Oct 15, 2012
Scorpio Mining Reports Third Quarter Production Results
Toronto, October 15, 2012 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Company") reports that production in the third quarter ended September 30, 2012 ("Q3 2012") from its Nuestra Señora operations totalled 534,075 silver equivalent ounces*.
Third Quarter 2012 Production Highlights
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* For comparative purposes the metal prices used to calculate silver equivalent ounces recovered are based upon the following: silver at US$24 per oz.; zinc at US$0.90 per lb.; copper at US$3.50 per lb. and lead at US$0.90 per lb.
Head grade and recovery differences between Q3 2012 and Q3 2011 reflect changes in the blend of available ore sources from the Nuestra Señora mine at those times. The Nuestra Señora mine has multiple mineralized zones with varying metal grades and ratios. Metallurgical performance is largely dependent upon the blend of ore sources fed to the plant. In Q3 2012, the recovery of copper and silver was substantially reduced due to the low copper head grade.
The average head grades of copper and silver processed in July and August were 0.18% and 86 g/t, respectively, which were relatively low compared to past production. However, in September, mine production from areas with higher grades resulted in significantly higher head grades of 0.27% for copper and 96 g/t for silver. The Company's objective is to maintain similar higher head grades throughout Q4 2012.
Mine development during Q3 2012 focused on increasing drilled and blasted ore stocks to maintain an equivalent plant supply of 10 weeks. Since the beginning of Q3 2012, the Company implemented a number of cost reduction initiatives and strengthened its operations with the addition of a Chief Mine Geologist, Mine Maintenance Superintendent and a new Mine Manager.
At the end of Q3 2012, the Company commissioned a flash flotation cell in the process plant, which is currently under evaluation. The Company expects to improve the efficiency of the flash flotation cell throughout Q4 2012 as head grades to the plant are stabilized.
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 Interim CEO, Peter J. Hawley, P.Geo., is a qualified person for the Nuestra Senora operations and has reviewed and approved the content of this release. For additional information, please see the Company's website at www.scorpiomining.com.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Interim 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.