Toronto, April 30, 2013 – Scorpio Mining Corporation (TSX: SPM) (“Scorpio” or the “Company”) reports that the federal Mexican Secretariat of Environment and Natural Resources (SEMARNAT) has issued to its wholly-owned subsidiary, Minera Platte River Gold, S. de R.L. de C.V., a resolution approving the Environmental Impact Statement (EIS) pertaining to its application for the development of underground mining operations at the El Cajón and San Rafael projects, located in the Cosalá Norte District, 14 and 17 kilometers by road respectively from the Nuestra Señora processing facility.
Pierre Lacombe, President and CEO comments, “With the completion of this crucial step towards the development of the El Cajón Project, the Company only awaits receipt of the Change of Land Use permit from Sinaloa’s SEMARNAT offices to be allowed to proceed with construction of its second underground mine in the Cosalá District. Following a normal permitting schedule, Scorpio anticipates commencement of surface works at El Cajón in Q3 2013, with initial production from stopes potentially delivered to the Nuestra Señora plant late in the year, or early next, and ramp-up towards the targeted 1,500 tonnes per day sustained mine output over Q1 of 2014. We are extremely pleased to have reached this major milestone. We appreciate the efforts of our team, consultants and the members of the Mexico’s SEMARNAT for their cooperation and support.”
Scorpio is conducting an internal review on a draft of the Preliminary Economic Assessment (PEA) study, as prepared by Reno-based Mine Development Associates (MDA). The PEA will include an updated reserve estimate for the Nuestra Señora Mine, and will incorporate the resource estimate disclosed on June 29, 2012. The PEA will also include a preliminary economic assessment of the nearby El Cajón and San Rafael projects, based on the assumptions of a sequential development schedule and processing through an expanded plant capacity of 2,750 tpd as of 2015.
Annual General and Special Meeting of Shareholders
The Company announces that its 2013 Annual General and Special Meeting of Shareholders will be held at 4:00 p.m. Eastern Time on Thursday, June 13, 2013 at the TSX Broadcast Centre, The Exchange Tower, 130 King Street West, Toronto, Ontario, M5X 1J2.
Scorpio shareholders of record at the close of business on May 3, 2013 are entitled to attend the Annual General and Special Meeting and vote their shares.
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 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 permitting.
Scorpio Mining’s President and CEO, Mr. Pierre Lacombe, Eng, is a Qualified Person as defined under National Instrument 43-101 and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
President & CEO
For further information contact:
Victoria Vargas, Vice President Investor Relations and Corporate Communications +1 416-585-2200
Email: [email protected]
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: [email protected]
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 Corporation’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 Corporation’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.
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