Scorpio Provides May 2009 Update



    TSX:SPM

    VANCOUVER, June 22 /CNW/ - Scorpio Mining Corporation (TSX:SPM) is
pleased to provide an operations update for May 2009 for the 100% owned
Nuestra Senora mine, Sinaloa State, Mexico.
    Peter J. Hawley, Chairman, CEO reports, "May 2009 was a milestone month
for Nuestra Senora with approximately 84,000 ounces of pure silver shipped or
sold. The Company continues to be cost-efficient with local project cash
operating costs(1) for mining, milling and administration being US$37.98 per
tonne versus a budgeted US$44.66 per tonne. More favourable 2009 zinc and
copper off-take agreements are now in place and a new lead-off take agreement
for 2009 comes into effect July 1, 2009. The Company is well positioned to
increase grades, mining and milling throughput in conjunction with rising
metal prices. This, along with the new 2009 off-take contract terms, is
expected to lead to increased cash flows."
    The Nuestra Senora operational details for the month of May are as
follows:

    
                        May 2009 Concentrate Synopsis

    -------------------------------------------------------------------------
                                            2009                Contained
    Concentrate Shipped                      May              Silver Ounces
    -------------------------------------------------------------------------
    Lead Concentrate (tonnes)                352                  42,468
    -------------------------------------------------------------------------
    Zinc Concentrate (tonnes)                414                   2,269
    -------------------------------------------------------------------------
    Copper Concentrate (tonnes)              312                  39,260
    -------------------------------------------------------------------------
    Total                               1,078 tonnes          83,997 ounces
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Concentrate Inventory at                2009                Contained
           Month End                         May              Silver Ounces
    -------------------------------------------------------------------------
    Lead Concentrate (tonnes)                 17                   1,898
    -------------------------------------------------------------------------
    Zinc Concentrate (tonnes)                  0                      0
    -------------------------------------------------------------------------
    Copper Concentrate (tonnes)               76                  10,250
    -------------------------------------------------------------------------
    Total                                  93 tonnes           12,148 ounces
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Concentrate Produced During the         2009                Contained
      21 Days of May Operations              May              Silver Ounces
    -------------------------------------------------------------------------
    Calculated Lead Concentrate (tonnes)     273                  28,984
    -------------------------------------------------------------------------
    Calculated Zinc Concentrate (tonnes)     400                   2,001
    -------------------------------------------------------------------------
    Calculated Copper Concentrate (tonnes)   118                  14,229
    -------------------------------------------------------------------------
    Total                                 791 tonnes           45,214 ounces
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                            2009                    2009
    Total Tonnes Mined & Milled              May                   Budget
    -------------------------------------------------------------------------
    Tonnes Mined                           15,136                  5,922
    -------------------------------------------------------------------------
    Tonnes Milled                          15,387                 12,000
    -------------------------------------------------------------------------
    Days Milling                               21                     17
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Average Mill Recoveries
    -------------------------------------------------------------------------
    Silver (%)                               86.7%                   84%
    -------------------------------------------------------------------------
    Lead (%)                                 69.1%                 78.5%
    -------------------------------------------------------------------------
    Copper (%)                               53.3%                   50%
    -------------------------------------------------------------------------
    Zinc (%)                                 68.8%                   79%
    -------------------------------------------------------------------------


                               May 2009 Update

    -   Underground development for the month of May stands at 154.2 metres;
        ore tonnage produced was 9,036 metric tonnes (tm) in the cut & fill
        stopes and ore moved to the mill was 15,136 tm.

    -   Mexican cash operating costs(1) for mining, milling and
        administration for May 2009, were US$37.98 per tonne
        (budgeted US$44.66 per tonne).

    -   The Company completed a surface stockpile sampling/surveying program
        to evaluate the metal content and value of the stockpiled Candelaria
        mine development ore. Results indicate that approximately 4,200 tm of
        broken ore is currently available at an estimated grade of 155 g/t
        Ag, 0.27% Cu, 1.00% Pb and 1.96% Zn. The estimated NSR value of this
        material is considered similar to average mine grade. This material
        is expected to be hauled to the mill within the next few months and
        blended with the Nuestra Senora mined ore stockpile.

    -   Mill throughput in May reached 15,387 tonnes (budgeted 12,000 tonnes)
        for the 21 days of milling, or 733 tonnes per day.

    -   Recoveries at the mill were 86.7% for silver (83.5% budgeted), 69.1%
        for lead (78.5% budgeted), 53.3% for copper (50% budgeted) and 68.8%
        for zinc (79% budgeted). Modifications of the mill circuit to improve
        copper recovery caused slight decreases in lead and zinc recoveries.
        Further modifications have now been completed and recoveries for
        these metals have returned to normal.

    -   High-grade mine ore processed totalled 11,463 tonnes and was mixed at
        a 3:1 ratio with lower-grade development ore. At month end, total
        stockpiled ore was 38,121 tonnes including 28,225 tonnes of
        development ore in stockpile No.1 and 9,896 tonnes of high-grade ore
        in stockpile No.2.

    -   A total of 45,214 ounces of silver were recovered for the month in
        addition to lead, zinc, copper credits.

    -   A total of 83,997 ounces of silver were shipped/sold for the month
        in addition to lead, zinc, and copper credits.

    -   Under the existing off-take contract which is in effect until October
        2009, the Company shipped 312 tonnes of copper concentrates and
        414 tonnes of zinc concentrates to the loading facility in
        Manzanillo, México. It also delivered 352 tonnes of lead concentrate
        to the Penoles smelter facility in Torreon, México under its current
        contract which will expire June 30th, 2009.

    -   The Company, through its concentrate brokers, has concluded
        negotiations with Penoles for a further one year contract to smelt
        the lead concentrate at the Torreon smelter. The new contract is
        effective July 1st, 2009 and under the terms of the contract the
        company will supply a minimum of 200 tonnes of concentrate per month.

    -   On March 30, 2009, an underground diamond drilling program was
        initiated to better define future high-grade cut and fill stopes. The
        program was completed on May 29th and totalled 1,073 metres. Assays
        remain pending for most of the holes although based on visual
        assessments (which remain subject to assay analysis) significant
        additional tonnage is expected in the M-01 Zone (Level 9) and the
        Santa Teresa Zone (Level 9.5). Further diamond drilling will be
        scheduled depending on grade control and mine planning requirements
        at the mine.

    -   The Company continues to aggressively look at near term development
        and/or operating mining assets located in Mexico for possible
        acquisition.

    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 Senora project and has reviewed the content of this release.

    ON BEHALF OF SCORPIO MINING CORPORATION

    Peter J. Hawley
    Chairman & CEO

    (1) Cash operating costs per tonne is a non GAAP measure. The Company
    believes that, in addition to cost of sales, cash operating costs per
    tonne is a useful and complementary benchmark for performance and is well
    understood and widely reported in the silver mining industry. However,
    cash operating costs per tonne does not have a standardized meaning
    prescribed by Canadian GAAP. Investors are cautioned that cash operating
    costs per tonne should not be construed as an alternative to cost of
    sales determined in accordance with Canadian GAAP as an indicator of
    performance. The Company's method of calculating cash costs per tonne may
    differ from the methods used by other entities and, accordingly, the
    Company's cash operating costs per tonne may not be comparable to
    similarly titled measures used by other entities. Cash operating costs
    per tonne is calculated as the cost of sales adjusted for change in
    inventories.
    

    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 concentrate shipments, off-take agreements, mining
plans and Scorpio Mining Corporation's commitment to, and plans for developing
and optimizing 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 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.





For further information:

For further information: Rich Kaiser, YES International: 1-800-631-8127;
001-757-306-6090 (outside North America), Email: yes@yesinternational.com

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