Scorpio Receives Mill Facility Construction Completion Certificate And Provides A Project Update On The Nuestra Senora Project, Sinaloa State, Mexico



    TSX:SPM

    VANCOUVER, March 31 /CNW/ - Scorpio Mining Corporation (TSX:SPM) is
pleased to provide an update on its progress toward production at the 100%
owned Nuestra Senora project, Sinaloa State, Mexico.
    Peter J. Hawley, Chairman, CEO comments, "The Scorpio team is extremely
proud to have reached completion of the Nuestra Senora mill facilities.
Considering that the initial ground breaking for the mill facility was on
August 1, 2007, attaining this milestone within a period of only 8 months is
an achievement that demonstrates the know-how and dedication of the Scorpio
team. This extraordinary fast track time line is particularly impressive given
current mining industry shortages of supplies, components, and experienced
professionals including trades people. In addition to this feat, the Company
also cleared and constructed a tailings dam impoundment area, a 34 kilometre
power line, 4.8 km water line, mine personnel living complexes and 4.3 km of
by-pass road, all while underground development and stockpiling of mineralized
material continues to progress. At the same time the geological team has
recently delineated some new discoveries and controls of high-grade mineral
emplacement that is expected to significantly enhance the grade of the mill
throughput in the future, as well as offer more flexibility in mine planning."

    Project Update

    
    Mill Construction

    -   As of March 27, 2008 the Company has received the mill facility
        construction completion certificate sign off from Exergy Engineers &
        Constructors Inc. who has overseen the mill construction and
        pre-commissioning and will oversee the commissioning.

    -   From this point in time the Company will proceed with 8 scheduled
        weeks of verification of the equipment and mill commissioning. This
        will include approximately 2 weeks of final verification confirming
        that all equipment is mechanically sound, and that electrical
        panels / wiring is correctly installed. This will be followed by
        powering up the facility to check on motors, etc. This is to be
        followed by the initial ore processing including further
        commissioning for the first three months (April - June) during which
        time mill throughput will average 500 tonnes per day. The purpose of
        this preliminary production is to determine the reagent consumption
        and maximize the recovery of metals. Following these steps,
        throughput will be increased to 1,000 tonnes per day commencing July
        2008.

    -   Construction of the Company's 100% owned, dedicated 34 kilometre
        power line from the main hydro dam to the mill facility has been
        fully completed, including the building of an electrical sub-station
        and is expected to go live on April 1st, 2008.

    -   The two 1 million litre water tanks are full and ready for processing
        start up. It is anticipated that 80% of the water used will be
        recovered for re-cycling in the process.

    -   Ore stockpile inventory as of the end of February 2008 was as
        follows:

           Stockpile 1: 52,148 tonnes grading 69g/t Ag, 0.08g/t Au, 0.25% Cu,
           1.42% Pb, and 2.55% Zn.

           Stockpile 2: 22,724 tonnes (assay results pending)

    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 the future transfer of daily
        metal concentrates to smelters without impacting the town of Cosala
        with heavy traffic.

    -   Construction work on the permanent facility camp is 75% complete;
        final details in progress consist of completion of the installation
        of doors and windows, roof tiles and exterior and interior painting.
        Sewage lines have been connected to Cosala's municipal system with
        fresh water now being connected.

    -   When finished the camp will initially house 48 persons in 16 houses
        and the site allows expansion for further construction. This facility
        is being built on 14 hectares of land that Company has purchased
        which is ideally situated on both sides of the Company's Cosala
        by-pass road. This purchase of the land 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.

    -   Currently land is being cleared and prepared for the construction of
        a main central office, core logging and equipment storage facilities
        which will allow the Company to relocate its entire support staff to
        the new facility.

    Tailings Pond and Dam Construction

    -   Tailings dam construction has been completed for Phase 1 (first year
        of production).

    -   The bottom of the tailings receiving pond has been completed and the
        geo-membrane installation is in progress. The tailing facility is now
        ready to receive material from the milling process.

    -   The contouring of the tailings pond area for the second phase (years
        2 - 5) is in progress.

    Water Supply for the Mill

    -   A water supply system consisting of a well by the river, a storage
        tank, a pumping station, and a 4.8 km pipe line to the mill is under
        construction. The pipeline construction is at 90% completion.

    -   The pipe line consists of a six inch diameter steel pipe along the
        road with cement holding supports and anchors whereas the cement
        water well holding tank consists of an 18 inch diameter steel pipe
        under the river bed with three different pipe water feeders which
        feed the well. In addition, a backup supply of excess clean mine
        water can also be pumped from Level 6 of the mine into the storage
        tank. The entire infrastructure is 95% complete. The Habitas river
        flows all year long thus insuring a constant flow of water available
        for the milling process even in the driest months.

    -   The staging storage tank has been constructed on site.

    -   The cement work for the pump station is completed.

    -   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.

    Underground Development

    -   As of the end of March 2008, a total of 6,769.5 meters of development
        were done which includes cross-cut and access points of 4 x 4 meters.
        Of this total, 1,804.0 meters of ramp (section of 4 x 5 meters) have
        been excavated.

    -   During one 10-hour shift, the Company is currently capable of moving
        over 1550 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 82 trips per shift which supports
        management's view that the Company can easily haul from underground
        the initial 1,000 tonnes per day 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 Level 10.5 (15 metres)
        began in February 2008, with the first blasting of blocks begun in
        March 2008. In addition, five blocks have been excavated at the
        bottom and the top and two of these blocks are currently ready for
        long-hole drilling, development is ongoing to prepare the others.

    -   The Alimak ventilation raise from the 6th Level of the Nuestra Senora
        mine to the Candelaria mine has been completed and installation of
        the vent fan system will be completed by July.

    -   The up ramp from the 3rd Level of the Nuestra Senora mine to the
        Candelaria Mine (located 175 meters vertically above) has advanced
        220 meters of the overall 470 meters required to connect with the
        above Candelaria Mine ramp. Once connected this will allow the
        Company to access the high-grade Candelaria mineralization for the
        blending of mill feed to increase mill head grades.

    Surface and Underground Exploration

    -   The Company currently has three underground diamond drills performing
        in-fill delineation drilling for areas of exploitation as well as
        exploration drilling which is also targeting the zones outlined by
        the recent successful surface drilling of the Santa Teresa and Santo
        Domingo satellite deposits, and based on new exploration models
        established from ongoing underground structural mapping. Recent
        exploration results in the Santa Teresa Extension and below the Main
        Northwest Zone (Jewel Box area) have been surpassing our
        expectations.

    -   On February 18th, 2008 the Company completed a geophysical program of
        down-hole pulse electrical magnetic (DHPEM) surveying to determine if
        this system will accurately locate known mineralized bodies within
        the Nuestra Senora Project. The survey was successful in identifying
        the known ore bodies, particularly in the Main Zone. This tool is
        expected to greatly enhance our exploration efforts in underexplored
        and/or structurally complex areas.

    -   The Company is in the final stages of signing commercial smelter
        agreements and once finalized will inform the public during the next
        month.
    

    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
release.

    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 exploration drilling,
exploration, development activities and production expectations and related
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 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: jlconsulting@telus.net; Rich Kaiser,
YES International: 1-800-631-8127, 001-757-306-6090 (outside North America),
Email: yes@yesinternational.com

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