Scorpio Mining Maintains Strong Production Levels in Second Quarter 2011
NOT FOR
DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Toronto, July 13, 2011 - Scorpio Mining Corporation (TSX:SPM) ("Scorpio
Mining" or the "Corporation") is pleased to report a second
strong production quarter in 2011 ("Q2 2011"), representing
significant increases over Q2 2010 and maintaining production levels attained
in the first quarter of 2011.
Parviz Farsangi, President
and CEO, reports: "Scorpio Mining's production in the second quarter of
2011 continued to demonstrate solid performance at our Nuestra
Se�ora operations. We set a record for tonnes processed and lead produced, while silver and zinc
approximated last quarter's record production. During the quarter we eliminated
our debt using operating cash flows and are now ideally positioned to advance
the growth initiatives announced in our June 27, 2011 news release, which
include increased processing capacity, optimization of existing resource base
and aggressive exploration of our extensive land holdings in Mexico."
Second Quarter Production - 2011
- Mill throughput for Q2 2011 was
128,674 tonnes; an increase of 86% compared to
69,138 tonnes processed in Q2 2010.
- Recovered silver for Q2 2011 totalled 365,692 ounces; an increase of 95% compared
to 187,496 ounces recovered in Q2 2010.
- Recovered zinc for Q2 2011 totalled 5,588,179 pounds; an increase of 95% compared
to 2,859,765 pounds recovered in Q2 of 2010.
- Recovered copper for Q2 2011 totalled 438,529 pounds; an increase of 17% compared
to 374,904 pounds recovered in Q2 2010.
- Recovered lead for Q2 2011 totalled 1,871,789 pounds; an increase of 103%
compared to 923,700 pounds recovered in Q2 2010.
- Recovered silver equivalent
ounces* for Q2 2011 totalled 637,157 ounces; an
increase of 86% compared to 342,943 ounces recovered in Q2 2010.
* For
comparative purposes the metal prices used to calculate silver equivalent
ounces recovered are based upon the approximate weighted average metal prices
realized throughout Q2 2011 and are as follows: lead at US$1.13 per lb; zinc at US$1.00 per lb;
copper at US$4.10 per lb and silver at US$35 per oz.
While comparisons to the second quarter of 2010 show large production
increases, it should be noted that Q2 2010 suffered from a significant throughput
reduction due to a ball mill failure.
Performance of Q2 2011
Mining during 2011 has diverged from the budgeted sequence as difficulties were
encountered with the availability of some mobile mining equipment and the
delivery of equipment to assist with the back-filling of stopes
was also delayed. These issues are being corrected and high-density definition
drilling has mitigated much of the impact on production. Notwithstanding that,
the copper grade in some of the current mining areas has been lower than
projected from drilling.
At the end of Q2 2011, zinc and silver production was significantly ahead of
forecast (+22% and +7%, respectively), whereas lead and copper were -13% and
-25% respectively behind forecast. Contingent plans are currently being
evaluated to recover the year-to-date deficit of lead and copper; however, the
overall objective of the Corporation is to maximize silver production.
Scorpio Mining's President and CEO, Parviz Farsangi, MEng, MBA, PhD, PEng, 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,
future performance and forecasts, our management team, and plans. 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
30, 2011. 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.