July 8th, 2008
Arian Silver Corporation (“Arian Silver” or the “Company”) today announced that it has initiated an in-house production scoping study at its San Jose Property, Zacatecas State, Mexico. The scoping study (also referred to as a preliminary assessment) will specifically evaluate the economics for contract mining (and custom milling) of a number of already defined near-surface remnant stoping blocks within the existing mine workings of this former producing mine.
- 3 near-surface resource blocks identified for potential near-term contract mining;
- Initial studies support up to a 500 tonne per day (tpd) contract mining operation;
- Discussions continue with contract mining and milling operators;
- Various permitting applications are currently being processed.
Arian’s Chief Executive Officer, Jim Williams, stated, “We believe that the near-surface resource blocks that we have identified within the old workings of the San Jose mine contain sufficient sulphide-rich silver-lead-zinc mineralisation to support an economical contract mining and milling operation. We also believe that any mining of these blocks would be relatively straightforward and there are a number of contract milling options for production of silver-lead-zinc concentrates. We are advancing in-house studies to define the economics of this production scenario. If successful, we aim to achieve near-term cash flow to assist in the evaluation of the much bigger potential of the remainder of the San Jose Property, as outlined in our recent press releases.”
A new programme of underground chip and channel sampling has also been initiated together with a small number of shallow exploration diamond drill-holes to upgrade and confirm the existing exploration and analysis data for the stope blocks. Block modelling is currently underway to more accurately define these resource blocks using a selection of cut-off grades obtained from a combination of previous chip and channel sampling, and diamond drilling.
The Company has applied for all the exploitation permits on the San Jose Vein. As the potential exploitation will take place within the existing workings of the San Jose Mine, Arian Silver’s permitting advisors report that new exploitation permits should be readily available.
Negotiations are also underway with suitable contract miners to obtain quotations for the proposed development and exploitation of these near-surface resources and have commenced an investigation into locally available process plants for the custom milling of this material.
As planned, the scoping study will identify key requirements for the partial rehabilitation of underground access, new development, the provision of mine services to the potential exploitation sites, as well as addressing estimated capital and operating costs.
The potential areas for near-term contract mining on the San Jose Vein are outlined in the two diagrams obtained via the following links:
San Jose Project - Ramp East:
San Jose Project - Ramp West:
About the San Jose Project
Arian Silver’s 6,200-plus hectare (ha) San Jose Property is located in Zacatecas State, Mexico, 55km east of the mining town of Zacatecas, and within the renowned Fresnillo Silver Trend that hosts a number of world-class silver deposits. Arian Silver is currently working on an updated block model for resource estimation and this is on schedule to be released during Q3 2008.
Arian Silver Mexico S.A. de C.V., a wholly-owned subsidiary of the Company, holds a 100% exclusive option to acquire the San Jose Project. The Project concessions include the past producing San Jose Mine, which was operated by a subsidiary of Peñoles from 1973 to 1991 and then by Monarca, which operated the mine between 1993 and 2001. In 2001 the mine closed due to the then prevailing low silver prices.
Additional information with respect to the San Jose Project is contained in a technical report prepared by A.C.A. Howe International Limited, dated 15 April, 2008, and entitled “Resource Estimation Study on the San Jose silver-lead-zinc prospect, Zacatecas, Mexico”. A copy of this report can be obtained from SEDAR at www.sedar.com
Mr. Jim Williams, Eur Ing, Eur Geol, BSc, MSc, DIC, FIMMM, CEng, CGeol, and Chief Executive Officer of Arian Silver, is a “Qualified Person” as defined in the AIM guidelines of the London Stock Exchange, and a “Qualified Person” as defined in the Canadian Securities Administrators National Instrument 43-101. This press release has been prepared under Mr. Williams’ supervision. Mr Williams has verified the data disclosed by this release (including sampling, analytical and test data underlying the information).
For further information please contact:
Arian Silver Corporation
Jim Williams - CEO
(London) +44 (0)207 529 7511 / email: firstname.lastname@example.org
Fuad Sillem - Investor Relations
(London) +44 (0)207 529 7511 / email: email@example.com
Bishopsgate Communications Limited
(London) +44 (0)207 562 3350 / email: Nick.Rome@bishopsgatecommunications.com
Vicarage Capital Limited
(London) +44 (0)207 060 1303 / email: firstname.lastname@example.org
Grant Thornton Corporate Finance
(London) +44 (0)207 385 5100 / email: email@example.com
CHF Investor Relations
(Canada) +1 416 868 1079 Ext. 233 / email: Alison@chfir.com
About the Company
Arian Silver Corporation is a silver exploration and development company listed on London’s AIM and “PLUS”, on Toronto’s TSX Venture Exchange and on the Frankfurt Stock Exchange. Arian Silver is active in Mexico, the world’s second largest silver producing country. The Company’s main projects are the Calicanto and San Jose projects in Zacatecas State and the Tepal project in Michoacán State. Part of Arian Silver’s forward-looking strategy lies in the envisaged use of large scale mechanized mining techniques over wider mineralized structures, which reduces the overall operating cost per ounce of silver, and to build up NI 43-101 compliant resources.
Further information can be found by visiting Arian Silver’s website: www.ariansilver.com or the Company’s publicly available records at www.sedar.com.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained in this release.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
This press release contains certain “forward-looking statements”. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, the mineral resource estimates referred to in this press release and statements regarding exploration results, potential mineralization, potential mineral resources, future production and the Company’s exploration and development plans and objectives) are forward-looking statements. 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 realized or substantially realized, 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, failure to establish estimated mineral resources, 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 commodity prices, changes in equity markets, political developments in Mexico, changes to regulations affecting the Company’s activities, foreign currency fluctuations, 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.
The mineral resources referred to in this press release are estimates and no assurances can be given that the indicated levels of minerals will be produced. Such estimates are expressions of judgment 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 referred to in this press release 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.