Scorpio Mining Reports Q4 Operating Results and 2012 Production for Nuestra
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%
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.
-- Strengthened Nuestra Señora operations with the addition of a
Chief Mine Geologist, Mine Maintenance Superintendent and new
-- Implemented a number of changes in the Nuestra Señora
processing plant to increase overall quality and value of
-- 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
-- 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
-- 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
Scorpio Mining Corporation is asilver 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:email@example.com Rich Kaiser,
YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
SOURCE: Scorpio Mining Corporation
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-0- Jan/18/2013 13:00 GMT
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