Toronto, October 09, 2012 – Scorpio Mining Corporation (TSX: SPM) (“Scorpio Mining” or the “Company”) is pleased to report additional results from the recently completed drill program at its 100% owned El Cajón Project near Cosalá, Sinaloa, Mexico.
Based on geologic interpretation, hole EC-109 at the La Emma Zone was re-entered and deepened beyond the depth at which 20.5 meters of 439 g/t silver and 1.872% copper were encountered (Released on August 22, 2012). The extension of hole EC-109 cut two new mineralized horizons: 14.4 meters of 94 g/t silver and 0.024% copper and 2.8 meters of 120 g/t silver and 0.327% copper. The first of these two zones was low in base metals due to oxidation of sulfides.
James Stonehouse, Scorpio Mining’s Vice-president of Exploration commented, “The El Cajón and related La Emma Zone clearly demonstrate the strength of mineralization and the potential for expansion of the deposit. Anomalous zones of silver and base metals occur in nearly every hole we have drilled, and we expect to be exploring additional extensions of this system for some time to come. The job now is to add tonnage to an already impressive find.”
The results for EC-109 and all results through hole EC-134 that had intercepts greater than 1 meter and 70 g/t silver are reported in Table 1 below:
Table 1. Recent El Cajón Drill Results
Drill Hole Incl. From To Width True Au Ag Cu Pb Zn EC109* -90 61.8 63.8 2.0 1.64 3.230 2510 10.250 0.004 0.925 EC109* -90 87.0 107.5 20.5 15.7 0.572 439 1.872 0.004 0.181 Including* 87.0 94.5 7.5 5.75 1.349 1072 4.571 0.005 0.434 EC109 -90 241.5 255.9 14.4 10.9 0.149 94 0.024 0.033 0.012 EC109 -90 284.7 287.5 2.8 2.1 0.093 120 0.327 0.053 0.010 EC110 -90 59.5 62.5 3.0 2.3 0.233 89 0.175 0.027 0.082 EC111 -90 39.0 40.8 1.8 1.4 0.061 136 1.030 0.180 0.040 EC111 -90 52.0 53.5 1.5 1.1 0.232 142 0.621 0.003 0.171 EC116 -90 187.6 188.9 1.3 1.0 0.056 130 0.618 0.077 0.341 EC118 -90 37.3 38.4 1.1 0.8 0.971 535 0.081 7.130 6.490 EC119 -90 35.0 36.1 1.1 0.8 0.512 105 0.009 1.535 1.345 EC125 -90 171.0 173.5 2.5 1.9 0.192 45 0.287 0.135 0.699
(m)
(m)
(m)
Width
(m)
(g/t)
(g/t)
(%)
(%)
(%)Drill Hole Incl. From
(m)To
(m)Width
(m)True
Width
(m)Au
(g/t)Ag
(g/t)Cu
(%)Pb
(%)Zn
(%)EC109* -90 61.8 63.8 2.0 1.64 3.230 2510 10.250 0.004 0.925 EC109* -90 87.0 107.5 20.5 15.7 0.572 439 1.872 0.004 0.181 Including* 87.0 94.5 7.5 5.75 1.349 1072 4.571 0.005 0.434 EC109 -90 241.5 255.9 14.4 10.9 0.149 94 0.024 0.033 0.012 EC109 -90 284.7 287.5 2.8 2.1 0.093 120 0.327 0.053 0.010 EC110 -90 59.5 62.5 3.0 2.3 0.233 89 0.175 0.027 0.082 EC111 -90 39.0 40.8 1.8 1.4 0.061 136 1.030 0.180 0.040 EC111 -90 52.0 53.5 1.5 1.1 0.232 142 0.621 0.003 0.171 EC116 -90 187.6 188.9 1.3 1.0 0.056 130 0.618 0.077 0.341 EC118 -90 37.3 38.4 1.1 0.8 0.971 535 0.081 7.130 6.490 EC119 -90 35.0 36.1 1.1 0.8 0.512 105 0.009 1.535 1.345 EC125 -90 171.0 173.5 2.5 1.9 0.192 45 0.287 0.135 0.699
| Drill Hole | Incl. | From (m) | To (m) | Width (m) | True Width (m) | Au (g/t) | Ag (g/t) | Cu (%) | Pb (%) | Zn (%) |
| EC109* | -90 | 61.8 | 63.8 | 2.0 | 1.64 | 3.230 | 2510 | 10.250 | 0.004 | 0.925 |
| EC109* | -90 | 87.0 | 107.5 | 20.5 | 15.7 | 0.572 | 439 | 1.872 | 0.004 | 0.181 |
| Including* | 87.0 | 94.5 | 7.5 | 5.75 | 1.349 | 1072 | 4.571 | 0.005 | 0.434 | |
| EC109 | -90 | 241.5 | 255.9 | 14.4 | 10.9 | 0.149 | 94 | 0.024 | 0.033 | 0.012 |
| EC109 | -90 | 284.7 | 287.5 | 2.8 | 2.1 | 0.093 | 120 | 0.327 | 0.053 | 0.010 |
| EC110 | -90 | 59.5 | 62.5 | 3.0 | 2.3 | 0.233 | 89 | 0.175 | 0.027 | 0.082 |
| EC111 | -90 | 39.0 | 40.8 | 1.8 | 1.4 | 0.061 | 136 | 1.030 | 0.180 | 0.040 |
| EC111 | -90 | 52.0 | 53.5 | 1.5 | 1.1 | 0.232 | 142 | 0.621 | 0.003 | 0.171 |
| EC116 | -90 | 187.6 | 188.9 | 1.3 | 1.0 | 0.056 | 130 | 0.618 | 0.077 | 0.341 |
| EC118 | -90 | 37.3 | 38.4 | 1.1 | 0.8 | 0.971 | 535 | 0.081 | 7.130 | 6.490 |
| EC119 | -90 | 35.0 | 36.1 | 1.1 | 0.8 | 0.512 | 105 | 0.009 | 1.535 | 1.345 |
| EC125 | -90 | 171.0 | 173.5 | 2.5 | 1.9 | 0.192 | 45 | 0.287 | 0.135 | 0.699 |
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. The deposit has been the subject of ongoing exploration since 2005.
Through its wholly-owned subsidiary, Minera Cosalá S.A. de C.V., Scorpio Mining has drilled a total of approximately 8,000 meters at the El Cajón Project in recent months. Significant new intercepts were encountered and an updated resource has been reported for El Cajón which increased resources and brought the deposit closer to a production decision. Currently, an exploitation permit is being sought for El Cajón so that this deposit can enhance the feed to the Nuestra Señora plant and possibly become a stand-alone operation in the future. Proposed plans are for El Cajón to produce 1,500 tonnes per day within 6 months of beginning development. The El Cajón Project is located approximately 13.5 kilometers by road from Scorpios Nuestra Señora 1,500 tonnes per day processing facility near the town of Cosalá.
A map of the El Cajón property showing the location of all drill hole locations is available on Scorpio Minings website, www.scorpiomining.com.
About Us
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 Minings 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 Minings 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 Corporations Mexico projects and has reviewed the content of this release. All technical information for Scorpio Minings 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 J. Hawley, Interim 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]
