Dec 16, 2013
Scorpio Mining Receives Final Permit to Proceed with Development of the Underground El Cajón Mine in Mexico
Toronto, December 16th, 2013 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio" or the "Company") is pleased to announce that the Secretariat of Environment and Natural Resources (SEMARNAT) for the State of Sinaloa, Mexico, has approved the application for the Change of Use of Soil (CUS) submitted by its wholly-owned subsidiary, Minera Platte River Gold, S. de R.L. de C.V., pertaining to the development of underground mining operations at the El Cajón Project, located in the Cosalá Norte District.
The CUS permit allows Scorpio to commence surface work on the El Cajón Project. Having previously reached an agreement with, the ejido of Higuera Larga, the surface rights owner, and having received approval of the Environmental Impact Study, in April of this year, this was the final permit required to commence construction activities. Initiation of said activities is planned to start during the first quarter of 2014.
A prefeasibility study presenting a reserves statement for the El Cajón deposit is also scheduled to be completed during Q1 2014.
Pierre Lacombe, President and CEO of the Company comments, "We are extremely pleased that this major milestone is behind us as it will allow Scorpio to move forward with the development of El Cajón and sustain continued mining activities in the Cosalá District, in a socially and environmentally responsible manner, for the benefit of the region and of our stakeholders."
Mr. Lacombe added; "We appreciate the efforts of our team, supporting consultants and our special recognition goes to the members of the Sinaloa Secretariat of Economy, SEMARNAT and to the local communities for their continuing support."
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 at the El Cajón deposit.
Scorpio Mining's President and CEO, Mr. Pierre Lacombe, Eng., is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved 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]
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.