Americas Silver Corporation - News - Scorpio Mining Intercepts 3.85 Meters of 2802 g/t Silver, 1.75 g/t Gold and 7.76% Combined Base Metals at the San Rafael Development Project

News

Jul 18, 2012

Scorpio Mining Intercepts 3.85 Meters of 2802 g/t Silver, 1.75 g/t Gold and 7.76% Combined Base Metals at the San Rafael Development Project

Toronto, July 18, 2012, 2012 - Scorpio Mining Corporation (TSX: SPM) ("Scorpio Mining" or the "Corporation") is pleased to report preliminary results from the recently completed drill program at its 100% owned San Rafael Project in Cosalá, Sinaloa, Mexico. The San Rafael Project is a zinc-lead-silver-copper project located approximately 16 km from Scorpio Mining's operating Nuestra Señora plant which currently processes approximately 1,500 tonnes per day.

Hole SR-298 intersected 4.45 meters (3.85 m true width) of 2,802 g/t Ag, 1.75 g/t Au, 0.928% Cu, 4.489% Pb and 2.341% Zn in the Upper Zone. Hole SR-310 intersected 5.6 meters (5.41 m true width) of 2,626 g/t Ag, 2.096 g/t Au, 0.614% Cu, 2.335% Pb and 0.203% Zn also in the Upper Zone of the deposit.

San Rafael and El Cajón are two skarn related mineral deposits with significant resources previously reported and Updated Resources are scheduled to be released by the end of August 2012. These deposits are within 14-16 km of haulage distance of the Nuestra Señora processing plant. Drill results for El Cajon mineral deposit will be released separately.

The San Rafael mineral occurrence is composed of five distinct bodies:

the zinc-lead-silver Main Zone;
an oxidized silver-gold-copper portion of the Main Zone;
the zinc-lead-silver Upper Zone;
the copper-silver 120 Zone; and
the NW Extension which is similar to the Upper Zone.

The Upper Zone and newly discovered Northwest (NW) Extension are relatively flat lying bodies contained entirely within the upper rhyolitic volcanic rocks as opposed to the more contact related Main Zone and structurally controlled 120 Zone. Scorpio Mining believes that the NW Extension may add some tonnage to the upcoming San Rafael Updated Resource estimate. This potential tonnage is conceptual in nature and is based on previous drill results. There has been insufficient exploration to define a current resource and Scorpio Mining cautions that there is a risk further exploration will not result in the delineation of a current resource in the NW Extension.

Table 1 below demonstrates results for previously unreported holes SR-293 to SR-357. Holes not shown in the table within the series SR-293 to SR-357 are not considered to contain significant values. To be considered significant, zones must be more than 1 meter in width, and contain in excess of either 40 grams per tonne silver and/or 1% combined base metals.

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Hole #	Azm°	Incl°	Zone	From (m)	To (m)	Width (m)	True (m)	Au (g/t)	Ag (g/t)	Cu (%)	Pb (%)	Zn (%)
SR293	240	-66	Upper	151.50	158.00	6.50	4.98	0.811	321	0.155	0.186	0.425
			Including	153.00	155.00	2.00	1.53	1.220	765	0.278	0.081	0.089
SR295	240	-79	Upper	92.00	94.90	2.90	2.51	0.585	132	0.062	0.163	0.080
SR296	60	-69	Upper	73.10	80.00	6.90	6.83	0.154	135	0.018	0.071	0.021
SR297	0	-90	Upper	105.00	106.60	1.60	1.47	0.896	47	0.073	0.046	0.060
SR298	240	-78	Upper	109.10	113.55	4.45	3.85	1.750	2802	0.928	4.489	2.341
			Including	110.70	112.00	1.30	1.13	2.600	8130	2.520	11.750	2.130
SR299	60	-74	120 + Main	59.40	61.00	1.60	1.58	1.670	260	0.182	0.094	0.021
			Upper	70.50	78.00	7.50	7.50	0.355	525	0.091	0.207	0.028
			Including	72.10	75.70	3.60	3.60	0.575	894	0.169	0.355	0.040
SR301	60	-53	Upper	45.00	55.00	10.00	8.66	1.001	386	0.120	0.058	0.011
			Including	49.50	52.20	2.70	2.34	2.460	784	0.027	0.075	0.005
SR302	0	-90	Upper	53.00	54.60	1.60	1.39	0.691	203	0.159	0.104	0.017
			Upper	64.00	79.00	15.00	12.99	0.317	363	0.051	0.139	0.031
			Including	70.70	77.30	6.60	5.72	0.596	727	0.100	0.262	0.028
SR303	240	-64	Upper	21.50	24.00	2.50	1.61	0.703	90	0.006	0.075	0.002
SR304	240	-55	Upper	145.00	150.90	5.90	3.38	0.956	1186	0.353	2.628	0.180
			Including	147.10	150.00	2.90	1.66	1.483	2280	0.667	3.424	0.179
SR305	60	-70	Upper	113.00	118.00	5.00	3.54	0.641	149	0.047	0.238	0.121
SR306	60	-77	Upper	91.80	95.60	3.80	3.80	0.634	210	0.047	0.246	0.024
SR310	0	-90	Upper	55.70	61.30	5.60	5.41	2.096	2626	0.614	2.335	0.203
			Including	57.70	61.30	3.60	3.48	3.130	3905	0.911	3.460	0.302
SR313	0	-90	120 + Main	9.50	52.50	43.00	38.97	0.373	92	0.070	0.368	0.317
			Including	12.00	13.50	1.50	1.30	1.130	631	0.083	1.095	0.261
			and	45.00	51.00	6.00	5.20	0.220	133	0.039	0.218	0.046
SR314	60	-50	NW Exten.	50.50	55.60	5.10	5.02	0.142	155	0.016	1.286	2.212
			Including	53.6	54.6	1.00	0.98	0.386	597	0.037	2.820	4.490
SR315	60	-70	NW Exten.	50.75	53.40	2.65	2.61	0.289	120	0.015	2.206	4.116
SR319	0	-90	NW Exten.	63.90	66.15	2.25	2.22	0.049	12	0.011	0.202	1.745
SR320	60	-50	NW Exten.	49.80	54.00	4.20	4.17	0.087	54	0.019	1.011	2.457
			NW Exten.	64.35	77.30	12.95	12.95	0.139	25	0.005	0.779	2.969
			Including	64.35	72.20	7.85	7.85	0.137	37	0.006	1.152	3.161
			and	75.90	77.30	1.40	0.70	0.077	20	0.010	0.573	8.690
SR321	60	-70	NW Exten.	48.17	52.80	4.63	4.60	0.180	94	0.019	1.847	2.890
			Including	51.45	52.80	1.35	1.34	0.584	270	0.051	6.080	8.790
SR328	60	-70	NW Exten.	50.70	59.10	8.40	8.22	0.182	62	0.011	1.264	1.167
			Including	50.70	51.90	1.20	1.17	0.464	315	0.012	7.660	0.134
SR329	60	-70	NW Exten.	46.00	50.20	4.20	4.06	0.034	32	0.008	0.807	1.811
SR333	240	-70	NW Exten.	45.90	53.70	7.80	6.75	0.121	34	0.011	0.809	3.120
SR334	60	-50	NW Exten.	103.80	105.50	1.70	1.20	0.329	36	0.014	0.761	3.370
SR335	60	-50	NW Exten.	44.60	45.30	0.70	0.66	0.513	70	0.028	1.395	6.470
			NW Exten.	49.40	51.30	1.90	1.84	0.212	65	0.014	0.516	1.065
			NW Exten.	73.70	74.70	1.00	0.97	0.111	9	0.005	0.327	3.240
SR336	60	-70	NW Exten.	47.70	48.80	1.10	1.06	0.280	122	0.018	1.840	2.290
SR337	60	-88	NW Exten.	72.85	74.25	1.40	1.15	0.246	49	0.014	1.665	3.400
SR338	60	-45	NW Exten.	71.00	72.40	1.40	1.40	0.421	103	0.003	3.920	3.220
SR340	60	-75	NW Exten.	50.00	52.35	2.35	2.27	0.130	103	0.040	0.850	2.280
SR341	60	-90	NW Exten.	65.30	67.30	2.00	1.81	0.067	59	0.014	1.647	3.490
			NW Exten.	87.40	88.85	1.45	1.03	0.240	29	0.013	0.941	5.680
SR342	60	-50	NW Exten.	54.00	56.20	2.20	2.07	5.348	77	0.010	1.600	1.070
SR343	60	-70	NW Exten.	54.65	57.00	2.35	2.27	0.185	120	0.019	2.300	1.550
SR344	60	-90	NW Exten.	61.70	63.20	1.50	1.36	0.118	132	0.029	3.420	1.790
SR345	60	-70	NW Exten.	64.45	67.50	3.05	3.00	0.354	93	0.064	3.665	0.846
SR346	60	-90	NW Exten.	68.50	75.50	7.00	6.58	0.193	43	0.020	1.318	0.729
SR347	240	70	NW Exten.	86.90	93.30	6.40	4.90	2.925	122	0.017	2.360	2.450
			Including	86.90	88.40	1.50	1.15	4.670	398	0.050	3.930	8.920
SR348	60	-50	NW Exten.	43.90	46.60	2.70	2.54	0.142	104	1.010	2.480	0.793
			Including	45.00	46.60	1.60	1.50	0.108	154	0.008	2.080	0.874
SR349	60	-70	NW Exten.	41.40	43.25	1.85	1.84	0.036	34	0.009	2.820	0.643
SR350	60	-90	NW Exten.	61.50	66.70	5.2	4.89	0.106	85	0.190	0.391	7.213
			Including	65.00	66.70	1.70	1.60	0.176	157	0.545	0.093	15.400
			NW Exten.	74.60	75.45	0.85	0.80	0.307	24	0.008	0.821	4.130
SR351	240	-70	NW Exten.	74.90	77.90	3.00	2.30	0.118	363	0.012	1.034	1.075
			NW Exten.	79.40	81.90	2.50	1.92	0.038	91	0.006	0.593	1.174
			NW Exten.	85.25	87.00	1.75	1.34	0.206	133	0.022	2.140	3.510
SR353	60	-70	NW Exten.	37.50	39.00	1.50	1.50	0.355	39	0.029	2.750	0.257
SR354	60	-90	NW Exten.	47.15	50.90	3.75	2.41	0.128	89	0.022	0.484	1.764
			NW Exten.	62.10	63.45	1.35	0.87	0.569	53	0.007	1.685	4.060
SR355	60	-90	NW Exten.	85.50	89.00	3.50	2.87	0.169	46	0.017	0.888	2.534
SR356	240	-70	NW Exten.	105.30	106.80	1.50	1.15	0.310	32	0.014	0.731	2.620
SR357	60	-75	NW Exten.	90.00	93.00	3.00	2.72	1.010	101	0.016	2.633	3.005

Scorpio Mining has drilled approximately 3,334 meters at the San Rafael Project in 2012. The program completed in-fill drilling on the known zones and delineated mineralization in the newly discovered NW Extension. Mine Development Associates (MDA) of Reno Nevada is currently calculating an Updated Mineral Resource estimate for the deposit that includes approximately 120 new holes completed in 2011 and 2012. The discovery of new mineralization in the NW Extension and the number of new holes will delay this estimate until the third quarter of 2012.

A NI 43-101 technical report to support the resource estimates was prepared by MDA and filed on SEDAR December 4, 2009. Table 2 presents these historical estimates.

Table 2. Measured and Indicated Resources for the San Rafael Project

San Rafael Main and Upper Zone

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Cutoff % ZnEq	Category	Tonnes t x 1,000	Silver (g/t)	Zinc (%)	Copper (%)	Lead (%)	Gold (g/t)
3.5%	Measured	1,793	84.1	3.73	0.07	1.62	0.09
3.5%	Indicated	4,204	91.8	3.29	0.06	1.39	0.13
3.5%	Measured + Indicated	5,997	89.5	3.42	0.06	1.46	0.12
3.5%	Inferred	14	64.1	1.46	0.04	1.45	0.11

San Rafael 120 Zone

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Cutoff g/t AgEq	Category	Tonnes t x 1,000	Silver (g/t)	Zinc (%)	Copper (%)	Lead (%)	Gold (g/t)
100	Indicated	1,916	130.6	0.48	0.34	0.13	0.17
100	Inferred	195	130.8	0.05	0.28	-	0.16

A map of the San Rafael Project, sections of the new NW Extension, and a longitudinal section of the Main and Upper Zones are available on the Corporation's website, at www.scorpiomining.com.

About Us

Scorpio Mining Corporation is a silver producer operating in Mexico with significant base metal by-product credits. The 100% owned Nuestra Señora Mine and plant located in the Cosalá District of Sinaloa State, Mexico, has proven to be a low-cost operation with the benefit of flexible mining methods and diversified metal production. It has a fully mechanized underground operation and a processing facility built for expansion to 4,000 tonnes per day. The plant produces zinc, copper and lead concentrates; with a significant silver component in the copper and lead concentrates. In addition, Scorpio Mining has over 40 exploration targets mostly in the vicinity of its current operations and is currently updating its resource calculation for the San Rafael and El Cajon mineral deposits. The Corporation also holds a 100% interest in the advanced, high-grade La Revancha silver and Tepozán silver-gold projects, both located in the productive Parral District within the respective states of Chihuahua and Durango, Mexico.The Corporation's strategy focuses on exploring and developing its existing mineral properties.

Scorpio Mining's Vice-President of Exploration, James Stonehouse a Registered Geologist with SME (Registration #4168919) and is the Qualified Person for the Corporation's Mexico projects and has reviewed the content of this release. All technical information for the Corporation's Mexico projects is obtained and reported under a formal quality assurance and quality control (QA/QC) program. Samples are shipped to the ALS Chemex preparation laboratory in either Hermosillo or Chihuahua, Mexico for drying, crushing and pulverizing. ALS Chemex; Mexico preparation laboratory, then sends the pulps for assaying to ALS Chemex, Vancouver, an ISO 9001:2000 accredited facility. Details of the QA/QC program are available at: www.scorpiomining.com/i/pdf/reports/QAQC-PD.pdf.

ON BEHALF OF SCORPIO MINING CORPORATION

Parviz Farsangi
President & CEO

For further information contact:
Victoria Vargas, Vice President Investor Relations and Corporate Communications +1 416-585-2200 Email: [email protected]
Rich Kaiser, YES International: 1-800-631-8127; 001-757-306-6090 (outside North America)
Email: [email protected]

Website: www.scorpiomining.com

This news release includes certain statements that may be deemed "forward-looking statements" within the meaning of 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 Corporation's operations, exploration and development plans, expansion plans, estimates, expectations, forecasts, objectives, predictions and projections of the future. Generally, these forward-looking statements can be identified by the forward-looking terminology such as "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 Corporation'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, including its Annual Information Form dated March 26, 2012. 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.