TORONTO, June 3, 2013 /CNW/ - Scorpio Mining Corporation (TSX: SPM) ("Scorpio" or the "Company") reports that the Secretariat of
Environment and Natural Resources (SEMARNAT) of the state of Sinaloa
has declined the Company's initial submissions for Change of Land Use
permits pertaining to the development of underground mining operations
at the El Cajón and San Rafael projects and continued exploration
drilling at El Cajón. As previously disclosed, Scorpio requires two
independent permits in order to commence mine construction at El Cajón:
the Environmental Permit, which was delivered to the Company on April
30, 2013, and the Change of Land of Use Permit.
Scorpio's wholly-owned subsidiary, Minera Platte River Gold, S. de R.L.
de C.V., will resubmit its application for the Change of Land Use
permit related to the development of underground mining operations at
the El Cajón and San Rafael projects.
In meeting with the Sinaloan delegate of SEMARNAT on May 24, 2013, the
Company and its consultants were given directives towards filing a new
submittal that would receive a more streamlined review than what was
afforded to the original submittal filed in December 2012. A follow-up
meeting with the technical reviewers of SEMARNAT to finalize the draft
submittal is scheduled for June 5, 2013. The Company is encouraged by
SEMARNAT's assistance in preparing a new document and willingness to
review the application in an expedited timeline, and is confident that
the revised submittal will be accepted given that no major deficiencies
were identified in SEMARNAT's earlier assessment.
The re-submission is likely to postpone the onset of surface works at El
Cajón by a few months, from early to late in Q3 2013. Likewise,
delivery of plant feed from the initial stope production to the Nuestra
Señora plant is now expected in early 2014. In the meantime, the
Company is continuing with metallurgical testwork, mine design
engineering and upgrading of the geological database as recommended in
the Preliminary Economic Assessment to increase confidence levels in
the mineral resources at El Cajón, providing the basis for conversion
of resources into reserves early in 2014.
On June 1, 2013, Scorpio signed a letter of intent ("LOI") with a
Mexican mining contractor interested in establishing a mining services
venture to provide plant feed to Scorpio's Nuestra Señora processing
facility from the former producing La Verde Mine. The LOI is providing
the basis for finalizing contractual terms for a formal agreement.
Production could be resumed as early as within one to two months
following signature of the contract.
Pierre Lacombe, President and CEO comments, "This agreement will provide
flexibility to our current operations, with La Verde having been shown
as a steady source of copper and silver for the former operators of
this mine. With the mining contractor identified to restart production
having been involved during the last operating period, there is no
learning curve involved and a fast ramp-up of production to past
levels, in the order of 400-500 tonnes per day, can be expected."
Scorpio Mining Corporation is a silver producer operating in Mexico with
significant base metal by-product credits. The 100% owned Nuestra
Señora Mine in the Cosalá District of Sinaloa State, Mexico, has
flexible mining methods and diversified metal production. It has a
fully mechanized underground operation and a processing facility with
permitted capacity for expansion to 4,000 tonnes per day. The plant
produces zinc, copper and lead concentrates, with a significant payable
silver component in the copper and lead concentrates.
In addition, the Company has numerous exploration targets in the
vicinity of its current operations as well as the advanced El Cajón and
San Rafael development projects. The Company's strategy for near-term
growth is currently focused on mine development of the El Cajón deposit
upon receipt of permitting.
Scorpio Mining's President and CEO, Mr. Pierre Lacombe, Eng., is a
Qualified Person as defined under National Instrument 43-101 and has
reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
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 Company'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
Company'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 14, 2013. 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
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Victoria Vargas, Vice President Investor Relations and Corporate Communications +1 416-585-2200 Email: email@example.com
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)