🕐13.07.11 - 14:27 Uhr
NEWS OUT (SILVER):TSX.SPM-SCORPIO MINING CORP.-2ND QTR. RESULTS
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Scorpio Mining Maintains Strong Production Levels in Second Quarter 2011
Toronto, July 13, 2011 Scorpio Mining Corporation (TSX:SPM) ("Scorpio
Mining" or the "Corporation") is pleased to report a second strong
production quarter in 2011 ("Q2 2011"), representing significant increases
over Q2 2010 and maintaining production levels attained in the first quarter
of 2011.
Parviz Farsangi, President and CEO, reports: Scorpio Minings production in
the second quarter of 2011 continued to demonstrate solid performance at our
Nuestra Seora operations.
We set a record for tonnes processed and lead
produced, while silver and zinc approximated last quarters record
production.
During the quarter we eliminated our debt using operating cash
flows and are now ideally positioned to advance the growth initiatives
announced in our June 27, 2011 news release, which include increased
processing capacity, optimization of existing resource base and aggressive
exploration of our extensive land holdings in Mexico.
Second Quarter Production 2011
*
Mill throughput for Q2 2011 was 128,674 tonnes; an increase of 86% compared
to 69,138 tonnes processed in Q2 2010.
*
Recovered silver for Q2 2011 totalled 365,692 ounces; an increase of 95%
compared to 187,496 ounces recovered in Q2 2010.
*
Recovered zinc for Q2 2011 totalled 5,588,179 pounds; an increase of 95%
compared to 2,859,765 pounds recovered in Q2 of 2010.
*
Recovered copper for Q2 2011 totalled 438,529 pounds; an increase of 17%
compared to 374,904 pounds recovered in Q2 2010.
*
Recovered lead for Q2 2011 totalled 1,871,789 pounds; an increase of 103%
compared to 923,700 pounds recovered in Q2 2010.
*
Recovered silver equivalent ounces* for Q2 2011 totalled 637,157 ounces; an
increase of 86% compared to 342,943 ounces recovered in Q2 2010.
* For comparative purposes the metal prices used to calculate silver
equivalent ounces recovered are based upon the approximate weighted average
metal prices realized throughout Q2 2011 and are as follows: lead at US$1.13
per lb; zinc at US$1.00 per lb; copper at US$4.10 per lb and silver at US$35
per oz.
While comparisons to the second quarter of 2010 show large production
increases, it should be noted that Q2 2010 suffered from a significant
throughput reduction due to a ball mill failure.
Performance of Q2 2011
Mining during 2011 has diverged from the budgeted sequence as difficulties
were encountered with the availability of some mobile mining equipment and
the delivery of equipment to assist with the back-filling of stopes was also
delayed.
These issues are being corrected and high-density definition
drilling has mitigated much of the impact on production.
Notwithstanding
that, the copper grade in some of the current mining areas has been lower
than projected from drilling.
At the end of Q2 2011, zinc and silver production was significantly ahead of
forecast (+22% and +7%, respectively), whereas lead and copper were -13% and
-25% respectively behind forecast.
Contingent plans are currently being
evaluated to recover the year-to-date deficit of lead and copper; however,
the overall objective of the Corporation is to maximize silver production.
Scorpio Minings President and CEO, Parviz Farsangi, MEng, MBA, PhD, PEng,
is a Qualified Person for the Corporations Mexico projects and has reviewed
the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Parviz Farsangi
President & CEO
For further information contact:
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside
North America)
Email:
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 production, objectives, strategy, mine
operations, exploration, future performance and forecasts, our management
team, and plans.
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 Seora 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 Corporations required securities
filings on SEDAR, including its Annual Information Form dated March 30,
2011.
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.
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