VANCOUVER, Sept. 3 /CNW/ - Scorpio Mining Corporation (TSX:SPM) is very
pleased to provide an operations update from its 100% owned Nuestra Senora
project, Sinaloa State, Mexico.
Peter J. Hawley, Chairman, CEO reports, "To date the Company has met
every goal it has set, from the construction of the mill facility in record
time, to the mill start up on time, to the production of concentrates on time.
Shipment of concentrates commenced in August and the first smelter and
off-take payments are expected this month. During September, the Company will
be aggressively executing programs to increase the mill thoughput, improve
recoveries and increase the amount of concentrates produced, as well as
continue development of the higher-grade stopes in the Santa Teresa and the
North West Zones. These measures, plus reducing operating costs, are the
progressional steps the Company has implemented to continue to work towards
positive cash flow during the six month start-up period. In addition,
underground drilling continues to be successful with discovering new bodies
and defining high-grade zones previously announced."
- The current surface stockpile consists of 109,309 tonnes of mill
tune-up development ore in two stockpiles. Stock pile 1 contains
54,944 tonnes grading 69 g/t Ag, 2.55% Zn, 1.42% Pb, 0.25% Cu and
0.08 g/t Au and stockpile 2 contains 54,446 tonnes grading 86 g/t Ag,
2.53% Zn, 1.56% Pb, 0.18% Cu and 0.07 g/t Au.
- During the month of August, the mill facility processed 23,570 tonnes
- The August monthly average mill rate for the 31 days was 760 tonnes
per day (TPD).
- During the last 13 days of August the mill rate averaged 971 TPD.
- During August the Company produced 310.4 tonnes of lead concentrate
with an average grade of 56.38% lead and 2,927 g/t silver (175
contained tonnes of lead).
- During August the Company shipped 276 tonnes of lead concentrate to
the Penoles smelter facility in Torreon, Mexico.
- On September 15, 2008, the Company expects to receive its first
payment from Penoles for the August shipment.
- During August the Company produced 428.7 tonnes of zinc concentrate
with an average grade of 53.75% zinc and 233 g/t silver (230 contained
tonnes of zinc).
- The current zinc concentrate inventory is in excess of 600 tonnes.
- As of September 2, 2008, the Company is shipping a minimum of 70
tonnes of zinc concentrate to the storage facility in Manzanillo,
Mexico on a daily basis (Monday through Friday) for future shipment to
the Asian markets.
- On or before September 15, 2008, the Company expects to have delivered
the first 1,000-tonne lot of zinc concentrate to the warehouse
facility, which will trigger an immediate payment from the Company's
concentrate brokers, Ocean Partners.
- The Company has been pursuing a number of options for reducing
operating costs without affecting performance, in order to be more
aggressive in attaining positive cash flow.
Further information on the Company and the Nuestra Senora project and
photos of the first concentrate shipment are available on the Scorpio Mining
web site at: www.scorpiomining.com.
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 programs 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" 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 planned shipments of concentrates and receipt of
smelter payments, 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 potential development and construction of the
Nuestra Senora Project, risks related to international operations,
construction and mill commissioning 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,
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, 2008. 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
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: Glenn Little, Jackson Little Holdings Ltd:
(604) 930-4375, 1-888-930-4375, Email: email@example.com; Rich Kaiser,
YES International: 1-800-631-8127, 001-757-306-6090 (outside North America),