Scorpio Mining’s Q2 production slumps on lower grades, maintenance
TORONTO (miningweekly.com) – TSX-listed Scorpio Mining on Thursday said its silver-equivalent production for the quarter ended June 30, had declined by 12.6% quarter-on-quarter as a result of lower grades, which, in turn, resulted in lower recoveries.
The company encountered lower silver, copper and lead grades at the Nuestra Señora mine, in Sinaloa state, Mexico, in the second quarter.
This resulted in silver output declining 14.4% to 214 926 oz, copper output declining 23% to 338 862 lb and lead output declining 18.4% to 1.47-million pounds. Zinc output, however, increased 0.1% to 3.19-million pounds.
The company said the reduced plant throughput in the period was mainly the result of the scheduled relining of the two ball mills and accumulated downtime of one of these mills, which required replacement of a worn pinion and subsequent modification and corrective maintenance to overcome an elevated vibration issue.
Despite the lower production, the company was optimistic about safely mining higher-grade ores from secondary stopes that could be readily developed as a result of the ongoing placement of backfill.
Scorpio’s Nuestra Señora mine has flexible mining methods and diversified metal production. It has a fully mechanised underground operation and a processing facility with permitted capacity for expansion to 4 000 t/d. The plant produces zinc, copper and lead concentrates, with a significant payable silver component in the copper and lead concentrates.
Scorpio also has numerous exploration targets in the vicinity of its current operations, as well as the advanced El Cajón and San Rafael development projects. The company's strategy for near-term growth is currently focused on mine development of the El Cajón deposit upon permitting.
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