VANCOUVER, Aug. 8 /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, "We are very pleased with the
progress made to date and the support we are receiving from the Sinaloa State
Government. As indicated below, the construction and underground development
is being aggressively pushed forward. The recent success in underground and
surface drilling can only add to the project's longevity. We look forward to
providing ongoing updates of our surface exploration results, underground
development and exploration work and our progress on the mill facility
construction as we approach production start up."
On August 2, 2007, the Company hosted a Conference call to investors and
the general public to answer any questions relating to the Pre-Feasibility
Study ("PFS") (see news release of June 14, 2007). If you were unable to
attend the conference call, a replay is available until August 31, 2007 at the
Date: Until Friday August 31, 2007
Local Dial-In Number (416) 695-5800
Toll Free Dial-In
Number (North America) 1-800-408-3053
Pass Code: 3230777 followed by No. key
- Construction of the Company's 100% owned, dedicated 34 kilometre
power line from the main hydro dam to the mill facility is still on
schedule for completion in late August 2007, including the building
of an electrical sub-station.
- The 4.3 kilometre Cosala by-pass road has been completed and final
cement work on culverts is nearing completion. This private
Company-owned road is intended to be used for moving oversized mill
equipment, trailers, etc. for installation at the mill facility and
the transfer of daily metal concentrates to smelters without
impacting the town of Cosala with heavy traffic.
- All mill equipment required for the construction of the processing
facility is currently located in México at one of the three
re-furbish/storage yards and shops the Company has in Mazatlan,
Cannea and Cosala.
- The first 800-horsepower 10x10 ball mill has been re-furbished and is
now at the Cosala storage yard awaiting installation.
- The second 800-horsepower 10x10 ball mill and mill regrind are in the
process of being re-furbished and rebuilt at the Cannea shop and are
expected to be shipped to the Cosala yard by late August 2007. In
addition, the primary jaw crusher and main pump are being
re-furbished in Cannea.
- The various electrical motors have been re-furbished and are in
Cosala. Conveyor roller and floatation cells are also in the Cosala
yard and re-furbishment is being completed there.
- At the Cosala re-furbish yard a repair shop has been constructed,
stockpiling of storage containers containing various pipes, fittings,
welding machines, etc. is ongoing, and the primary jaw crusher, main
pumps and the Company-owned 70 tonne crane have been re-furbished and
are ready for use.
- In the fall of 2006, the Company purchased 118 hectares of land for
the building of the mill facility, offices, hospital, ore storage
pads, concentrate storage and tailing dam installation and storage of
waste by-products. The area has now been stripped and surveyed at
1-metre intervals. Since March 2007, the Company has been excavating
the various sites in preparation for construction. To date, the mill
site has been blasted and is ready for foundations, the primary
crusher location has been blasted, office and building locations have
been excavated, and ore stockpiling has been ongoing for the past
eight weeks. Waste material from the mine is being used as road
ballast and fill.
- A mill construction schedule has been established with two 10-hour
shifts per day which will have up to 260 men on the mill site at any
one time advancing completion of the mill facility and supporting
- The Company has installed five office trailers joined as one unit
with a working space of 230 m(3) to supply temporary accommodations
for the base camp, warehouse and office-construction-supervision
personnel during the construction of the mill facility.
- In addition to the trailers, construction work on the permanent
facility camp has begun, which will consist of 64 four-person dorm
rooms and a 40 metre by 9.2 metre dining hall for mill facility
- Foundation work started on July 25, 2007 with over 70 tons of
reinforcing steel on site. Work includes the foundations for the jaw
and cone crushers, the two 10x10 ball mills, regrind ball mill, the
flotation area, the conveyor columns and all the intermediate levels
in all buildings.
- Drilling of a 14-inch diameter water well located approximately
300 metres from the site is presently being completed.
- The Company has entered into an agreement to purchase an additional
14 hectares of land ideally situated on both sides of the Company's
Cosala by-pass road, which has the Cosala water line and is between
the Company's power line and the power line for Cosala. The 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.
- Telecom of México has completed the installation of a main
communications tower at the mill site facility which will supply
telephone lines, internet connections and video feed for mill site
- Installation of the electrical grounding system is scheduled for
mid August 2007.
- Set up of a cement plant on site is nearing completion in
anticipation of pouring footings and foundations.
- Ore stockpile inventory as of the end of June 2007 consists of
23,496 tonnes at the mill site, 5,000 tonnes at the Nuestra Senora
portal and 10,000 tonnes within the mine.
- The month of July 2007 saw the Company set a record with 312 metres
of underground development completed, including 137 metres in ore and
175 metres of development in waste in preparation for mining.
- During one 10-hour shift, the Company is currently capable of moving
1,536 tonnes of waste/ore from stope development and preparation
activities from the Hoag zone to the mill site. This consists of
eight 24-tonne trucks completing eight trips per shift. This supports
management's view that the Company can easily haul from underground
the initial 1,000 tonnes per day (TPD) initially projected for mill
feed, and, with two shifts per day hauling, could supply a 2,000 TPD
- The initial full-scale mining is planned to start from the lower
grade Hoag zone where primary and secondary blocks have been
outlined. Primary blocks contain approximately 56,000 tonnes and
long-hole drilling of the blocks from the 9th level to the 10th level
(30 metres) will begin in August 2007, with the first blasting of
blocks slated for October 2007.
- As of the end of July 2007, total underground development at
Nuestra Senora includes 1,469.8 metres (1.4 kilometres) on the main
4.5 x 5 metre ramp and 2,300 metres of 4 x 4 metre cross-cuts and
- The Alimak ventilation raise from the 6th Level of the Nuestra Senora
mine to the Candelaria mine has advanced 51.7 metres.
- The Company currently has four 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 successful surface drilling of the Santa Teresa and Santo Domingo
- The Company continues to evaluate various commercial smelter
alternatives, which could improve the net smelter returns received.
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
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 activities and 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: firstname.lastname@example.org; Rich Kaiser,
YES International, 1-800-631-8127, 001-757-306-6090 (outside North America),