Further Bonanza Silver Grades Intersected at San Jose

April 7th, 2008

Related documents

  • 5.8m grading 509 g/t (16.4 opt) silver, 0.86% lead and 1.69% zinc
  • 2.1m grading 1,058 g/t (34 opt) silver, 0.65% lead and 1.17% zinc
  • 2.2m grading 644 g/t (20.7 opt) silver, 0.17% lead and 0.36% zinc
  • Bulk tonnage silver targets and several new vein systems discovered

Arian Silver Corporation (“Arian” or the “Company”) is pleased to report further excellent results from its Phase-One drilling programme at its San Jose Property in Zacatecas State, Mexico. This 65-hole, 12,000 metre (“m”), programme was completed mid-March and has proved the continuation along strike of the San Jose Vein system between the Solidad and Santa Ana resource areas (see Press Release dated 3 March, 2008 entitled “Initial NI 43-101 Resource Calculation at San Jose”). The programme has also discovered several additional new veins within the San Jose Property.

The table below sets out the latest batch of drill sample results. Further results are pending from 29 drill-holes and will be released when received.

The highlights from these latest results included:
  • Drill-hole 07-030, was drilled to intersect the San Jose Vein 50m below surface. At a vertical depth of 45m it intersected a mineralised zone of 11.5m (estimated true width) wide containing multiple veining and brecciation, which contained a 2.2m wide zone with a grade of 644 grams per tonne (“g/t”), or 20.7 ounces per tonne (“opt”) silver (“Ag”) with minor base metals.
  • Drill-hole 07-031, was drilled to define for the San Jose Vein 50m down-dip from hole 07-030. At approximately 85m vertical depth, this hole intersected 6.4m of vein-type mineralisation, which contained a zone with an estimated true thickness of 1.7m, which has a grade of 232 g/t (7.45 opt) Ag, 0.85% lead (“Pb”), and 1.65% zinc (“Zn”).
  • Drill-hole 07-032, which intersected 5.8m (estimated true thickness) of vein with a grade of 509 g/t (16.4 opt) Ag, 0.86% Pb and 1.69% Zn. Within this interval is a banded and crystalline quartz vein that returned a grade of 1,058 g/t (34 opt) Ag, 0.65% Pb and 1.17% Zn over 2.1m. Hole 07-032 also intersected a second vein that graded 202 g/t (6.5 opt) Ag, 1.13% Pb and 1.74% Zn over 2.15m. This vein is located in the footwall of the San Jose vein.
  • A completely new vein system (the “San Gerado Vein” system) was discovered 300m to the north of the main San Jose Vein system. Drill-hole 07-039 intersected a banded quartz vein that returned a grade of 272 g/t (8.7 opt) Ag, 0.1% Pb and 0.44% Zn over 2.4m (core length).
  • Drill-hole 07-043, which intersected 41.75m (core length) of stockwork-type mineralisation, which returned a grade of 186 g/t (6.0 opt) Ag, 0.1% Pb and 0.44% Zn. Within this interval are two banded crystalline quartz veins, the San Jose Hanging Wall (“SJHW”) Veins 1 and 2. SJHW Vein 1 grades 285 g/t (9.2 opt) Ag, 0.1% Pb and 0.58% Zn over 1.4m (core length). SJHW Vein 2 grades 399 g/t (12.8 opt) Ag, 0.23% Pb and 0.68% Zn over 2.85m (core length). Both of these mineralised intercepts are located within 50m of the existing San Jose Mine workings.
  • Drill-hole 07-044 was drilled to intersect the westward continuation of the veins intersected by drill-hole 07-043. This hole intersected a banded quartz vein that returned a grade of 239 g/t (7.7 opt) Ag, 0.12% Pb and 0.46% Zn over 3.65m (core length). This intercept is thought to be the continuation of the SJHW Vein 1 along strike.

The intercepts in holes 07-030, 07-031 and 07-032 fall between two already demarcated resource areas (the Santa Ana and Solidad zones — refer to Press Release dated 3 March, 2008), indicating that the San Jose Vein is present and, so far, continuous in nature between these known zones. There are several other geological characteristics present to indicate that, potentially, a very large vein system is present at the San Jose Property.

The intercepts in drill-holes 07-039 and 07-044 appear to have identified at least three new veins at the San Jose Property. These veins and their intercepts were not included in the initial Canadian National Instrument (NI) 43-101 resource estimation (see Press Release dated 3 March 2008) as these results were not then available. Arian is planning to drill additional holes to explore the continuity of these newly discovered veins.

Hole ID

Notes

Core Length

True Thickness

Silver

Lead

Zinc



(m)

(m)

(g/t)

(%)

(%)

SJ-07-030

San Jose Vein

3.15

2.2

644

0.17

0.36

SJ-07-031

San Jose Vein

6.45

4.6

155

1.1

1.78

Inc.


2.45

1.7

232

0.85

1.65

SJ-07-032

San Jose Vein

8.15

5.8

509

0.86

1.69

Inc.


2.95

2.1

1058

0.65

1.17

SJ-07-032

New Vein – SJ FW vein

3.05

2.15

202

1.13

1.74

SJ-07-033

San Jose Vein

35.2

19.3

Assay Results Pending

SJ-07-039

New Vein – San Gerado Vein

2.4

-

272

0.1

0.44

Inc.


1.0

-

369

0.09

0.61

SJ-07-043

Stockwork zone

41.75

-

186

0.1

0.44

Inc.

New Vein – SJ HW Vein 1

1.4

-

285

0.1

0.58

Inc.

New Vein – SJ HW Vein 2

2.85

-

399

0.2

0.68

SJ-07-044

SJ HW Vein 1

3.65

-

239

0.1

0.46



The above drill results, tabulated using a Ag cut-off grade of 150 g/t over a minimum core length of 1m, are from the 12,000m Phase-One drill program completed on the San Jose Property. Additional information is illustrated in the longitudinal section attached contained in the following link:
http://media3.marketwire.com/docs/San_Jose_Long_Section_AprilPR1.pdf

About the Project

Arian’s 6,500 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 has defined an initial inferred resource estimation of 27.7 M oz silver (8.4 MT at 102.8 g/t Ag) at San Jose, and is currently working towards providing an updated resource in the near-term.

Arian’s Chief Executive Officer, Jim Williams, stated, “The discovery of these additional bonanza silver grades at our San Jose Property is excellent news. These holes were not included in the initial NI 43-101 resource estimation announced on 3 March 2008 due to database and modelling time limits. These latest results indicate that the vein hosts silver and base metal grades along a larger portion of its known length along strike to that recently modelled. They also confirm continuity between the already demarcated NI 43-101 resource blocks. We believe that San Jose has excellent potential and represents another emerging silver project located in the heart of the Mexican Silver Belt.”

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.

All technical information for the San Jose 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 being transported to 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 air freighted to Inspectorate’s analytical laboratory in Reno, Nevada for analysis. Systematic assaying of duplicates is performed for precision and accuracy, with check assays regularly conducted by Inspectorate. Each sample has its own unique sample number. Inspectorate’s laboratories in Durango, Mexico and Reno, Nevada 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), proceeded by a three acid digestion. High-grade samples (gold >3 g/t and silver >200g/t) were re-analysed by fire assay with a gravimetric finish.

Additional information with respect to the San Jose Project is contained in a technical report prepared by A.C.A. Howe International Limited, dated April 30, 2007, and entitled “Technical Report on the San José Project, Zacatecas, Mexico”. A copy of this report can be obtained from SEDAR at www.sedar.com

The “qualified person” (as such term is defined in National Instrument 43-101) who prepared the current resource estimates for the San Jose Project is Mr. James Hogg. Mr. Hogg is an employee of A.C.A. Howe International Limited.

Mr. Jim Williams, Eur Ing, Eur Geol, BSc, 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:

Company Name

Contact Name Telephone Number

Arian Silver Corporation

Jim Williams - CEO +44 (0)207 529 7511 (London)

Bishopsgate Communications Limited

Nick Rome +44 (0)207 562 3350 (London)

Vicarage Capital Limited

Martin Wood +44 (0)207 060 1303 (London)

Grant Thornton Corporate Finance

Gerry Beaney +44 (0)207 385 5100 (London)

Vanguard Shareholders Solutions

Keith Schaefer +1 (604) 608 0824 (Canada)
Toll Free: 1866 898 0825 (US & Canada)


Arian Silver Corporation is a silver exploration 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 mechanized mining techniques over wider mineralized 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.

Further information can be found by visiting Arian’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.


Forward-Looking Statements

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 resource figures 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.
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