Toronto, August 22, 2012 — Scorpio Mining Corporation (TSX: SPM) (“Scorpio Mining” or the “Company”) is pleased to report additional results from drilling along a new trend at its 100% owned El Cajón Deposit near Cosalá, Sinaloa, Mexico. El Cajón is located approximately 13.5 kilometers by road from the 1,500 tonnes per day Nuestra Senora processing plant. The deposit has been the subject of ongoing exploration since 2005 and plans are underway to shorten the road distance from Scorpio’s Nuestra Senora processing plant by approximately 5 kilometers with a new access route.
The Company, through its wholly-owned subsidiary Minera Cosalá S.A. de C.V., has drilled a total of 4783.8 meters at El Cajón. Approximately 2,385 meters were drilled in nine in-fill holes (Holes EC-92 to EC-100) within the known El Cajón deposit with the intent of raising the confidence level and expanding the previously reported NI 43-101 resource estimate prepared by Mine Development Associates (“MDA”) in 2009. The remaining 2398.8 meters in 14 holes (Holes EC 101 to EC-114) were targeted to intersect the newly identified trend to the north and east of the previously drilled El Cajón mineralization called La Emma. All of the in-fill holes and the most recent nine holes from La Emma (EC-101-EC109) are reported here. Drilling continues to follow the La Emma trend along strike. Select holes may be re-entered to determine if deeper lenses of mineralization related to the steeply dipping structure can be found.
A complete table of significant intercepts up to and including Hole EC-109 are listed below. Intercepts are considered “significant” if they include more than one meter of mineralized material with at least 70 grams per tonne silver. Gaps in the series of holes represent holes that returned no significant values. The remaining holes in the La Emma Trend (EC-110 to EC- 114) will be reported when available.
Table 1. Recent drill results from El Cajon
Drill Hole | Incl. | From (m) | To (m) | Width (m) | True Width (m) | Au g/t | Ag g/t | Cu % | Pb% | Zn % |
EC093 | -90 | 190 | 194.3 | 4.3 | 3.29 | 0.34 | 108 | 0.486 | 0.032 | 0.133 |
EC093 | -90 | 200 | 204.5 | 4.5 | 4.23 | 0.259 | 132 | 0.458 | 0.013 | 0.07 |
EC095 | -90 | 103.85 | 117.1 | 13.25 | 13.05 | 0.083 | 74 | 0.301 | 0.001 | 0.052 |
EC096** | -90 | 103 | 118 | 15 | 14.49 | 0.217 | 82 | 0.335 | 0.015 | 0.057 |
Including | 112 | 113.5 | 1.5 | 1.45 | 0.279 | 295 | 0.727 | 0.036 | 0.084 | |
EC096** | -90 | 129.6 | 141 | 11.4 | 8.06 | 0.338 | 116 | 0.541 | 0.007 | 0.107 |
Including | 133.5 | 137.7 | 4.2 | 2.97 | 0.614 | 231 | 0.966 | 0.003 | 0.168 | |
EC096** | -90 | 209.5 | 217 | 7.5 | 7.24 | 0.11 | 94 | 0.388 | 0.015 | 0.061 |
Including | 214 | 215.5 | 1.5 | 1.45 | 0.189 | 247 | 0.914 | 0.03 | 0.067 | |
EC097* | -90 | 214.6 | 228 | 13.4 | 13.2 | 0.481 | 450 | 1.102 | 0.014 | 0.133 |
Including | 216 | 220.5 | 4.5 | 4.43 | 0.891 | 884 | 2.075 | 0.024 | 0.258 | |
EC099 | -90 | 34 | 39 | 5 | 4.33 | 0.036 | 117 | 0.183 | 0.005 | 0.117 |
Including | 34 | 36 | 2 | 1.73 | 0.058 | 226 | 0.198 | 0.002 | 0.047 | |
EC099 | -90 | 164 | 167 | 3 | 2.6 | 0.118 | 105 | 0.342 | 0.009 | 0.061 |
Including | 164 | 165.5 | 1.5 | 1.3 | 0.194 | 165 | 0.499 | 0.014 | 0.082 | |
EC100 | -90 | 193.5 | 196.5 | 3 | 2.82 | 0.629 | 86 | 0.133 | 0.114 | 0.127 |
EC101 | -90 | 31.5 | 35.75 | 4.25 | 4.19 | 0.076 | 104 | 0.208 | 0.015 | 0.036 |
EC101 | -90 | 41.6 | 43.5 | 1.9 | 1.87 | 0.208 | 283 | 0.91 | 0.055 | 0.1 |
EC102 | -90 | 7.4 | 10 | 2.6 | 2.6 | 0.103 | 138 | 0.317 | 0.025 | 0.067 |
EC102 | -90 | 17.5 | 35.4 | 17.9 | 17.29 | 0.186 | 224 | 0.799 | 0.017 | 0.049 |
Including | 20 | 22.5 | 2.5 | 2.41 | 0.133 | 327 | 2.05 | 0.083 | 0.033 | |
Including | 25 | 35.4 | 10.4 | 10.05 | 0.27 | 274 | 0.749 | 0.006 | 0.07 | |
EC103 | -90 | 122 | 124 | 2 | 1.97 | 0.134 | 185 | 0.504 | 0.392 | 0.146 |
EC103 | -90 | 134.3 | 148.45 | 14.15 | 13.94 | 0.251 | 73 | 0.133 | 0.13 | 0.145 |
EC105 | -90 | 82.5 | 88.5 | 6 | 5.2 | 0.095 | 215 | 0.481 | 0.025 | 0.093 |
Including | 82.5 | 84 | 1.5 | 1.3 | 0.17 | 250 | 0.603 | 0.009 | 0.111 | |
Including | 87 | 88.5 | 1.5 | 1.3 | 0.138 | 538 | 1.035 | 0.073 | 0.168 | |
EC107 | -90 | 58.35 | 69 | 10.65 | 10.01 | 0.173 | 99 | 0.515 | 0.009 | 0.158 |
Including | 64.5 | 67.5 | 3 | 2.82 | 0.474 | 260 | 1.4 | 0.016 | 0.373 | |
EC108 | -90 | 34.5 | 37.1 | 2.6 | 2.51 | 0.37 | 226 | 0.75 | 0.003 | 0.082 |
EC109 | -90 | 61.8 | 63.8 | 2 | 1.64 | 3.23 | 2510 | 10.25 | 0.004 | 0.925 |
EC109 | -90 | 87 | 107.5 | 20.5 | 15.7 | 0.572 | 439 | 1.872 | 0.004 | 0.181 |
Including | 87 | 94.5 | 7.5 | 5.75 | 1.349 | 1072 | 4.571 | 0.005 | 0.434 |
* Previously reported
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. La Emma is one of several skarn type deposits formed at El Cajón that replace preferred beds in the limestones adjacent to intermediate volcanic intrusions. Bedding trends northwest and dips northeast. A steeply dipping northwest fault also localizes mineralization.
The Company has previously reported a resource estimate for El Cajón as shown in Table 2 below:
Table2. El Cajón Mineral Resource Estimate 1
Cutoff | Category | Tonnes | Ag | Cu | Au |
50 | Indicated | 2,442 | 129.4 | 0.44 | 0.19 |
50 | Inferred | 996 | 97.2 | 0.34 | 0.13 |
1 An NI 43-101 technical report to support the resource estimate was prepared by Mine Development Associates of Reno, Nevada and filed on SEDAR December 4, 2009
Scorpio Mining had anticipated reporting a new resource estimate for El Cajón and its nearby San Rafael Project by the end of the second quarter of 2012. The extended drill program at El Cajón to test the newly identified La Emma trend will delay the delivery of the El Cajón resource estimate until the end third quarter of 2012.
A map of the El Cajón property showing the location of past and current drill hole locations is available on the Company’s website, www.scorpiomining.com.
About Us
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, the company has over 40 exploration targets mostly in the vicinity of its current operations and is currently updating its resource calculations for the San Rafael and El Cajón Projects. 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.The Company’s strategy focuses on developing the San Rafael and the El Cajón projects while maintaining an active regional exploration program at its existing mineral properties.
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 Company’s Mexico projects and has reviewed the content of this release. All technical information for the Company’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
Peter Hawley
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]
Website: www.scorpiomining.com
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 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.
