Scorpio Mining Reports Nuestra Se�ora Mineral Reserve of 2.764 Mt @287 AgEq g/t
- Scorpio Mining Corporation (TSX:SPM) ("Scorpio Mining" or the
"Corporation") is pleased to report an updated mineral resource and
reserve estimate below the 4750 level at its Nuestra Se�ora mine, Sinaloa State, Mexico.
Parviz Farsangi, President & CEO reports, "We are very pleased with
this latest estimate. Reserves alone at Nuestra Se�ora now support approximately six years of production at
our existing processing facility. The mineral resources at Nuestra
Se�ora and other nearby projects are expected to
provide additional years of production and are all open to expansion. An
aggressive 10,500-metre drilling program to test the exploration potential at Nuestra Se�ora is scheduled to
commence in March 2011. Together with the known and expanding resources in our
other mineral concessions in the district, we are building a solid base from
which to support growth."
Mineral Resource and Reserve Estimate
Independent consultant, Genivar Inc. of Val d'Or, QC
(Genivar), prepared the updated mineral resource and
reserve estimate at Nuestra Se�ora
in accordance with NI 43-101. The estimate includes the results of drilling performed
since the Corporation's previous estimate (Sedar
filing - Jul 9, 2008) and was updated for prevailing costs and metal prices. Genivar provided separate estimates for above and below the
4750 level of the Nuestra Se�ora
mine (just above Level 8). The extent of historical mine workings by Asarco and
later artisanal mining above the 4750 level is uncertain, and future
development in this area needs further evaluation. The area below the 4750
level is accessed by current operations and will continue to be the focus of
development and extraction. The mineral resource and reserve estimate for Nuestra Se�ora below the 4750
level is as follows:
Table 1. Nuestra Senora Mineral
Resource Estimate below the
4750 level - October 31,
2010
Category
|
Cut-off
Value
US$/t
|
Tonnes
t x 1,000
|
Silver
(g/t)
|
Zinc
(%)
|
Copper
(%)
|
Lead
(%)
|
Gold
(g/t)
|
Silver
Equivalent
(g/t)
|
Measured
|
>$85
|
1,890
|
114
|
3.41
|
0.46
|
1.60
|
0.16
|
349
|
Measured
|
$50-$85
|
1,372
|
47
|
1.08
|
0.15
|
0.54
|
0.12
|
127
|
Indicated
|
>$85
|
1,181
|
115
|
3.42
|
0.49
|
1.50
|
0.14
|
348
|
Indicated
|
$50-$85
|
1,104
|
47
|
1.06
|
0.15
|
0.51
|
0.11
|
126
|
Measured + Indicated
|
>$85
|
3,071
|
114
|
3.41
|
0.47
|
1.56
|
0.15
|
349
|
Measured + Indicated
|
>$50
|
2,476
|
47
|
1.07
|
0.15
|
0.53
|
0.12
|
127
|
Inferred
|
>$85
|
446
|
123
|
3.97
|
0.53
|
1.68
|
0.17
|
388
|
Inferred
|
$50-$85
|
383
|
49
|
1.00
|
0.13
|
0.50
|
0.14
|
124
|
Inferred
|
>$50
|
829
|
89
|
2.60
|
0.34
|
1.13
|
0.15
|
266
|
Table 2. Nuestra
Senora Mineral Reserve Estimate below the 4750 level - October 31, 2010
Category
|
Cut-off
Value
US$/t
|
Tonnes
t x 1,000
|
Value
US$/t
|
Silver
(g/t)
|
Zinc
(%)
|
Copper
(%)
|
Lead
(%)
|
Gold
(g/t)
|
Silver
Equivalent
(g/t)
|
Proven
|
>$85
|
1,701
|
148
|
94
|
2.81
|
0.38
|
1.32
|
0.13
|
288
|
Probable
|
>$85
|
1,063
|
148
|
95
|
2.82
|
0.40
|
1.23
|
0.12
|
287
|
Proven +
Probable
|
>$85
|
2,764
|
148
|
95
|
2.81
|
0.39
|
1.28
|
0.12
|
287
|
Notes:
- Hugues de Corta, P.Geo., of Genivar Inc. is the
Qualified Person for this mineral resource and reserve estimate.
- All mineral resources and
reserves have been classified in accordance with CIM definition standards.
- The estimation is based upon
geological data and a mine excavation survey as of October 31, 2010 and
accordingly represents the estimated resources and reserves as of that
date.
- The quoted mineral reserves are
completely contained within the mineral resources.
- Mineral resources have had
factors for dilution (12.5% at zero grade) and
mining recovery (80%) applied to obtain the mineral reserves.
- "Value US$/t" has
been calculated on a contained metal basis using: US$16/oz silver,
US$1,015/oz gold, US$2.30/lb copper, US$0.80/lb lead and US$0.85/lb zinc.
- Silver equivalence has been
calculated on a contained metal basis using the metal prices noted above,
with no factors for metallurgical recovery or Net Smelter Returns. It is
calculated as: AgEq gpt
= Ag gpt + (63.4 x Au gpt)
+ (36.4 x Zn%) + (34.3 x Pb%)
+ (98.6 x Cu%)
- Totals may not add due to
rounding.
- Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
The general methodology used for the estimation includes the following:
- All calculations were made
using GEMS software, version 6.2.4.
- Capping grade factors were
applied and samples composited at a length of 1.5 metres.
- A block model with cell sizes
of 2.5 x 2.5 x 2.5 metres was interpolated using
the inverse of the square of the distance using samples in the search
ellipsoids. Blocks with composite assay values within a range of 10 metres were classified as "Measured"; those
with the closest composite within 10 and 20 metres
were classified as "Indicated" and blocks with samples within 20
to 30 metres were classified as
"Inferred".
- A specific gravity was also
interpolated for each block based on nearest neighbour
lithology. The average specific gravity for the
total mineral resource is 2.88 tonnes per cubic metre.
- All known underground
excavation openings were subtracted from the gross estimated mineral
resource.
- All historic Asarco drill data
was removed from the estimation to ensure sample integrity and
reliability.
Due to the polymetallic nature of Nuestra
Se�ora, the disclosed mineral reserves are based upon
the value of the contained metal. The conservative cut-off value of US$85/t is
the metal content contained in one tonne of ore for
which the net revenue (net of smelter and refining costs) is in excess of the
average cash operating costs to mine and process one tonne
of ore. This assumes current concentrate sales contract terms, concentrate
grades and typical plant performance metal recoveries to calculate the net
value. Total cash operating costs at Nuestra Se�ora, including mining, milling, administration and
general costs, are currently under US$50/tonne.
The forecast average daily and annual plant throughput for 2011 is estimated at
1,273 tonnes per day and 464,600 tonnes
respectively, and due to higher utilization represents an increase of 22% from
2010 actual plant throughput.
An independent NI 43-101 technical report supporting this mineral resource
estimate will be filed on SEDAR within 45 days from the date of this press
release.
Scorpio Mining's Mexico Country Manager, John A. Sadek,
B.Eng. (Mining), MAusIMM, is a Qualified Person for
the Corporation's Mexico projects and has reviewed the content of this release.
Hugues de Corta, P.Geo.,
of Genivar Inc. is the independent Qualified Person
for this mineral resource and reserve estimate and has also reviewed the
content of this release.
Further information is available on the Corporation's web site 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 mineral resource and reserve estimates, 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.
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2011 SCORPIO MINING CORPORATION (TSX: SPM) All rights reserved. For more
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