VANCOUVER, April 4, 2013 /CNW/ - Scorpio Mining Corporation (TSX:SPM.TO - News) ("Scorpio Mining" or the "Company") announces its planned 2013 exploration program, which will concentrate on developing new resources within and around the Nuestra Señora Mine and explore for new resources within its 100% owned 26,819 hectare land package in the Cosalá District, Sinaloa, Mexico.
The Company has planned 11,500 meters of both surface and underground drilling at the Nuestra Señora Mine to investigate new areas and to further define and upgrade areas with currently defined "inferred resources". Drilling is active in the main Nuestra Señora zone below the 12th level. Down-hole geophysics is being contemplated to further refine targeting in this important area of investigation.
A 5,000 meter surface drilling program has also commenced to test the Venado, Los Cristos, and San Ramon targets, where significant silver-lead-zinc+/-copper mineralization has been identified in either outcrop, drill core or historical workings. Located within 3 to 16 kilometers of the Nuestra Señora processing facility, these high priority targets, could potentially lead to building the resource base and enter the growth pipeline of development projects. A location map is available at: www.scorpiomining.com/i/maps/pr/CosalaDistrictExpl.jpg.
The Company has engaged Terraquest Ltd. of Markham, Ontario to complete a 1,150 line kilometer heli-borne magnetic, radiometric and EM-VLF survey that will cover a significant area centered on the San Rafael and El Cajón development projects. This will be the first geophysical survey ever conducted in the area, with the intent to characterize the numerous existing targets and potentially identify new targets based on geophysical signatures. Detailed mapping and geochemical sampling of select areas within and around this grid is also underway.
The Company has also commissioned an ASTER alteration study using new satellite imagery to identify mineralogical alteration zones related to structures throughout the entire concession area. The current understanding of controls to mineralization in the district is that structural features such as fault zones and related dilational zones provided the main conduit for mineralizing fluids as well as structural traps for the emplacement of mineralization. The information gained from the ASTER survey in conjunction with other surveys will greatly enhance geological interpretation and drill targeting.
The planned 2013 exploration program is budgeted at $5.2 million. Follow-up programs will be planned based on success of the drilling and results from the numerous surveys underway.
Peter J. Hawley, Scorpio's Interim President & CEO comments, "Our goal this year is to step out and delineate new targets in the district using advanced remote sensing technology and detailed ground studies, and apply the information gained to identify high priority targets that could potentially add to the overall resource base in the near term. This holistic approach has never been applied to the Cosalá District, where all known showings and deposits to date were discovered by surface prospecting. Our mandate is to put projects into the development pipeline, and to do so we will employ all information gathered to focus on those targets having the most solid technical attributes and best potential for advance."
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 with permitted capacity for expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead concentrates, with a significant payable 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 project and the Tepozán silver-gold project, both located in the productive Parral District within the respective states of Chihuahua and Durango, Mexico. The Company's strategy for near-term growth is currently focused on developing the El Cajón deposit for production.
Scorpio Mining's Interim President & CEO, Peter J. Hawley P. Geo., is a Qualified Person for the Company's Mexico projects and has reviewed and approved 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.
SOURCE: Scorpio Mining Corporation