TORONTO, Oct. 16, 2013 /CNW/ - Scorpio Mining Corporation (TSX: SPM) ("Scorpio" or the "Company") reports that production from the Nuestra Señora Operations in the third quarter, ended September 30, 2013 ("Q3"), totalled 523,780 silver equivalent ounces.
Key Operating Statistics
|Q3 2013||Q2 2013||% Change|
|Total plant throughput (tonnes)||136,610||126,868||7.7%|
|Payable Metal Recoveries|
|Total Metal Production|
|Silver equivalent (ounces)*||523,780||439,567||19.2%|
* 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.
- Record quarterly throughput of 136,610 tonnes was attained in Q3 2013 due to high processing plant availability of 97.6% in a period with limited planned maintenance requirements.
- Production from the Nuestra Señora Mine in Q3 2013 encountered higher zinc, lead and silver head grades compared to Q2 2013, while copper head grade was lower.
- Changes in quarter-on-quarter metal recoveries were in line with relative head grade changes.
- Despite a significant drop in copper grade and recovery, the quality of copper in concentrate was the highest on record. A record in the quality of the lead concentrate was also achieved.
- At the end of Q3 2013, a 14% cut in the Company's workforce was implemented across operational and exploration departments. These changes were necessary to increase operational efficiency as well as providing a prudent response to global economic conditions which have caused significant declines in metal prices. Further structural changes will be implemented in Q4 2013 to facilitate ongoing improvement and personnel development.
- During Q3 2013, the federal environmental authority (SEMARNAT) requested additional information from the Company related to its Change of Land Use Permit (CUS) application, for allowing development of the El Cajón underground mine. That information was submitted at the end of Q3 2013 and liaison with SEMARNAT continues to advance this final, pending permit. Once in hand, the Company will immediately commence the development work required to put the El Cajón deposit into production. The related environmental impact statement had been accepted in April 2013.
- Contract mining has commenced at the Company's wholly-owned silver-copper La Verde Mine. During Q3 2013, La Verde provided a small quantity of ore which has been transported to the Nuestra Señora plant. Initial process optimization trials will commence during Q4 2013 and production should ramp soon after, approaching 15,000 tonnes per month by year-end. La Verde entered production in the mid-1980's and was operated continuously until Scorpio assumed control of the operation in early 2011, starting with improvements to ground control, followed by exploration drilling and metallurgical testing.
- During Q3 2013, JDS Energy and Mining Inc. was engaged to perform a prefeasibility study (PFS) for underground mining of the El Cajón deposit. A development decision for El Cajón has already been made on the strength of the existing NI 43-101 resources, its proximity to the Nuestra Señora processing plant, and results of the recent Preliminary Economic Assessment of the Cosalá District. However, the completion of the PFS, expected in Q1 2014, will result in the publication of NI 43-101-compliant mineral reserves.
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 up 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 pending permit.
Scorpio Mining's President and CEO, Mr. Pierre Lacombe, Eng., is a Qualified Person as defined under National Instrument 43-101 and has reviewed and approved 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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