VANCOUVER, Oct. 6 /CNW/ - 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
No.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 No.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 No.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 No.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 37.4% increase from the reported
August 2008 production level of 258.42 tonnes.
- During September the Company shipped 382 tonnes of lead concentrate
to the Penoles 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
Penoles 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 Penoles for the September 2008 lot No.2 of lead concentrate
delivered, and on or before October 15, 2008, expects to receive a
third payment from Penoles for the September 2008 lot No.3 of lead
- 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 Senora 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 Senora project. Mr. Scammell is responsible for the current
exploration and development programs and has reviewed the content of this
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO
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.
For further information:
For further information: Glenn Little, Jackson Little Holdings Ltd:
(604) 930-4375, 1-888-930-4375, Email: firstname.lastname@example.org; Rich Kaiser,
YES International: 1-800-631-8127, 001-757-306-6090 (outside North America),