Jul 18 2012
Scorpio Mining Corporation (TSX: SPM) is pleased to report preliminary results from the recently completed drill program at its 100% owned San Rafael Project in Cosalá, Sinaloa, Mexico.
The San Rafael Project is a zinc-lead-silver-copper project located approximately 16 km from Scorpio Mining's operating Nuestra Señora plant which currently processes approximately 1,500 tonnes per day.
Hole SR-298 intersected 4.45 meters (3.85 m true width) of 2,802 g/t Ag, 1.75 g/t Au, 0.928% Cu, 4.489% Pb and 2.341% Zn in the Upper Zone. Hole SR-310 intersected 5.6 meters (5.41 m true width) of 2,626 g/t Ag, 2.096 g/t Au, 0.614% Cu, 2.335% Pb and 0.203% Zn also in the Upper Zone of the deposit.
San Rafael and El Cajón are two skarn related mineral deposits with significant resources previously reported and Updated Resources are scheduled to be released by the end of August 2012. These deposits are within 14-16 km of haulage distance of the Nuestra Señora processing plant. Drill results for El Cajon mineral deposit will be released separately.
The San Rafael mineral occurrence is composed of five distinct bodies:
- the zinc-lead-silver Main Zone;
- an oxidized silver-gold-copper portion of the Main Zone;
- the zinc-lead-silver Upper Zone;
- the copper-silver 120 Zone; and
- the NW Extension which is similar to the Upper Zone.
The Upper Zone and newly discovered Northwest (NW) Extension are relatively flat lying bodies contained entirely within the upper rhyolitic volcanic rocks as opposed to the more contact related Main Zone and structurally controlled 120 Zone. Scorpio Mining believes that the NW Extension may add some tonnage to the upcoming San Rafael Updated Resource estimate. This potential tonnage is conceptual in nature and is based on previous drill results. There has been insufficient exploration to define a current resource and Scorpio Mining cautions that there is a risk further exploration will not result in the delineation of a current resource in the NW Extension.
Table 1 below demonstrates results for previously unreported holes SR-293 to SR-357. Holes not shown in the table within the series SR-293 to SR-357 are not considered to contain significant values. To be considered significant, zones must be more than 1 meter in width, and contain in excess of either 40 grams per tonne silver and/or 1% combined base metals.
Table 1. Previously Unreported Intercepts from the San Rafael Project
Scorpio Mining has drilled approximately 3,334 meters at the San Rafael Project in 2012. The program completed in-fill drilling on the known zones and delineated mineralization in the newly discovered NW Extension. Mine Development Associates (MDA) of Reno Nevada is currently calculating an Updated Mineral Resource estimate for the deposit that includes approximately 120 new holes completed in 2011 and 2012. The discovery of new mineralization in the NW Extension and the number of new holes will delay this estimate until the third quarter of 2012.
A NI 43-101 technical report to support the resource estimates was prepared by MDA and filed on SEDAR December 4, 2009. Table 2 presents these historical estimates.
Table 2. Measured and Indicated Resources for the San Rafael Project
A map of the San Rafael Project, sections of the new NW Extension, and a longitudinal section of the Main and Upper Zones are available on the Corporation's website, at www.scorpiomining.com.
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 and plant located in the Cosalá District of Sinaloa State, Mexico, has proven to be a low-cost operation with the benefit of flexible mining methods and diversified metal production. It has a fully mechanized underground operation and a processing facility built for expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead concentrates; with a significant silver component in the copper and lead concentrates. In addition, Scorpio Mining has over 40 exploration targets mostly in the vicinity of its current operations and is currently updating its resource calculation for the San Rafael and El Cajon mineral deposits. The Corporation 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 focuses on exploring and developing its existing mineral properties.
Scorpio Mining's Vice-President of Exploration, James Stonehouse a Registered Geologist with SME (Registration #4168919) and is the 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 either Hermosillo or Chihuahua, Mexico for drying, crushing and pulverizing. ALS Chemex; Mexico preparation laboratory, then sends the pulps for assaying to ALS Chemex, Vancouver, an ISO 9001:2000 accredited facility. Details of the QA/QC program are available at: www.scorpiomining.com/i/pdf/reports/QAQC-PD.pdf.