Suppliers News (February 19, 2007)

Scorpio awards Nuestra Senora prefeasibility contracts

Scorpio Mining (SPM-T) recently awarded a number of engineering contracts to companies as part of its efforts to advance the Nuestra Senora silver-zinc project in Sinaloa state, Mexico.

All the contract work will come together in April to underpin a prefeasibility study, with Quebec engineering firm Genivar putting all the pieces together in the final report. A production decision will be made once all the data are gathered.

The resource estimate will be done by Val d’Or, Que.-based Geopointcom, known for its geostatistics analyses and three-dimensional modelling; Consultations Minires 2000 will design the mine; metallurgical testing will be carried out by SGS Mineral Services, based in Lakefield, Ont.; Mill design, other metallurgy and preparation of the prefeasibility study will fall to Genivar and a review of the mill design will be done by engineering firm AMEC.

The project is located about 10 km east of the town of Cosala in Sinaloa state. Nuestra Senora hosts four past-producing silver-zinc-copper-lead-gold deposits that were developed and exploited by Asarco from 1954 to 1965.

Micon signs on with Marathon

Marathon PGM (MAR-V, MRPGF-O) has hired mineral consultant Micon International to manage the feasibility study on the Marathon PGM-copper project in northwestern Ontario.

Micon, with partners Met-Chem Canada, Golder Associates, and P&E Mining Consultants, is now working on the study. All the companies have worked with Micon on other studies at different projects.

Golder conducted geotechnical drilling on the Main Zone for pit slope studies in 2006. And P&E has worked on resource estimates for the project since 2005 and completed a preliminary economic assessment of the project in June 2006. That study is being revised to include results from recent drilling, eventually leading to a new resource estimate.

The company hired Raymond Mason as its project manager and co-ordinator, and all of the feasibility study contractors will report to him.

Drilling continues on the Malachite zone at Marathon. Meanwhile, 1 km south of Malachite, another drill was brought in to explore the SG zone where previous trenching revealed platinum, palladium and copper values.

The 100%-owned Marathon PGM-copper project is located about 10 km north of Marathon, Ont., in the Hemlo gold district.