Scorpio Mining's San Rafael has 287.31 mlb Zn M+I

2012-10-01 07:41 ET - News Release

Mr. Peter Hawley reports

SCORPIO MINING ANNOUNCES INCREASED MINERAL RESOURCES AND CONTAINED METALS AT SAN RAFAEL

Scorpio Mining Corp. has released an independent updated mineral resource estimate for its 100-per-cent-owned San Rafael development project in Sinaloa state, Mexico, completed by Mine Development Associates of Reno, Nev. (MDA).

Peter J. Hawley, Scorpio's interim chief executive officer, commented: "The solid increase in the resource and upgraded categories of the San Rafael deposit acquired in the Platte River acquisition puts another development project in the pipeline for the company's growth. Along with completed geotechnical studies and land access agreements, the new resources have moved this project closer to the development stage. San Rafael will enhance the company's future, including the potential to develop a second processing operation in the Cosala district."

The new resource estimation demonstrates an increase in tonnage and all contained metals compared with the resource estimate presented in November, 2009, as shown in the associated tables. Although a portion of this increase is due to higher metal prices, a large portion is attributable to increased drill density and confidence in the resource. In addition, the ratio of measured to indicated resources increased from 26 per cent to 35 per cent.

At the reported resource cut-off of 1.5 per cent zinc equivalent, the following changes in the new measured and indicated resources were found:

• 26.5-per-cent increase of 4,171,000 tonnes to 19,912,000 tonnes;
• 18-per-cent increase in silver of 6,006,000 ounces to 39,422,000 ounces;
• 33.2-per-cent increase in copper of 9,705,000 pounds to 38,963,000 pounds;
• 3.9-per-cent increase in lead of 10,898,000 pounds to 287,315,000 pounds;
• 10.8-per-cent increase in zinc of 66,921,000 pounds to 684.14 million pounds;
• 23.3-per-cent increase in zinc equivalent by 1 per cent to 5.28 per cent zinc equivalent.