Toronto, April 14th , 2014 - Scorpio
Mining Corporation (TSX: SPM) ("Scorpio Mining" or the
"Company") today announced updates with respect to its El Cajón and
San Rafael Development Projects, located 14 km and 15.5 km, respectively, by
road from its Nuestra Señora plant.
Highlights include:
- El
Cajón mine development - The
mine portal was collared on March 29, 2014 and a letter of intent
("LOI") has been signed with a Mexican mining contractor for
establishing said portal and the sinking of the ramp and associated
lateral workings within the first 112 m below surface.
- Surface
Exploration Program to upgrade the resources at the San Rafael Main Zone
and El Cajón - The combined submittal of
the Environmental Impact Statement ("MIA") and related request
for Change of Use of Land ("ETJ") has been provided to the
Secretariat of Environment and Natural Resources ("SEMARNAT")
for the State of Sinaloa, Mexico, for its evaluation and approval.
"The El Cajón and San Rafael Projects are expected to maintain our past
production tonnage and provide Scorpio Mining with growth opportunities over
the following years" said Pierre Lacombe, President and Chief Executive
Officer.
El Cajón Mine Development in Progress
Scorpio Mining is pleased to announce that, through its subsidiary Minera
Platte River Gold, S. de R.L. de C.V. ("MPRG"), it has entered into a
binding LOI and is finalizing the details of contractual terms with the
contractor DIEMPSA. The scope of the agreement is to provide for the
establishment of the mine portal at the El Cajón Mine and the sinking of
approximately 1,500 m of ramp, as well as 1,700 m of lateral development in
waste and mineralized material.
These underground workings would allow access to the resources outlined above
level 290, with the mine entrance elevation corresponding to level 402, and
thus cover the first phase of production using the long-hole stoping with fill
mining method.
Geotechnical drilling, clearing and grubbing activities along with cut-and-fill
activities at the location of the mine adit and surface infrastructures have
been completed, along with the first rounds of drilling and blasting for
collaring the mine portal entrance.
Scorpio Mining is reviewing alternate options to improve the haulage road from
El Cajón to its Nuestra Señora processing plant. The revised access road
configuration, while avoiding some settlements, would reduce disturbances and
bring the haulage distance down from 14 km to about 10.7 km. Final design and
permitting are to proceed shortly.
Underground development work, giving access to the upper production stopes in
El Cajón, is expected to be completed in Q3 2014. An additional quarter will be
needed to ramp up the mining activities to a regular production regime, at an
expected potential of up to 1,500 tpd using design assumptions based solely on
surface drilling data. A level of sustainable output will be better determined
once underground operations are underway and multiple accesses to the orebody
are achieved. JDS Energy and Mining Inc. is currently working on a
Pre-Feasibility Study which is expected to be completed in Q3 2014.
Exploration Program Permit Application, to upgrade the resources at the San
Rafael Main Zone and El Cajón in 2014
The Documento Técnico Unificado ("DTU") application has been filed by
MPRG with SEMARNAT on March 19th, 2014. The permit sought is for enabling
surface drilling over the El Cajón and San Rafael deposits. The DTU application
consists of the combined Environmental Impact Statement (Spanish acronym
Manifiesto de Impacto Ambiental "MIA") and the Change of Use of Land
Permit (Spanish acronym Estudio Tecnico Justificativo "ETJ").
The timing of such environmental permitting approval is not guaranteed.
However, the existing land access agreements, proven environmental compliance
of existing operations and continuing community support, give the Company a high
level of confidence that a positive outcome will be expeditious.
Upon approval of the DTU, the exploration program defined for 2014 will put an
emphasis on the infill drilling required to enhance the quality of the
near-surface resources found within the Main and Upper Zones of the San Rafael
deposit, leaving for later definition of the deeper Ag-Cu 120 Zone at San
Rafael.
Scorpio Mining announces date change of 2014 Annual General Meeting (AGM)
Scorpio Mining's Annual General and Special Meeting of Shareholders (the
"Meeting") will now be held on June 12, 2014 at 4:00 pm at the
Sheraton Centre Toronto Hotel located at 123 Queen Street West, Toronto, ON.
The Meeting was originally scheduled to be held on May 13, 2014, but has been
rescheduled in order for the Board to consider possible changes to its
composition, as proposed by one of its major shareholders.
The record date for shareholders eligible to vote at the Meeting will be April
28, 2014. During the meeting, management will provide an overview of the
Company's 2013 operating and financial results.
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 1,600 tonnes per day 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 as well as the advanced El Cajón and San Rafael
development projects. The Company's strategy for near-term growth is currently
focused on mine development of the El Cajón deposit upon receipt of permitting.
Scorpio Mining's President and CEO, Mr. Pierre Lacombe, Eng., is a Qualified
Person as defined under National Instrument 43-101 and has reviewed and
approved the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Pierre Lacombe
President & CEO
For further information contact:
Victoria Vargas, Vice President Investor Relations and Corporate Communications
+1 416-585-2200+1 416-585-2200
Email: vvargas@scorpiomining.com
Website: www.scorpiomining.com
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 14, 2013. 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.
Copyright © 2012 SCORPIO MINING CORPORATION (TSX: SPM)
All rights reserved. For more information visit our website at http://www.scorpiomining.com
or send email to scorpio@scorpiomining.com