RE: Actually NR Was Yesterday eomI agree that a position should be taken at these levels.....DD
Scorpio to increase mill throughput at Nuestra Senora
2008-09-03 08:05 ET - News Release
Mr. Peter Hawley reports
SCORPIO PROVIDES OPERATIONS UPDATE ON NUESTRA SENORA PROJECT, MEXICO
Scorpio Mining Corp. has provided an operations update from its 100-per-cent-owned Nuestra Senora project, Sinaloa state, Mexico.
To date the company has met every goal it has set, from the construction of the mill facility in record time, to the mill start-up on time, to the production of concentrates on time. Shipment of concentrates commenced in August and the first smelter and off-take payments are expected this month. During September, the company will be aggressively executing programs to increase the mill thoughput, improve recoveries and increase the amount of concentrates produced, as well as continue development of the higher-grade stopes in the Santa Teresa and the North West zones. These measures, plus reducing operating costs, are the progressional steps the company has implemented to continue to work toward positive cash flow during the six-month start-up period. In addition, underground drilling continues to be successful with discovering new bodies and defining high-grade zones previously announced.
Update
The current surface stockpile consists of 109,309 tonnes of mill tune-up development ore in two stockpiles. Stock pile 1 contains 54,944 tonnes grading 69 grams per tonne Ag, 2.55 per cent Zn, 1.42 per cent Pb, 0.25 per cent Cu and 0.08 g/t Au and stockpile 2 contains 54,446 tonnes grading 86 g/t Ag, 2.53 per cent Zn, 1.56 per cent Pb, 0.18 per cent Cu and 0.07 g/t Au.
During the month of August, the mill facility processed 23,570 tonnes of material. The August monthly average mill rate for the 31 days was 760 tonnes per day.
During the last 13 days of August the mill rate averaged 971 tonnes per day.
During August the company produced 310.4 tonnes of lead concentrate with an average grade of 56.38 per cent lead and 2,927 g/t silver (175 contained tonnes of lead).
During August the company shipped 276 tonnes of lead concentrate to the Penoles smelter facility in Torreon, Mexico.
On Sept. 15, 2008, the company expects to receive its first payment from Penoles for the August shipment.
During August the company produced 428.7 tonnes of zinc concentrate with an average grade of 53.75 per cent zinc and 233 g/t silver (230 contained tonnes of zinc).
The current zinc concentrate inventory is in excess of 600 tonnes.
As of Sept. 2, 2008, the company is shipping a minimum of 70 tonnes of zinc concentrate to the storage facility in Manzanillo, Mexico, on a daily basis (Monday through Friday) for future shipment to the Asian markets.
On or before Sept. 15, 2008, the company expects to have delivered the first 1,000-tonne lot of zinc concentrate to the warehouse facility, which will trigger an immediate payment from the company's concentrate brokers, Ocean Partners.
The company has been pursuing a number of options for reducing operating costs without affecting performance, in order to be more aggressive in attaining positive cash flow.
Further information on the company and the Nuestra Senora project and photos of the first concentrate shipment are available on the Scorpio Mining website.
President, 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.
We seek Safe Harbor.