May 29, 2012
Scorpio Mining Intercepts 11.6 Meters of 450 g/t Silver and 1.102% Copper as it Completes In-fill Drilling at El Cajón and Extends the Exploration Program to Follow a New Trend
Toronto, May 29, 2012 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Corporation") is pleased to report initial results from the recently completed drill program at its 100% owned El Cajón Project near Cosalá, Sinaloa, Mexico.
Through its wholly-owned subsidiary, Minera Cosalá S.A. de C.V., Scorpio Mining has drilled a total of approximately 4,695 meters at the El Cajón Project in recent months. About half of this total (2,335 meters) was drilled in nine in-fill holes with the intent of raising the confidence level and expanding the previously reported resource estimate. The infill drilling intersected up to 450 grams per tonne silver and 1.102 % copper over 11.6 meters in Hole EC97, including 884 grams per tonne silver and 2.075% copper over 3.9 meters. The remainder of the drilling (2,360 meters) identified a new structurally controlled zone called "La Emma" in 16 holes. Work is still in progress along this trend.
Results from two holes from the in-fill program are shown in Table 1 below:
Table 1. Recent drill results from El Cajón in-fill holes EC 96 and EC 97
<< Drag to view the table >>
In the next few weeks, Scorpio Mining anticipates that it will report additional results from the in-fill program and the "La Emma" area. Scorpio Mining plans to deliver all samples from the drilling completed to date to the laboratory for assaying by the end of May, 2012.
The El Cajón Project area is located approximately 13.5 kilometers by road from Scorpio's Nuestra Señora 1,500 tonnes per day processing facility near the town of Cosalá.
El Cajón is a complex skarn hosted deposit in calcareous sedimentary rocks in contact with a granodiorite intrusion. Mineralization is localized by skarn development, structure and lithology. The deposit has been the subject of ongoing exploration since 2005.
Scorpio Mining has previously reported a resource estimate for the property as shown in Table 2:
Table 2. El Cajón Mineral Resource Estimate1
1 The mineral resource estimates summarized in Table 2 have been calculated in compliance with National Instrument 43-101. For further details on the mineral resources please refer to the technical report entitled "La Verde Project Technical Report, Sinaloa, Mexico" prepared by Mine Development Associates of Reno, Nevada, dated November 25, 2009 and filed on SEDAR December 4, 2009.
Scorpio Mining also announces that, as a result of its decision to extend the drill program at El Cajón to test the newly identified "La Emma" zone, it has also extended its target date for the delivery of its expected El Cajón resource estimate by up to three weeks. Scorpio Mining does not expect that the timing of the San Rafael resource estimate will be affected by the extended drill program.
As previously announced, Scorpio Mining expects the new resource estimate for the Nuestra Señora to be available by the end of Q2 2012 followed by the new reserve estimate in late Q3 2012 or early Q4 2012.
A map of the El Cajón property showing the location of past and current drill hole locations is available on Scorpio Mining's website, www.scorpiomining.com.
Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. In addition, the company has over 40 exploration targets mostly in the vicinity of its current operations.
The 100% owned Nuestra Señora 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 has 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. Scorpio Mining's strategy focuses on exploring and developing its existing mineral properties. At the nearby San Rafael and El Cajón deposits, an extensive diamond drilling program is in progress to potentially increase the mineral resource base and support an upgrade to reserve category.
Scorpio Mining also holds a 100% interest in the advanced, high-grade La Revancha silver and Tepozán silver-gold projects, both located in the productive Parral District within the respective states of Chihuahua and Durango, Mexico.
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 the content of this release. All technical information for Scorpio Mining'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, Chihuahua 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-PD.pdf.
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
Email: [email protected]
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: [email protected]
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, exploration and development plans, expansion 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 26, 2012. 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.