Scorpio Provides March 2009 Update
Wed Apr 22, 8:00 AM
ca.news.finance.yahoo.com
TSX:SPM
VANCOUVER, April 22 /CNW/ - Scorpio Mining Corporation (TSX: SPM.TO) is pleased to provide an operations update for March 2009 for the 100% owned Nuestra Senora mine, Sinaloa State, Mexico.
Peter J. Hawley, Chairman, CEO reports, "March 2009 was not only another productive and cost-efficient month for the Company, but our best operational month yet. The Scorpio team continues to outperform expectations set for 2009 and underground development continues on schedule in preparation for greater access to mineable, low-cost, high-grade stopes. Underground delineation drilling was recently initiated to define new stopes for extraction, expanding the Company's long-term ability to respond to future increases in metal prices by increasing the number and variety of potential active headings in the mine. The Company is currently negotiating the offshore sale of its concentrates at very reasonable terms for the next six months, commencing May 2009.
The Nuestra Senora operational details for the month of March are as follows:
March 2009 Concentrate Synopsis
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2009 Contained
Concentrate Shipped March Silver Ounces
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Lead Concentrate(1) (tonnes) 0 0
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Zinc Concentrate(2) (tonnes) 1,034 4,388
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Copper Concentrate (tonnes) 106 8,247
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Total 1,140 tonnes 12,635 ounces
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(1) No lead concentrate was shipped during the month of March as the
smelter contract had not been finalized. The contract was signed in
late March and shipments of the 500 tonnes of concentrate will begin
after the Easter holidays and be completed by the end of this month.
(2) Zinc concentrate shipped in lots of 250 tonnes or greater.
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Concentrate Inventory at 2009 Contained
Month End March Silver Ounces
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Lead Concentrate (tonnes) 432 42,745
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Zinc Concentrate (tonnes) 153 635
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Copper Concentrate (tonnes) 33 3,169
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Copper/Lead Concentrate (tonnes) 214 20,551
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Total 832 tonnes 67,100 ounces
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Concentrate Produced During the 2009 Contained
20 Days of March Operations March Silver Ounces
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Calculated Lead Concentrate (tonnes) 286 34,698
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Calculated Zinc Concentrate (tonnes) 499 1,963
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Calculated Copper Concentrate (tonnes) 134 14,013
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Total 919 tonnes 50,674 ounces
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2009 2009
Total Tonnes Mined & Milled March Budget
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Tonnes Mined 7,848 5,750
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Tonnes Milled 15,260 11,500
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Days Milling 20 17
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Average Mill Recoveries
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Silver (%) 89.4% 84%
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Lead (%) 86.7% 79%
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Copper (%) 83.1% 67%
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Zinc (%) 79.3% 83%
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March 2009 Update
- Mexican cash operating costs for mining, milling and administration
for March 2009, were US$35.71(3) per tonne (budgeted US$37.11 per
tonne).
- Mill throughput in March reached 15,260 tonnes (budgeted 11,500
tonnes) for the 20 days of milling, or 763 tonnes per day.
- Recoveries at the mill increased to 86.7% for lead (78.5% budgeted),
83.1% for copper (66.5% budgeted), 79.3% for zinc (83% budgeted) and
89.4% for silver (83.5% budgeted).
- High-grade ore extracted from the mine totalled 7,848 tonnes and was
mixed at a 3:2 ratio with lower-grade development ore. At month end,
total stockpiled ore was 40,503 tonnes including 36,981 tonnes of
development ore in stockpile No.1 and 3,522 tonnes of high-grade ore
in stockpile No.2.
- A total of 50,674 ounces of silver were recovered for the month in
addition to lead, zinc, copper credits.
- A total of 12,635 ounces of silver were shipped / sold for the month
in addition to lead, zinc, copper credits.
- The Scorpio Mining team has balanced revenues and spending at the
Nuestra Senora operation. The Company's plan is to produce a
consistent tonnage and grade for the year ahead and is executing the
plan accordingly. Development was initially planned at 130 metres per
month, but as with the previous two months, March exceeded the
budgeted amount with an advance of 175.8 metres. This increase will
allow for more ore production from the cut & fill stopes for the
remainder of the year. By accessing and developing a variety of
working headings, the Company will have the option to increase the
head grade at the mill by changing the mixing ratios of the ores from
different areas. Ore production from the cut & fill stopes was 9,658
tonnes for the month of March.
- As a result of the strike at its smelter in México, Penoles had sent
a "Force Majeure Notice" informing the Company that they will not be
able to receive our lead concentrate until the dispute is resolved.
In the interim, the Company has committed to deliver 500 wet metric
tonnes ("wmt") of lead concentrate for shipment to China by April 30,
2009. Apparently Penoles has settled with the union and will be
resuming operations later this month; however, the Company has not
received a cancellation notice of the "Force Majeure". Accordingly,
the Company is negotiating a lead off-take contract to cover the 6-
month period of May through October 2009, should Penoles have further
problems resuming operations.
- The Company will complete its commitment to deliver 1,500 wmt of zinc
concentrate for shipment to a second smelter facility in China by the
end of April 2009.
- In addition to the lead concentrate, the Company is finalizing six
month (May to October) off-take contracts for its other concentrates
of copper and zinc for delivery to the loading facility in
Manzanillo, Mexico, located 700 km by road from the mill site.
- On March 30, 2009, an underground diamond drilling program was
initiated to better define future high-grade cut and fill stopes.
These stopes are scheduled for mining in the next few months and will
provide more flexibility for mixing with lower-grade stopes and/or
assuring constant production when ongoing stopes reach their backfill
cycle.
Further information is available on the Company's web site at: www.scorpiomining.com.
President, Mr. D. Roger Scammell, PGeo, is the Company's Qualified Person for the Nuestra Senora project and has reviewed the content of this release.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO
(3) Cash operating costs per tonne is a non GAAP measure. The Company
believes that, in addition to cost of sales, cash operating costs per
tonne is a useful and complementary benchmark for performance and is
well understood and widely reported in the silver mining industry.
However, cash operating costs per tonne does not have a standardized
meaning prescribed by Canadian GAAP. Investors are cautioned that
cash operating costs per tonne should not be construed as an
alternative to cost of sales determined in accordance with Canadian
GAAP as an indicator of performance. The Company's method of
calculating cash costs per tonne may differ from the methods used by
other entities and, accordingly, the Company's cash operating costs
per tonne may not be comparable to similarly titled measures used by
other entities. Cash operating costs per tonne is calculated as the
cost of sales adjusted for change in inventories.
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 concentrate shipments, mining plans and Scorpio Mining Corporation's commitment to, and plans for developing the Nuestra Senora 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 Senora 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 27, 2009. 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.
Contacts
Rich Kaiser
YES International: 1-800-631-8127
001-757-306-6090 (outside North America)
Email: yes@yesinternational.com |
