Scorpio Mining Reports Q4 Operating Results and 2012 Production for Nuestra Señora

Scorpio Mining Reports Q4 Operating Results and 2012 Production for Nuestra Señora

TSX: SPM

TORONTO, Jan. 18, 2013 /CNW/ - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Corporation") today announced its operating results for the fourth quarter ended December 31, 2012 ("Q4") and total 2012 production results for the Nuestra Señora Operation in Mexico.

Peter Hawley, Interim President and CEO comments, "The Nuestra Señora Operation continues to track positively on a quarterly basis with cost reduction measures and increased efficiencies improving overall performance. 2012 saw record plant throughput from previous years, while operations in Q4 focused on extracting and processing metals with a higher dollar value. Silver head grade increased 2% and total silver produced for Q4 increased by 5% compared to the third quarter ended September 30, 2012 ("Q3"). Copper head grade increased 29% and total copper produced increased by 48% compared to Q3. Recoveries remained static with the exception of copper which increased by 16% from Q3.

Scorpio Mining looks forward to commencing construction at its El Cajón Development Project, located 14 kilometers by existing road from the Nuestra Señora processing facility. Related development and mine planning is well advanced for a timely startup. The Corporation remains in a strong cash position with no debt or hedging."

Key Operating Statistics

Q4 2012 Q3 2012 Total 2012

Total plant throughput (tonnes) 129,115 127,478 521,557

Head grade silver g/t 91 89 90

Head grade zinc % 1.60% 1.98% 1.85%

Head grade copper % 0.27% 0.21% 0.28%

Head grade lead % 0.72% 0.94% 0.87%

Recovery silver % 78.4% 77.0% 78.8%

Recovery zinc % 73.1% 73.8% 77.1%

Recovery copper % 45.8% 39.6% 48.1%

Recovery lead % 65.0% 64.7% 65.6%

Total silver ounces produced 296,243 282,036 1,184,964

Total pounds zinc produced 3,321,531 4,108,878 16,463,133

Total pounds copper produced 347,167 233,931 1,608,276

Total pounds lead produced 1,329,768 1,702,431 6,550,418

Total silver equivalent ounces* produced 521,295 534,075 2,282,512

                                                              

* For comparative purposes the metal prices used to calculate silver
equivalent ounces recovered are
based upon the following: silver at US$24 per oz.; zinc at US$0.90 per
lb.; copper at US$3.50 per lb.
and lead at US$0.90 per lb.

2012 Achievements:
    --  Strengthened Nuestra Señora operations with the addition of a
        Chief Mine Geologist, Mine Maintenance Superintendent and new
        Mine Manager.
    --  Implemented a number of changes in the Nuestra Señora
        processing plant to increase overall quality and value of
        concentrates produced.
    --  Focused on decreasing costs and increasing efficiencies to
        reduce overall cost per tonne of material mined and processed.
    --  Increased annual ore processing throughput to a record 521.6
        kilotonnes, representing increases of 2% and 37% from 2011 and
        2010 throughput, respectively.
    --  Increased the resources at the El Cajón and San Rafael
        development projects and began mine planning for the El Cajón
        deposit.
    --  Submitted application for Environmental Impact Statement
        ("EIS") for the exploitation of the El Cajón deposit.
    --  Successfully negotiated land right usage for a proposed new
        10.8 kilometer route from the El Cajón deposit to the Nuestra
        Señora processing facility, requiring 5.8 kilometers of new
        road construction.
    --  Engaged Canadian-based JDS Energy and Mining to oversee mine
        development of the El Cajón deposit.

Scorpio Mining will be attending the Vancouver Resource Investment Conference 
held at the Vancouver Convention Centre on January 20-21, 2013. Management 
looks forward to meeting its shareholders and interested parties at booth 
#2026.

About Us

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 built for expansion to 4,000 TPD. The 
plant produces zinc, copper and lead concentrates; with a significant silver 
component in the copper and lead concentrates. In addition, the company has 
numerous exploration targets in the vicinity of its current operations and has 
recently updated its NI 43-101 compliant mineral resource estimates for the 
San Rafael and El Cajón development projects. The El Cajón deposit is 
scheduled for mine development upon receipt of permitting. Scorpio Mining 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 for near-term growth is currently focused on 
development and production of the El Cajón deposit.

Scorpio Mining's Interim President and CEO, Mr. Peter J. Hawley P. Geo, is a 
Qualified Person for the Company's Mexico projects and has reviewed the 
content of this release.

ON BEHALF OF SCORPIO MINING CORPORATION

Peter J. Hawley
Interim President & 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 the Company'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 Company'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.

 

 

Victoria Vargas, Vice President Investor Relations and Corporate  
Communications +1 416-585-2200 Email: vvargas@scorpiomining.com Rich Kaiser, 
YES International: 1-800-631-8127; 001-757-306-6090  (outside North America) 
Email: rkaiser@scorpiomining.com

Website: www.scorpiomining.com

SOURCE: Scorpio Mining Corporation

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CO: Scorpio Mining Corporation
ST: Ontario
NI: MNG PCS FIELD 

-0- Jan/18/2013 13:00 GMT