Scorpio Mining Reports Nuestra Señora Mineral Reserve of 2.764 Mt @287 AgEq g/t
TORONTO, March 9 /CNW/ --
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE U.S./
TSX:SPM
TORONTO, March 9 /CNW/ - Scorpio Mining Corporation (TSX: SPM) ('Scorpio
Mining' or the 'Corporation') is pleased to report an updated mineral
resource and reserve estimate below the 4750 level at its Nuestra
Señora mine, Sinaloa State, Mexico.
Parviz Farsangi, President & CEO reports, 'We are very pleased with this
latest estimate. Reserves alone at Nuestra Señora now support
approximately six years of production at our existing processing
facility. The mineral resources at Nuestra Señora and other nearby
projects are expected to provide additional years of production and are
all open to expansion. An aggressive 10,500-metre drilling program to
test the exploration potential at Nuestra Señora is scheduled to
commence in March 2011. Together with the known and expanding resources
in our other mineral concessions in the district, we are building a
solid base from which to support growth.'
Mineral Resource and Reserve Estimate
Independent consultant, Genivar Inc. of Val d'Or, QC (Genivar), prepared
the updated mineral resource and reserve estimate at Nuestra Señora in
accordance with NI 43-101. The estimate includes the results of
drilling performed since the Corporation's previous estimate (Sedar
filing - Jul 9, 2008) and was updated for prevailing costs and metal
prices. Genivar provided separate estimates for above and below the
4750 level of the Nuestra Señora mine (just above Level 8). The extent
of historical mine workings by Asarco and later artisanal mining above
the 4750 level is uncertain, and future development in this area needs
further evaluation. The area below the 4750 level is accessed by
current operations and will continue to be the focus of development and
extraction. The mineral resource and reserve estimate for Nuestra
Señora below the 4750 level is as follows:
Table 1. Nuestra Senora Mineral Resources below the 4750 level - October
31, 2010
_____________________________________________________________________
| |Cut-off| Tonnes |Silver|Zinc|Copper|Lead|Gold | Silver |
|Category | Value |t x 1,000|(g/t) |(%) | (%) |(%) |(g/t)|Equivalent|
| | US$/t | | | | | | | (g/t) |
|__________|_______|_________|______|____|______|____|_____|__________|
|Measured | >$85 | 1,890 | 114 |3.41| 0.46 |1.60|0.16 | 349 |
|__________|_______|_________|______|____|______|____|_____|__________|
|Measured |$50-$85| 1,372 | 47 |1.08| 0.15 |0.54|0.12 | 127 |
|__________|_______|_________|______|____|______|____|_____|__________|
|Indicated | >$85 | 1,181 | 115 |3.42| 0.49 |1.50|0.14 | 348 |
|__________|_______|_________|______|____|______|____|_____|__________|
|Indicated |$50-$85| 1,104 | 47 |1.06| 0.15 |0.51|0.11 | 126 |
|__________|_______|_________|______|____|______|____|_____|__________|
|Measured | >$85 | 3,071 | 114 |3.41| 0.47 |1.56|0.15 | 349 |
|Indicated | | | | | | | | |
|__________|_______|_________|______|____|______|____|_____|__________|
|Measured | >$50 | 2,476 | 47 |1.07| 0.15 |0.53|0.12 | 127 |
|Indicated | | | | | | | | |
|__________|_______|_________|______|____|______|____|_____|__________|
|Inferred | >$85 | 446 | 123 |3.97| 0.53 |1.68|0.17 | 388 |
|__________|_______|_________|______|____|______|____|_____|__________|
|Inferred |$50-$85| 383 | 49 |1.00| 0.13 |0.50|0.14 | 124 |
|__________|_______|_________|______|____|______|____|_____|__________|
|Inferred | >$50 | 829 | 89 |2.60| 0.34 |1.13|0.15 | 266 |
|__________|_______|_________|______|____|______|____|_____|__________|
Table 2. Nuestra Senora Mineral Reserves below the 4750 level - October
31, 2010
______________________________________________________________________
|Category|Cut-off|Tonnes|Value|Silver|Zinc|Copper|Lead|Gold | Silver |
| | Value | t x |US$/t|(g/t) |(%) | (%) |(%) |(g/t)|Equivalent|
| | US$/t |1,000 | | | | | | | (g/t) |
|________|_______|______|_____|______|____|______|____|_____|__________|
|Proven | >$85 |1,701 | 148 | 94 |2.81| 0.38 |1.32|0.13 | 288 |
|________|_______|______|_____|______|____|______|____|_____|__________|
|Probable| >$85 |1,063 | 148 | 95 |2.82| 0.40 |1.23|0.12 | 287 |
|________|_______|______|_____|______|____|______|____|_____|__________|
|Proven | >$85 |2,764 | 148 | 95 |2.81| 0.39 |1.28|0.12 | 287 |
|Probable| | | | | | | | | |
|________|_______|______|_____|______|____|______|____|_____|__________|
Notes:
1. Hugues de Corta, P.Geo., of Genivar Inc. is the Qualified Person
for this mineral resource and reserve estimate.
2. All mineral resources and reserves have been classified in
accordance with CIM definition standards.
3. The estimation is based upon geological data and a mine excavation
survey as of October 31, 2010 and accordingly represents the
estimated resources and reserves as of that date.
4. The quoted mineral reserves are completely contained within the
mineral resources.
5. Mineral resources have had factors for dilution (12.5% at zero
grade) and mining recovery (80%) applied to obtain the mineral
reserves.
6. 'Value US$/t' has been calculated on a contained metal basis
using: US$16/oz silver, US$1,015/oz gold, US$2.30/lb copper,
US$0.80/lb lead and US$0.85/lb zinc.
7. Silver equivalence has been calculated on a contained metal basis
using the metal prices noted above, with no factors for
metallurgical recovery or Net Smelter Returns. It is calculated
as: AgEq gpt = Ag gpt (63.4 x Au gpt) (36.4 x Zn%) (34.3 x
Pb%) (98.6 x Cu%)
8. Totals may not add due to rounding.
9. Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
The general methodology used for the mineral resource and reserve
estimation includes the following:
-- All calculations were made using GEMS software, version 6.2.4.
-- Capping grade factors were applied and samples composited at a
length of 1.5 metres.
-- A block model with cell sizes of 2.5 x 2.5 x 2.5 metres was
interpolated using the inverse of the square of the distance
using samples in the search ellipsoids. Blocks with composite
assay values within a range of 10 metres were classified as
'Measured' those with the closest composite within 10 and 20
metres were classified as 'Indicated' and blocks with samples
within 20 to 30 metres were classified as 'Inferred'.
-- A specific gravity was also interpolated for each block based
on nearest neighbour lithology. The average specific gravity
for the total mineral resource is 2.88 tonnes per cubic metre.
-- All known underground excavation openings were subtracted from
the gross estimated mineral resource.
-- All historic Asarco drill data was removed from the estimation
to ensure sample integrity and reliability.
Due to the polymetallic nature of Nuestra Señora, the disclosed mineral
reserves are based upon the value of the contained metal. The
conservative cut-off value of US$85/t is the metal content contained in
one tonne of ore for which the net revenue (net of smelter and refining
costs) is in excess of the average cash operating costs to mine and
process one tonne of ore. This assumes current concentrate sales
contract terms, concentrate grades and typical plant performance metal
recoveries to calculate the net value. Total cash operating costs at
Nuestra Señora, including mining, milling, administration and general
costs, are currently under US$50/tonne.
The forecast average daily and annual plant throughput for 2011 is
estimated at 1,273 tonnes per day and 464,600 tonnes respectively, and
due to higher utilization represents an increase of 22% from 2010
actual plant throughput.
An independent NI 43-101 technical report supporting this mineral
resource estimate will be filed on SEDAR within 45 days from the date
of this press release.
Scorpio Mining's Mexico Country Manager, John A. Sadek, B.Eng. (Mining),
MAusIMM, is a Qualified Person for the Corporation's Mexico projects
and has reviewed the content of this release. Hugues de Corta, P.Geo.,
of Genivar Inc. is the independent Qualified Person for this mineral
resource and reserve estimate and has also reviewed the content of this
release.
Further information is available on the Corporation's web site 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 mineral resource and
reserve estimates, production, objectives, strategy, mine operations,
exploration and future performance. 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 Nuestra Señora and La Verde projects, risks related to
international operations, construction delays and cost overruns,
equipment breakdowns, 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,
2010. 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.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/March2011/09/c9413.html
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: rkaiser@scorpiomining.com