Toronto, March 5, 2012 – Scorpio Mining Corporation (TSX: SPM) (“Scorpio Mining” or the “Corporation”) is pleased to announce the initial results from the ongoing drill program on its 100% owned La Revancha Project, Chihuahua State, Mexico.
- Hole LAR-37: 278 g/t Ag over 6.0 m true width
- Hole LAR-52: 192 g/t Ag over 15.0 m true width
- Hole LAR 56: 197 g/t Ag over 11.5 m true width
The 82 hectare (“ha”) La Revancha property is located in the Parral District, which has a mining history stretching back to colonial times and several 100 million ounce silver mines. The Corporation also holds the rights to in the nearby 1,200 ha Tepozan Project, where drilling is scheduled to commence in March.
“The Parral District represents an excellent exploration opportunity for Scorpio Mining with the initial drill results from La Revancha returning significant silver values over substantial widths,” stated Parviz Farsangi, Scorpio Mining’s President and CEO. “Our goal for La Revancha is to complete an inferred mineral resource estimate by year end that will demonstrate that the project holds the potential to develop into a near-term production asset.”
La Revancha – 2011-2012 Drilling Highlights (to date)
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The planned 3,500 metre drill program is nearing completion and will be increased based on the results. La Revancha has over 1.5 kilometers of outcropping veins that are oriented in a north-south direction and steeply dipping. Mineralized zones are hosted in silicified breccia and replacement zones filling fractures and faults. A considerable amount of historic mining has taken place on the vein system.
Scorpio Mining acquired the La Revancha Project with its acquisition of Platte River Gold Inc. (“Platte River”) in 2010. Platte River drilled 29 holes in 2007, two of which were lost before reaching the mineralized zone. Highlights of the 2007 drilling include:
- Hole LAR-1: 146 g/t Ag over 28.0 m true width
- Hole LAR-10: 237 g/t Ag over 15.0 m true width
- Hole LAR 11: 255 g/t Ag over 10.0 m true width
- Hole LAR 16: 243 g/t Ag over 19.0 m true width
La Revancha – 2007 Drilling Highlights
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|LAR-2||Did not reach target|
|LAR-3||99.00||139.50||40.50||17.00||194||Revancha-Alto vein intersection|
|LAR-4||64.50||75.00||10.50||5.50||278||Revancha-Alto vein intersection|
|81.00||93.00||12.00||4.10||165||Revancha-Alto vein intersection|
|LAR-7||No significant values|
|LAR-8||No significant values|
|LAR-10||57.00||76.50||19.50||15.00||237||Revancha-Alto vein intersection|
|LAR-14||Did not reach target|
|LAR-26||No significant values|
|LAR-28||No significant values|
|LAR-31||No significant values|
|LAR-32||No significant values|
|LAR-34||No significant values|
No significant values
A location map, geology and drill hole plan, longitudinal section, and select cross-sections are available for review here.
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 and is responsible for the technical 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, Hermosillo 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. The 2007 drill program by Platte River had an acceptable QA/QC program in place under the supervision of Scorpio Mining’s Senior Exploration Geologist, Will Strong, PG, who was employed by Platte River at the time of drilling.
Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. The 100% owned Nuestra Senora 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 boasts 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. The Corporation also holds a 100% interest in the prospective La Revancha silver and Tepozán silver-gold projects in the Parral District of Chihuahua State, Mexico.The Corporation’s strategy focuses on exploring and developing its existing mineral properties.
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, objectives, strategy, exploration, future performance, and plans. 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 Parral District projects, risks related to international operations, cost overruns, equipment breakdowns, the actual results of current exploration, , 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 30, 2011. 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.