Scorpio Mining Cuts 1,562 g/t Silver, 2.1 g/t Gold, 1.53% Zinc, 0.27% Lead and 6.12% Copper over 5.14 meters at the San Rafael Development Project

TSX: SPM

TORONTO, March 6, 2012 /CNW/ - Scorpio Mining Corporation (TSX: SPM) ("Scorpio" or the "Corporation") is pleased to report additional positive drill results from its San Rafael Development Project, favorably located only 19 kilometers by road from the Nuestra Señora processing facility in the Cosalá Mining District, Sinaloa State, Mexico.

"A total of 7,948 meters of drilling were completed at San Rafael in 2011 and so far in 2012 we have completed another 2,836 meters" stated Parviz Farsangi, President and CEO. "The continued positive drilling results coming out of San Rafael, which include some significant gold credits and the discovery of a new manto body, not only enhance the Corporation's plans for expansion in the Cosalá Mining District, but also reflect the excellent work carried out by our technical team on the ground."

Highlights from the latest San Rafael drill results include:

• Hole SR-264: 288 g/t Ag, 0.23 g/t Au, 0.52% Zn, 0.75% Pb and 0.213% Cu over 15.2 m true width
• Hole SR-279: 1,562 g/t Ag, 2.1 g/t Au, 1.53% Zn, 0.27% Pb and 6.119% Cu over 5.1 m true width

Previously the San Rafael mineral occurrence was thought to be composed of three distinct bodies hosted in skarn:

• The Main Zone, which  is a manto at the contact of skarn altered limestones and overlying rhyolites
• The Upper Zone, which is a parallel and somewhat narrower body above the Main Zone; and
• The 120 Zone, which is a steeply dipping body that intersects the Main Zone and trends northwest.

Drilling completed by Scorpio at San Rafael has focused on defining proposed open pit boundaries of the Main Zone and the in-fill drilling of widely-spaced intersections from prior drilling campaigns. Currently, drilling is following a fourth new manto-like body discovered to the northwest of the main deposit area.

This new manto body has the potential to add to the current mineral resource estimate reported for San Rafael, which is presented below:

Mineral Resource Estimate- San Rafael Deposit (August 12, 2009)

Zone		Category		Tonnes		Ag g/t		Zn %		Pb %		Cu%		Au g/t
Main & Upper		Measured		1,793,000		84.1		3.73		1.62		0.07		0.092
Main & Upper		Indicated		4,204,000		91.8		3.29		1.39		0.06		0.130
Main & Upper		Measured & Indicated		5,997,000		89.5		3.42		1.46		0.06		0.119
Main & Upper		Inferred		14,000		64.1		1.46		1.45		0.04		0.110
120		Indicated		1,916,000		130.6		0.48		0.13		0.34		0.170
120		Inferred		195,000		130.8		0.05		--		0.28		0.160

Note: Metal prices used in the above estimates are US$12/oz. silver, US$0.80/lb. zinc, US$0.70/lb. lead, US$2.00/lb. copper and US$750/oz. gold. A 3.5% zinc equivalent cutoff was applied to the Main & Upper Zones, and a 100 g/t AgEq cutoff applied to the 120 Zone. The NI-43-101 technical report to support this estimate was filed on SEDAR on Dec. 4^, 2009 and is available for viewing under the Corporation's profile at www.sedar.com. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature an there has been insufficient exploration to define these Inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.

San Rafael Development Project - Latest Drill Results

Hole #	Azm	Inc	Deposit Area	From (m)	To (m)	Width (m)	True (m)	Ag g/t	Zn %	Pb %	Cu %	Au g/t
SR247	0	-90	Main Zone	60.10	72.55	12.45	10.78	80	5.26	3.06	0.017	0.050
			including	65.50	69.10	3.60	3.26	149	8.66	5.62	0.024	0.036
SR248	60	-51	Main Zone	27.00	33.80	6.80	5.57	133	7.54	5.03	0.020	0.055
SR249	60	-66	Main Zone	10.20	18.00	7.80	6.75	209	17.46	7.62	0.022	0.332
			including	11.85	16.50	4.65	4.03	303	27.14	11.02	0.028	0.457
SR250	60	-45	Main Zone	49.55	55.00	5.45	4.72	129	9.17	4.52	0.026	0.098
SR252	60	-68	Main Zone	44.00	66.50	22.50	21.14	86	6.27	2.88	0.020	0.065
SR256	60	-75	120 Zone + Main Zone	19.70	48.00	28.30	27.34	127	0.02	1.80	0.037	0.360
			including	29.00	33.00	4.00	3.86	268	0.02	2.83	0.096	0.392
SR258	60	-68	Main Zone	95.30	106.80	11.50	8.13	72	5.39	2.53	0.016	0.095
SR260	60	-73	Upper Zone	18.50	21.35	2.85	2.47	460	1.00	1.06	0.089	0.515
SR260	60	-73	Upper Zone	59.80	61.80	2.00	0.75	1060	0.16	0.18	0.706	0.591
SR261	240	-61	120 Zone + Main Zone	0.00	38.70	38.70	36.37	183	1.34	0.79	0.256	0.198
			including	0.00	19.30	19.30	18.64	215	0.32	1.11	0.175	0.282
			including	26.80	34.80	8.00	7.52	332	2.23	0.73	0.704	0.232
SR263	240	-78	120 Zone + Main Zone	14.00	44.00	30.00	25.98	116	1.65	0.62	0.244	0.173
			including	14.00	27.00	13.00	9.96	133	1.42	0.93	0.282	0.141
			including	31.80	44.00	12.20	10.57	135	2.31	0.35	0.296	0.263
SR264	60	-56	120 Zone + Main Zone	18.20	38.00	19.80	15.17	288	0.52	0.75	0.213	0.226
			including	25.00	35.00	10.00	7.66	424	0.21	0.66	0.321	0.225
SR277	60	-52	120 Zone + Main Zone	51.00	66.00	15.00	10.61	281	0.10	0.42	0.106	0.569
			including	55.00	63.00	8.00	6.13	427	0.13	0.64	0.118	0.649
SR278	60	-56	120 Zone + Main Zone	32.70	42.70	10.00	3.42	306	1.20	0.09	2.106	0.378
SR278	60	-56	120 Zone + Main Zone	56.40	68.15	11.75	11.57	256	3.47	0.82	0.504	0.450
SR279	0	-90	120 Zone + Main Zone	59.90	67.20	7.30	6.86	158	8.07	1.07	0.494	0.328
SR279	0	-90	120 Zone + Main Zone	71.40	79.40	8.00	5.14	1562	1.53	0.27	6.119	2.137
			including	75.00	79.40	4.40	2.83	2417	2.62	0.44	10.066	3.508
SR279	0	-90	120 Zone + Main Zone	108.50	122.00	13.50	8.68	234	0.77	0.26	0.517	0.175
SR282	60	-60	120 Zone + Main Zone	30.70	34.25	3.55	2.28	116	0.01	0.06	0.092	0.663
SR287	0	-90	120 Zone + Main Zone	114.80	131.50	16.70	NC	171	0.53	0.92	0.180	0.365
			including	114.80	115.60	0.80	NC	388	3.80	15.15	0.703	0.305
			including	120.00	124.10	4.10	NC	452	0.98	0.28	0.557	1.193
SR288	60	-69	120 Zone + Main Zone	42.00	48.00	6.00	5.64	220	0.16	0.06	0.087	0.592
			including	44.00	46.00	2.00	1.88	451	0.21	0.07	0.211	1.165
SR289	0	-90	120 Zone + Main Zone	25.20	30.00	4.80	4.51	195	0.02	0.08	0.179	0.880
SR289	0	-90	120 Zone + Main Zone	72.50	75.00	2.50	2.35	201	0.02	0.03	0.055	0.767
SR291	60	-65	120 Zone + Main Zone	45.00	57.00	12.00	NC	130	0.03	0.04	0.029	0.284
SR291	60	-65	120 Zone + Main Zone	60.50	63.25	2.75	NC	422	0.03	0.09	0.179	0.990
			including	62.90	63.25	0.35	NC	661	0.05	0.02	1.215	3.790
SR292	240	-71	120 Zone + Main Zone	144.00	147.80	3.80	1.90	78	0.87	2.54	0.018	0.021
			including	147.15	147.80	0.65	0.33	163	0.95	6.04	0.040	0.043
SR292	240	-71	120 Zone + Main Zone	159.60	166.00	6.40	4.90	152	0.06	0.14	0.151	0.427
			including	162.00	163.00	1.00	0.77	385	0.17	0.16	0.790	1.620
SR292	240	-71	120 Zone + Main Zone	174.60	178.00	3.40	2.60	115	0.01	0.12	0.016	0.118
SR300	240	-72	120 Zone + Main Zone	90.00	94.70	4.70	3.02	330	0.02	0.09	0.069	0.788
			including	91.80	93.70	1.90	1.22	587	0.03	0.11	0.148	1.715
SR313	0	-90	120 Zone + Main Zone	9.50	52.50	43.00	35.22	92	0.32	0.37	0.070	0.373
			including	12.00	13.50	1.50	1.30	631	0.26	1.10	0.083	1.130

Note: Results for drill holes SR247-252 were released November 7, 2011 with gold results pending. NC is reported for true widths in areas where insufficient structural data was available to allow a calculation of true thickness.

Scorpio expects to complete drilling on all portions of the San Rafael Development Project by mid to late March, 2012. Upon receipt of all results and the technical review of the data, a new mineral resource estimate will be completed with the intent to upgrade a significantly larger portion of the resource to the measured and indicated mineral resource categories.

A location map and geology and drill hole plan is available for review at http://www.scorpiomining.com/s/LaVerde.asp.

Scorpio Mining's Vice President of Exploration, James Stonehouse, is a Professional Geologist in the State of California (Registration # 5518), a Registered Geologist with SME (Registration #4168919) and is a Qualified Person for the Corporation's Mexico projects and has reviewed and is responsible for the technical content of this release. All technical information for the Corporation's Mexico projects is obtained and reported under a formal quality assurance and quality control (QA/QC) program. Samples are shipped to the ALS Chemex preparation laboratory in Chihuahua, Mexico for drying, crushing and pulverizing. ALS Chemex, Hermosillo then sends the pulps for assaying to ALS Chemex, Vancouver, an ISO 9001:2000 accredited facility. Details of the QA/QC program are available at: www.scorpiomining.com/i/pdf/reports/QAQC-CD.pdf.

About Us

Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. The 100% owned Nuestra Senora Mine and plant located in the Cosalá district of Sinaloa State, Mexico, has proven to be a low-cost operation with the benefit of flexible mining methods and diversified metal production. It boasts a fully mechanized underground operation and a processing facility built for expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead concentrates; with a significant silver component in the copper and lead concentrates. In addition, the company has over 40 exploration targets mostly in the vicinity of its current operations. The Corporation also holds a 100% interest in the prospective La Revancha silver and Tepozán silver-gold projects in the Parral District of Chihuahua State, Mexico.The Corporation's strategy focuses on exploring and developing its existing mineral properties.

ON BEHALF OF SCORPIO MINING CORPORATION

Parviz Farsangi
President & 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 the Corporation's operations, plans, estimates, expectations, forecasts, objectives, predictions and projections of the future. 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 development and operation of the Corporation's projects in Mexico, 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, risks relating to completing acquisition transactions 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 29, 2011. 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.

 

Victoria Vargas, Vice President Investor Relations and Corporate Communications [phone]
Email: [email protected]

Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: [email protected]

Website: www.scorpiomining.com