Scorpio Mining Acquires Additional Mineral Concessions
in Cosal� District and Outlines 2011 Exploration
Plans
NOT FOR
DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Toronto, March 17, 2011 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio
Mining" or the "Corporation") is pleased to announce the acquisition
of important mineral concessions in the Cosal�
District, Sinaloa, Mexico, and outlines exploration plans for the remainder of
2011.
On March 16, 2011 the Corporation signed an agreement to acquire mineral
concessions totalling 1,387 ha (13.87 km2) from a
subsidiary of Grupo Mexico S.A.B. de C.V. ("Grupo Mexico") for a cash payment of US$615,000. Grupo Mexico retains a 1.25% Net Smelter Return.
This acquisition further consolidates the Corporation's extensive land position
in the Cosal� District, totalling
29,161 ha and spanning an area of ~23 km by 19 km. The newly acquired
concessions are adjacent and/or close to several important resource areas and
exploration targets, including the San Rafael, El Caj�n
and Los Venados deposits, and the El Simon target.
Exploration plans for the remainder of 2011 include surface and underground
diamond drilling on multiple deposits/targets in the Cosal�
District, Sinaloa and on projects in the Parral
District, Chihuahua. Exploration drilling
will include:
�
10,500 metres of underground drilling at the Nuestra
Se�ora Ag-Zn-Cu-Pb mine;
�
2,800 metres of underground drilling at the La Verde Ag-Cu-Au
mine;
�
5,000 metres of surface drilling to test several early-stage
Ag-Cu-Pb-Zn-Au exploration targets in the Cosal� District; and,
�
Up to 7,000 metres of surface drilling at the La Revancha
and Tepoz�n projects in Parral,
Chihuahua.
Parviz Farsangi, President & CEO reports, "Scorpio Mining is very
fortunate to hold such a large land position in a relatively unexplored area,
which is proven to host economic deposits and contains an abundance of
promising early-stage exploration targets. We believe the potential to advance
our known deposits and to make new discoveries is excellent. The upcoming
aggressive exploration programs complement a determined effort to grow Scorpio
Mining by developing its own assets. We are confident we have the projects and
the people to reach this next stage of success."
Further information about Scorpio's projects in the Cosal�
and Parral districts is available on the
Corporation's web site at: www.scorpiomining.com.
Scorpio Mining's Senior Exploration Geologist, Will Strong, B.S., P.G., is a
Qualified Person for the Corporation's Mexico projects and has reviewed the
content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Parviz Farsangi
President & CEO
For further information contact:
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North
America)
Email: rkaiser@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 production, objectives, strategy, mine operations, exploration and
future performance. 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 Nuestra Se�ora and La Verde
projects, risks related to international operations, construction delays and
cost overruns, equipment breakdowns, 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
29, 2010. 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.