VANCOUVER, Feb. 14 /CNW/ - Scorpio Mining Corporation (TSX:SPM) is
pleased to provide an update on its progress toward commencing production at
the 100% owned Nuestra Senora project, Sinaloa State, Mexico.
Peter J. Hawley, Chairman, CEO comments, "The Scorpio team has been
aggressively pushing on all fronts to meet the mandated start up in March 2008
of the Nuestra Senora mill facility. Not only is the team succeeding but they
have also progressed other major projects such as Company housing for the mine
workers. The team effort shown is greatly appreciated by the Company and we
all look forward to becoming a low cost producer in the near future,
especially given the current strong metal prices which should only enhance the
economics and cash flow of the mine."
- The Company is expecting the mill facility to start up on March 31,
2008. After start up, the schedule includes 8 weeks of verification
of the equipment and commissioning. Initial processing, including
commissioning, for the first three months April - June is projected
to average 500 tonnes per day through the mill. The purpose of this
preliminary production is to determine reagent consumption and
optimize the recovery of metals. Once this has been achieved,
through put will be increased to approximately 1,000 tonnes per day
commencing in July 2008.
- Construction of the Company's 100% owned, dedicated 34-kilometre
power line from the main hydro dam to the mill facility is still
scheduled for completion later this month, including the building of
electrical sub-stations at the hydro dam and at the mill site.
- All major mill equipment required for processing is on site and
installed and nearing completion and the Company currently foresees
no delays in the planned start up.
- Mill construction continues on schedule with two 10-hour shifts per
day and manpower at the mill site consisting of 268 workers over
all, with 81 welders and 40 other workers dedicated to the mill
construction and the remainder on piping and tanks, etc.
- The entire mill structure has been completed and the roof coverings
are being installed.
- Both 800-horsepower 10x10 ball mills have been assembled and will be
aligned in the coming weeks.
- The twelve 300 cu. ft. flotation tanks have been installed and the
remaining six 50 cu. ft. cells are being constructed and will be
installed in early March. The three drum filters for the zinc, lead
and copper circuits have been mounted in place.
- The mill office has been erected as has the electrical control room.
The electrical switch gear and sub station are completed and the
electrical circuitry is well advanced.
- The three concentrate and three tailings thickeners are nearing
completion and will be ready the first week of March.
- The grizzly, primary crusher (with a capacity rated at 2,000 tonnes
per day) and secondary cone crusher have been installed within the
building structure and the control room is nearing completion.
- Currently the Company has 2 heavy lift cranes and 3 boom trucks on
- The conveyor structure is in progress with 20 men dedicated to its
construction. The conveyors and supports are scheduled to be
completed by the second week of March.
- The Company has installed five office trailers joined as one unit
with a working space of 230 m(3) to supply temporary accommodations
for the base camp, warehouse and office-construction-supervision
personnel during the construction of the mill facility.
- Telecom of México has completed the installation of a main
communications tower at the mill site facility which will supply
telephone lines, internet connections and video feed for mill site
- A cement plant next to the by-pass road, proximal to the mill
facility site and Company housing site, is fully operational and
over 3,500 cubic meters of cement has been poured. The cement
foundation work for the entire mill facility project has been
completed. The cement plant will continue to supply concrete for the
by-pass road culverts, the town site and the drainage tunnel for the
- Ore stockpile inventory as of the end of January 2008 was
69,044 tonnes consisting of 67,665 tonnes at the mill site and
1,379 tonnes at the Nuestra Senora mine portal.
- The Company is in the final stages of establishing commercial
smelter agreements and once finalized further details will be
By Pass Road - Housing
- The 4.3 kilometre Cosala by-pass road has been completed. This road
was used for moving oversized mill equipment, trailers, etc. for
installation at the mill facility and, in the future will facilitate
the transfer of daily metal concentrates to smelters without
impacting the town of Cosala with heavy traffic.
- Construction work on the permanent facility camp is 60% complete,
and when finished it will house 62 persons in 24 houses. This
facility is being built on 14 hectares of land that the Company has
purchased which is ideally situated on both sides of the Company's
Cosala by-pass road. The site has electrical power and is connected
to the municipality's water supply and sewage system. This land
purchase is a cost effective measure allowing the Company to build
houses for personnel and construct its own core logging and
equipment storage facilities rather than rent these facilities. The
Company also plans to build an office on the site and relocate all
its support staff from the current office in Cosala to the new
Tailings Pond and Dam Construction
- Work on the tailings storage facility is progressing well.
- All organic matter has been removed from the impoundment area for
Phase 1, which represents the first and lower portion of the
tailings pond. This organic material is being stored on the mill
site and will be used for re-forestation. This initial phase will
accommodate tailings produced by the mill for the first year.
Phase 2, scheduled for later this year, will have sufficient
capacity for years 2 through 5.
- The pond area will be lined with a 30-cm sub-base layer of gravel
covered by a 10-cm layer of fine sand/silt and overlain by an
impermeable geo-membrane to prevent leakage of the tailings water
into the underlying strata.
- The contouring of the pond area and sub-base for the liner is 30%
- Dam construction is 35% complete and is now progressing at a rate of
9,000 m(3) of dam and lining material per week.
- The tailings pond and dam are projected to be completed during the
last week of March.
Water Supply for the Mill
- A six (6) inch water pipe line covering 4.5 km has been established
from the mill site to the mine site river location with cement
holding tanks at river level completed. The entire infrastructure,
including concrete work and pumping stations, will be completed
before mill start up.
- A water storage tank has been constructed on the mill site which can
supply 1 million litres of water on demand.
- Although it is planned to re-circulate some 80% of the process
water, the water supply system will have the capacity to supply 100%
of the mill needs. The system is projected to be completed during
- As of the end of January 2008, underground development at Nuestra
Senora, has progressed to where 1,609.6 metres (1.6 kilometres) of
the main 4 x 5 metre ramp had been completed, together with
6,134.6 metres of 4 x 4 metre development cross-cuts and access
- During one 10-hour shift, the Company is currently capable of moving
over 1,550 tonnes of waste/ore from stope development and
preparation activities in three zones to the mill site. This only
requires eight 12 cubic meter trucks completing in total 82 trips
per shift. The number of trucks could be increased which supports
management's view that the Company can easily haul from underground
the 1,000 tonnes per day initially projected for mill feed.
- The initial full-scale mining is planned to start from the lower
grade Hoag zone where primary and secondary blocks have been
outlined. Each primary block contains approximately 23,000 tonnes on
level 10.5 and between 30,000 to 45,000 tonnes on level 10. Long-
hole drilling of the blocks from the level 10 to the 10.5
(15 metres) level will begin later in February 2008, with the first
blasting of blocks slated for March 2008. In total, five blocks have
been excavated at the bottom and the top to facilitate the drilling
of long-holes in preparation for blasting; development is still
ongoing to prepare the others. Two other blocks are currently ready
to be drilled.
- The Alimak ventilation raise from the 6th level of the Nuestra
Senora mine to the adjacent Candelaria mine has been completed and
installation of the vent fan system will be completed by July.
- The access ramp connecting the Candelaria mine with the main ramp of
the Nuestra Senora mine is 30% complete. Once finished, this access
will permit mining of the higher grade Candelaria mineralization and
facilitate additional development and exploration.
Surface and Underground Exploration
- The Company currently has three underground diamond drill rigs
performing in-fill delineation drilling for areas of exploitation as
well as conducting exploration drilling. This includes targeting the
zones outlined by the recent successful surface drilling of the
Santa Teresa and Santo Domingo satellite deposits, and other areas
based on new exploration models established from ongoing underground
- The Company began surface exploration drilling on January 24, 2008
focusing on the favourable rocks north and west of the Nuestra
Senora Deposit. Recent structural data gathered from ongoing
development strongly suggests that the north-trending Main Zone is
displaced by an east-west trending fault called the Hoag Fault.
Locating the displaced portion could add significantly to the
current estimated resource.
- On February 5, 2008 the Company began a geophysical program of down-
hole pulse electrical magnetic (DHPEM) surveying to determine if
this technology will accurately locate known mineralized bodies
within the Nuestra Senora Project. If found to be successful, the
Company's ability to discover additional mineralization or new
mineralized bodies will be greatly enhanced.
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 program 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". All statements in this news release, other than
statements of historical facts, that address future construction activities,
mine development, exploration drilling, exploration activities and other
events or developments that the Company expects, are forward looking
statements. Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or
developments may differ materially from those in forward-looking statements.
Factors that could cause actual results to differ materially from those in
forward-looking statements include construction difficulties or delays, metal
prices, exploration success, continued availability of capital and financing,
and general economic, market or business conditions.
For further information:
For further information: Glenn Little, Jackson Little Holdings Ltd:
(604) 930-4375, 1-888-930-4375, Email: email@example.com; Rich Kaiser,
YES International: 1-800-631-8127, 001-757-306-6090 (outside North America),