Toronto, April 30, 2012 – Scorpio Mining Corporation (TSX: SPM) (“Scorpio Mining” or the “Corporation”) reports final results from the recently completed 4,068 meter Phase I drill program at its 100% owned La Revancha Project, Chihuahua State, Mexico.
The La Revancha project is located in the Parral Mining District, which has a mining history dating back to colonial times and hosts several significant silver deposits and operating mines. At La Revancha, over 1.5 kilometers of steeply dipping, north-south oriented veins have been identified at surface. Mineralization is hosted in silicified breccia and replacement zones filling fractures and faults. At least three veins are observed: La Revancha, El Alto and San Nicholas. Drilling to date of the La Revancha and El Alto vein systems has indicated reasonably consistent mineralization over a strike length of at least 500 meters and possibly up to 700 meters, including one identified gap in the mineralization. Mineralization has been tested up to 250 meter vertical depths. It remains open at depth, at least 100 meters to the south and at least 300 meters to the north.
The near vertical nature of the mineralizing system and the fact that nearly all mineralization drilled to date is above the valley floor indicates the potential for relatively easy development and mining in the future.
Final results of holes LAR-42, -43, -46 and -59 as well as previously reported holes (press release – March 5, 2012) are presented below.
La Revancha – 2011-2012 Phase I Drilling Highlights
No significant values
* Previously reported in the Corporation’s March 5, 2012 press release.
** NC is reported for true widths in areas where insufficient structural data was available to allow a calculation of true thickness.
A follow on program of at least 2,000 meters is planned beginning in late June or July 2012. Subject to results, the Corporation anticipates conducting a preliminary resource calculation for this project by year end.
With completion of the first phase of drilling at La Revancha, the Corporation has commenced a 2,500 meter drilling program at the nearby Tepozán Project.
A location map of the La Revancha Project as well as geology and drill hole plan, longitudinal section, and selected cross-sections are available for review at www.scorpiomining.com/s/ParralDistrict.asp.
Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. The 100% owned Nuestra Señora Mine and plant located in the Cosalá District of Sinaloa State, Mexico, has proven to be a low-cost operation with the benefit of flexible mining methods and diversified metal production. It has a fully mechanized underground operation and a processing facility built for expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead concentrates; with a significant silver component in the copper and lead concentrates. In addition, the company has over 40 exploration targets mostly in the vicinity of its current operations. At the nearby San Rafael and El Cajón deposits, an extensive diamond drilling program is in progress to potentially increase the mineral resource base and support an upgrade to reserve category. The Corporation also holds a 100% interest in the advanced, high-grade La Revancha silver and Tepozán silver-gold projects, both located in the productive Parral District within the respective states of Chihuahua and Durango, Mexico.The Corporation’s strategy focuses on exploring and developing its existing mineral properties.
Scorpio Mining’s Vice President of Exploration, James Stonehouse, is a Professional Geologist in the State of California (Registration # 5518), a Registered Geologist with SME (Registration #4168919) and is a Qualified Person for the Corporation’s Mexico projects and has reviewed the content of this release. All technical information for the Corporation’s Mexico projects is obtained and reported under a formal quality assurance and quality control (QA/QC) program. Samples are shipped to the ALS Chemex preparation laboratory in Chihuahua, Mexico for drying, crushing and pulverizing. ALS Chemex, Chihuahua then sends the pulps for assaying to ALS Chemex, Vancouver, an ISO 9001:2000 accredited facility. Details of the QA/QC program are available at: www.scorpiomining.com/i/pdf/reports/QAQC-PD.pdf.
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 26, 2012. 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.