Scorpio Mining Intercepts 3.85 Meters of 2802 g/t Silver, 1.75 g/t Gold and 7.76% Combined Base Metals at the San Rafael Development Project

TSX: SPM

TORONTO, July 18, 2012 /CNW/ - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining"  or the "Corporation") is pleased to report preliminary results from the recently completed drill program at its 100% owned San Rafael Project in  Cosalá, Sinaloa, Mexico. The San Rafael Project is a zinc-lead-silver-copper project located approximately 16 km from Scorpio Mining's operating Nuestra Señora plant which currently processes approximately 1,500 tonnes per day.

Hole SR-298 intersected 4.45 meters (3.85 m true width) of 2,802 g/t Ag, 1.75 g/t Au, 0.928% Cu, 4.489% Pb and 2.341% Zn in the Upper Zone. Hole SR-310 intersected 5.6 meters (5.41 m true width) of 2,626 g/t Ag, 2.096 g/t Au,  0.614% Cu, 2.335% Pb and 0.203% Zn also in the Upper Zone of the deposit.

San Rafael and El Cajón are two skarn related mineral deposits with significant resources previously reported and Updated Resources are scheduled to be released by the end of August 2012. These deposits are within 14-16 km of haulage distance of the Nuestra Señora processing plant. Drill results for El Cajon mineral deposit will be released separately.

The San Rafael mineral occurrence is composed of five distinct bodies:

  • the zinc-lead-silver Main Zone;
  • an oxidized silver-gold-copper portion of the Main Zone;
  • the zinc-lead-silver Upper Zone;
  • the copper-silver 120 Zone; and
  • the NW Extension which is similar to the Upper Zone.

The Upper Zone and newly discovered Northwest (NW) Extension are relatively flat lying bodies contained entirely within the upper rhyolitic volcanic rocks as opposed to the more contact related Main Zone and structurally controlled 120 Zone. Scorpio Mining believes that the NW Extension may add some tonnage to the upcoming San Rafael Updated Resource estimate. This potential tonnage is conceptual in nature and is based on previous drill results. There has been insufficient exploration to define a current resource and Scorpio Mining cautions that there is a risk further exploration will not result in the delineation of a current resource in the NW Extension.

Table 1 below demonstrates results for previously unreported holes SR-293 to SR-357. Holes not shown in the table within the series SR-293 to SR-357 are not considered to contain significant values. To be considered significant, zones must be more than 1 meter in width, and contain in excess of either 40 grams per tonne silver and/or 1% combined base metals.

Table 1.  Previously Unreported Intercepts from the San Rafael Project

Drill
Hole
Azim Incl. Deposit
Area
From
(m)
To (m) Width
(M)
Width
True
(M)
Au g/t Ag g/t Cu % Pb% Zn %
                         
SR293 240 -66 Upper Zone 151.50 158.00 6.50 4.98 0.811 321 0.155 0.186 0.425
SR293 Including 153.00 155.00 2.00 1.53 1.220 765 0.278 0.081 0.089
SR295 240 -79 Upper Zone 92.00 94.90 2.90 2.51 0.585 132 0.062 0.163 0.080
SR296 60 -69 Upper Zone 73.10 80.00 6.90 6.83 0.154 135 0.018 0.071 0.021
SR297 0 -90 Upper Zone 105.00 106.60 1.60 1.47 0.896 47 0.073 0.046 0.060
SR298 240 -78 Upper Zone 109.10 113.55 4.45 3.85 1.750 2802 0.928 4.489 2.341
SR298 Including 110.70 112.00 1.30 1.13 2.600 8130 2.520 11.750 2.130
SR299 60 -74 120 Zone +
Main Zone
59.40 61.00 1.60 1.58 1.670 260 0.182 0.094 0.021
SR299 60 -74 Upper Zone 70.50 78.00 7.50 7.50 0.355 525 0.091 0.207 0.028
SR299 Including 72.10 75.70 3.60 3.60 0.575 894 0.169 0.355 0.040
SR301 60 -53 Upper Zone 45.00 55.00 10.00 8.66 1.001 386 0.120 0.058 0.011
SR301 Including 49.50 52.20 2.70 2.34 2.460 784 0.027 0.075 0.005
SR302 0 -90 Upper Zone 53.00 54.60 1.60 1.39 0.691 203 0.159 0.104 0.017
SR302 0 -90 Upper Zone 64.00 79.00 15.00 12.99 0.317 363 0.051 0.139 0.031
SR302 Including 70.70 77.30 6.60 5.72 0.596 727 0.100 0.262 0.028
SR303 240 -64 Upper Zone 21.50 24.00 2.50 1.61 0.703 90 0.006 0.075 0.002
SR304 240 -55 Upper Zone 145.00 150.90 5.90 3.38 0.956 1186 0.353 2.628 0.180
SR304 Including 147.10 150.00 2.90 1.66 1.483 2280 0.667 3.424 0.179
SR305 60 -70 Upper Zone 113.00 118.00 5.00 3.54 0.641 149 0.047 0.238 0.121
SR306 60 -77 Upper Zone 91.80 95.60 3.80 3.80 0.634 210 0.047 0.246 0.024
SR310 0 -90 Upper Zone 55.70 61.30 5.60 5.41 2.096 2626 0.614 2.335 0.203
SR310 Including 57.70 61.30 3.60 3.48 3.130 3905 0.911 3.460 0.302
SR313 0 -90 120 Zone +
Main Zone
9.50 52.50 43.00 38.97 0.373 92 0.070 0.368 0.317
SR313 Including 12.00 13.50 1.50 1.30 1.130 631 0.083 1.095 0.261
SR313 and also Including 45.00 51.00 6.00 5.20 0.220 133 0.039 0.218 0.046
SR314 60 -50 NW Exten. 50.50 55.60 5.10 5.02 0.142 155 0.016 1.286 2.212
SR314 Including 53.60 54.60 1.00 0.98 0.386 597 0.037 2.820 4.490
SR315 60 -70 NW Exten. 50.75 53.40 2.65 2.61 0.289 120 0.015 2.206 4.116
SR319 0 -90 NW Exten. 63.90 66.15 2.25 2.22 0.049 12 0.011 0.202 1.745 
SR320 60 -50 NW Exten. 49.80 54.00 4.20 4.17 0.087 54 0.019 1.011 2.457
SR320 60 -50 NW Exten. 64.35 77.30 12.95 12.95 0.139 25 0.005 0.779 2.969
SR320 Including 64.35 72.20 7.85 7.85 0.137 37 0.006 1.152 3.161
SR320 and also Including 75.90 77.30 1.40 0.70 0.077 20 0.010 0.573 8.690
SR321 60 -70 NW Exten. 48.17 52.80 4.63 4.60 0.180 94 0.019 1.847 2.890
SR321 Including 51.45 52.80 1.35 1.34 0.584 270 0.051 6.080 8.790
SR328 60 -70 NW Exten. 50.70 59.10 8.40 8.22 0.182 62 0.011 1.264 1.167
SR328 Including 50.70 51.90 1.20 1.17 0.464 315 0.012 7.660 0.134
SR329 60 -70 NW Exten. 46.00 50.20 4.20 4.06 0.034 32 0.008 0.807 1.811
SR333 240 -70 NW Exten. 45.90 53.70 7.80 6.75 0.121 34 0.011 0.809 3.120
SR334 60 -50 NW Exten. 103.80 105.50 1.70 1.20 0.329 36 0.014 0.761 3.370
SR335 60 -50 NW Exten. 44.60 45.30 0.70 0.66 0.513 70 0.028 1.395 6.470
SR335 60 -50 NW Exten. 49.40 51.30 1.90 1.84 0.212 65 0.014 0.516 1.065
SR335 60 -50 NW Exten. 73.70 74.70 1.00 0.97 0.111 9 0.005 0.327 3.240
SR336 60 -70 NW Exten. 47.70 48.80 1.10 1.06 0.280 122 0.018 1.840 2.290
SR337 60 -88 NW Exten. 72.85 74.25 1.40 1.15 0.246 49 0.014 1.665 3.400
SR338 60 -45 NW Exten. 71.00 72.40 1.40 1.40 0.421 103 0.003 3.920 3.220
SR340 60 -75 NW Exten. 50.00 52.35 2.35 2.27 0.130 103 0.040 0.850 2.280
SR341 60 -90 NW Exten. 65.30 67.30 2.00 1.81 0.067 59 0.014 1.647 3.490
SR341 60 -90 NW Exten. 87.40 88.85 1.45 1.03 0.240 29 0.013 0.941 5.680
SR342 60 -50 NW Exten. 54.00 56.20 2.20 2.07 5.348 77 0.010 1.600 1.070
SR343 60 -70 NW Exten. 54.65 57.00 2.35 2.27 0.185 120 0.019 2.300 1.550
SR344 60 -90 NW Exten. 61.70 63.20 1.50 1.36 0.118 132 0.029 3.420 1.790
SR345 60 -70 NW Exten. 64.45 67.50 3.05 3.00 0.354 93 0.064 3.665 0.846
SR346 60 -90 NW Exten. 68.50 75.50 7.00 6.58 0.193 43 0.020 1.318 0.729
SR347 240 70 NW Exten. 86.90 93.30 6.40 4.90 2.925 122 0.017 2.360 2.450
SR347 Including 86.90 88.40 1.50 1.15 4.670 398 0.050 3.930 8.920
SR348 60 -50 NW Exten. 43.90 46.60 2.70 2.54 0.142 104 1.010 2.480 0.793
SR348 Including 45.00 46.60 1.60 1.50 0.108 154 0.008 2.080 0.874
SR349 60 -70 NW Exten. 41.40 43.25 1.85 1.84 0.036 34 0.009 2.820 0.643
SR350 60 -90 NW Exten. 61.50 66.70 5.2 4.89 0.106 85 0.190 0.391 7.213
SR350 Including 65.00 66.70 1.70 1.60 0.176 157 0.545 0.093 15.400
SR350 60 -90 NW Exten. 74.60 75.45 0.85 0.80 0.307 24 0.008 0.821 4.130
SR351 240 -70 NW Exten. 74.90 77.90 3.00 2.30 0.118 363 0.012 1.034 1.075
SR351 240 -70 NW Exten. 79.40 81.90 2.50 1.92 0.038 91 0.006 0.593 1.174
SR351 240 -70 NW Exten. 85.25 87.00 1.75 1.34 0.206 133 0.022 2.140 3.510
SR353 60 -70 NW Exten. 37.50 39.00 1.50 1.50 0.355 39 0.029 2.750 0.257
SR354 60 -90 NW Exten. 47.15 50.90 3.75 2.41 0.128 89 0.022 0.484 1.764
SR354 60 -90 NW Exten. 62.10 63.45 1.35 0.87 0.569 53 0.007 1.685 4.060
SR355 60 -90 NW Exten. 85.50 89.00 3.50 2.87 0.169 46 0.017 0.888 2.534
SR356 240 -70 NW Exten. 105.30 106.80 1.50 1.15 0.310 32 0.014 0.731 2.620
SR357 60 -75 NW Exten. 90.00 93.00 3.00 2.72 1.010 101 0.016 2.633 3.005

 

Scorpio Mining has drilled approximately 3,334 meters at the San Rafael Project in 2012.  The program completed in-fill drilling on the known zones and delineated mineralization in the newly discovered NW Extension. Mine Development Associates (MDA) of Reno Nevada is currently calculating an Updated Mineral Resource estimate for the deposit that includes approximately 120 new holes completed in 2011 and 2012. The discovery of new mineralization in the NW Extension and the number of new holes will delay this estimate until the third quarter of 2012.

A NI 43-101 technical report to support the resource estimates was prepared by MDA and filed on SEDAR December 4, 2009. Table 2 presents these historical estimates.

Table 2. Measured and Indicated Resources for the San Rafael Project

San Rafael Main and Upper Zone
                                           
Cutoff
% ZnEq
    Category     Tonnes
t x 1,000
    Silver
(g/t)
    Zinc
(%)
    Copper
(%)
    Lead
(%)
    Gold
(g/t)
3.5%     Measured     1,793     84.1     3.73     0.07     1.62     0.09
3.5%     Indicated     4,204     91.8     3.29     0.06     1.39     0.13
3.5%     Measured +
Indicated
    5,997     89.5     3.42     0.06     1.46     0.12
3.5%     Inferred     14     64.1     1.46     0.04     1.45     0.11
                                           

San Rafael 120 Zone
                                           
Cutoff
g/t AgEq
    Category     Tonnes
t x 1,000
    Silver
(g/t)
    Zinc
(%)
    Copper
(%)
    Lead
(%)
    Gold
(g/t)
100     Indicated     1,916     130.6     0.48     0.34     0.13     0.17
100     Inferred     195     130.8     0.05     0.28     --     0.16

A map of the San Rafael Project, sections of the new NW Extension, and a longitudinal section of the Main and Upper Zones are available on the Corporation's website, at www.scorpiomining.com.

About Us

Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. The 100% owned Nuestra Señora Mine and plant located in the Cosalá District of Sinaloa State, Mexico, has proven to be a low-cost operation with the benefit of flexible mining methods and diversified metal production. It has a fully mechanized underground operation and a processing facility built for expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead concentrates; with a significant silver component in the copper and lead concentrates. In addition, Scorpio Mining has over 40 exploration targets mostly in the vicinity of its current operations and is currently updating its resource calculation for the San Rafael and El Cajon mineral deposits. The Corporation also holds a 100% interest in the advanced, high-grade La Revancha silver and Tepozán silver-gold projects, both located in the productive Parral District within the respective states of Chihuahua and Durango, Mexico.The Corporation's strategy focuses on exploring and developing its existing mineral properties.

Scorpio Mining's Vice-President of Exploration, James Stonehouse a Registered Geologist with SME (Registration #4168919) and is the Qualified Person for the Corporation's Mexico projects and has reviewed the content of this release. All technical information for the Corporation's Mexico projects is obtained and reported under a formal quality assurance and quality control (QA/QC) program. Samples are shipped to the ALS Chemex preparation laboratory in either Hermosillo or Chihuahua, Mexico for drying, crushing and pulverizing. ALS Chemex; Mexico preparation laboratory, then sends the pulps for assaying to ALS Chemex, Vancouver, an ISO 9001:2000 accredited facility. Details of the QA/QC program are available at: www.scorpiomining.com/i/pdf/reports/QAQC-PD.pdf.

ON BEHALF OF SCORPIO MINING CORPORATION

Parviz Farsangi
President & 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 the Corporation's operations, exploration and development plans, expansion plans, estimates, expectations, forecasts, objectives, predictions and projections of the future. 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 Corporation's projects in Mexico, 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, risks relating to completing acquisition transactions 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, 2012. 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.

 

SOURCE: Scorpio Mining Corporation

For further information:

Victoria Vargas, Vice President Investor Relations and Corporate Communications +1 416-585-2200
Email: vvargas@scorpiomining.com

Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: rkaiser@scorpiomining.com

Website: www.scorpiomining.com

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