Scorpio Mining Intercepts 3.85 Meters of 2802 g/t Silver, 1.75 g/t Gold and 7.76% Combined Base Metals at the San Rafael Development Project

TSX: SPM

TORONTO, July 18, 2012 /CNW/ - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining"  or the "Corporation") is pleased to report preliminary results from the recently completed drill program at its 100% owned San Rafael Project in  Cosalá, Sinaloa, Mexico. The San Rafael Project is a zinc-lead-silver-copper project located approximately 16 km from Scorpio Mining's operating Nuestra Señora plant which currently processes approximately 1,500 tonnes per day.

Hole SR-298 intersected 4.45 meters (3.85 m true width) of 2,802 g/t Ag, 1.75 g/t Au, 0.928% Cu, 4.489% Pb and 2.341% Zn in the Upper Zone. Hole SR-310 intersected 5.6 meters (5.41 m true width) of 2,626 g/t Ag, 2.096 g/t Au,  0.614% Cu, 2.335% Pb and 0.203% Zn also in the Upper Zone of the deposit.

San Rafael and El Cajón are two skarn related mineral deposits with significant resources previously reported and Updated Resources are scheduled to be released by the end of August 2012. These deposits are within 14-16 km of haulage distance of the Nuestra Señora processing plant. Drill results for El Cajon mineral deposit will be released separately.

The San Rafael mineral occurrence is composed of five distinct bodies:

• the zinc-lead-silver Main Zone;
• an oxidized silver-gold-copper portion of the Main Zone;
• the zinc-lead-silver Upper Zone;
• the copper-silver 120 Zone; and
• the NW Extension which is similar to the Upper Zone.

The Upper Zone and newly discovered Northwest (NW) Extension are relatively flat lying bodies contained entirely within the upper rhyolitic volcanic rocks as opposed to the more contact related Main Zone and structurally controlled 120 Zone. Scorpio Mining believes that the NW Extension may add some tonnage to the upcoming San Rafael Updated Resource estimate. This potential tonnage is conceptual in nature and is based on previous drill results. There has been insufficient exploration to define a current resource and Scorpio Mining cautions that there is a risk further exploration will not result in the delineation of a current resource in the NW Extension.

Table 1 below demonstrates results for previously unreported holes SR-293 to SR-357. Holes not shown in the table within the series SR-293 to SR-357 are not considered to contain significant values. To be considered significant, zones must be more than 1 meter in width, and contain in excess of either 40 grams per tonne silver and/or 1% combined base metals.

Table 1.  Previously Unreported Intercepts from the San Rafael Project

Drill Hole	Azim	Incl.	Deposit Area	From (m)	To (m)	Width (M)	Width True (M)	Au g/t		Ag g/t		Cu %	Pb%	Zn %
SR293	240	-66	Upper Zone	151.50	158.00	6.50	4.98	0.811		321		0.155	0.186	0.425
SR293	Including			153.00	155.00	2.00	1.53	1.220		765		0.278	0.081	0.089
SR295	240	-79	Upper Zone	92.00	94.90	2.90	2.51	0.585		132		0.062	0.163	0.080
SR296	60	-69	Upper Zone	73.10	80.00	6.90	6.83	0.154		135		0.018	0.071	0.021
SR297	0	-90	Upper Zone	105.00	106.60	1.60	1.47	0.896		47		0.073	0.046	0.060
SR298	240	-78	Upper Zone	109.10	113.55	4.45	3.85	1.750		2802		0.928	4.489	2.341
SR298	Including			110.70	112.00	1.30	1.13	2.600		8130		2.520	11.750	2.130
SR299	60	-74	120 Zone + Main Zone	59.40	61.00	1.60	1.58	1.670		260		0.182	0.094	0.021
SR299	60	-74	Upper Zone	70.50	78.00	7.50	7.50	0.355		525		0.091	0.207	0.028
SR299	Including			72.10	75.70	3.60	3.60	0.575		894		0.169	0.355	0.040
SR301	60	-53	Upper Zone	45.00	55.00	10.00	8.66	1.001		386		0.120	0.058	0.011
SR301	Including			49.50	52.20	2.70	2.34	2.460		784		0.027	0.075	0.005
SR302	0	-90	Upper Zone	53.00	54.60	1.60	1.39	0.691		203		0.159	0.104	0.017
SR302	0	-90	Upper Zone	64.00	79.00	15.00	12.99	0.317		363		0.051	0.139	0.031
SR302	Including			70.70	77.30	6.60	5.72	0.596		727		0.100	0.262	0.028
SR303	240	-64	Upper Zone	21.50	24.00	2.50	1.61	0.703		90		0.006	0.075	0.002
SR304	240	-55	Upper Zone	145.00	150.90	5.90	3.38	0.956		1186		0.353	2.628	0.180
SR304	Including			147.10	150.00	2.90	1.66	1.483		2280		0.667	3.424	0.179
SR305	60	-70	Upper Zone	113.00	118.00	5.00	3.54	0.641		149		0.047	0.238	0.121
SR306	60	-77	Upper Zone	91.80	95.60	3.80	3.80	0.634		210		0.047	0.246	0.024
SR310	0	-90	Upper Zone	55.70	61.30	5.60	5.41	2.096		2626		0.614	2.335	0.203
SR310	Including			57.70	61.30	3.60	3.48	3.130		3905		0.911	3.460	0.302
SR313	0	-90	120 Zone + Main Zone	9.50	52.50	43.00	38.97	0.373		92		0.070	0.368	0.317
SR313	Including			12.00	13.50	1.50	1.30	1.130		631		0.083	1.095	0.261
SR313	and also Including			45.00	51.00	6.00	5.20	0.220		133		0.039	0.218	0.046
SR314	60	-50	NW Exten.	50.50	55.60	5.10	5.02	0.142		155		0.016	1.286	2.212
SR314	Including			53.60	54.60	1.00	0.98	0.386		597		0.037	2.820	4.490
SR315	60	-70	NW Exten.	50.75	53.40	2.65	2.61	0.289		120		0.015	2.206	4.116
SR319	0	-90	NW Exten.	63.90	66.15	2.25	2.22	0.049		12		0.011	0.202	1.745
SR320	60	-50	NW Exten.	49.80	54.00	4.20	4.17	0.087		54		0.019	1.011	2.457
SR320	60	-50	NW Exten.	64.35	77.30	12.95	12.95	0.139		25		0.005	0.779	2.969
SR320	Including			64.35	72.20	7.85	7.85	0.137		37		0.006	1.152	3.161
SR320	and also Including			75.90	77.30	1.40	0.70	0.077		20		0.010	0.573	8.690
SR321	60	-70	NW Exten.	48.17	52.80	4.63	4.60	0.180		94		0.019	1.847	2.890
SR321	Including			51.45	52.80	1.35	1.34	0.584		270		0.051	6.080	8.790
SR328	60	-70	NW Exten.	50.70	59.10	8.40	8.22	0.182		62		0.011	1.264	1.167
SR328	Including			50.70	51.90	1.20	1.17	0.464		315		0.012	7.660	0.134
SR329	60	-70	NW Exten.	46.00	50.20	4.20	4.06	0.034		32		0.008	0.807	1.811
SR333	240	-70	NW Exten.	45.90	53.70	7.80	6.75	0.121		34		0.011	0.809	3.120
SR334	60	-50	NW Exten.	103.80	105.50	1.70	1.20	0.329		36		0.014	0.761	3.370
SR335	60	-50	NW Exten.	44.60	45.30	0.70	0.66	0.513		70		0.028	1.395	6.470
SR335	60	-50	NW Exten.	49.40	51.30	1.90	1.84	0.212		65		0.014	0.516	1.065
SR335	60	-50	NW Exten.	73.70	74.70	1.00	0.97	0.111		9		0.005	0.327	3.240
SR336	60	-70	NW Exten.	47.70	48.80	1.10	1.06	0.280		122		0.018	1.840	2.290
SR337	60	-88	NW Exten.	72.85	74.25	1.40	1.15	0.246		49		0.014	1.665	3.400
SR338	60	-45	NW Exten.	71.00	72.40	1.40	1.40	0.421		103		0.003	3.920	3.220
SR340	60	-75	NW Exten.	50.00	52.35	2.35	2.27	0.130		103		0.040	0.850	2.280
SR341	60	-90	NW Exten.	65.30	67.30	2.00	1.81	0.067		59		0.014	1.647	3.490
SR341	60	-90	NW Exten.	87.40	88.85	1.45	1.03	0.240		29		0.013	0.941	5.680
SR342	60	-50	NW Exten.	54.00	56.20	2.20	2.07	5.348		77		0.010	1.600	1.070
SR343	60	-70	NW Exten.	54.65	57.00	2.35	2.27	0.185		120		0.019	2.300	1.550
SR344	60	-90	NW Exten.	61.70	63.20	1.50	1.36	0.118		132		0.029	3.420	1.790
SR345	60	-70	NW Exten.	64.45	67.50	3.05	3.00	0.354		93		0.064	3.665	0.846
SR346	60	-90	NW Exten.	68.50	75.50	7.00	6.58	0.193		43		0.020	1.318	0.729
SR347	240	70	NW Exten.	86.90	93.30	6.40	4.90	2.925		122		0.017	2.360	2.450
SR347	Including			86.90	88.40	1.50	1.15	4.670		398		0.050	3.930	8.920
SR348	60	-50	NW Exten.	43.90	46.60	2.70	2.54	0.142		104		1.010	2.480	0.793
SR348	Including			45.00	46.60	1.60	1.50	0.108		154		0.008	2.080	0.874
SR349	60	-70	NW Exten.	41.40	43.25	1.85	1.84	0.036		34		0.009	2.820	0.643
SR350	60	-90	NW Exten.	61.50	66.70	5.2	4.89	0.106		85		0.190	0.391	7.213
SR350	Including			65.00	66.70	1.70	1.60	0.176		157		0.545	0.093	15.400
SR350	60	-90	NW Exten.	74.60	75.45	0.85	0.80	0.307		24		0.008	0.821	4.130
SR351	240	-70	NW Exten.	74.90	77.90	3.00	2.30	0.118		363		0.012	1.034	1.075
SR351	240	-70	NW Exten.	79.40	81.90	2.50	1.92	0.038		91		0.006	0.593	1.174
SR351	240	-70	NW Exten.	85.25	87.00	1.75	1.34	0.206		133		0.022	2.140	3.510
SR353	60	-70	NW Exten.	37.50	39.00	1.50	1.50	0.355		39		0.029	2.750	0.257
SR354	60	-90	NW Exten.	47.15	50.90	3.75	2.41	0.128		89		0.022	0.484	1.764
SR354	60	-90	NW Exten.	62.10	63.45	1.35	0.87	0.569		53		0.007	1.685	4.060
SR355	60	-90	NW Exten.	85.50	89.00	3.50	2.87	0.169		46		0.017	0.888	2.534
SR356	240	-70	NW Exten.	105.30	106.80	1.50	1.15	0.310		32		0.014	0.731	2.620
SR357	60	-75	NW Exten.	90.00	93.00	3.00	2.72	1.010		101		0.016	2.633	3.005

 

Scorpio Mining has drilled approximately 3,334 meters at the San Rafael Project in 2012.  The program completed in-fill drilling on the known zones and delineated mineralization in the newly discovered NW Extension. Mine Development Associates (MDA) of Reno Nevada is currently calculating an Updated Mineral Resource estimate for the deposit that includes approximately 120 new holes completed in 2011 and 2012. The discovery of new mineralization in the NW Extension and the number of new holes will delay this estimate until the third quarter of 2012.

A NI 43-101 technical report to support the resource estimates was prepared by MDA and filed on SEDAR December 4, 2009. Table 2 presents these historical estimates.

Table 2. Measured and Indicated Resources for the San Rafael Project

San Rafael Main and Upper Zone
Cutoff % ZnEq			Category			Tonnes t x 1,000			Silver (g/t)			Zinc (%)			Copper (%)			Lead (%)			Gold (g/t)
3.5%			Measured			1,793			84.1			3.73			0.07			1.62			0.09
3.5%			Indicated			4,204			91.8			3.29			0.06			1.39			0.13
3.5%			Measured + Indicated			5,997			89.5			3.42			0.06			1.46			0.12
3.5%			Inferred			14			64.1			1.46			0.04			1.45			0.11

San Rafael 120 Zone
Cutoff g/t AgEq			Category			Tonnes t x 1,000			Silver (g/t)			Zinc (%)			Copper (%)			Lead (%)			Gold (g/t)
100			Indicated			1,916			130.6			0.48			0.34			0.13			0.17
100			Inferred			195			130.8			0.05			0.28			--			0.16

A map of the San Rafael Project, sections of the new NW Extension, and a longitudinal section of the Main and Upper Zones are available on the Corporation's website, at www.scorpiomining.com.

About Us

Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. The 100% owned Nuestra Señora 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 has 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, Scorpio Mining has over 40 exploration targets mostly in the vicinity of its current operations and is currently updating its resource calculation for the San Rafael and El Cajon mineral deposits. The Corporation also holds a 100% interest in the advanced, high-grade La Revancha silver and Tepozán silver-gold projects, both located in the productive Parral District within the respective states of Chihuahua and Durango, Mexico.The Corporation's strategy focuses on exploring and developing its existing mineral properties.

Scorpio Mining's Vice-President of Exploration, James Stonehouse a Registered Geologist with SME (Registration #4168919) and is the Qualified Person for the Corporation's Mexico projects and has reviewed the 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 either Hermosillo or Chihuahua, Mexico for drying, crushing and pulverizing. ALS Chemex; Mexico preparation laboratory, 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-PD.pdf.

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, exploration and development plans, expansion 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 26, 2012. 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