Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Toronto-listed Scorpio Mining (TSX: SPM) reported quarterly silver production at its Nuestra Señora mine in Mexico fell 10%, driven by lower head grades.
The Canadian miner produced 330487 ounces of silver in the first quarter, down 10% from last year. Production on a silver equivalent basis fell 28% to 620,356 ounces.
Exploration Update
Scorpio Mining has completed the first phase of the drilling program at its 100% owned La Revancha Project, Chihuahua State, Mexico, and commenced a 2,500 meter drilling program at its nearby 100% owned Tepozán Project, Durango State. Both projects are located in the Parral Mining District, which has a mining history dating back to colonial times and hosts several 100 million ounce silver deposits.
La Revancha has over 1.5 kilometer of outcropping veins oriented north-south and dipping steeply. Mineralization is hosted in silicified breccia and replacement zones filling fractures and faults. A considerable amount of historic mining has taken place in the vein system.
