Scorpio's Hoag Zone Drilling intersects 5.2 metres grading 195.94 g/t Silver, 5.32% Zinc, 2.00% Copper, 8.52% Lead and 0.27 g/t Gold within Broad Zone of 21.0 metres grading 93.04 g/t Silver, 3.62% Zinc, 0.75% Copper, 3.88% Lead and 0.16 g/t Gold
Thursday October 19, 10:25 am ET
ca.us.biz.yahoo.com
VANCOUVER, Oct. 19 /CNW/ - Scorpio Mining Corporation (TSX:SPM - News; 'the Company') is pleased to report drill results (Table 1) from an additional seven holes into the Hoag Zone, a large mineralized body discovered earlier this year and situated adjacent to the Nuestra Senora deposit. The Company's 100% owned Nuestra Senora property is located 10 kilometres east of the town of Cosala in Sinaloa State, Mexico.
All of the 45 holes drilled to date on the Hoag Zone have successfully intersected mineralization, with the majority of holes reporting wide intersections. The horizontal width of the mineralized envelope in the vicinity of the 9th and 10th Levels is estimated at approximately 40 metres. Table 1 presents results of the final seven holes drilled from the '980' drill station, located half way between the 8th and 9th Levels. The drill is now situated at the '903' drill station, approximately 5 metres vertically above the 9th Level, to accommodate deeper drilling at better angles for the next fence of holes. Results will continue to be released as available.
TABLE 1. Hoag Zone Drill Results - Drill Station 980
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Hole No. Dip From To Length Ag Au Cu Pb Zn
(Deg) (m) (m) (m) (g/t) (g/t) % % %
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NS-UG-06-102 -76 37.90 46.90 9.00 60.14 0.13 0.28 2.73 2.89
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Including 37.90 43.60 5.70 81.93 0.14 0.40 3.71 3.67
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73.60 76.60 3.00 36.67 0.34 0.04 0.70 2.41
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NS-UG-06-103 -36 30.20 39.80 9.60 88.24 0.10 0.24 3.01 3.27
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46.10 47.50 1.40 118.00 0.23 0.82 4.29 2.46
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49.00 51.10 2.40 140.17 0.19 0.50 3.56 2.13
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NS-UG-06-104 -54 29.10 47.85 18.75 102.20 0.15 0.16 2.67 4.56
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50.00 54.90 4.90 63.74 0.11 0.14 2.40 2.75
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NS-UG-06-105 -65 29.90 50.90 21.00 93.04 0.16 0.75 3.88 3.62
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29.90 45.80 15.90 106.52 0.16 0.82 4.78 4.16
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Including 40.60 45.80 5.20 195.94 0.27 2.00 8.52 5.32
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NS-UG-06-106 -44 30.30 38.50 8.20 125.04 0.20 0.25 2.27 3.54
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53.80 61.20 7.40 63.35 0.16 0.16 1.92 2.98
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NS-UG-06-107 -75 74.60 76.60 2.00 19.00 0.02 0.02 0.66 1.62
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NS-UG-06-108 -35 32.80 46.25 13.45 73.07 0.11 0.16 2.04 3.16
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Drill hole data reflect down hole core lengths and actual (uncut) grades
True widths cannot be reliably estimated at this time.
This being the first news release since Scorpio's recent listing on the Toronto Stock Exchange, the Company would like to provide a brief recap of its flagship Nuestra Senora project. Further information pertaining to the Company and the Nuestra Senora project is available on Scorpio's web site at: www.scorpiomining.com.
The Nuestra Senora property hosts four historical silver-zinc-copper-lead-gold mines, the Nuestra Senora, Candelaria, Santo Domingo and Santa Teresa, that were developed and exploited from 1954 to 1965 by the American Smelting & Refining Company (ASARCO). Mineralization within the four 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.
Over the past 24 months, Scorpio has concentrated its exploration and development efforts on the Nuestra Senora deposit, which during ASARCO's tenure was the largest producing deposit on the property. On February 22, 2006, the Company released an updated resource estimate on the Nuestra Senora deposit of Indicated Resources of 1,128,000 tonnes grading 202.56 g/t silver, 3.47% zinc, 0.91% copper, 1.44% lead and 0.236 g/t gold in addition to Inferred Resources of 978,000 tonnes grading 229.47 g/t silver, 4.07% zinc, 0.92% copper, 2.72% lead and 0.347 g/t gold. The resource estimate was prepared by Scorpio's independent Qualified Person, Guy Mac Gillivray, PGeo, and verified by independent consultants, Chlumsky, Armbrust and Meyer (CAM) of Lakewood, Colorado, and is discussed in a Technical Report dated April 17, 2006 and filed on SEDAR April 18, 2006. Mineral resources are not reserves and do not have demonstrated economic viability.
Underground development work, sampling and diamond drilling have continued to expand the size of the Nuestra Senora deposit and provide increased confidence for eventual upgrading of resource categories.
On June 14, 2006, Scorpio announced the exciting discovery of the Hoag Zone, a large mineralized body adjacent to the Nuestra Senora deposit. The zone has now been drill tested over 100 vertical metres and remains open at depth and to the northeast.
The Company's preliminary understanding of the Hoag Zone and its relation to other deposits in the area is that a series of stacked thrust faults provided the main conduit for mineralizing fluids. Subsequent deformation along the thrust faults created dilational zones, which provided wider structural traps for the emplacement of mineralization. Within the Nuestra Senora deposit, reactivation along the thrust faults also allowed for multiple episodes of mineralization, which could account for higher silver grades within that deposit. The style of mineralization within the upper levels of the Hoag Zone suggests that only one mineralizing event took place. Deeper drill intersections however, have returned higher metal grades and a style of mineralization that is becoming more similar to the adjacent Nuestra Senora deposit.
The Hoag zone does not outcrop at surface, but is situated between the Nuestra Senora deposit and the Santo Domingo and Santa Teresa deposits, all of which have surface expressions. Management believes the stacked thrust faults on the property have potential for hosting multiple mineralized bodies that could be discovered via systematic drilling. Continued success at the Nuestra Senora and Hoag Zone, along with exploration potential of other known and potential 'blind' deposits, provide excellent exploration upside for the overall Nuestra Senora project.
The current exploration program is designed to provide sufficient information to proceed with an independent pre-feasibility study and mill design in early 2007. A 118-hectare section of land located three kilometres northwest of the mine site has been purchased for the mill site and tailings containment, and construction of an access road and planning for the electric power line is in progress. The used mill equipment the Company purchased is being transported to Mazatlan where it will undergo refurbishment prior to transport to the mill site facility. The Company has sufficient funds to complete its planned work programs and, subject to positive results, is well positioned to give the go ahead for mill construction and detailed production planning.
Vice President, Exploration & Development, Mr. D. Roger Scammell, PGeo, is the Company's Qualified Person for the Nuestra Senora project. Mr. Scammell is responsible for the current exploration and development program and the preparation of all technical information provided in this release. All technical information for the Nuestra Senora property is obtained and reported under a formal quality assurance and quality control (QA/QC) program. Samples are shipped to the ALS Chemex preparation laboratory in Hermosillo, Mexico for drying, crushing and pulverizing. ALS Chemex, Hermosillo then sends the pulps by air-freight to the ALS Chemex analytical laboratory in Vancouver for assaying. Systematic assaying of standards and blanks are performed for precision and accuracy and check assays are regularly conducted by SGS Lakefield Research. Details of the QA/QC program are available on the Company's website at www.scorpiomining.com/s/NuestraSenora.asp.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
President & CEO
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this news release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include metal prices, exploration successe, continued availability of capital and financing, and general economic, market or business conditions.
For further information
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, (757) 306-6090 (outside North America), Email: yes@yesinternational.com
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Source: Scorpio Mining Corporation |
