September UpdateScorpio Continues to Increase Lead-Zinc Concentrate Production at Nuestra Senora Project, Mexico
08:00 EDT Monday, October 06, 2008
TSX:SPM
VANCOUVER, Oct. 6/CNW/ - Scorpio Mining Corporation (TSX:SPM) is very pleased to providean operations update for the month of September from its 100% ownedNuestra Senora project, Sinaloa State,Mexico.
Peter J. Hawley, Chairman, CEO reports, "Our Nuestra Senoraoperation continues to increase the amount of concentrates produced anddelivered to our various off take partners, resulting in a constantcash flow stream. The Company's plant personnel have continued torefine the milling process with parameter changes to the ball mills,pumps and flotation cells. These changes have improved recoveries,resulting in an increase in the amount of concentrates produced fromfewer tonnes processed. The plant operation will continue to increasethroughput and recovery during the upcoming months and we anticipatethe plant to be producing to all designed parameters by the end of theyear. The operation is in the process of depleting the low-gradestockpile No.2 ore, which was excavated during the early minedevelopment and stockpiled for purposes of bringing the plant on line.High-grade stope ore will be hauled from the mine and blended with thehigher grade development ore for processing once stockpile No.2 isconsumed, which will result in higher head grades and greaterconcentrate production. Scorpio's operational team continues todemonstrate it has the experience and dedication to advance the NuestraSenora project, and during this time of depressed metal prices, alsodemonstrate the low cost nature of the Nuestra Senora operation."
September 2008 Update
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- The current surface stockpile consists of 81,591 tonnes of mill tune-
up development ore in two stockpiles. Stockpile No.1 contains 73,017
tonnes grading 73 g/t Ag, 2.32% Zn, 1.40% Pb, 0.23% Cu and 0.08 g/t
Au and stockpile No.2 contains 8,574 tonnes grading 86 g/t Ag, 2.53%
Zn, 1.56% Pb, 0.18% Cu and 0.07 g/t Au.
- During the month of September the mill facility processed 19,443
tonnes of material.
- The September monthly average mill rate for the 30 days was 648
tonnes per day (TPD).
- During September the Company produced 355.12 tonnes of lead
concentrate with an average grade of 53.57% lead and 2,376.69 g/t
silver (189.49 contained tonnes of lead and 28,809.34 ounces
contained silver). This represents a 37.4% increase from the reported
August 2008 production level of 258.42 tonnes.
- During September the Company shipped 382 tonnes of lead concentrate
to the Penoles smelter facility in Torreon, Mexico, representing a
38.41% increase from the reported August 2008 shipment level.
- On September 23, 2008, the Company received its first payment from
Penoles for the August shipment.
- Current lead concentrate inventory is in excess of 65 tonnes.
- During September the Company produced 489.5 tonnes of zinc
concentrate with an average grade of 50.83% zinc and 223 g/t silver
(248.81 contained tonnes of zinc and 3,726 oz. contained silver).
This represents a 14.18 % increase from the reported August 2008
production level of 428.7 tonnes.
- Current zinc concentrate inventory is in excess of 700 tonnes.
- During September the Company shipped 1,026 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 October 2, 2008, the Company received a payment from the Company's
concentrate brokers, Ocean Partners, for the first 1,026-tonne lot of
zinc concentrate delivered to the warehouse facility.
- On October 6, 2008, the Company expects to receive a second payment
from Penoles for the September 2008 lot No.2 of lead concentrate
delivered, and on or before October 15, 2008, expects to receive a
third payment from Penoles for the September 2008 lot No.3 of lead
concentrate delivered.
- On or before the end of October, 2008, the Company expects to have
delivered the second 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 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.
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Scorpio Mining also announces the resignation of Paul Bonnevillefrom the position of Vice President of Mining. The Company thanks himfor his dedication and hard work in bringing the Nuestra Senora projecton line and wishes him all the best in his new mining ventures inQuebec.
Further information on the Company and the Nuestra Senora projectand photos of the first concentrate shipments are available on theScorpio 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.
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ON BEHALF OF SCORPIO MINING CORPORATION
Peter J. Hawley
Chairman & CEO