Introduction

The Platte River Project encompasses 10,989.9 ha, the greater portion of which is contiguous to the northern boundary of Scorpio’s Nuestra Senora claims. With the Platte River acquisition, Scorpio has become the major mineral claim holder in the Cosala area. The Company's land position now totals 26,445.32 ha, spanning approximately 25 km north-south and 22.6 km east-west, and containing over 48 known deposits. Road access is excellent to a majority of the deposits in the area.

Figure 1.  Property & Deposit Location Map

Deposits

The Platte River claims contain at least eight known mineralization types as follows:

• La Verde/El Cajon type - silver-copper-gold mineralization
• San Raphael type - silver-lead-zinc-iron with massive sulphide content
• Los Venados type - silver-copper-lead-zinc with low sulphide content
• La Estrella type - silver-copper-lead-zinc with pods of massive sulphides
• Local silver-gold stockwork and vein deposits
• Porphyry copper occurrences
• Magnetite occurrences
• Wollastonite occurrences

Evaluation

Deposits evaluated and drilled resulting in NI 43-101 compliant resources or significant intercepts:

• San Raphael Deposit: massive sulphides with NI 43-101 compliant resources (see San Raphael deposit below and Figure 2).
• 120 Deposit: silver-copper-gold and silver-copper-gold-lead-zinc with NI 43-101 compliant resources, internal economic study on exploitation methods, metallurgical work (see 120 deposit below and Figure 2).
• Upper Zone Deposit: silver-gold with NI 43-101 compliant resources (see Upper Zone deposit below).
• El Cajon Deposit: silver-copper-gold with NI 43-101 compliant resources, internal economic study on exploitation methods, metallurgical work (see El Cajon deposit below and Figure 2).
• La Verde Deposit: silver-copper-gold, operating mine/mill (see La Verde deposit below and Figure 2).
• Los Venados Deposit: silver-copper-lead-zinc-gold (see Los Venados deposit below).

Targets drilled with mineralization:

• La Bufa Anomalies/Prospects: silver-copper-gold
• La Estrella Anomalies/Prospects (former ASARCO mine): silver-copper-lead-zinc-gold
• Magistral Anomalies/Prospects: silver-copper-gold-magnetite
• San Antonio Anomalies/Prospects: silver-copper-gold
• Caprichos Norte y Sur Anomalies/Prospects: silver-copper-gold

Figure 2.  Detailed View of the Most Advanced Projects

Targets Under Evaluation:

Targets known but not evaluated or worked yet:

• San Ramon target: silver-copper-gold
• Simon target: silver-copper-gold
• Chilicotes target: gold

Detailed Deposit Overview

San Rafael Deposit - Main Zone, 120 Zone and Upper Zone

The San Raphael Deposit is located approximately 10 km from Scorpio’s milling facility and has all weather road access, power and water.

The San Rafael deposit consists of three distinct mineralized zones; the Main Zone, the 120 Zone and the Upper Zone, each representing a unique mineralization style.

Main Zone

The zinc-lead-silver Main Zone is a discrete, tabular, massive sulfide body on the contact between the overlying volcanics and the underlying limestones that strikes 320 degrees and dips 10 to 30 degrees southwest. The massive sulfide mineralization, often containing greater that 75% sulfides, is zinc, lead and silver dominant with only weak copper and gold. The mineralized body is only 5 m below surface at its shallowest point and the general size as currently defined is on average 700 m in length, 15 to 20 m in thickness and down dip extends for 300 m continuously and up to 500 m discontinuously. Open on strike in both directions.

The deposit is defined by 194 surface drill holes consisting of 124 reverse circulation and 70 diamond drill holes with drill spacing between 25 and 50 m.

Due to it’s configuration and closeness to surface Scorpio believes the San Raphael is amenable to low cost open pit surface mining.

An internal study has been conducted with respect to reviewing the extraction of the deposit by both open pit and underground mining taking into account metallurgical recoveries.

Mine Development Associates’ (“MDA”) last update of the San Raphael related deposits was in May, 2009 with metal prices revised in July – August 2009. The San Raphael stated resource is fully diluted to 3 m by 3 m by 3 m blocks. Metal prices used for the estimate were US$12 per oz. silver, US$0.80 per lb. zinc, US$0.70 per lb. lead, US$2.00 per lb. copper and US$750 per oz. gold. No metal recoveries were applied as this is an in situ resource.

Recently prepared mineral resource estimates for the San Raphael deposits using 1.5% and 4.5% zinc equivalent cutoff grades are as follows:

Table 1.  Mineral Resource Estimate - Main Zone & Upper Zone - August 12, 2009

Note: Metal prices used in above estimates are US$12/oz silver, US$0.80/lb zinc, US$0.70/lb lead, US$2.00/lb copper and US$750 /oz gold. Mineral resources are not reserves and do not have demonstrated economic viability.

San Rafael Longitudinal Section

San Rafael Surface Plan View with Drill Spacing and Deposits Outlined

120 Zone

The silver-copper-gold dominated 120 Zone lies within the eastern portion of the San Rafael deposit and occurs primarily at depth below the up-dip extension of the Main Zone massive sulfide, though both styles of mineralization do overlap in the near surface. As currently defined, the 120 Zone mineralization is on average 500 m in length, 250 m in width and extends to a depth of about 350 m below the surface (open on strike and at depth). The skarn mineralization generally strikes northwest and dips up to 50 degrees northeast. The upper portions of the 120 Zone mineralization extends up through, and overlap, the Main Zone massive sulphide.

An internal study has been conducted with respect to reviewing the extraction of the deposit by both open pit and underground mining taking into account metallurgical recoveries. 

Table 2.  Mineral Resource Estimate - 120 Zone - August 12, 2009

Note: Metal prices used in above estimates are US$12/oz silver, US$0.80/lb zinc, US$0.70/lb lead, US$2.00/lb copper and US$750 /oz gold. Mineral resources are not reserves and do not have demonstrated economic viability.

Upper Zone

The poorly defined silver-gold dominant Upper Zone occurs within near surface volcanic rocks along the east side of the San Rafael deposit. The Upper Zone mineralization lies 50 to 100 m stratigraphically above and sub-parallel to, the up-dip extension of the Main Zone massive sulfide. The zone can be up to 15 m in thickness and the mineralization remains open on strike in both directions.

Table 3.  Mineral Resource Estimate - Upper Zone - August 12, 2009

Note: Metal prices used in above estimates are US$12/oz silver, US$0.80/lb zinc, US$0.70/lb lead, US$2.00/lb copper and US$750 /oz gold. Mineral resources are not reserves and do not have demonstrated economic viability.

El Cajon Deposit

The Cajon deposit is located approximately 9 km from Scorpio’s milling facility and has all weather road access, power and water.

The deposit is similar in mineralization style and geological setting to the San Rafael 120 Zone mineralization. The disseminated mineralization is hosted within a skarn altered limestone country rock along the east and north sides of a diorite intrusive stock. Skarn mineralization can be found up to 150 m from the diorite contact. Metal deposition is associated with generally 2 to 5% disseminated sulfides and isolated high metal grades occurring with 50% sulfide content.

Overall, the El Cajon deposit as currently defined is roughly circular in plan view occurring within an area approximately 450 m across. Internally the mineralization is aligned along the general 330 degree strike trend and has an elevation range of 200 m along the intrusive contact.

The El Cajon Ag-Cu-Au deposit has also been explored with 25- to 50-m drill spacing and is also open to expansion. Preliminary metallurgical work completed to date reports acceptable industry normal recoveries. An internal study has reviewed the economics of exploitation of the deposit by underground extraction.

El Cajon Resource Estimate

A recently prepared mineral resource estimate for the El Cajon deposit using 50 g/t and 100 g/t silver equivalent cutoff grades is as follows:

Table 4.  Mineral Resource Estimate – El Cajon Deposit - October 8, 2009

Note: Metal prices used in above estimate are US$12/oz silver, US$2.00/lb copper and US$750 /oz gold. Mineral resources are not reserves and do not have demonstrated economic viability.

For the above mineral resource estimates, Platte River and Mine Development Associates (MDA) of Reno, Nevada worked together to define geologic models using interpretive cross sections spaced evenly at 25-m intervals.  The geologic interpretations were then used to guide the creation of individual metal domain models (based on naturally occurring populations for each metal) on the same 25-m cross sections. The initial cross sections were subsequently “sliced” and rectified on perpendicular long sections spaced evenly every 3 m. Metal grade compositing was done to 3-m down-hole lengths, honoring all material type and mineral domain boundaries, and the block model metal grades were estimated individually using ordinary kriging methods.  The stated resource for each deposit is fully diluted to 3 m by 3 m by 3 m blocks and tabulated using zinc equivalent grades for the San Rafael deposit and silver equivalent grades for the El Cajon deposit. Paul Tietz, C.P.G. (AIPG) and Steve Ristorcelli, R.P.G. are the Qualified Persons for MDA responsible for the resource estimates. A NI 43-101 technical report being prepared by MDA to support the above resource estimates will be filed on Sedar on or before November 28, 2009.

La Verde Mine

The operating la Verde Mine is under lease to COMSA, a Mexican contract mining company and their production from January to June 2009 has averaged about 10,500 tonnes with grades of 120 g/t silver, 0.53% copper and 0.13 g/t gold which has been processed at the Platte River 400 tonne per day floatation plant located in the town of Cosala. In addition to the mill facility area, office facilities, equipment yard and repair facilities, two houses, and a housing unit for additional staff exist.

Historically, the mine has produced about 1.4 million tonnes of ore at grades between 105-180 g/t silver, 0.53-0.65% copper. The resources around the active La Verde mine are currently unknown and the downward potential of the areas being mined have yet to be evaluated.

Los Venados Deposit

The Los Venados  silver-copper-zinc-lead deposit is located approximately 10 km from the town of Cosala with excellent infrastructure such as paved highway, hydro power and water. A total of 18 surface drill holes have been drilled by Platte River with all 18 reporting positive results. (see below).  The Company’s mandate is to complete another 15 to 20 drill holes in the deposit to support a resource calculation.

Parral District, Chihuahua

La Revancha Deposit

The La Revancha silver deposit is located approximately 10 to 15 km from multiple custom mill facilities able to process the mineralized material. A total of 38 surface holes have been drilled by Platte River defining a body approximately 300 m in length with the deposit remaining open on strike (see below). 

Mineralization outcrops on surface and was historically exploited by a small surface open cut. The broad mineralized package is approximately 36 m in true width and consists of rhyolite hosted stockwork veining, quartz veining and silicification which has been drilled at depth and appears to be amendable to low cost open pit mining.

Two historical drill holes in the mineralized structure intercepted sulfide mineralization 300 m below surface.

The Company’s mandate is to complete another 15 to 20 drill holes in the deposit to support a resource calculation.

La Revancha Drill Cross Section

Le Revancha Surface Plan Map

Le Revancha Drill Results

Tepozan Deposit

The silver-gold deposit is a vein system with limited historical production. The property is drill ready with detailed mapping and sampling already performed. Sampling results have returned grades of 100 to 300 g/t silver (max. 1,335 g/t silver) and 1 to 5 g/t gold.

Villa Ocampo Deposit

The Villa Ocampo zinc-silver-lead Deposit is located within 50 km of custom milling and access to the property is excellent. The deposit consists of at least five known mineralized structures locally between 2 to 5 m in width and traced on surface for more than 6 km in total strike length. Sampled zinc grades are consistently greater than 7% and generally between 11 to 15% with 60 to 150 g/t silver and 1 to 3% lead.