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| Tue Nov 27, 2012 Arian Silver Signs Definitive Contract for New 500 tpd Processing Plant | |
| London, England, Arian Silver Corporation ("Arian" or the "Company") (TSXV: 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:
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 José 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 José. 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 José 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. For further information please contact: Arian Silver Corporation Berkeley Square House Berkeley Square London W1J 6BD England OR Arian Silver Corporation Jim Williams CEO (London) +44 (0)20 7887 6599 jwilliams@ariansilver.com OR Arian Silver Corporation David Taylor Company Secretary (London) +44 (0)20 7887 6599 dtaylor@ariansilver.com OR Grant Thornton Corporate Finance Gerry Beaney / David Hignell (London) +44 (0)20 7383 5100 gerry.d.beaney@uk.gt.com OR Hawkwood Capital LLP John Grant / Edmund Glover (London) +44 (0)20 3195 6500 john.grant@hawkwoodllp.com edmund.glover@hawkwoodllp.com OR XCAP Securities PLC Jon Belliss (London) +44 (0)20 7101 7070 jon.belliss@xcapgroup.com OR Yellow Jersey PR Limited Dominic Barretto (London) +44 (0)7768537739 dominic@yellowjerseypr.com OR CHF Investor Relations Juliet Heading (Canada) +1 416 868 1079 x 239 juliet@chfir.com 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. | |
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