Vancouver, September 3, 2008 � Scorpio Mining Corporation (TSX:SPM) is very pleased to provide an operations update from its 100% owned Nuestra Senora project, Sinaloa State, Mexico.
Peter J. Hawley, Chairman, CEO reports, �To date the Company has met every goal it has set, from the construction of the mill facility in record time, to the mill start up on time, to the production of concentrates on time. Shipment of concentrates commenced in August and the first smelter and off-take payments are expected this month. During September, the Company will be aggressively executing programs to increase the mill thoughput, improve recoveries and increase the amount of concentrates produced, as well as continue development of the higher-grade stopes in the Santa Teresa and the North West Zones. These measures, plus reducing operating costs, are the progressional steps the Company has implemented to continue to work towards positive cash flow during the six month start-up period. In addition, underground drilling continues to be successful with discovering new bodies and defining high-grade zones previously announced.�
Update
- The current surface stockpile consists of 109,309 tonnes of mill tune-up development ore in two stockpiles. Stock pile 1 contains 54,944 tonnes grading 69 g/t Ag, 2.55% Zn, 1.42% Pb, 0.25% Cu and 0.08 g/t Au and stockpile 2 contains 54,446 tonnes grading86 g/t Ag, 2.53% Zn, 1.56% Pb, 0.18% Cu and 0.07 g/t Au.
- During the month of August, the mill facility processed 23,570 tonnes of material.
- The August monthly average mill rate for the 31 days was 760 tonnes per day (TPD).
- During the last 13 days of August the mill rate averaged 971 TPD.
- During August the Company produced 310.4 tonnes of lead concentrate with an average grade of 56.38% lead and 2,927 g/t silver (175 contained tonnes of lead).
- During August the Company shipped 276 tonnes of lead concentrate to the Pe�oles smelter facility in Torreon, Mexico.
- On September 15, 2008, the Company expects to receive its first payment from Pe�oles for the August shipment.
- During August the Company produced 428.7 tonnes of zinc concentrate with an average grade of 53.75% zinc and 233 g/t silver (230 contained tonnes of zinc).
- The current zinc concentrate inventory is in excess of 600 tonnes.
- As of September 2, 2008, the Company is shipping a minimum of 70 tonnes of zinc concentrate to the storage facility in Manzanillo, Mexico on a daily basis (Monday through Friday) for future shipment to the Asian markets.
- On or before September 15, 2008, the Company expects to have delivered the first 1,000-tonne lot of zinc concentrate to the warehouse facility, which will trigger an immediate payment from the Company�s concentrate brokers, Ocean Partners.
- The Company has been pursuing a number of options for reducing operating costs without affecting performance, in order to be more aggressive in attaining positive cash flow.
Further information on the Company and the Nuestra Se�ora project and photos of the first concentrate shipment are available on the Scorpio Mining web site at: www.scorpiomining.com.
President, Mr. D. Roger Scammell, PGeo, is the Company�s Qualified Person for the Nuestra Se�ora project. Mr. Scammell is responsible for the current exploration and development programs and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO
For further information contact:
Glenn Little, Jackson Little Holdings Ltd: 604-930-4375; 1-888-930-4375
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
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 planned shipments of concentrates and receipt of smelter payments, and Scorpio Mining Corporation�s commitment to, and plans for developing the Nuestra Senora Project. 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 potential development and construction of the Nuestra Senora Project, risks related to international operations, construction and mill commissioning 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, 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, 2008. 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 doses 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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