Scorpio Mining Deepens Hole EC-109 at New El Cajón La Emma Zone and Intersects an Additional 14.4 meters of 94 g/t Silver
Published : October 09, 2012
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Keywords :   Copper | Diamond | G Mexico | Gold | Lead | Mexico | Report | Silver | Silver Producer | Zinc |

Scorpio Mining Deepens Hole EC-109 at New El Cajón La Emma Zone and Intersects an Additional 14.4 meters of 94 g/t Silver

TSX:SPM

TORONTO, Oct. 9, 2012 /CNW/ - 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
 

(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

* Previously released - (August 22nd, 2012)

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 Scorpio's 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 Mining's 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 Mining's 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 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 Corporation's Mexico projects and has reviewed the content of this release. All technical information for Scorpio Mining'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 J. Hawley, Interim CEO

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 Corporation'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 Corporation'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.

 

SOURCE: Scorpio Mining Corporation

For further information:

Victoria Vargas, Vice President Investor Relations and Corporate Communications +1 416-585-2200 Email: vvargas@scorpiomining.com
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America) Email: rkaiser@scorpiomining.com

Website: www.scorpiomining.com

Data and Statistics for these countries : Mexico | All
Gold and Silver Prices for these countries : Mexico | All

VanEck Vectors Global Alternative Energy ETF

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CODE : SPM.TO
ISIN : CA80917V1058
CUSIP : 80917V
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Scorpio Mining is a silver and zinc development stage company based in Canada.

Scorpio Mining produces silver, zinc, copper, gold and lead in Mexico, and holds various exploration projects in Mexico.

Its main asset in production is NUESTRA SENORA in Mexico and its main exploration properties are SAN RAFAEL - MAIN & UPPER ZONE, SAN RAFAEL - 120 ZONE, EL CAJON DEPOSIT, LA VERDE SINALOA, COSALA DISTRICT and LA REVANCHA in Mexico.

Scorpio Mining is listed in Canada, in Germany and in United States of America. Its market capitalisation is 3.8 millions as of today (US$ 2.7 millions, € 2.4 millions).

Its stock quote reached its highest recent level on April 16, 2004 at 4.00, and its lowest recent point on February 05, 2016 at 0.06.

Scorpio Mining has 47 442 200 shares outstanding.

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