Scorpio Mining Provides Exploration Update on its Projects in Mexico
15 July 2011 - 1:00PM
PR Newswire (Canada)
TORONTO, July 15, 2011 /CNW/ -- /NOT FOR DISTRIBUTION TO U.S. NEWS
WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./ TSX:SPM TORONTO,
July 15, 2011 /CNW/ - Scorpio Mining Corporation (TSX: SPM)
("Scorpio Mining" or the "Corporation") is pleased to provide an
update on exploration activities at its projects in Mexico. The
Corporation controls over 29,000 ha in the Cosalá district,
Sinaloa, which is host to over 40 known exploration targets but is
relatively unexplored by modern techniques. In addition, Scorpio
Mining holds two advanced, high-grade silver properties in the
Parral district, Chihuahua, that are drill-ready. Parviz Farsangi,
President & CEO reports, "Scorpio Mining benefits from a very
large land position in a relatively unexplored area, which has
proven to host economic deposits and contains an abundance of
promising early-stage exploration targets. The opportunity to
advance our known deposits and to make new discoveries is
excellent. Our exploration programs complement a determined effort
to grow Scorpio Mining by developing its own assets. We remain
confident we have the projects and the people to reach this next
stage of success." Scorpio Mining's 2011 exploration and infill
drilling program includes surface and underground diamond drilling
on multiple deposits/targets, including: Cosalá District -- 10,500
m of underground drilling at the Nuestra Señora Ag-Zn-Cu-Pb mine.
-- 2,800 m of underground drilling at the La Verde Ag-Cu-Au mine.
-- 8,000 m of surface drilling at San Rafael and La Verde to add
and upgrade mineral resources. -- 5,000 m of surface drilling to
test several early-stage Ag-Cu-Pb-Zn-Au exploration targets. Parral
Distict -- Up to 7,000 m of surface drilling at the La Revancha Ag
and Tepozán Ag-Au projects. More than 5,000 m of underground
exploration and infill drilling have been completed to date at the
Nuestra Señora mine. Drill holes targeting new mineralization in
the Santa Teresa Extension zone have intersected visually
mineralized skarn up to 40 m south of the previously delineated
mineralization. Drilling will also target extensions to the Hoag
zone and test for new mineralization adjacent to the Hoag shear
zone. Surface exploration to the north of Nuestra Señora processing
plant is having success in several areas, including ground recently
acquired from a subsidiary of Grupo Mexico. Initial results report
widespread anomalous gold and silver in chip channel sampling at
the Chilicotes and Santa Rita prospects, both of which are
spatially associated with weakly magnetic diorite; a common
association of mineralization in the Cosalá district. Both
prospects are proximal to the El Cajón, San Rafael and La Verde
deposits, which are located within 20 km by road from the Nuestra
Señora processing plant. Approximately 3,500 m of surface drilling
is proposed for Chilicotes, located 2.4 km south of San Rafael. The
prospect is a silicified structural zone in brecciated volcanics
that is up to 70 m wide and has been traced over a 1.2-km strike
length. Initial results of chip channel sampling across the breccia
zone has returned 0.434 g/t Au, 27 g/t Ag, 0.002% Cu, 0.04% Pb and
0.16% Zn over 34 m. Santa Rita, 4.4 km southwest from San Rafael,
is made up of northwest-trending silicified structures in
volcanics. Chip channel samples over 1-2 m widths have been
collected over approximately 200 m of exposed mineralization,
mainly from shallow underground workings less than 30 m from
surface. Highly anomalous silver assays returned in the 57 samples
collected were as follows: 39 samples assayed 100 g/t, 18 samples
300 g/t, 8 samples 500 g/t and 3 samples 1,000 g/t. Anomalous gold
assays in the same 57 samples included: 45 samples 0.1 g/t, 26
samples 0.3 g/t, 13 samples 0.5 g/t and 3 samples 1.0 g/t. Mapping
and sampling in the vicinity of the Santa Rita prospect has also
uncovered multiple mineralized showings extending along a 3-km long
northwest-trending corridor. Further work is planned to take this
promising area to the drilling stage. Exploration has also
uncovered several historical surface workings southeast of the El
Cajón Ag-Cu-Au deposit, presenting a new drill target as the
southern extension of El Cajón. Drilling of the El Cajón and its
extension will be incorporated into a future exploration program.
At the La Verde mine, underground drill stations are ready and the
planned 2,800 m of drilling will commence following the arrival and
installation of electrical cable for the drilling rigs, expected
later this month. The La Verde mine, which is currently dormant,
historically produced 1.4 million tonnes grading 105-180 g/t Ag,
0.53-0.65% Cu. In addition to the above exploration drilling in the
Cosalá district, the Corporation plans an 8,000-m surface drilling
program that will cover infill and extension drilling of the San
Rafael and La Verde mineralization, with the objective of adding to
and upgrading mineral resources within these deposits. Commencement
of 7,000 m of surface drilling at the La Revancha and Tepozán
projects in Parral, Chihuahua is pending the receipt of all
permits. Drilling at La Revancha will expand oxide mineralization
currently traced by drilling over a distance of 300 m and possibly
encounter higher-grade sulphide mineralization more commonly
exploited in the Parral district. At Tepozán, drilling will
test a previously undrilled 1.3-km long quartz vein system believed
to be related to mineralization in the Parral district. Assay
results from the various programs will be released once received
and compiled. Scorpio Mining's Senior Exploration Geologist, Will
Strong, B.S., P.G., 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 Hermosillo, 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 on the
Company's website at: www.scorpiomining.com. ON BEHALF OF SCORPIO
MINING CORPORATION Parviz Farsangi 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 Corporation's exploration programs, operations, 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 29, 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.
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Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090
(outside North America)br/ Email: a
href="mailto:rkaiser@scorpiomining.com"rkaiser@scorpiomining.com/a
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