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Company Statement
Scorpio Mining Corporation is listed on the Toronto Stock Exchange "SPM". Its main asset, "the 100% owned Nuestra Señora Mine", is located in Sinaloa State, Mexico. The Nuestra Señora silver-zinc-lead-copper mine completed its commissioning in January 2009.
Scorpio Mining is involved in the acquisition, exploration, development and exploitation of mineral resource properties primarily in Mexico with the objective of becoming a profitable low cost mid-tier silver producer and creating significant growth in shareholder value.
Current Operations
Nuestra Senora Project
The 100% owned Nuestra Senora Project is located approximately 10 km east of the town of Cosala in Sinaloa State, Mexico. A paved highway connects Cosala with Mazatlan, 161 km southeast, and Culiacan, 164 km to the north. The property is accessible from Cosala via two heavy equipment access roads constructed by Scorpio. A 12-km road that passes through the village of La Seca accesses the Nuestra Senora, Santo Domingo and Santa Teresa workings at river level. A 28-km road that passes through the village of Santa Ana accesses the upper Candelaria workings 120 m above river level.
The property comprises five mineral exploitation claims covering an area of 1,896 ha and six exploration claims encompassing 13,560 ha. Scorpio Mining's wholly owned Mexican mining subsidiary, Minera Cosala SA de CV, holds 100% ownership of the Nuestra Senora mineral rights with no underlying royalties or interest payments.
The Nuestra Senora Deposits
Mineralization within the four known deposits occurs as carbonate replacement-style (CRD) mantos, veins, chimneys, chimney breccias, and mineralized exo- and endo-skarn within limestone host rocks and granodiorite intrusive. The extent and character of the mineralization on the Nuestra Senora property suggest a large mineralizing system, the potential of which has not been tested by historic or modern exploration.
Mine Production
Based on the positive results of the PFS, the Company announced on June 25, 2007 its decision to proceed to production. Construction of the mill facility commenced on August 1, 2007 and was completed on schedule by March 31, 2008. Scorpio's dedicated 34-km power line from the main hydro dam to the mill facility was activated on April 10, 2008, allowing the mill to enter its commissioning period. Shipment of concentrates commenced in August, 2008, and the Company began receiving smelter and off-take payments the following month. Official commercial production at the Nuestra Senora mine was achieved in January 2009.
In its February 23, 2010 news release, the Scorpio team was proud to announce another record quarterly performance with increased ore production and mill throughput, positive cash flows and cash operating costs that were 27% lower than budgeted.
The Company’s mandate for Q4 2010 was to focus on increasing mill throughput, which it handedly achieved with a 25% increase over Q3 production. As a result of higher metal prices, the Company was able to process lower-grade material in Q4 thereby reducing its reliance on the higher-grade cut and fill ore and extending the high-grade life of mine sectors. Compared to Q3, contained metals produced in concentrates during Q4 increased by 21% for silver, 24% for lead, 45% for copper and 57% for zinc.
In its first year of commercial production, the mill facility operated 271 days and processed 210,324 tonnes of material. Contained metals produced in concentrates totalled 4.188 million pounds of lead, 1.186 million pounds of copper, 8.747 million pounds of zinc and 600,375 ounces of silver.
The Company continues to ramp up operations for 2010 with the Q1 2010 mill throughput scheduled for 30,000 tonnes per month. It has been a great first year with the team, mine and mill facility out-performing all targets set for each quarter. As the Platte River Gold acquisition nears completion, the Company continues to look forward to increased production and a planned mill expansion for 2010.
Platte River Acquisition - Property Summary
Cosala Area
The Platte River claim holdings in the Cosala area encompass 10,989.9 ha, the greater portion of which is contiguous to the northern boundary of Scorpio’s claims. A few of the claim parcels lie within Scorpio’s claim block. With this acquisition, Scorpio would become the major mineral claim holder in the area with total holdings increasing to 26,445.32 ha, spanning approximately 25 km north-south and 22.6 km east-west and containing over 48 known deposits. Road access is excellent to a majority of the deposits in the area.
Detailed Deposit Overview
San Rafael Deposit - Main Zone, 120 Zone and Upper Zone
The San Raphael Deposit is located approximately 10 km from Scorpio’s milling facility and has all weather road access, power and water.
The San Rafael deposit consists of three distinct mineralized zones; the Main Zone, the 120 Zone and the Upper Zone, each representing a unique mineralization style.
Main Zone
The zinc-lead-silver Main Zone is a discrete, tabular, massive sulfide body on the contact between the overlying volcanics and the underlying limestones that strikes 320 degrees and dips 10 to 30 degrees southwest. The massive sulfide mineralization, often containing greater that 75% sulfides, is zinc, lead and silver dominant with only weak copper and gold. The mineralized body is only 5 m below surface at its shallowest point and the general size as currently defined is on average 700 m in length, 15 to 20 m in thickness and down dip extends for 300 m continuously and up to 500 m discontinuously. Open on strike in both directions.
The deposit is defined by 194 surface drill holes consisting of 124 reverse circulation and 70 diamond drill holes with drill spacing between 25 and 50 m.
Due to its configuration and closeness to surface Scorpio believes the San Raphael is amenable to low cost open pit surface mining.
An internal study has been conducted with respect to reviewing the extraction of the deposit by both open pit and underground mining taking into account metallurgical recoveries.
Mine Development Associates’ (“MDA”) last update of the San Raphael related deposits was in May, 2009 with metal prices revised in July – August 2009. The San Raphael stated resource is fully diluted to 3 m by 3 m by 3 m blocks. Metal prices used for the estimate were US$12 per oz. silver, US$0.80 per lb. zinc, US$0.70 per lb. lead, US$2.00 per lb. copper and US$750 per oz. gold. No metal recoveries were applied as this is an in situ resource. The Measured and Indicated resource for the Main and Upper Zones using a 1.5% Zn Eq. Cut-off is 12.6 million tonnes grading 59.1 g/t Ag, 2.09% Zn, 0.96% Pb, 0.04% Cu and 0.104 g/t Au. The deposit remains open to the northwest and southeast.
120 Zone
The silver-copper-gold dominated 120 Zone lies within the eastern portion of the San Rafael deposit and occurs primarily at depth below the up-dip extension of the Main Zone massive sulfide, though both styles of mineralization do overlap in the near surface. As currently defined, the 120 Zone mineralization is on average 500 m in length, 250 m in width and extends to a depth of about 350 m below the surface (open on strike and at depth). The skarn mineralization generally strikes northwest and dips up to 50 degrees northeast. The upper portions of the 120 Zone mineralization extends up through, and overlap, the Main Zone massive sulphide. Using the same metal prices as quoted for the Main and Upper Zones and the same 1.5% Zn Eq. Cut-off the deposit hosts and Indicated Resources of 3.089 Million tonnes grading 94.5 g/t Ag, 0.48% Zn, 0.14% Pb, 0.25% Cu and 0.132 g/t Au and an Inferred Resource of 347,000 tonnes garding 98.2 g/t Ag, 0.06% Zn, 0.01% Pb, 0.22% Cu and 0.127 g/t Au. The deposit sits directly below the main zone and is open to the southeast and at depth.
Upper Zone
The poorly defined silver-gold dominant Upper Zone occurs within near surface volcanic rocks along the east side of the San Rafael deposit. The Upper Zone mineralization lies 50 to 100 m stratigraphically above and sub-parallel to, the up-dip extension of the Main Zone massive sulfide. The zone can be up to 15 m in thickness and the mineralization remains open on strike in both directions.
El Cajon Deposit
The Cajon deposit is located approximately 9km from Scorpio’s milling facility and has all weather road access, power and water.
The deposit is similar in mineralization style and geological setting to the San Rafael 120 Zone mineralization. The disseminated mineralization is hosted within a skarn altered limestone country rock along the east and north sides of a diorite intrusive stock. Skarn mineralization can be found up to 150 m from the diorite contact. Metal deposition is associated with generally 2 to 5% disseminated sulfides and isolated high metal grades occurring with 50% sulfide content.
Overall, the El Cajon deposit as currently defined is roughly circular in plan view occurring within an area approximately 450 m across. Internally the mineralization is aligned along the general 330 degree strike trend and has an elevation range of 200 m along the intrusive contact.
The El Cajon Ag-Cu-Au deposit has also been explored with 25- to 50-m drill spacing and is also open to expansion. Preliminary metallurgical work completed to date reports acceptable industry normal recoveries. An internal study has reviewed the economics of exploitation of the deposit by underground extraction.
Using the same metal prices as those used for the Main, Upper and 120 San Rafael zones and applying a 50 g/t Ag cut-off the deposit currently hosts 2.44 million tonnes of Indicated Resource grading 129.4 g/t Ag, 0.44% Cu and 0.19 g/t Au plus an Inferred Resources of 996,000 tonnes grading 97.2 g/t Ag, 0.34% Cu and 0.13 g/t Au. The deposit remains open to the northeast, southeast and at depth.
La Verde Mine
The operating la Verde Mine is under lease to COMSA, a Mexican contract mining company and their production from January to June 2009 has averaged about 10,500 tonnes with grades of 120 g/t silver, 0.53% copper and 0.13 g/t gold which has been processed at the Platte River 400 tonne per day floatation plant located in the town of Cosala. In addition to the mill facility area, office facilities, equipment yard and repair facilities, two houses, and a housing unit for additional staff exist.
Historically, the mine has produced about 1.4 million tonnes of ore at grades between 105-180 g/t silver, 0.53-0.65% copper. The resources around the active La Verde mine are currently unknown and the downward potential of the areas being mined have yet to be evaluated.
Los Venados Deposit
The Los Venados silver-copper-zinc-lead deposit is located approximately 10 km from the town of Cosala with excellent infrastructure such as paved highway, hydro power and water. A total of 18 surface drill holes have been drilled by Platte River with all 18 reporting positive results. (see below). The Company’s mandate is to complete another 15 to 20 drill holes in the deposit to support a resource calculation.
Parral District, Chihuahua
La Revancha Deposit
The La Revancha silver deposit is located approximately 10 to 15 km from multiple custom mill facilities able to process the mineralized material. A total of 38 surface holes have been drilled by Platte River defining a body approximately 300 m in length with the deposit remaining open on strike (see below).
Mineralization outcrops on surface and was historically exploited by a small surface open cut. The broad mineralized package is approximately 36 m in true width and consists of rhyolite hosted stockwork veining, quartz veining and silicification which has been drilled at depth and appears to be amendable to low cost open pit mining.
Two historical drill holes in the mineralized structure intercepted sulfide mineralization 300 m below surface.
The Company’s mandate is to complete another 15 to 20 drill holes in the deposit to support a resource calculation.
Tepozan Deposit
The silver-gold deposit is a vein system with limited historical production. The property is drill ready with detailed mapping and sampling already performed. Sampling results have returned grades of 100 to 300 g/t silver (max. 1,335 g/t silver) and 1 to 5 g/t gold.
Villa Ocampo Deposit
The Villa Ocampo zinc-silver-lead Deposit is located within 50 km of custom milling and access to the property is excellent. The deposit consists of at least five known mineralized structures locally between 2 to 5 m in width and traced on surface for more than 6km in total strike length. Sampled zinc grades are consistently greater than 7% and generally between 11 to 15% with 60 to 150 g/t silver and 1 to 3% lead.
Geographical Spread
Mexico
Board of Directors and Key Management
| Peter J. Hawley, BSc, PGeo |
| Email: phawley@scorpiomining.com |
| Peter Hawley has twenty-five years mining-industry experience that spans grassroots exploration through to development and production. He has worked extensively as a consulting geologist to a large number of intermediate and senior mining companies including Teck Corp, Noranda Inc, Placer Dome Inc and Barrick Gold Corp. He is also experienced in private and public company financing and corporate administration. |
| D. Roger Scammell, BSc, PGeo |
| Position: President & Director |
| Email: rscammell@scorpiomining.com |
| Roger Scammell has more than 30 years experience in the mining and exploration industry. He was the Regional Manager of Exploration for Teck Corporation's Mexican subsidiary, Minera Teck SA de CV From 1992 to 2002. Under his direction, Minera Teck discovered the 72 million tonne San Nicolas volcanogenic massive sulphide deposit in Zacatecas, Mexico and the El Limon gold skarn in Guerrero, Mexico. |
| Gilbert Comtois, BAA, CA |
| Position: Chief Financial Officer |
| Mr. Comtois became the Company's controller in July 2006 and became Chief Financial Officer in September 2007. Prior to joining Scorpio, he was a Senior Manager of Deloitte & Touche in Rouyn-Noranda, where he performed all financial requirements for various mining clients including Richmont Mines and McWatters Mines. |
| Robert C. Bryce, BSc, MBA, PEng |
| Position: Director |
| Mr. Bryce is a director of several listed junior resource companies and a technical advisor to others. He is the past Vice President of Mining Operations for Aur Resources Inc, where he was in charge of the development and construction of the 4,000 tonne-per-day Louvicourt base-metal mine in Quebec, and the past General Manager of BHP Billiton's 7,500 tonne-per-day Selbaie Mine in Quebec. |
| James G. Henderson |
| Position: Director |
| Mr. Henderson has specialised in the emerging company market for more than twenty years and is the founder and present Managing Director of Australian-based Transocean Securities Pty Limited and the founder of Focal Management Pty Limited. He has been a team-leader in mergers, acquisitions, dispositions, takeovers and raising capital in Singapore, Australia, Canada, the US and the UK. |
| Lisa K. Riley, BA |
| Position: Director |
| As past Vice President and Director of TD Bank in London, UK and past Vice President of RBC Capital Markets, London, UK, Lisa Riley's most recent experience was in equity sales, primarily to European institutional clients. Prior to these positions, Ms. Riley was a Bank Analyst and Vice President with Lehman Brothers Inc of New York, NY. |
| Neil S. Seldon |
| Position: Director |
| Mr. Seldon is currently President of Neil S. Seldon & Associates Ltd. (NSA) and Chairman of Bloomsbury Minerals Economics Ltd. As President for NSA, he has acted as consultant and advisor in the marketing of non-ferrous concentrates to clients globally, including negotiation of metal sales contracts, development of sales and marketing strategies, hedging of metal prices on terminal markets and development of policies and procedures for marketing raw materials procurement, shipping, sales contracts and pricing. |
| Mr. Pierre Lacombe |
| Pierre received a B.Eng. degree, Mining Engineering (Mineral Processing Option) from the Ecole Polytechnique, Quebec, Canada in 1984 and is fluent in English, French and Spanish. |
| Pierre has been Principal Process Engineer with AMEC since 2000. Prior to joining AMEC, Pierre was Manager of Metallurgy for Cambior from 1996 to 2000, Plant Superintendent/Senior Metallurgist for Aur Resources' Louvicourt Mine (Cu/Zn) from 1991 to 1996, Assistant Plant Superintendent/Production Metallurgist for BP Minerals' Selbaie Mine (Cu/Zn) from 1986 to 1991 and a junior engineer for Cominco from 1984-1986. |
| Janet Horbulyk |
| Position: Corporate Secretary |
| Janet Horbulyk has twenty-five years of experience with securities and stock exchange regulatory matters including seven years with the listings department of the Vancouver Stock Exchange. |
Company Address511 - 475 Howe Street
|
Additional Address/Key ContactInvestor Relations Contact |
CapitalFully diluted -139,427,450 |
Related News
25/02/10 - Scorpio Mining Has The Potential To Become A Mid–Tier Producer Of Precious And Base Metals by 2012Most Recent Statement
30/08/10 - Scorpio Mining Announces Completion of Titan-24 Geophysical Survey - Plans Exploration Drill Program17/08/10 - Scorpio Announces Second Quarter 2010 Financial Results
22/07/10 - Scorpio Mining Appoints New Chairman
12/07/10 - Scorpio Mining Resumes Normal Milling Throughput
02/07/10 - Scorpio Mining Announces Second Quarter 2010 Guidance
18/05/10 - Scorpio Mining Announces First Quarter 2010 Financial Results