Vancouver, October 6, 2008 � Scorpio Mining Corporation (TSX:SPM) is very pleased to provide an operations update for the month of September from its 100% owned Nuestra Senora project, Sinaloa State, Mexico.
Peter J. Hawley, Chairman, CEO reports, �Our Nuestra Senora operation continues to increase the amount of concentrates produced and delivered to our various off take partners, resulting in a constant cash flow stream. The Company�s plant personnel have continued to refine the milling process with parameter changes to the ball mills, pumps and flotation cells. These changes have improved recoveries, resulting in an increase in the amount of concentrates produced from fewer tonnes processed. The plant operation will continue to increase throughput and recovery during the upcoming months and we anticipate the plant to be producing to all designed parameters by the end of the year. The operation is in the process of depleting the low-grade stockpile #2 ore, which was excavated during the early mine development and stockpiled for purposes of bringing the plant on line. High-grade stope ore will be hauled from the mine and blended with the higher grade development ore for processing once stockpile #2 is consumed, which will result in higher head grades and greater concentrate production. Scorpio�s operational team continues to demonstrate it has the experience and dedication to advance the Nuestra Senora project, and during this time of depressed metal prices, also demonstrate the low cost nature of the Nuestra Senora operation.�
September 2008 Update
- The current surface stockpile consists of 81,591 tonnes of mill tune-up development ore in two stockpiles. Stockpile #1 contains 73,017 tonnes grading 73 g/t Ag, 2.32% Zn, 1.40% Pb, 0.23% Cu and 0.08 g/t Au and stockpile #2 contains 8,574 tonnes grading 86 g/t Ag, 2.53% Zn, 1.56% Pb, 0.18% Cu and 0.07 g/t Au.
- During the month of September the mill facility processed 19,443 tonnes of material.
- The September monthly average mill rate for the 30 days was 648 tonnes per day (TPD).
- During September the Company produced 355.12 tonnes of lead concentrate with an average grade of 53.57% lead and 2,376.69 g/t silver (189.49 contained tonnes of lead and 28,809.34 ounces contained silver). This represents a of 258.42 tonnes.
- During September the Company shipped 382 tonnes of lead concentrate to the Pe�oles smelter facility in Torreon, Mexico, representing a 38.41% increase from the reported August 2008 shipment level.
- On September 23, 2008, the Company received its first payment from Pe�oles for the August shipment.
- Current lead concentrate inventory is in excess of 65 tonnes.
- During September the Company produced 489.5 tonnes of zinc concentrate with an average grade of 50.83% zinc and 223 g/t silver (248.81 contained tonnes of zinc and 3,726 oz. contained silver). This represents a 14.18 % increase from the reported August 2008 production level of 428.7 tonnes.
- Current zinc concentrate inventory is in excess of 700 tonnes.
- During September the Company shipped 1,026 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 October 2, 2008, the Company received a payment from the Company�s concentrate brokers, Ocean Partners, for the first 1,026-tonne lot of zinc concentrate delivered to the warehouse facility.
- On October 6, 2008, the Company expects to receive a second payment from Pe�oles for the September 2008 lot #2 of lead concentrate delivered, and on or before October 15, 2008, expects to receive a third payment from Pe�oles for the September 2008 lot #3 of lead concentrate delivered.
- On or before the end of October, 2008, the Company expects to have delivered the second 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 pursued and implemented a number of options for reducing operating costs without affecting performance, in order to be more aggressive in attaining positive cash flow.
Scorpio Mining also announces the resignation of Paul Bonneville from the position of Vice President of Mining. The Company thanks him for his dedication and hard work in bringing the Nuestra Senora project on line and wishes him all the best in his new mining ventures in Quebec.
Further information on the Company and the Nuestra Se�ora project and photos of the first concentrate shipments 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.