TORONTO, May 29, 2012 /CNW/ – Scorpio Mining Corporation (TSX: SPM) (“Scorpio Mining” or the “Corporation”) is pleased to report initial results from the recently completed drill program at its 100% owned El Cajón Project near Cosalá, Sinaloa, Mexico.
Through its wholly-owned subsidiary, Minera Cosalá S.A. de C.V., Scorpio Mining has drilled a total of approximately 4,695 meters at the El Cajón Project in recent months. About half of this total (2,335 meters) was drilled in nine in-fill holes with the intent of raising the confidence level and expanding the previously reported resource estimate. The infill drilling intersected up to 450 grams per tonne silver and 1.102 % copper over 11.6 meters in Hole EC97, including 884 grams per tonne silver and 2.075% copper over 3.9 meters. The remainder of the drilling (2,360 meters) identified a new structurally controlled zone called “La Emma” in 16 holes. Work is still in progress along this trend.
The mineral resource estimates summarized in Table 2 have been calculated in compliance with National Instrument 43-101. For further details on the mineral resources please refer to the technical report entitled “La Verde Project Technical Report, Sinaloa, Mexico” prepared by Mine Development Associates of Reno, Nevada, dated November 25, 2009 and filed on SEDAR December 4, 2009.
Scorpio Mining also announces that, as a result of its decision to extend the drill program at El Cajón to test the newly identified “La Emma” zone, it has also extended its target date for the delivery of its expected El Cajón resource estimate by up to three weeks. Scorpio Mining does not expect that the timing of the San Rafael resource estimate will be affected by the extended drill program.
As previously announced, Scorpio Mining expects the new resource estimate for the Nuestra Señora to be available by the end of Q2 2012 followed by the new reserve estimate in late Q3 2012 or early Q4 2012.