.pdf.
Table 1. San Rafael Deposit - Highlights of 2011 Definition/Infill and Step-Out Drilling
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Exploration drilling at Nuestra Senora has discovered alteration and mineralization visually similar to the Candelaria Deposit, approximately 80 metres down dip from current workings. Drilling is currently targeting extensions to connect the mineralization; assays are pending.
Approximately 3,000 metres of underground drilling is targeting extensions of known mineralization at the La Verde silver-copper mine in preparation for a mineral resource estimate. Drilling is expected to finish early in the first quarter of 2012. The La Verde Mine historically produced a reported 1.5 million tonnes of ore at grades ranging 105-180 g/t Ag and 0.53-0.65% Cu. The mine is currently undergoing refurbishment to improve safety and production efficiency.
In the Parral District, drilling has commenced on the La Revancha silver deposit as part of a 7,000 metre drill program that will also include drilling on the Tepozan silver-gold vein system. Drilling at La Revancha will expand oxide mineralization currently traced by drilling over a distance of 300 metres and test for higher-grade sulphide mineralization more commonly exploited in the Parral district. At Tepozán, drilling will test a previously undrilled 1.3 kilometre long quartz vein system believed to be related to mineralization in the Parral District. The Corporation believes that mineralization encountered at La Revancha and Tepozan are high level expressions of high-grade sulphide mineralization currently being mined in the District, such as Grupo Mexico's Santa Barbara Mine and Minera Frisco's San Francisco del Oro Mine. The drill program is expected to continue through the first quarter 2012.
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. Drill hole data in Table 1 reflects down hole core lengths and actual (uncut) grades; true widths cannot be reliably estimated at this time. 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.
Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. The 100%-owned Nuestra Senora Mine and plant located in the Cosalá district of Sinaloa State, Mexico, has proven to be a low-cost operation with the benefit of flexible mining methods and diversified metal production. It boasts a fully mechanized underground operation and a processing facility built for expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead concentrates; with a significant silver component in the copper and lead concentrates. In addition, the company has over 40 exploration targets mostly in the vicinity of its current operations. The Corporation also holds a 100% interest in the prospective La Revancha silver and Tepozán silver-gold projects in the Parral District of Chihuahua State, Mexico.The Corporation's strategy focuses on exploring and developing its existing mineral properties.
ON BEHALF OF SCORPIO MINING CORPORATION
President & CEO
For further information contact:
Victoria Vargas, Vice President Investor Relations and Corporate Communications +1 416-585-2200
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.