Jul 18, 2012
Scorpio Mining Intercepts 3.85 Meters of 2802 g/t Silver, 1.75 g/t Gold and 7.76% Combined Base Metals at the San Rafael Development Project
Toronto, July 18, 2012, 2012 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Corporation") is pleased to report preliminary results from the recently completed drill program at its 100% owned San Rafael Project in Cosalá, Sinaloa, Mexico. The San Rafael Project is a zinc-lead-silver-copper project located approximately 16 km from Scorpio Mining's operating Nuestra Señora plant which currently processes approximately 1,500 tonnes per day.
Hole SR-298 intersected 4.45 meters (3.85 m true width) of 2,802 g/t Ag, 1.75 g/t Au, 0.928% Cu, 4.489% Pb and 2.341% Zn in the Upper Zone. Hole SR-310 intersected 5.6 meters (5.41 m true width) of 2,626 g/t Ag, 2.096 g/t Au, 0.614% Cu, 2.335% Pb and 0.203% Zn also in the Upper Zone of the deposit.
San Rafael and El Cajón are two skarn related mineral deposits with significant resources previously reported and Updated Resources are scheduled to be released by the end of August 2012. These deposits are within 14-16 km of haulage distance of the Nuestra Señora processing plant. Drill results for El Cajon mineral deposit will be released separately.
The San Rafael mineral occurrence is composed of five distinct bodies:
The Upper Zone and newly discovered Northwest (NW) Extension are relatively flat lying bodies contained entirely within the upper rhyolitic volcanic rocks as opposed to the more contact related Main Zone and structurally controlled 120 Zone. Scorpio Mining believes that the NW Extension may add some tonnage to the upcoming San Rafael Updated Resource estimate. This potential tonnage is conceptual in nature and is based on previous drill results. There has been insufficient exploration to define a current resource and Scorpio Mining cautions that there is a risk further exploration will not result in the delineation of a current resource in the NW Extension.
Table 1 below demonstrates results for previously unreported holes SR-293 to SR-357. Holes not shown in the table within the series SR-293 to SR-357 are not considered to contain significant values. To be considered significant, zones must be more than 1 meter in width, and contain in excess of either 40 grams per tonne silver and/or 1% combined base metals.
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Scorpio Mining has drilled approximately 3,334 meters at the San Rafael Project in 2012. The program completed in-fill drilling on the known zones and delineated mineralization in the newly discovered NW Extension. Mine Development Associates (MDA) of Reno Nevada is currently calculating an Updated Mineral Resource estimate for the deposit that includes approximately 120 new holes completed in 2011 and 2012. The discovery of new mineralization in the NW Extension and the number of new holes will delay this estimate until the third quarter of 2012.
A NI 43-101 technical report to support the resource estimates was prepared by MDA and filed on SEDAR December 4, 2009. Table 2 presents these historical estimates.
Table 2. Measured and Indicated Resources for the San Rafael Project
San Rafael Main and Upper Zone
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San Rafael 120 Zone
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A map of the San Rafael Project, sections of the new NW Extension, and a longitudinal section of the Main and Upper Zones are available on the Corporation'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 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. In addition, Scorpio Mining has over 40 exploration targets mostly in the vicinity of its current operations and is currently updating its resource calculation for the San Rafael and El Cajon mineral deposits. The Corporation 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.The Corporation's strategy focuses on exploring and developing its existing mineral properties.
Scorpio Mining's Vice-President of Exploration, James Stonehouse a Registered Geologist with SME (Registration #4168919) and is the 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 either Hermosillo or Chihuahua, Mexico for drying, crushing and pulverizing. ALS Chemex; Mexico preparation laboratory, 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.