TORONTO, Jan. 18, 2013 /CNW/ - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Corporation") today announced its operating results for the fourth quarter ended December 31, 2012 ("Q4") and total 2012 production results for the Nuestra Señora Operation in Mexico.
Peter Hawley, Interim President and CEO comments, "The Nuestra Señora Operation continues to track positively on a quarterly basis with cost reduction measures and increased efficiencies improving overall performance. 2012 saw record plant throughput from previous years, while operations in Q4 focused on extracting and processing metals with a higher dollar value. Silver head grade increased 2% and total silver produced for Q4 increased by 5% compared to the third quarter ended September 30, 2012 ("Q3"). Copper head grade increased 29% and total copper produced increased by 48% compared to Q3. Recoveries remained static with the exception of copper which increased by 16% from Q3.
Scorpio Mining looks forward to commencing construction at its El Cajón Development Project, located 14 kilometers by existing road from the Nuestra Señora processing facility. Related development and mine planning is well advanced for a timely startup. The Corporation remains in a strong cash position with no debt or hedging."
Key Operating Statistics
|Q4 2012||Q3 2012||Total 2012|
|Total plant throughput (tonnes)||129,115||127,478||521,557|
|Head grade silver g/t||91||89||90|
|Head grade zinc %||1.60%||1.98%||1.85%|
|Head grade copper %||0.27%||0.21%||0.28%|
|Head grade lead %||0.72%||0.94%||0.87%|
|Recovery silver %||78.4%||77.0%||78.8%|
|Recovery zinc %||73.1%||73.8%||77.1%|
|Recovery copper %||45.8%||39.6%||48.1%|
|Recovery lead %||65.0%||64.7%||65.6%|
|Total silver ounces produced||296,243||282,036||1,184,964|
|Total pounds zinc produced||3,321,531||4,108,878||16,463,133|
|Total pounds copper produced||347,167||233,931||1,608,276|
|Total pounds lead produced||1,329,768||1,702,431||6,550,418|
|Total silver equivalent ounces* produced||521,295||534,075||2,282,512|
| * For comparative purposes the metal prices used to calculate silver equivalent ounces recovered are
based upon the following: silver at US$24 per oz.; zinc at US$0.90 per lb.; copper at US$3.50 per lb.
and lead at US$0.90 per lb.
- Strengthened Nuestra Señora operations with the addition of a Chief Mine Geologist, Mine Maintenance Superintendent and new Mine Manager.
- Implemented a number of changes in the Nuestra Señora processing plant to increase overall quality and value of concentrates produced.
- Focused on decreasing costs and increasing efficiencies to reduce overall cost per tonne of material mined and processed.
- Increased annual ore processing throughput to a record 521.6 kilotonnes, representing increases of 2% and 37% from 2011 and 2010 throughput, respectively.
- Increased the resources at the El Cajón and San Rafael development projects and began mine planning for the El Cajón deposit.
- Submitted application for Environmental Impact Statement ("EIS") for the exploitation of the El Cajón deposit.
- Successfully negotiated land right usage for a proposed new 10.8 kilometer route from the El Cajón deposit to the Nuestra Señora processing facility, requiring 5.8 kilometers of new road construction.
- Engaged Canadian-based JDS Energy and Mining to oversee mine development of the El Cajón deposit.
Scorpio Mining will be attending the Vancouver Resource Investment Conference held at the Vancouver Convention Centre on January 20-21, 2013. Management looks forward to meeting its shareholders and interested parties at booth #2026.
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 built for expansion to 4,000 TPD. The plant produces zinc, copper and lead concentrates; with a significant silver component in the copper and lead concentrates. In addition, the company has numerous exploration targets in the vicinity of its current operations and has recently updated its NI 43-101 compliant mineral resource estimates for the San Rafael and El Cajón development projects. The El Cajón deposit is scheduled for mine development upon receipt of permitting. Scorpio Mining 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 for near-term growth is currently focused on development and production of the El Cajón deposit.
Scorpio Mining's Interim President and CEO, Mr. Peter J. Hawley P. Geo, is a Qualified Person for the Company's Mexico projects and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Interim 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 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
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)