TSX: SPM
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Silver Copper Lead Zinc Producer in Mexico TSX: SPM OTC: SMNPF - - PowerPoint PPT Presentation
TSX: SPM Silver Copper Lead Zinc Producer in Mexico TSX: SPM OTC: SMNPF October , 2013 Frankfurt: SZ7 1 TSX: SPM Cautionary Statement Frankfurt: SZ7 Forward Looking Statements: This presentation includes certain statements that may be
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Frankfurt: SZ7 2
Forward Looking Statements: This presentation includes certain statements that may be deemed “forward-looking statements” within the meaning of the Canadian securities legislation and 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 Company’s operations, exploration and development plans, expansion plans, estimates, expectations, forecasts,
“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 Company’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. 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. Cautionary Note to U.S. Investors Concerning Estimates of Inferred Resources: This presentation uses the term “Inferred Resources”. U.S. investors are advised that while this term is recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize it. “Inferred Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of “Inferred Resources” may not form the basis of feasibility or other economic studies. U.S. investors are also cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists, or is economically or legally mineable. Qualified Person: The technical information contained within this presentation has been reviewed and approved by the Company's President and CEO, Pierre Lacombe, Eng., a Qualified Person as defined by NI 43-101.
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Pierre Lacombe, President, CEO & Director
BEng, Eng.
Thomas McGrail, COO
BSc, BEng.
Hemdat Sawh, CFO
BSc (Geology), MBA, CA
John A. Sadek, Mexico Country Manager
James M. Stonehouse, VP Exploration
MA (Geology), PGeo
Victoria Vargas, VP Investor Relations and
Corporate Communications HBSc (Economics), MBA
Director of Metallurgy, Cambior Chile; Plant Superintendent, Aur Resources
Minerals Inc.
Romarco Minerals, Alamos Gold, Kinross Gold Corp.
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and the Caribbean
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198.6M Shares Outstanding 12.5 M Options
(CAD$0.98 weighted strike price)
CAD$23.8 M (1) Cash Position 11.3 M Shares in Scorpio Gold
(TSXV:SGN)
Analyst Coverage
(1)
As of June 30, 2013
Ewan Mason, HBSc, MBA – Chairman of the Board Peter J. Hawley, BSc, BEng, PGeo Pierre Lacombe, BEng, Eng. Jonathan Berg, BS, MBA Thomas Weng, B. Arts and Economics
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material mined and processed
quality and value of concentrates produced
to 2,750 tpd
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* Silver equivalent ounces (Aq eq) are based on budgeted metal prices of: Ag US$24/oz., Zn US$0.90/lb., Pb US$0.90/lb., Cu US$3.50/lb.
Average Daily Throughput
Recovered Silver in all Concentrates
Recovered Zinc in Zinc Concentrate
Recovered Copper in Copper Concentrate
Recovered Lead in Lead Concentrate
Silver Equivalent oz.* Recovered in all Concentrates
Silver 58% Lead 10% Zinc 22% Copper 10%
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Category Tonnes x1000 Silver (g/t) Zinc (%) Lead (%) Copper (%) Silver x 1000 (oz.) Zinc x 1000 (lbs) Lead x 1000 (lbs) Copper x 1000 (lbs) Proven 89 164.5 3.29 1.50 0.50 470 6,448 2,932 976 Probable 333 186.6 3.14 1.64 0.47 1,997 23,052 12,026 3,416 Proven & Probable 422 181.9 3.17 1.61 0.47 2,467 29,500 14,958 4,393 Fully Diluted Proven & Probable 533 98.2 1.74 0.88 0.25 1,683 20,411 10,378 2,997 This mineral reserve estimate was prepared by MDA using a $60/tonne NSR value cut-off and metal prices of $25/oz. Ag, $0.85/lb. Zn, $0.90/lb. Pb, and $3.40/lb. Cu. A NI 43-101 technical report to support this estimate was filed on SEDAR on May 22, 2013.
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Regional scale fault Local mineral controlling fault Late fault Mineralized zone North Mine Intrusive
U D D U NW M5 M4 M3 M2 D U M1 ? AA U M6 D M7 ?
250 m
350 m
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The PEA is based on Measured, Indicated, and Inferred resources in Nuestra Señora, El Cajón and San Rafael deposits. A PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied that would enable them to be classified as mineral reserves. There is no certainty that the PEA scope and/or timeline will be realized.
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Category Tonnes x 1,000 Gold (g/t) Silver (g/t) Zinc (%) Lead (%) Copper (%) Gold x 1000 (oz.) Silver x 1000 (oz.) Zinc x 1000 (lbs) Lead x 1000 (lbs.) Copper x 1000 (lbs.) Measured 2,208 0.14 107.1 3.57 1.57 0.02 10 7,603 173,627 76,483 1,006 Indicated 6,537 0.14 120.3 2.07 0.84 0.22 30 25,271 298,384 121,484 32,304 Inferred 982 0.06 155.8 1.42 0.63 0.49 2 4,920 30,726 13,749 10,596
Category Tonnes x 1,000 Gold (g/t) Silver (g/t) Zinc (%) Lead (%) Copper (%) Gold x 1000 (oz.) Silver x 1000 (oz.) Zinc x 1000 (lbs) Lead x 1000 (lbs) Copper x 1000 (lbs) Underground Nuestra Señora 1,461
1.63 0.78 0.28
52,475 25,142 9,049 El Cajón 2,319 0.21 144.3
15 10,760
San Rafael 120 Zone 518 0.12 151.5
2 2,523
Open Pit (San Rafael) Main & Upper zones 5,474 0.13 94.1 3.61 1.49
16,563 435,276 179,443
438 0.17 149.8
2 2,110
The mineral resource estimates included in the PEA were prepared by MDA using a $60/tonne NSR value cut-off and metal prices of $25/oz. Ag, $0.85/lb. Zn, $0.90/lb. Pb, $3.40/lb. Cu and $1,400/oz. Au. Mineral resources do not include internal dilution, ore loss, or external dilution by waste tonnage at zero grades. Material Processed in the PEA does include allowances for dilution and ore loss. Mineral resources that are not mineral reserves do not have demonstrated economic viability. A NI 43-101 technical report to support the PEA was filed on SEDAR on May 22, 2013.
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Category Tonnes x 1,000 Gold (g/t) Silver (g/t) Copper (%) Gold X 1000 (oz.) Silver x 1000 (oz.) Copper X 1000 (lbs) Indicated 2,597 0.21 149.1 0.48 18 12,451 27,742 Inferred 850 0.17 121.8 0.41 5 3,331 7,679
This updated mineral resource estimate was prepared by MDA using a 60 g/t Ag eq cut-off. A NI 43-101 technical report supporting this estimate was filed on SEDAR on May 22, 2013. Tonnes x 1,000 Gold (g/t) Silver (g/t) Copper (%) Gold x 1000 (oz.) Silver x 1000 (oz.) Copper x 1000 (lbs) 2,319 0.21 144.3 0.47 15 10,760 24,053
A $60/tonne NSR value cut-off and metal prices of $25/oz. Ag, $0.85/lb. Zn, $0.90/lb. Pb, $3.40/lb. Cu and $1,400/oz. Au were considered by the PEA. Material Processed in the PEA includes allowances for dilution and ore loss. Mineral resources that are not mineral reserves do not have demonstrated economic viability. A NI 43-101 technical report supporting the PEA was filed on SEDAR on May 22, 2013.
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Category Tonnes x 1,000 Gold (g/t) Silver (g/t) Zinc (%) Lead (%) Gold x 1000 (oz.) Silver x 1000 (oz.) Zinc x 1000 (lbs) Lead x 1000 (lbs) Measured 5,124
0.140 72.9 2.10 0.93 23 12,013 237,277 104,906
Indicated 9,591
0.102 53.3 1.94 0.81 31 16,445 410,756 170,860
M&I 14,715
0.115 60.2 2.00 0.85 54 28,458 648,033 275,767
Inferred 2,048
0.220 58.8 0.25 0.93 14 3,875 11,425 41,938
Tonnes x 1,000 Gold (g/t) Silver (g/t) Zinc (%) Lead (%) Gold x 1000 (oz.) Silver x 1000 (oz.) Zinc x 1000 (lbs) Lead x 1000 (lbs) 5,474 0.13 149 3.61 1.49 23 16,563 435,276 179,443 This updated mineral resource estimate was prepared by MDA using a 1.5% zinc equivalent (Zn eq) cut-off. A NI 43-101 technical report that supports this estimate was filed on SEDAR on May 22, 2013.
A $60/tonne NSR value cut-off and metal prices of $25/oz. Ag, $0.85/lb. Zn, $0.90/lb. Pb, $3.40/lb. Cu and $1,400/oz Au were considered by the PEA. Material Processed in the PEA includes allowances for dilution and ore
technical report to support the PEA was filed on SEDAR on May 22, 2013.
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Category Tonnes x 1,000 Gold (g/t) Silver (g/t) Copper (%) Gold x 1000 (oz.) Silver x 1000 (oz.) Copper x 1000 (lbs) Indicated 2,644 0.150 100.7 0.28 13 8,562 16,291 Inferred 454 0.112 80.6 0.20 2 1,175 1,967
This updated mineral resource estimate was prepared by MDA using a 60 g/t Ag eq cut-off. A NI 43-101 technical report that supports this estimate was filed on SEDAR on May 22, 2013.
A $60/tonne NSR value cut-off and metal prices of $25/oz. Ag, $0.85/lb. Zn, $0.90/lb. Pb, $3.40/lb. Cu and $1,400/oz Au were considered by the PEA. Material Processed in the PEA includes allowances for dilution and ore loss. Mineral resources that are not mineral reserves do not have demonstrated economic viability. A NI 43-101 technical report to support the PEA was filed on SEDAR on May 22, 2013. Tonnes x 1,000 Gold (g/t) Silver (g/t) Copper (%) Gold x 1000 (oz.) Silver x 1000 (oz.) Copper x 1000 (lbs) 956 0.154 150.7 0.41 4.7 4,633 8,601
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Prospective Ground at La Verde
Mineralized Horizons Ave. width Strike Dip
Tonnes La Verde 25 350 150 1,312,500 3,543,750 41 5 350 150 262,500 708,750 San Juan 7 350 150 367,500 992,250 Bajo San Juan 4 350 150 210,000 567,000 La Rampa 7 350 150 367,500 992,250 Nuevo 6 350 150 315,000 850,500 Isabel 35 350 150 1,837,500 4,961,250 Total 12.71 4,672,500 12,615,750
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* Only 4% of our non-producing concession area is subject to a 1.25% NSR royalty
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Scorpio Mining Corporation Suite 606 - 40 University Ave. Toronto, ON M5J 1T1 Tel: 416-585-2200 Fax: 416-585-8026 www.scorpiomining.com Email: scorpio@scorpiomining.com Victoria Vargas VP Investor Relations and Corporate Communications Tel: 416-585-2200 (Ext. 103) Email: vvargas@scorpiomining.com