Vancouver, May 14, 2009 � Scorpio Mining Corporation (TSX: SPM) ("Scorpio" or the "Company") today reported unaudited financial and operating results for the first quarter ended March 31, 2009 and provided an update on operations.
This earnings release should be read in conjunction with the Company's MD&A, Financial Statements and Notes to Financial Statements for the corresponding period, which are available on the Company's website at www.scorpiomining..com and have been posted on SEDAR at www.sedar.com.
First Quarter Highlights:
- Nuestra Senora mine operating earnings were $895,596.
- Net loss was $385,854 or $0.00 per share.
- The Company�s Mexican operations generated positive cash flows.
- Nuestra Senora cash operating costs were below budget at US$35.78 per tonne compared with the forecast cost of US$37.11 per tonne(1).
- Mill throughput increased to more than 12,000 tonnes per month in January and February and 15,260 tonnes in March as a result of operating three additional days that month to compensate for the scheduled one-week Easter holiday shutdown in April.
- During the first quarter of 2009, the mill processed 39,596 tonnes in 55 days at an average grade of 1.44% lead, 0.44% copper, 2.66% zinc and 109 g/t silver at a blending ratio of two high-grade ore components to three development ore components (ratio 2:3).
- During the first quarter, the contained metal in the concentrates produced was 1.02 million pounds of lead, 259,000 pounds of copper, 1.63 million pounds of zinc and 117,125 ounces of silver.
- On April 21, 2009, the Company, through its marketing agent Ocean Partners USA Inc., secured a six-month (May to October, 2009) contract for all of its copper and zinc concentrate.
- The strike at the Pe�oles refinery ended on April 15, 2009 and a written notice was subsequently received from Pe�oles for the Company to resume lead concentrate shipments on May 1, 2009.
Peter J. Hawley, Chairman, CEO reports, �Scorpio�s Mexican operations generated positive cash flows during its first quarter of commercial production, a period that coincided with very difficult economic conditions on a global scale. Since the first quarter, metal prices have strengthened, more favourable off-take smelter contracts have been finalized, mill blending has changed to a 2:1 (high-grade to development ore) ratio and long-term mining extraction plans were finalized. These positive factors should begin to be recognized in the second quarter resulting in increased revenues per tonne of concentrate sold. The Company has set strict mandates for 2009 to show profitability, and to date has exceeded all goals set. The Company continues to aggressively seek acquisitions of near-term, high-grade development projects and/or operating assets in Mexico.�
Further information is available on the Company�s web site at: www.scorpiomining.com.
President, Mr. D. Roger Scammell, PGeo, is the Company�s Qualified Person for the Nuestra Se�ora project and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO
For further information contact:
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
(1) This is a non-GAAP performance measure; please see Non-GAAP Performance Measures on page 11 of the MD&A.
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 enhancing mine operations 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 development and operation of the Nuestra Senora Project, 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, 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 27, 2009. 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.