Scorpio Mining Provides Exploration Update on its Projects in Mexico
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DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Toronto, July 15, 2011 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio
Mining" or the "Corporation") is pleased to provide an update on
exploration activities at its projects in Mexico. The Corporation controls over
29,000 ha in the Cosal� district, Sinaloa, which is
host to over 40 known exploration targets but is relatively unexplored by
modern techniques. In addition, Scorpio Mining holds two advanced, high-grade
silver properties in the Parral district, Chihuahua,
that are drill-ready.
Parviz Farsangi, President & CEO reports, "Scorpio Mining benefits
from a very large land position in a relatively unexplored area, which has
proven to host economic deposits and contains an abundance of promising
early-stage exploration targets. The opportunity to advance our known deposits
and to make new discoveries is excellent. Our exploration programs complement a
determined effort to grow Scorpio Mining by developing its own assets. We
remain confident we have the projects and the people to reach this next stage
of success."
Scorpio Mining's 2011 exploration and infill drilling program includes surface
and underground diamond drilling on multiple deposits/targets, including:
Cosal� District
- 10,500 m of underground
drilling at the Nuestra Se�ora
Ag-Zn-Cu-Pb mine.
- 2,800 m of underground drilling
at the La Verde Ag-Cu-Au mine.
- 8,000 m of surface drilling at
San Rafael and La Verde to add and upgrade mineral resources.
- 5,000 m of surface drilling to
test several early-stage Ag-Cu-Pb-Zn-Au
exploration targets.
Parral Distict
- Up to 7,000 m of surface
drilling at the La Revancha Ag and Tepoz�n Ag-Au projects.
More than 5,000 m of underground exploration and infill drilling have been
completed to date at the Nuestra Se�ora mine. Drill holes targeting new mineralization
in the Santa Teresa Extension zone have intersected visually mineralized skarn up to 40 m south of the previously delineated mineralization.
Drilling will also target extensions to the Hoag zone and test for new
mineralization adjacent to the Hoag shear zone.
Surface exploration to the north of Nuestra Se�ora processing plant is having success in several areas,
including ground recently acquired from a subsidiary of Grupo
Mexico. Initial results report widespread anomalous gold and silver in chip
channel sampling at the Chilicotes and Santa
Rita prospects, both of which are spatially associated with weakly magnetic
diorite; a common association of mineralization in the Cosal�
district. Both prospects are proximal to the El Caj�n,
San Rafael and La Verde deposits, which are located within 20 km by road from
the Nuestra Se�ora
processing plant.
Approximately 3,500 m of surface drilling is proposed for Chilicotes,
located 2.4 km south of San Rafael. The prospect is a silicified structural
zone in brecciated volcanics that is up to 70 m wide
and has been traced over a 1.2-km strike length. Initial results of chip
channel sampling across the breccia zone has returned 0.434 g/t Au, 27 g/t Ag,
0.002% Cu, 0.04% Pb and 0.16% Zn over 34 m.
Santa Rita, 4.4 km southwest from San Rafael, is made up of
northwest-trending silicified structures in volcanics.
Chip channel samples over 1-2 m widths have been collected over approximately
200 m of exposed mineralization, mainly from shallow underground workings less
than 30 m from surface. Highly anomalous silver assays returned in the 57
samples collected were as follows: 39 samples assayed > 100 g/t, 18 samples
> 300 g/t, 8 samples > 500 g/t and 3 samples > 1,000 g/t. Anomalous
gold assays in the same 57 samples included: 45 samples > 0.1 g/t, 26
samples > 0.3 g/t, 13 samples > 0.5 g/t and 3 samples > 1.0 g/t.
Mapping and sampling in the vicinity of the Santa Rita prospect has also
uncovered multiple mineralized showings extending along a 3-km long
northwest-trending corridor. Further work is planned to take this promising
area to the drilling stage.
Exploration has also uncovered several historical surface workings southeast of
the El Caj�n Ag-Cu-Au deposit, presenting a
new drill target as the southern extension of El Caj�n.
Drilling of the El Caj�n and its extension will be
incorporated into a future exploration program.
At the La Verde mine, underground drill stations are ready and the
planned 2,800 m of drilling will commence following the arrival and
installation of electrical cable for the drilling rigs, expected later this
month. The La Verde mine, which is currently dormant, historically produced 1.4
million tonnes grading 105-180 g/t Ag, 0.53-0.65% Cu.
In addition to the above exploration drilling in the Cosal�
district, the Corporation plans an 8,000-m surface drilling program that will
cover infill and extension drilling of the San Rafael and La Verde
mineralization, with the objective of adding to and upgrading mineral resources
within these deposits.
Commencement of 7,000 m of surface drilling at the La Revancha
and Tepoz�n projects in Parral,
Chihuahua is pending the receipt of all permits. Drilling at La Revancha will expand oxide mineralization currently traced
by drilling over a distance of 300 m and possibly encounter higher-grade sulphide mineralization more commonly exploited in the Parral district. At Tepoz�n,
drilling will test a previously undrilled 1.3-km long quartz vein system
believed to be related to mineralization in the Parral
district.
Assay results from the various programs will be released once received and
compiled.
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. All technical information for the Corporation'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 Hermosillo, Mexico for drying, crushing and
pulverizing. ALS Chemex, Hermosillo then sends the
pulps for assaying to ALS Chemex, Vancouver, an ISO
9001:2000 accredited facility. Details of the QA/QC program are available on
the Company's website at: www.scorpiomining.com.
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 the Corporation's exploration programs, operations, 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 29, 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.
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2011 SCORPIO MINING CORPORATION (TSX: SPM) All rights reserved. For more
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