Mar 06, 2012
Scorpio Mining Cuts 1,562 g/t Silver, 2.1 g/t Gold, 1.53% Zinc, 0.27% Lead and 6.12% Copper over 5.14 meters at the San Rafael Development Project
Toronto, March 6, 2012 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio" or the "Corporation") is pleased to report additional positive drill results from its San Rafael Development Project, favorably located only 19 kilometers by road from the Nuestra Señora processing facility in the Cosalá Mining District, Sinaloa State, Mexico.
"A total of 7,948 meters of drilling were completed at San Rafael in 2011 and so far in 2012 we have completed another 2,836 meters" stated Parviz Farsangi, President and CEO. "The continued positive drilling results coming out of San Rafael, which include some significant gold credits and the discovery of a new manto body, not only enhance the Corporation's plans for expansion in the Cosalá Mining District, but also reflect the excellent work carried out by our technical team on the ground."
Highlights from the latest San Rafael drill results include:
Previously the San Rafael mineral occurrence was thought to be composed of three distinct bodies hosted in skarn:
Drilling completed by Scorpio at San Rafael has focused on defining proposed open pit boundaries of the Main Zone and the in-fill drilling of widely-spaced intersections from prior drilling campaigns. Currently, drilling is following a fourth new manto-like body discovered to the northwest of the main deposit area.
This new manto body has the potential to add to the current mineral resource estimate reported for San Rafael, which is presented below:
Mineral Resource Estimate - San Rafael Deposit (August 12, 2009)
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Note: Note: Metal prices used in the above estimates are US$12/oz. silver, US$0.80/lb. zinc, US$0.70/lb. lead, US$2.00/lb. copper and US$750/oz. gold. A 3.5% zinc equivalent cutoff was applied to the Main & Upper Zones, and a 100 g/t AgEq cutoff applied to the 120 Zone. The NI-43-101 technical report to support this estimate was filed on SEDAR on Dec. 4, 2009 and is available for viewing under the Corporation's profile at www.sedar.com. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature an there has been insufficient exploration to define these Inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
San Rafael Development Project - Latest Drill Results
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Scorpio expects to complete drilling on all portions of the San Rafael Development Project by mid to late March, 2012. Upon receipt of all results and the technical review of the data, a new mineral resource estimate will be completed with the intent to upgrade a significantly larger portion of the resource to the measured and indicated mineral resource categories.
A location map and geology and drill hole plan is available for review at http://www.scorpiomining.com/s/LaVerde.asp.
Scorpio Mining's Vice President of Exploration, James Stonehouse, is a Professional Geologist in the State of California (Registration # 5518), a Registered Geologist with SME (Registration #4168919) and is a Qualified Person for the Corporation's Mexico projects and has reviewed and is responsible for the technical 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 Chihuahua, 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 at: www.scorpiomining.com/i/pdf/reports/QAQC-CD.pdf.
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 the Corporation's 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.