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Scorpio Mining Corporation announced the acquisition of important mineral concessions in the Cosalá District, Sinaloa, Mexico, and outlines exploration plans for the remainder of 2011.
On March 16, 2011 the Corporation signed an agreement to acquire mineral concessions totalling 1,387 ha (13.87 km2) from a subsidiary of Grupo Mexico S.A.B. de C.V. for a cash payment of US$615,000. Grupo Mexico retains a 1.25% Net Smelter Return. This acquisition further consolidates the Corporation's extensive land position in the Cosalá District, totalling 29,161 ha and spanning an area of ~23 km by 19 km. The newly acquired concessions are adjacent and/or close to several important resource areas and exploration targets, including the San Rafael, El Cajón and Los Venados deposits, and the El Simon target. Exploration plans for the remainder of 2011 include surface and underground diamond drilling on multiple deposits/targets in the Cosalá District, Sinaloa and on projects in the Parral District, Chihuahua. Exploration drilling will include: •10,500 metres of underground drilling at the Nuestra Señora Ag-Zn-Cu-Pb mine; •2,800 metres of underground drilling at the La Verde Ag-Cu-Au mine; •5,000 metres of surface drilling to test several early-stage Ag-Cu-Pb-Zn-Au exploration targets in the Cosalá District; and, •Up to 7,000 metres of surface drilling at the La Revancha and Tepozán projects in Parral, Chihuahua. Parviz Farsangi, President & CEO reports, "Scorpio Mining is very fortunate to hold such a large land position in a relatively unexplored area, which is proven to host economic deposits and contains an abundance of promising early-stage exploration targets. We believe the potential to advance our known deposits and to make new discoveries is excellent. The upcoming aggressive exploration programs complement a determined effort to grow Scorpio Mining by developing its own assets. We are confident we have the projects and the people to reach this next stage of success." |
