Scorpio tables Candelaria results (July 04, 2001)

Vancouver — The assay results from the first two holes of an ongoing underground drill program by Scorpio Mining (SPM-V) have returned some encouraging values from the Candelaria zone on the past-producing Nuestra Senora polymetallic project in Mexico’s Senora state.

The high-grade zone (one of four past-producing mines on the property) was subject to a 17-hole drill program in 2000. Eleven of the holes cut mineralization that ranged up to 28.7% zinc, 6.7% lead, 2.1% copper, 2.2 grams gold and 87.1 grams silver per tonne over 2.8 metres in hole 5.

Hole 1 of the current program tested the zone 8 metres below the main workings. It cut 7.5% zinc, 7% lead, 0.27% copper, 631.4 grams silver and 2 grams gold over 3.1 metres. At a vertical depth of 16 metres, it hit a second zone returning 2% zinc, 3.1% lead, 0.67% copper, 603.4 grams silver and 1.3 grams gold over 2 metres.

Collared from the same site, hole 2 tested the zone 5 metres below the old workings. It cut 0.29% zinc, 2.9% lead, 0.63% copper, 567.4 grams silver and 1.4 grams gold over 1.5 metres. It was stopped before the second zone was hit.

The drill is currently on hole 10. Further assay results are expected in about a week.

The project was in production from 1956 to 1966. Scorpio has completed airborne magnetics, electromagnetics and radiometric geophysical surveys, as well as satellite imagery, ground geophysics, underground sampling, bulk sampling and three phases of metallurgical testing.

Mineralization is hosted in a stacked manto carbonate replacement deposit, which is open in all directions. Past exploitation is reported to be 120,000 tonnes graded 0.8 gram gold, 750 grams silver, 2.8% copper, 3.5% lead and 6.5% zinc.

The second round of drilling is aimed at delineating the high-grade mineralization in anticipation of collecting a bulk sample.

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