Scorpio Mining Corporation (SPM.TO) reported that production in the third quarter ended September 30, 2012 from its Nuestra Senora operations totalled 534,075 silver equivalent ounces.

Third Quarter 2012 Production Highlights:

Head grade and recovery differences between Q3 2012 and Q3 2011 reflect changes in the blend of available ore sources from the Nuestra Senora mine at those times. The Nuestra Senora 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.