Scorpio Begins Shipments Of Concentrates From Its 100% Owned Nuestra Senora Project, Sinaloa State, Mexico
Tuesday, August 5th 2008
Scorpio Mining Corporation announce that on Tuesday, July 29th, 2008 it started shipping lead concentrate from its 100% owned Nuestra Senora project, Sinaloa State, Mexico.
Peter J. Hawley, Chairman, CEO reports, “Last week was very exciting for the Company as it marks a milestone towards receiving this quarter our first ever cash flow from the project. Currently we are only consistently running one of the two ball mills at an average rate for the month of July of 625 tonnes per day as the mill tune-up nears completion. It is interesting to note that on one day in the month the Company ran 1,048 tonnes of material through both ball mills. First cash receipts for both the lead and zinc concentrates are expected approximately mid September 2008.”
Last Tuesday July 29th, the Company made the first shipments of lead concentrate to the Penoles smelting facility in Mexico consisting of two concentrate trucks each carrying 35 tonnes. The start up grade of the concentrate satisfies an acceptable payment grade for smelting.
During the last week the mill facility has been improving not only the concentrate grade but recovery of all payable metals contained. For the month of July the Company produced an average of 8.20 tonnes of lead concentrate per day with an average grade of 54.51% lead and containing 2,225 grams per tonne silver.
Lead concentrate shipments will be made on a regular basis at the initial rate of one truck every 3 to 4 days with shipments increasing as the mill ramp up continues. Penoles accepts shipments until the 28th of each month at which time the monthly account is closed and the payment for the concentrates follows 15 days later.
Currently the Company has 300 tonnes of zinc concentrate ready to be shipped by truck to its port loading facility in Manzanillo, México for transport to Asian smelters. The Company has contracted 5,000 tonnes of storage at the warehouse.
It is expected that in August the Company will begin shipment of the start up zinc concentrate. For the month of July the Company produced an average of 15.6 tonnes of zinc concentrate per day with an average grade of 48.14% zinc and containing 268 grams per tonne silver payable.
Regular zinc concentrate shipments will be made at the initial rate of one truck per every second day and will continue to increase as the mill ramp up continues. An advance payment will be made 15 days after the accumulation of a lot of 1,000 tonnes at the warehouse.
Further information on the Company and the Nuestra Senora project and photos of the first shipment are available on the Scorpio Mining web site at: www.scorpiomining.com.