Scorpio Granted Increase on Mill Processing Permit and Connects Nuestra Señora Mill Facility to Mexico's Main Power Grid
Peter J. Hawley, Chairman, CEO reports, "Commercial production at Nuestra Señora is scheduled to commence in July 2008 at 1,000 tonnes per day. With the expectation that throughput will eventually increase, the Company applied for and was granted a permit for future increase in mineral processing to 2,000 tonnes per day. Now that the mill is on the electrical grid, the Company can continue with commissioning and an orderly start up, with production of saleable concentrate in the near future. On another front, the Company was recently granted title to the Zaida claim, which is part of a strategic expansion in land holdings through staking of favourable ground. The new claim acquisition hosts three known polymetallic deposits and will be included into future exploration programs."
* On March 27, 2008, the Direccion General de Minas issued 100% title to the Company of the 1,141.2655-hectare Zaida exploitation claim, which is contiguous to the north-northwest of the current 100% owned exploitation claim holding.
* On April 1, 2008, the Company formally received from the Mexican authority, SEMARNAT, final documentation allowing the mill facility to process 2,000 tonnes per day. The previous underlying documentation allowed the Company to process only 1,000 tonnes per day.
* On April 10, 2008, the mill facility was officially connected to Mexico´s main power grid and a kilowatt meter was installed at the entrance to the property. Power is currently distributed between the crushing plant and the mill. Construction of a line from the mill facility to supply power to the mine is scheduled to commence in late May. It is also the Company´s intention to provide the communities of Los Braceros, La Seca and the University of Sinaloa´s Research Facility with electrical power, which is part of the Company´s overall mandate to assist in the development of the local communities.
* On April 12, 2008, the mill facility was connected to the water supply line, which is capable of delivering sufficient fresh water for all the plant´s requirements although the intention is to recycle 80% of the water used in the processing of the concentrates. This supply line will also provide the University of Sinaloa´s Research Facility with fresh water, also in keeping with the Company´s intent to support Mexico´s education in research and development.
President, Mr. D. Roger Scammell, PGeo, is the Company´s Qualified Person for the Nuestra Señora project. Mr. Scammell is responsible for the current exploration and development program and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO
For further information contact:
Glenn Little, Jackson Little Holdings Ltd: 604-930-4375; 1-888-930-4375
Email: jlconsulting@telus.net
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: yes@yesinternational.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 future price of silver, zinc, copper, lead and gold, the timing of construction and production activities, the mine life of the Nuestra Señora Project, the economic viability and estimated internal rate of return of the Nuestra Señora Project, the estimation of mineral reserves and mineral resources, the results of drilling, estimated future capital and operating costs, projected mineral recovery rates, requirements for additional financing and Scorpio Mining Corporation´s commitment to, and plans for developing the Nuestra Señora Project. 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 potential development and construction of the Nuestra Señora Project, 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, 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, 2008. 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.