August 8th, 2007
- Initial drill intercepts
- 116m at 0.88 grammes/tonne (g/t) gold
- 250m at 0.53 g/t gold
- Confirmation of historic gold grades and thickness
- 75% of Phase-1, 3,000 metre drill programme completed
- Wide zones of mineralisation encountered
The remaining results will be reported as soon as they become available.
Arian’s Chief Executive Officer, Jim Williams, said, “These results are very encouraging as they not only confirm the historic gold (Au) grade but exceed the reported grade on twinned holes by approximately 5%. In some cases we have also continued twinned holes to a greater depth as the previous holes were terminated in mineralisation, which has increased the total length of the mineralised intercepts. We have also drilled some new holes outside the know areas of mineralisation as we believe that these new areas have excellent potential.”
|HoleID||From (m)||To (m)||Core length (m)||Gold g/t|
*Note: For hole 013 results are pending from 88m to 250m. For hole 015 results are pending from 116m to 180m. These results are expected from the laboratory shortly.
+Twin hole of an earlier drill-hole. AS-07-005 is a twin of hole MHT-3 drilled by Hecla, 007 is a twin of hole T-25, 013 is a twin of hole T-16, and 015 is a twin of hole T-18. T-16, T-18 and T-25 were all drilled by Teck.
The Tepal Project comprises six exploration concessions covering some 14,000 hectares. Initial investigation of existing data by Arian indicates that the Tepal Project consists of four gossanous poly-metallic deposits containing copper, gold and silver mineralisation, with potential for additional areas of mineralisation.
The Project was previously explored in the 1970s and the 1990s by a number of companies including INCO, Teck and Hecla. A historical resource estimate indicates 78.82 million tonnes of mineralisation grading 0.5 grammes/tonne gold (Au) and 0.25% copper (Cu), equating to 1.23 million contained ounces of gold and 432.63 million contained pounds of copper. The historical data also indicates that there are potentially higher-grade zones within these mineralised zones.
The Project was initially explored in the early 1970s by INCO who identified the area as having potential to host a porphyry copper-gold deposit. INCO drilled 21 diamond drill holes, totalling 3,247m and identified significant mineralisation at the North Zone.
In 1992, Teck acquired the Project, drilled an additional 50 Reverse Circulation (“RC”) holes, totaling 8,168m, and discovered a second area of mineralization at the South Zone. Spacing between drill holes was typically 50 or 100 metres. In 1994 Teck completed a resource estimate of 78.82 million tonnes grading 0.5 g/t Au and 0.25% Cu. However, Teck only assayed for gold and copper. Teck used polygonal block estimates to calculate its resource estimate. Intercept intervals were based on combined gold and copper values calculated to a dollar value equivalent using gold at US$375/oz and copper at US$0.80/lb. Two cut-off values, > $4/ton and = $8/ton over a minimum of 6.0 m were used. A specific gravity of 2.6 g/cm3 was used.
Subsequently Hecla owned the Project. Hecla collected nearly 900 rock chip samples on a 50m by 50m grid, re-analysed 298 pulps from the Teck RC drilling program and drilled a further 17 RC holes, totalling 1,506m. Hecla’s focus was exclusively on gold potential. In 1997, Hecla estimated a total historic resource of 9.063 million tonnes averaging 0.90 g/t Au containing 262,359 ounces of gold. However, Hecla used a specific gravity of 2.2 g/cm3, which is substantially lower than the 2.6 g/cm3 used by Teck. Hecla used polygonal block estimates to calculate its resource estimate, using drill sections constructed at intervals ranging from 50 m to 90 m. Cut-off grades of 0.5 g/t Au and 0.30 % Cu were used in the estimate although there is no copper resource in the Hecla material.
Results of the historic resource estimates completed by Teck and Hecla are tabulated at the end of this press release.
The historical resource estimates for the Tepal Project referred to in this press release are included purely to indicate the results of past exploration on the Project, and are relevant to the extent that they indicate the presence of polymetallic mineralisation. The historical resource estimates are not compliant with Canadian National Instrument 43-101 (“NI 43-101”), and therefore should not be relied upon. The Company has not done sufficient work to classify the historical resource estimates as current mineral resources as defined in section 1.2 of NI 43-101 and are not treating them as such.
All technical information for the Tepal Project is obtained and reported under a formal quality assurance and quality control (QA/QC) programme. The core is logged and photographed by Arian staff and then split using a diamond saw. Half the core is stored on-site in a secure core shed and the other half is sampled, bagged and secured before transporting to the Inspectorate’s sample preparation facility in Durango, Mexico. The entire half-core is crushed and two kilograms is pulverized and homogenized. 150 gram pulp samples are then freighted to Inspectorate’s analytical laboratory in Reno, Nevada for analysis. Systematic assaying of duplicates is performed for precision and accuracy; check assays are regularly conducted by Inspectorate. Each sample has its own unique sample number. The Inspectorate’s laboratories in Mexico are ISO 17025 and ISO 9001:2000 accredited.
Approximately 5% of the analysed samples are re-sampled and sent to the ALS Chemex preparation facility in Guadalajara, Mexico. The samples consist of both coarse reject samples and 150 gram pulp samples. The coarse material is crushed and pulverised, and all the pulp samples are air freighted to ALS Chemex’s analytical laboratories in Vancouver, British Columbia, for analysis. Results from all duplicate analyses are compared to identify potential analytical or sampling errors.
The Inspectorate and ALS Chemex laboratories are independent of Arian.
The samples were analysed for 32 elements by ICP (inductively coupled plasma) preceded by an Aqua Regia digestion. Gold was analysed by fire assay with an atomic absorption finish. High-grade samples (gold >3 g/t and silver >100 g/t) were re-analysed by a fire assay with a gravimetric finish.
Additional information with respect to the Tepal Project is contained in the technical report prepared by A.C.A. Howe International Limited, which is dated September 18, 2006 and entitled “Technical Report on the Tepal Project, Michoacan, Mexico”. A copy of the report can be obtained from Sedar at www.sedar.com
Mr. Jim Williams, Eur Ing, Eur Geol, MSc, DIC, FIMMM, CEng, CGeol, and Chief Executive Officer of Arian, 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:
|Jim Williams - CEO
Arian Silver Corporation
+44 (0)20 7529 7511
+44 (0)20 7851 7480
Grant Thornton Corporate Finance
+44 (0)207 385 5100
Daniel Brooks / Tom Beattie
Haywood Securities ( UK) Limited
+44 (0) 207 031 8000
| Investor Relations,
Vanguard Shareholder Solutions
+1 (604) 608 0824
Toll free: 1866 898 0825
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 is active in Mexico, the world’s 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’s forward-looking strategy lies in the envisaged use of large scale mechanised mining techniques over wider mineralised structures, which reduces the overall operating cost per ounce of silver, and to build up National Instrument 43-101 compliant resources.
Arian was founded by Jim Williams, Chief Executive Officer, and Tony Williams, Chairman, who together have over 50 years experience in exploration, project construction and mining worldwide. Arian is supported by the Dragon Group in London, and the Endeavour Group in Canada.
Further information can be found by visiting Arian’s website: www.ariansilver.com or the Company’s publicly available records at www.sedar.com.
Tabulation of Historic Resource Estimates
Table 1. Summary of the Historic Teck Resource Estimate.
|ZONE||CATEGORY||TONNES (000)||Au (g/t)||Cu (%)|
|South and North||Drill Indicated||55,841||0.514||0.261|
The Company believes that the above categories defined by Teck are based on different criteria and therefore different levels of confidence as compared to the resource categories set out in the CIM Definition Standards on Mineral Resources and Minerals Reserves contemplated by NI 43-101. However, the “Drill Indicated” category equates to the CIM “Indicated” category and the “Drill Inferred” category equates to the CIM “Inferred” category. In the Company’s opinion, the historic “Projected” category as defined by Teck would not meet the required criteria of current CIM guidelines on mineral resources.
Table 2. Hecla Historic Resource Estimate.
|ZONE||TONNES (000)||Au (g/t)||CONTAINED GRAMS||CONTAINED OUNCES|
In the Hecla material in Arian’s possession, there is no information on sub-categorisation of the mineral resource estimate as compared to the resource categories set out in the CIM Definition Standards on Mineral Resources and Minerals Reserves contemplated by NI 43-101.
For the reasons stated above, the historical resource estimates should not be treated as current resources as defined in Section 1.2 of NI 43-101 and should not be relied upon as such. Any future mineral resource estimates for the Tepal Project may be materially different than the historical estimates referred to in this press release.
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, statements regarding exploration results, the estimation of mineral resources, potential mineralization, potential mineral resources, 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, 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.