Scorpio Provides April 2009 Update


    VANCOUVER, May 26 /CNW/ - Scorpio Mining Corporation (TSX:SPM) is pleased
to provide an operations update for April 2009 for the 100% owned Nuestra
Senora mine, Sinaloa State, Mexico.
    Peter J. Hawley, Chairman, CEO reports, "April 2009 continued to be
another productive and cost-efficient month for the Company. With the new 2009
revised budget costs, mine planning and advanced mine development now
scheduled into 2010, the Company has aggressively prepared itself to
immediately ramp up mill and mining rates as overall metal prices increase."
    The Nuestra Senora operational details for the month of April are as

                       April 2009 Concentrate Synopsis

                                                 2009              Contained
    Concentrate Shipped                         April          Silver Ounces
    Lead Concentrate (tonnes)                     414                 54,444
    Zinc Concentrate(1) (tonnes)                  549                  2,117
    Copper Concentrate (tonnes)                     0                      0
    Total                                  963 tonnes          56,561 ounces
    (1) Zinc concentrate shipped in lots of 250 tonnes or greater.

    Concentrate Inventory at                     2009              Contained
     Month End                                  April          Silver Ounces
    Lead Concentrate (tonnes)                      36                  4,518
    Zinc Concentrate (tonnes)                       5                     12
    Copper Concentrate (tonnes)                   280                 34,118
    Total                                  321 tonnes          38,648 ounces

    Concentrate Produced During
     the 17 Days of April                        2009              Contained
     Mill Operations                            April          Silver Ounces
    Calculated Lead Concentrate (tonnes)          220                 26,667
    Calculated Zinc Concentrate (tonnes)          369                  1,451
    Calculated Copper Concentrate (tonnes)         94                 10,126
    Total                                  683 tonnes          38,254 ounces

    Total Tonnes Mined & Milled                  2009           2009
                                                April          Budget
                                                         Revised  Original(*)
    Tonnes Mined                                6,778      6,704       5,750
    Tonnes Milled                              12,078     12,000      11,500
    Days Milling                                   17             17

    (*) Initial 2009 budget forecast which has been increased as a result of
        recent higher metals prices

    Average Mill Recoveries                      2009                   2009
                                                April              Budget(xx)
    Silver (%)                                   88.8                     84
    Lead (%)                                     75.1                   78.5
    Copper (%)                                   55.3                     50
    Zinc (%)                                     77.1                     79

    (xx) New 2009 budgeted recoveries based on first quarter 2009 recoveries

                              April 2009 Update

    -   The Scorpio Mining team has completed a yearly revised budget for
        2009 based on the capacity and production done in the first quarter
        of 2009. The budget was completed along with mine planning which will
        carry the operation well into 2010 with the actual working areas
        opened and currently being mined. Balancing ore grade and lower grade
        material is being done in order to improve efficiency at the mill and
        the production of metals. Development for the month of April stands
        at 129.7 metres. Ore tonnage produced was 6,778 tm in the cut & fill
        stopes and ore moved to the mill was 9,774 tm.

    -   Mexican cash operating costs for mining, milling and administration
        for April 2009, were US$42.62 per tonne(1) (revised budget cost were
        US$48.33 per tonne).

    -   The new up ramp from the main Nuestra Senora Mine access ramp has
        broken through into the developed Candelaria Mine which is situated
        approximately 150 metres vertically above the Nuestra Senora deposit.
        The Company will now resample the high-grade Candelaria surface stock
        pile and calculate the contained tonnage in preparation for blending
        this high-grade material with the Nuestra Senora ore. In addition,
        various mining methods will be evaluated for extraction of ore from
        the various levels of the Candelaria Mine.

    -   In preparation for anticipated future increases in metal prices, the
        Hoag Zone long hole bulk mining area of the Nuestra Senora deposit
        now has approximately 73,000 tonnes of ore either broken or drilled
        off for explosive charges which can be supplied to the mill facility
        as required.

    -   Mill throughput in April reached 12,078 tonnes (new upgraded budget
        was 12,000 tonnes) for the 17 days of milling, or 710.5 tonnes per

    -   Recoveries at the mill were 75.1% for lead (78.5% budgeted), 55.3%
        for copper (50% budgeted), 77.1% for zinc (79% budgeted) and 88.8%
        for silver (83.5% budgeted).

    -   High-grade ore extracted from the Nuestra Senora mine totalled
        6,778 tonnes and was mixed at a 3:2 ratio with lower-grade
        development ore. At month end, total stockpiled ore was 38,373 tonnes
        including 32,150 tonnes of development ore in stockpile No. 1 and
        6,223 tonnes of high-grade ore in stockpile No. 2.

    -   A total of 38,254 ounces of silver were recovered for the month in
        addition to lead, zinc and copper credits.

    -   A total of 56,561 ounces of silver were shipped for the month in
        addition to lead, zinc, and copper credits.

    -   On May 4th, 2009, Penoles informed the Company that it could resume
        shipments of lead concentrate to its smelter in Torreon, México
        following resolution of strike action at the smelter. Under the terms
        of the current contract, due to expire May 31st, 2009, Penoles and
        the Company have agreed that the current contract will be extended by
        one month and will now expire on June 30th, 2009. The Company,
        through its concentrate brokers, is currently negotiating with
        Penoles for a one year contract to smelt the lead concentrate at the
        Torreon facility. The Company recommenced shipments of its lead
        concentrate to Penoles on May 12th, 2009.

    -   The Company completed its commitment to deliver 1,500 wet metric
        tonnes of zinc concentrate for shipment to a second smelter facility
        in China in April 2009.

    -   The Company has finalized six month (May to October 2009) off-take
        contracts for its other concentrates of copper and zinc for delivery
        to the loading facility in Manzanillo, Mexico. These agreements are
        effective May 14th, 2009.

    -   On March 30th, 2009, an underground diamond drilling program was
        initiated to better define future high-grade cut and fill stopes.
        These stopes are scheduled for mining in the next few months and will
        provide more flexibility for mixing with lower-grade stopes and/or
        assuring constant production when ongoing stopes reach their backfill
        cycle. During the month of April, a total of 531 metres of drilling
        was completed with one air drill working one shift per day. Although
        assays are still pending, the highlight of the ongoing drilling to
        date was the unexpected continuity of the high-grade silver vein
        above the current Level 8.

    -   The Company continues to aggressively look at near-term development
        and/or operating mining assets located in Mexico for potential

    Further information is available on the Company's web site at:

    President, Mr. D. Roger Scammell, PGeo, is the Company's Qualified Person
for the Nuestra Senora project and has reviewed the content of this release.


    Peter J. Hawley
    Chairman & CEO

    (1) Cash operating costs per tonne is a non GAAP measure. The Company
        believes that, in addition to cost of sales, cash operating costs per
        tonne is a useful and complementary benchmark for performance and is
        well understood and widely reported in the silver mining industry.
        However, cash operating costs per tonne does not have a standardized
        meaning prescribed by Canadian GAAP. Investors are cautioned that
        cash operating costs per tonne should not be construed as an
        alternative to cost of sales determined in accordance with Canadian
        GAAP as an indicator of performance. The Company's method of
        calculating cash costs per tonne may differ from the methods used by
        other entities and, accordingly, the Company's cash operating costs
        per tonne may not be comparable to similarly titled measures used by
        other entities. Cash operating costs per tonne is calculated as the
        cost of sales adjusted for change in inventories.

    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 concentrate shipments, mining plans and Scorpio
Mining Corporation's commitment to, and plans for developing the Nuestra
Senora Project. 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 of the Nuestra Senora mine, risks related to
international operations, the actual results of current exploration,
development and production activities, changes in project parameters as plans
continue to be refined, future prices of silver, zinc, copper, lead and gold,
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 27, 2009. 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.

For further information:

For further information: Rich Kaiser, YES International: 1-800-631-8127,
001-757-306-6090 (outside North America), Email:

Organization Profile

Scorpio Mining Corporation

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890