Arian Silver’s MD&A and Financial Statements for the Three Months Ended 31 March 2015

28 May 2015

Arian Silver Corporation (“Arian Silver” or the “Company”), a silver exploration, development and production company with a focus on projects in the silver belt of Zacatecas, Mexico, announces today the release of its Management’s Discussion and Analysis (“MD&A”) and unaudited Financial Statements (“Financials”) for the three months ended 31 March 2015.

The MD&A and audited Financials will be available at SEDAR at and on the Company’s website at These documents can also be obtained on application to the Company. The following information has been extracted from the MD&A and Financials. The financial information in this announcement does not constitute full statutory accounts.

Arian Silver’s Chief Executive Officer, Jim Williams, commented today, “Arian Silver has continued to deliver on its objectives during 2015. The refurbishment of our processing plant was completed successfully and it is now in a commissioning phase with first silver-lead concentrates having been produced. Looking ahead, I expect to report on exploration results and slightly longer-term, on the ramp-up of production throughout the rest of the year and into 2016. I especially look forward to Arian Silver being recognised by investors as a producing mining company in due course.”

The Company’s strategy is to:

  • establish a silver mining business capable of sustaining more than two million ounces per annum, and
  • build shareholder value by expanding silver resources on the Company’s mining concessions in Zacatecas, Mexico.

During the quarter, the Company commenced the phased commissioning programme of La Tesorera processing plant (the “Plant”), which saw first concentrate produced from the first of two flotation circuits.


  • Mechanical completion of the Plant
  • Plant commissioning commenced
  • First concentrate was produced from the Plant
  • 5,000 metre exploration programme at Guanajuatillo section of the San José mine

During the period the Company drew down $4.1 million in accordance with the terms of the Base Metals Purchase Agreement (“BMPA”) with Quintana San Jose Streaming Co. LLC (“Quintana Streaming”).

The production and revenue received from first concentrate will be recognised in the Company’s second quarter results.

Total assets increased since 31 December 2014 as a result of the continued investment in the mine and Plant and the capitalisation of interest for the period. The movement in the Company’s cash balance reflects the drawdown under the BMPA, the continued investment in the mine and Plant together with general corporate and administrative expenditures.

The increased net profit was primarily due to the fair value adjustment relating to the derivative liability (this is explained further in note 7 to the Financial Statements).

The refurbishment and installation of the Plant was completed during Q1 2015, at which time the commissioning phase commenced, which was continuing at period end.

An exploration drilling programme was undertaken within the Guanajuatillo section of the San José vein. Guanajuatillo is located in the middle of the 2km long vein structure with evidence of the vein to either side. The intention of the drilling programme was to upgrade the inferred resource within that area to measured or indicated, with a view to upgrading the Company’s NI 43-101 compliant mineral resource estimate.

In preparation for increased mining rates in future, the construction of an additional decline ramp close to Guanajuatillo commenced.


Cash of $1.8 million was received in April 2015 pursuant to the terms of the BMPA. The Company has now received $13.6 million of the $15.6 million committed by Quintana Streaming.


Summary of quarterly results
The Company’s focus during the quarter was the completion of refurbishment and installation of the Plant, and the commencement of its commissioning. During the quarter, two significant milestones were achieved, being the mechanical completion of the Plant and the production of first silver-lead concentrate.

Revenues in respect of the first concentrate sales will be reported in Q2 2015.

The Company is currently commissioning its recently refurbished processing plant. This, together with the planned ramp-up to maximum processing capacity of 1,500 tonnes per day over the coming months, and achievement of consistent production thereafter sees the Company firmly on the path to achieving its long-term strategy.

The Plant is projected to deliver substantial cost savings against the Company’s previous toll milling operations. With reduced operating costs, the Company should enjoy significantly higher operating margins than would have been achieved in the past under the same conditions.

For further information please contact:

Arian Silver Corporation
Jim Williams, CEO
David Taylor, Company Secretary
Fuad Sillem, Head of Corporate Development
(London) +44 (0)20 7887 6599
Northland Capital Partners Limited
Gerry Beaney / John Howes
(London) +44 (0)20 7382 1100


Grant Thornton UK LLP
Philip Secrett / Richard Tonthat
(London) +44 (0)20 7383 5100
Yellow Jersey PR Limited
Dominic Barretto
(London) +44 (0)7768 537 739

Forward-Looking Information:
Certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterised by words such as “planned”, “expected”, “forecast”, “projected”, “intended”, “believe”, “anticipate”, “budget”, “scheduled”, “outlook” and other similar words or statements that certain events or conditions may or will occur.

Forward-looking statements are based on the opinions and estimates of management at the dates the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements.

These factors include the inherent risks involved in exploration and development, and mining of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated operating costs and expenses, uncertainties related to the necessity of financing, the availability of and costs of financing needed in the future, and other factors described in the Company’s MD&A under the heading “Risk Factors and Uncertainties”.

The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change, other than as required by securities laws. The reader is cautioned not to place undue reliance on forward-looking statements (including, without limitation, statements relating to the mineral resource estimates, statements regarding the San José Project, the ability of the Company to achieve, maintain and possibly increase planned levels of production, and the ability of the Company to generate positive cash flow from the San José Project, the ability to continue or implement proposed drilling programmes on the San José vein system and the Company’s exploration, development and production plans and objectives), or the ability of the Company to raise additional funds should they be required.

These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realised or substantially realised, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, the performance of contractors and plant and equipment, and failure to achieve anticipated production levels and mineral grades for ore from the San José Project, failure to establish estimated mineral reserves, the possibility that future exploration results will not be consistent with the Company’s expectations, uncertainties relating to the availability and costs of financing needed in the future, changes in the silver commodity price, changes in equity markets, political developments in Mexico, changes to regulations affecting the Company’s activities, delays in obtaining or failures to obtain required regulatory approvals, the uncertainties involved in interpreting exploration results and other geological data, and the other risks involved in the mineral exploration and development industry.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Any mineral resource figures disclosed are estimates and no assurances can be given that the indicated levels of minerals will be produced. Such estimates are expressions of judgement based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that the resource estimates are well established, by their nature resource estimates are imprecise and depend, to a certain extent, upon statistical inferences, which may ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the Company.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of the Company in the United Sates. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) and no stock exchange, securities commission or other regulatory authority accepts responsibility for the adequacy or accuracy of this release nor approved or disapproved of the information contained herein.