New Near-Surface Silver Oxide Mineralization Discovered at San Jose Project

August 13th, 2007

Related documents

Highlights:
  • Near surface initial drill intercepts include
    • 13.7 metres @ 151.2 g/t silver, 0.16% lead and 0.44% zinc
    • 20.6 metres @ 98.72 g/t silver, 0.04 g/t gold, 0.20% zinc
  • Potential open-pit area identified where good infrastructure is in place
  • Increasing Phase 1 drill programme from 5,000 to 7,000 metres
  • Results from San Jose main vein expected shortly
Arian Silver Corporation (“Arian” or the “Company”) is pleased to announce an update on the diamond drilling programme which commenced in May 2007 at the San Jose Project, Zacatecas state, Mexico.

The drilling has identified a wide, lower grade, near-surface mineralised zone, which may be amenable to open-pit mining. This near-surface oxide mineralization is entirely separate and not to be confused with the San Jose main vein.

Drill-holes 004 to 007 were drilled in an area east of the main head-frame in an area referred to as “Block 450”. Underground mapping and archive data has identified a number of historic blocks that have not previously been mined. Drilling in this area to confirm historical data has identified higher grade silver veins (with base-metal content) which are within a much wider lower-grade disseminated zone of silver mineralisation. This lower-grade disseminated zone of mineralisation is located near surface and may be amenable to open-pit mining. The grades are comparable to similar oxide open-pit mines, for example, Rochester in Nevada, where Coeur d’Alene Mines excavate material grading 28 g/t silver and 0.34 g/t gold.

Arian’s Chief Executive Officer, Jim Williams, said, “This near surface oxidised mineralisation identified in “Block 450” may have the potential for open-pit mining. This area could be put into production very quickly, subject to our ongoing scoping studies, and help us reach one of our main objectives, to be in production by 2009.”

The assay data from these holes is summarized in the table below:-

Hole ID From
(m)
To
(m)
Core
length
(m)
True
thickness
(m)
Ag
g/t
Au
g/t
Pb
%
Zn
%
SJ-07-004 55.00 74.40 19.40 13.70 151.20 0.04 0.16 0.44
SJ-07-005
inc.
64.70
67.50
73.80
71.70
9.10
4.20
6.40
2.95
121.50
217.00
0.04
0.08
0.16
0.31
0.43
0.71
SJ-07-006 41.45 70.55 29.10 20.60 98.72 0.04 0.13 0.20
inc. 52.30 54.50 2.20 1.60 276.00 0.09 0.39 0.26
SJ-07-007* 0.00 38.80 38.80 27.40 80.32 0.00 0.03 0.07
inc. 18.80 25.00 6.20 4.40 192.20 0.00 0.07 0.11
*holes where partial assay results have been received.

The Company has made considerable progress on its early stages of drilling at San Jose. To date the Company has completed twenty-six ‘NQ’-size diamond drill holes totalling some 4,000 metres (m) of the 5,000m phase 1 programme.

In view of these results, Arian has decided to expand the phase 1 program to 7,000 metres.

The ongoing drill programme has been designed both to confirm the historical drill-hole data and to expand on a number of priority target areas. Further assays are in the lab and are due shortly from the San Jose main vein.

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 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 air 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 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. High-grade samples (gold >3 g/t and silver >100g/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 JosĂ© Project, Zacatecas, Mexico”.

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:
In London:
In Vancouver:
Jim Williams - CEO
Arian Silver Corporation
+44 (0)20 7529 7511

Justine Howarth
Parkgreen Communications
+44 (0)20 7851 7480

Gerry Beaney,
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.

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, 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, 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.
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