Apr 25, 2013
Scorpio Mining Reports First Quarter 2013 Production Results
Toronto, April 25, 2013 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Company") reports that production from the Nuestra Señora Operation in the first quarter ended March 31, 2013 ("Q1") totalled 502,934 silver equivalent ounces.
Pierre Lacombe, President and CEO comments, "The Nuestra Señora Operation delivered increased recoveries in Q1 for all metals compared to Q4 2012, and record plant throughput in Q1 compared to any previous quarter. Lower head grades for silver and zinc were largely offset by higher head grades of copper and lead compared to Q4 2012, with total silver and zinc produced in Q1 2013 decreasing by 15.2% and 3.8% respectively, while copper and lead produced increased by 26.7% and 35.9% respectively. The net effect to the total silver equivalent ounces production for Q1 2013 was a decrease of 3.5% compared to the previous quarter."
Key Operating Statistics
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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. These prices are based on 2012 budgeted prices and are subject to change in subsequent quarters pending finalization of the Nuestra Señora mineral reserve estimate and formal approval of the 2013 budget.
Increased plant throughput achieved in Q1 2013, and moving forward, is largely due to the installation of efficient cyclone feed pumps and resizing of cyclone components near the end of Q4 2012, as well as the effect of the flash flotation cell on the mill circulating load.
Scorpio Mining looks forward to the near-term receipt of the Preliminary Economic Assessment (PEA) study by Reno-based Mine Development Associates. The PEA will include an updated reserve estimate for the Nuestra Señora Mine based upon a mine design and production schedule, and will incorporate the resource estimate disclosed on June 29, 2012. The PEA will also include an economic assessment of the nearby El Cajón and San Rafael development projects based on a sequential development schedule. Construction and mine development at El Cajón, located 14 kilometers by existing road to the Nuestra Señora processing facility, is scheduled to commence upon receipt of environmental and change of land use permits.
Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. The 100% owned Nuestra Señora Mine in the Cosalá District of Sinaloa State, Mexico, has flexible mining methods and diversified metal production. It has a fully mechanized underground operation and a processing facility with permitted capacity for expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead concentrates, with a significant payable silver component in the copper and lead concentrates.
In addition, the Company has numerous exploration targets in the vicinity of its current operations as well as the advanced El Cajón and San Rafael development projects. The Company's strategy for near-term growth is currently focused on mine development of the El Cajón deposit upon receipt of permitting.
Scorpio Mining's President and CEO, Mr. Pierre Lacombe, Eng, is a Qualified Person as defined under National Instrument 43-101 and has reviewed the content of this release.
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 Company'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 Company'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 14, 2013. 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.