Arian Silver Signs Definitive Contract for New 500 tpd Processing Plant
November 27 2012 - 2:00AM
Marketwired
Arian Silver Corporation ("Arian" or the "Company") (TSX
VENTURE:AGQ)(AIM:AGQ)(FRANKFURT:I3A), a silver exploration,
development and production company with a focus on projects in the
silver belt of Mexico, is pleased to announce the signing of a
definitive contract for exclusive use of a newly refurbished
processing plant located close to the City of Zacatecas ("the
Plant"). The Plant has a rated capacity of 500 tonnes per day
("tpd") and is expected to become operational during December.
Key points:
-- Definitive contract for exclusive use of a newly refurbished 500 tpd
Plant;
-- Anticipates significantly improved recoveries of silver, as well as
revenue from lead and zinc;
-- Initial milling contract for 90,000 tonnes of Run Of Mine ("ROM") ore at
a fixed cost of US$38 per tonne;
-- Well placed to resume full scale contract mining to feed the new mill;
and
-- Arian remains focussed on developing the resources outlined at San Jose
for a larger scale and more efficient silver, lead and zinc operation.
Once the mill is operational, Arian will recommence delivery of
the ROM ore from its 100% owned San Jose mine located approximately
50 kilometres away. Initially ROM ore will be sourced from surface
stockpiles built up since the suspension of the previous toll
milling operation; and thereafter from the ongoing contract
mining.
The initial milling contract is for 90,000 tonnes of ROM ore at
a fixed processing cost of US$38 per tonne which includes all
maintenance and repair costs. This equates to approximately six
months of production at 500 tpd and the contract is renewable.
Arian will provide full-time supervisory staff and a 2% net smelter
royalty on concentrate value is payable under the terms of the San
Jose concession purchase.
Arian's Chief Executive Officer, Jim Williams, commented: "We
expect to achieve significantly improved recoveries of silver from
this new toll milling operation as well as the potential for
additional recoveries from lead and zinc previously not available
to us. It will also provide a useful stepping stone towards the
construction of a Company-owned processing plant on site at San
Jose. While working to finalise the toll milling agreement, our
mining and geological teams have continued to develop the mine and
update the mining plan thus ensuring we are well placed to resume
full scale contract mining to feed the new mill."
As previously stated, Arian remains focussed on developing the
resources outlined at San Jose for a larger scale and more
efficient silver, lead and zinc operation. Preliminary
metallurgical results announced in October were encouraging and
discussions have commenced on the possible acquisition of a
Company-owned processing plant to support the flow sheet indicated
by this metallurgical testing together with a financing method to
best serve shareholders' interests. Currently, financial models for
an expanded operation indicate positive returns on investment over
relatively short time frames with silver prices significantly
discounted from current values.
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.
Contacts: Arian Silver Corporation Berkeley Square House
Berkeley Square London W1J 6BD England Arian Silver Corporation Jim
Williams CEO (London) +44 (0)20 7887 6599jwilliams@ariansilver.com
Arian Silver Corporation David Taylor Company Secretary (London)
+44 (0)20 7887 6599dtaylor@ariansilver.com Grant Thornton Corporate
Finance Gerry Beaney / David Hignell (London) +44 (0)20 7383
5100gerry.d.beaney@uk.gt.com Hawkwood Capital LLP John Grant /
Edmund Glover (London) +44 (0)20 3195
6500john.grant@hawkwoodllp.comedmund.glover@hawkwoodllp.com XCAP
Securities PLC Jon Belliss (London) +44 (0)20 7101
7070jon.belliss@xcapgroup.com Yellow Jersey PR Limited Dominic
Barretto (London) +44 (0)7768537739dominic@yellowjerseypr.com CHF
Investor Relations Juliet Heading (Canada) +1 416 868 1079 x
239juliet@chfir.com