Scorpio Provides October Operations Update on Nuestra Senora Mine, Mexico
Tue Nov 4, 8:00 AM
ca.news.finance.yahoo.com
TSX:SPM
VANCOUVER, Nov. 4 /CNW/ - Scorpio Mining Corporation (TSX: SPM.TO) is pleased to provide an operations update from its 100% owned Nuestra Senora Mine, Sinaloa State, Mexico.
Peter J. Hawley, Chairman, CEO reports, "Our Nuestra Senora operation continues to increase concentrate production and delivery to its various off-take partners in an aggressive mandate to attain consistent, positive cash flow. The milling operation has now depleted the low-grade stockpile No.2 ore, which was excavated during the early mine development and stockpiled for purposes of bringing the plant on line. High-grade stope ore is currently being hauled from the mine and blended for processing with ore from stockpile No.1, which should result in higher head grades and greater concentrate production. The Company has successfully implemented a number of cost cutting measures without affecting operating performance. Most recently this includes the suspension of diamond drilling and related assaying costs and a reduction in capital expenditures. With the mine extracting higher-grade ore there has also been a significant reduction in trucking costs. Full commercial production, based on optimized mine production and mill recoveries, is anticipated in early 2009."
Plant Update
- The current surface stockpile consists of 80,000 tonnes of mill tune-
up development ore grading 69 g/t Ag, 2.55% Zn, 1.42% Pb, 0.25% Cu
and 0.08 g/t Au.
- During the month of October the mill facility processed 21,300 tonnes
of material at an average mill rate for the 29.5 days of operation of
722 tonnes per day (TPD).
- During October the Company produced 340 tonnes of lead concentrate
with an average grade of 54% lead and 2,320 g/t silver (184 contained
tonnes of lead and 25,360 ounces contained silver). This represents a
7% increase in the production of lead concentrate from the reported
September 2008 production level of 318 tonnes.
- During October the Company shipped 278 tonnes of lead concentrate to
the Penoles smelter facility in Torreon, Mexico.
- Current lead concentrate inventory is in excess of 150 tonnes.
- During October, the Company produced 665 tonnes of zinc concentrate
with an average grade of 51% zinc and 165 g/t silver (339 contained
tonnes of zinc and 3,528 ounces contained silver). This represents a
35% increase in the production of zinc concentrate from the reported
September 2008 production level of 490 tonnes.
- Current zinc concentrate inventory in the storage facility in
Manzanillo is in excess of 1,700 tonnes with an additional 300 tonnes
on site ready for shipment.
- The Company has pursued and implemented a number of options for
reducing operating costs without affecting performance, in order to
be more aggressive in attaining positive cash flow. These reductions
are expected to result in monthly savings in excess of $600,000 per
month.
Operations Update
In August 2008, in light of weakening metal prices, the mine plan was modified to focus on developing the readily accessible higher-grade stope areas for near-term extraction to offset further potential decreases in metal prices. During the month of September, only minimal ore was produced underground while the mill continued processing the now depleted stockpile No.2 material. In October, underground mine development reached two high-grade silver, copper, lead, and zinc lenses within the Main Zone (M-05 on Level 11 and M-10 on Level 10; see news release of drill results dated September 8, 2008) as well as the lower limit of the Santa Teresa ore body (Level 9.5 ramp). Additional working faces include mining of the high-grade M-03 Zone from two levels (10 and 11) and a second stope on Level 9 of the Santa Teresa Zone. Material from these areas is being incorporated into the mill feed gradually in order for the mill to adjust to the increasing grade. The proposed schedule includes a continued gradual increase of higher-grade mill feed to a consistent optimal level that should be reached in the first quarter of 2009.
The long hole drilling of designated ore blocks in the Hoag zone is ongoing with Block 13 between levels 10 and 10.5 completed and Block 9 (31,500 metric tonnes) between levels 9 and level 10 in progress. This drilled off tonnage will provide additional readily available ore to increase mill throughput when required.
During the months of September and October, repair work was conducted on some of the major mill components, including reconstruction of the jaw crusher, reconditioning of the ball mill motors and replacing the liner in ball mill "A". The final repair to the pinion of ball mill "B" will be completed by mid-November and at that time all the major components are expected to be in good working order. In addition, a number of modifications made to the original design of the plant have successfully improved recoveries and concentrate grades.
Further information on the Company and the Nuestra Senora project is available on the Scorpio Mining web site at: www.scorpiomining.com.
President, 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 programs and has reviewed the content of this release. The calculation for contained ounces of silver utilizes a conversion factor of 1 ounce (troy) = 31.1034768 grams.
ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & 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 planned shipments of concentrates and planned mine development and operating cost savings, 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, development, construction and optimization of the Nuestra Senora Project, risks related to international operations, construction and mill commissioning 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 26, 2008. 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
Glenn Little
Jackson Little Holdings Ltd: (604) 930-4375
1-888-930-4375
Email: jlconsulting@telus.net
Rich Kaiser
YES International: (800) 631-8127
001-757-306-6090 (outside North America)
Email: yes@yesinternational.com |
