Scorpio Mining Corporation AMENDED: Scorpio Receives Positive Results from the Pre-Feasibility Study on the by 24hgold

Mots clés associés : Copper | G Mexico | Zinc |

Re: News Releases - Thursday, June 14, 2007
Title: AMENDED: Scorpio Mining Corporation Receives Positive Results from the Pre-Feasibility Study on the Nuestra Senora Project

The amended portion of this release is highlighted (bolded) in the first paragraph of "Study Highlights" below.

Vancouver, June 14, 2007 - Scorpio Mining Corporation (TSX:SPM) is pleased to announce its receipt of robustly positive results from the independent Pre-Feasibility Study ("PFS") completed on June 8th, 2007 on its 100% owned Nuestra Senora silver-zinc project located in the Sinaloa State of Mexico. The results of the PFS which was completed by Genivar, an independent qualified engineering company with the participation of other Qualified Persons and companies, demonstrate that an underground bulk mining operation at Nuestra Senora is economically viable. The study projects that the cash cost of producing silver at the Nuestra Senora project, after accounting for by-product credits, will be a negative US$ 0.98 per ounce produced using discounted metal prices.

Peter J. Hawley, Chairman, CEO comments, "The PFS shows that the Nuestra Senora project has robust economics with potential to increase mineral reserves and resources. We are particularly pleased that the by product credits more than cover the operating costs using discounted metal prices which allows us to produce silver ounces at virtually no cost. If we were to use current prices the project would become much more profitable with respect to the silver spectrum. Company's management views this as a very conservative study with opportunities to optimize the results going forward. We will aggressively advance the project towards production in March of 2008."

Key project parameters within the study are as follows:

Metal Prices - Metal prices used are below the current market prices.
Dilution - A mining dilution factor of 10% with a US$30 value per tonne mined was applied to the Main Zone and 15% dilution with a US$30 per tonne value applied to the Hoag and Sept 9 Zones for the purpose of reserve estimation.
December 2007 to March 1, 2008 is the projected mill commissioning period.
From the beginning of the production period, the mill will run three months at 500 tonnes per day (TPD) and then increase to 1,000 TPD.
The Net Present Value ("NPV") and Internal Rate of Return ("IRR") are based on current mineral reserves outlined over the life of mine (LOM) as of April 22, 2007 and do not include additional conversion of Resources to Reserves or additional delineation of resources. The Company currently has five drills operating on the project.
Definition of the mineral Reserves and Resources in the PFS were subject to more stringent parameters for an "Ore Reserve" calculation. The differences are mainly due to a higher percentage of "ore" samples required for a cell to be classified as "ore", shorter ellipsoid search radius, an interpolation of specific gravity, a 1 metre length of composites rather than 3 metres, an enhancement in the cut-off grade, and the exclusion of over 5,800 underground chip samples.

Filing of the final PFS report on SEDAR is expected within 14 days. Scorpio Mining Corporation will provide notice of a conference call to discuss these results and answer any questions.

Study Highlights

From commencement of production until the end of LOM operations, currently projected in late 2013, a little less than 6 years, an after tax production cash flow of US$59.5 million, excluding the Pre-Production Capital Expenditures of US$26.5 million. Using June 5, 2007 metal prices, this figure would increase to US$105.76 million. The LOM production period does not count possible future production resulting from the additional resources outlined in Table 2.
The Base Case Net Present Value ("NPV"), after tax, of US$14.3 million and an Internal Rate of Return ("IRR") is 26.2% (using US$ 11.00 per oz. for silver, US$ 1.25 per lb. for zinc, US$ 0.50 for lead, US$ 2.25 for copper, 10% real discount rate, $40.30/tonne operating costs (the operating costs include a contingency factor of 7.5%).
Current Metal Price NPV, after tax, of US$46.2 million and an IRR of 60.7% (using a 10% real discount rate and $40.30/tonne operating costs). Metal prices as of June 5, 2007, are US$ 13.63 per oz. for silver, US$ 1.67 per lb. for zinc, US$ 1.04 per lb for lead, US$ 3.26 per lb for copper.
The Production Capital Expenditure (Cap Ex) is estimated to be US$26.5 million incurred between May 2007 and the end of February 2008. The Cap Ex indicates a payback of nearly 3 years at a production rate of 1,000 TPD.
Mill throughput rate is projected at 350,000 tonnes per year with average grades of 127.0 g/t silver, 2.97 %zinc, 0.42 % copper, 1.42 % lead and 0.12 g/t gold.
Milling facility will have the possibility of easily increasing throughput to 2,000 TPD if required.
Estimated average annual production of 1.1 million ounces of silver, 18.0 million pounds of zinc, 1.80 million pounds of copper, 9.0 million pounds of lead at a rate of 1,000 TPD as per metals payable contained in the concentrates.
Production is expected to begin in March of 2008.
Mineral Resource and Reserve estimates included in the PFS are up to April 22, 2007. Since then, Scorpio has drilled an additional 6,300 metres, which will be included in a future updated reserve/ resource estimate.
Only the Nuestra Senora and Hoag/Sept 9 Zones were used in the study, which does not include resources from the Santa Teresa, Santo Domingo, Candelaria systems.
The deposit(s) remain open and the Company is aggressively exploring for additional resources and delineating current resources to convert them into reserves.
Currently the Company is looking at various commercial smelter terms which could improve the net smelter returns received.

Estimated Reserves and Resources

Table 1: Mineral Reserves

Probable Reserves	Tonnes (metric)	Grade
Probable Reserves	Tonnes (metric)	Silver (g/t)	Zinc (%)	Lead (%)	Copper (%)
Main Zone	1,067,709	167	3.24	0.98	0.55
Hoag Zone	598,284	71	2.52	1.97	0.23
Sept 9 Zone	220,776	81	2.87	2.09	0.28
Total:	1,886,769	127	2.97	1.42	0.42

Note 1: The cut-off in situ value used to estimate the Mineral Reserve above was US$80 per tonne.
Note 2: The Mineral Reserves were estimated after allowing for the following factors: Dilution: 10% for the Main Zone and 15% for the Hoag/Sept 9 Zones; Ore recovery:75% for the Main Zone, 85% for the Hoag and 95% for the Sept 9 Zone and this recovery takes into account the pillars left in place.
Note 3: Average ore densities were estimated at 3.15 t/m3.
Note 4: The effective date of the Mineral Reserve estimate described above is April 22, 2007.
Table 2: Remaining Estimated Mineral Resources after Reserves

Resources Category	Tonnes (metric)	Grade
Resources Category	Tonnes (metric)	Silver (g/t)	Zinc (%)	Lead (%)	Copper (%)
Measured	369,352	325	4.93	2.21	0.90
Indicated	361,441	315	5.04	2.33	0.80
Total:	730,793	320	4.99	2.27	0.85
Inferred	816,851	194	3.28	1.75	0.49

Note 1: The effective date of the Mineral Resources estimate described above is April 22, 2007.
Note 2: The above mineral resources are exclusive of the Mineral Reserves quoted in table1 above.
Note 3: Under NI 43-101, Inferred Resources are not included in studies of mine economics.
Note 4: Mineral resources are not reserves and do not have demonstrated economic viability.

Estimation Methodology

- Estimated Resources

For the purpose of the mineral Resources in the PFS more stringent parameters than those previously calculated were applied. This includes:

Base case metal values used were, US$ 11.00 per oz. for silver, US$ 1.25 per lb. for zinc, US$ 0.50 for lead, US$ 2.25 for copper.
All calculations were made using Gemcom software, MS Access, Sages 2001.
Capping grade factors were applied and a US$80 per tonne cut-off grade applied to determine the qualification of "ore" -- waste.
The sample composites were at a length of 1 metre with respect of qualification ("ore" -- waste) before interpolation.
A block model with cell sizes of 2 x 2 x 5 metre was interpolated using the inverse of the square of the distance using samples in the research ellipsoids. The closest composite within a range of 10 metres was classified as Measured, the closest composite between 10 and 20 metres was classified as Indicated and closest sample from 20 to 30 metres classified as Inferred.
A specific gravity overall of 3.15 t/m3 was applied to all categories.
All known underground excavations material was subtracted from the gross calculated material resource.

- Estimated Reserves

The Resource block model was then submitted to a team of specialists with the mandate to identify recoverable resources, mining method, dilution factor, pillar location etc. This includes:

All calculations were made using Gemcom software, MS Access, Sages 2001, Promine and NCSS.
The team used an US$80 per tonne cut-off.

The resource estimate for the PFS was prepared by Denis Boivin, P.Geo., and was supervised and validated by independent Qualified Person Christian D'Amours, Eng., President of Géopointcom Inc. It is an update from the estimate contained in the Company's technical report dated February 5th 2007 prepared by independent Qualified Person, Denis Boivin. It was prepared using data available up to April 22nd, 2007. As of April 22nd 2007, a total of 74,169 metres of diamond drilling had been performed on the property. Since April 22nd, a further 6,300 metres of diamond drilling has been performed.

Michel Garon, Eng. and Christian D'Amours P.Geo., are the Qualified Persons who have reviewed and approved the technical information in this news release on behalf of the Company.

Scorpio intends to file a National Instrument 43-101 technical report regarding the pre-feasibility study within 14 days.

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
Email: jlconsulting@telus.net
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: yes@yesinternational.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 future price of silver, zinc, copper, lead and gold, the timing of exploration activities, the mine life of the Nuestra Senora Project, the economic viability and estimated internal rate of return of the Nuestra Senora Project, the estimation of mineral reserves and mineral resources, the results of drilling, estimated future capital and operating costs, projected mineral recovery rates 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 of the Nuestra Senora Project, risks related to international operations, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parametres 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 date March 27, 2007. 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 provide 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.

Copyright © 2007 SCORPIO MINING CORPORATION (SPM) All rights reserved. For more information visit our website at http://www.scorpiomining.com/ or send email to scorpio@scorpiomining.com ..
Message sent on Thu Jun 14, 2007 at 11:00:14 AM Pacific Time

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