San Jose Aerial Fly-Over Video: High Res | Low Res
Property
The San Jose Property (the "Property") has excellent access. The Property comprises significant infrastructure, including the San Jose Mine. The Property has a 3 kilometres ("km") long main haulage ramp, a 500 tpd vertical shaft extending down to approximately 400 metres, various mine storage buildings and offices and an upgradeable electrical substation supplying 3-Ph electrical power to the mine. Zacatecas, the nearest city, is connected to the Property by 55 km of paved and divided highway and 2.5 km of two-lane paved road. Once on the Property, access is by a network of dirt tracks. Total driving time to the Property from Zacatecas is less than one hour. A railway passes through the city of Zacatecas as do major highways. The city also hosts an international airport.
The past producing San José property covers approximately 4,300 hectares and includes the past producing San José mine. The mine was previously operated by Zimapan (Peñoles), 1973-1991, and Monarca, 1993-2001, extracting over 2 million tonnes averaging 250g/t silver. An existing underground development ramp extends 3 km along the San José vein.
Local resources and infrastructure are excellent. The local villages of La Tesorera, Guanajuatillo and Saucito contain an experienced pool of mining labour since many of the residents of these small communities were employed at the San José Mine when it was last in operation.
The Property is well served with respect to modern infrastructure and communications. Land telephone lines and potable water are available in the above named villages and an upgradeable three-phase electricity supply (13,500 volt) is present at the San José mine on the Property. Cellular telephone reception is also available on the Property.
The company is currently dewatering the mine, and under agreement with the local community, is using pumped water for irrigation and other farming needs on nearby farmland.
Region
The San José Property is located in the municipality of Pánfilo Natera, Zacatecas state in central Mexico near the villages of Pánfilo Natera, La Tesorera, Guanajuatillo and Saucito.
Work History
The mine was previously operated by Zimapan (Peñoles), 1973-1991, and Monarca, who leased the mine from Zimapan, 1993-2001, extracting over 2 million tonnes averaging 250g/t silver. An existing underground main haulage development ramp extends 3 km along the San Jose vein.
The western portion, over 8 kilometres of strike length, of the San Jose Vein (SJV) remains largely un-exploited as previous mining activity focused on the eastern part of the SJV. In addition, two main vein structures are exposed on the property, which have not yet been explored by modern systematic methods.
The mine was primarily accessed by a 500 tonnes per day (tpd) vertical shaft (San José Shaft) that extends more than 350 m below surface. Workings extend over 1,500 m along strike with stopes occurring discontinuously over 900 m of strike. Individual stopes range from 110 m to 180 m down-dip and 40 m to 300 m along strike. The vein has been mined from about 70 m below the surface to 275 m below the surface. Adjacent to the shaft is a 3-km-long ramp (at a 10o angle) that Monarca extended from surface to the 180 m level to the east and 750 m towards the Santa Ana Shaft to the west. The ramp was terminated 50 m from the Santa Ana Shaft. The ramp is generally three to four m in height and four to five m in width.
In December 2008, building upon the information supplied in the NI 43-101 technical report, an in-house study on historic resource areas and proposed mining options led to the scoping study or PEA that concluded production on San Jose both realistic and economic. The initial in-house study identified seven blocks of silver, lead and zinc mineralisation which could potentially support a mining production rate of 500 tpd were identified. Of these seven, only three blocks have been purposely chosen for the report to minimize contract mining and milling time and enable the necessary steps to be taken to ramp up to full-scale independent commercial mining. The blocks are:
• Ramal Norte,
• San José 75 m Level Central Zone,
• Santa Ana.
By the end of Q4 2009 (December 31, 2009), the Company anticipates entering underground mechanised mining utilising contract miners and toll millers as outlined in the recently completed PEA.
Production
Based upon the assumptions contained within the JORC-compliant scoping study or NI 43-101 Preliminary Economic Assessment (PEA), the exploitation of only three identified remnant mining blocks utilising contract mining and toll milling is projected to be viable at production rates of 500 tpd, and returning undiscounted cumulative cash flows of approximately US$17.0 million.
- Up to four years of contracted mechanized mining, with concurrent exploration and development on the rest of the property
- Operating 250 days per year at 500 tonnes per day ("tpd") will produce an average of approximately 125,000 tonnes per year ("tpy") using three selected mining blocks
- Sub-level open stoping and full mechanization, accessible via either the San Jose West or East ramp
- Mining and milling of approximately 500,000 tonnes of resources estimated to recover approximately 2.15 million ozs of silver, 1,800 tonnes of lead and 3,100 tonnes of zinc
- Operating cash costs of US$32.00 per tonne
- Project net present value ("NPV") of US$13.44 million based on an 8% discount rate
- Project internal rate of return ("IRR") of 159%
Concurrent to contract production taking place on the San Jose property, exploration and development will occur to ultimately address the issue of entering independent larger-scale commercial production on the remainder of the property.
Exploration
Arian continues to dewater the deeper levels, below 150 metres from surface, of the San Jose mine workings after the Company purchased a new and more efficient submersible water pump during the third quarter of 2008. Once dewatering is complete and the accessibility considered safe to enter, further exploration will take place of these deeper levels.
The western portion, over 8 kilometres of strike length, of the San José Vein (SJV) remains largely un-exploited as previous mining activity focused on the eastern part of the SJV.
Selected results from historic drilling at San Jose
| Drill Hole | From (m) | To (m) | Drilled intersection (m) |
True thickness (m) |
Au (g/t) | Ag (g/t) |
| 87-4 | 60.10 | 76.35 | 16.25 | 12.45 | 0.00 | 367.5 |
| 84.50 | 114.95 | 30.45 | 23.32 | 0.04 | 128.0 | |
| inc. | 108.35 | 114.95 | 6.60 | 5.06 | 0.13 | 236.0 |
| 87-6 | 59.10 | 116.80 | 57.70 | 40.79 | 0.04 | 101.8 |
| inc. | 64.60 | 76.90 | 12.30 | 8.70 | 0.02 | 311.6 |
| 88-1 | 56.55 | 97.45 | 40.90 | 30.88 | 0.02 | 176.8 |
| inc. | 56.55 | 60.70 | 4.15 | 3.13 | 0.00 | 330.0 |
| inc. | 77.25 | 94.40 | 17.15 | 12.95 | 0.03 | 250.7 |
| inc. | 91.35 | 93.05 | 1.70 | 1.28 | 0.10 | 1195.0 |
| 88-12 | 25.40 | 69.85 | 44.45 | 29.16 | 0.04 | 335.0 |
| inc. | 31.05 | 40.65 | 9.60 | 6.30 | 0.02 | 933.7 |
| inc. | 45.60 | 52.00 | 6.40 | 4.20 | 0.05 | 343.3 |
| inc. | 59.20 | 67.30 | 8.10 | 5.31 | 0.10 | 224.0 |
| 88-16 | 7.50 | 10.30 | 2.80 | 1.95 | 0.00 | 855.0 |
| 32.95 | 38.50 | 5.55 | 3.86 | 0.00 | 109.8 | |
| 45.55 | 87.40 | 41.85 | 29.09 | 0.03 | 160.4 | |
| inc. | 58.00 | 67.75 | 9.75 | 6.78 | 0.00 | 282.4 |
| inc. | 73.35 | 85.75 | 12.40 | 8.62 | 0.10 | 265.9 |
| inc. | 73.35 | 79.40 | 6.05 | 4.20 | 0.10 | 400.1 |
| 88-17 | 30.20 | 79.95 | 49.75 | 34.58 | 0.00 | 100.7 |
| inc. | 45.35 | 64.30 | 18.95 | 13.17 | 0.00 | 188.4 |
| inc. | 49.30 | 61.35 | 12.05 | 8.37 | 0.00 | 218.5 |
| 88-18 | 24.00 | 30.45 | 6.45 | 4.56 | 0.00 | 106.6 |
| 51.70 | 54.00 | 2.30 | 1.63 | 0.00 | 191.9 | |
| 68.75 | 88.10 | 19.35 | 13.68 | 0.02 | 395.6 | |
| inc. | 69.65 | 78.60 | 8.95 | 6.33 | 0.03 | 735.0 |
| 88-23 | 27.10 | 40.30 | 13.20 | 9.49 | 0.00 | 260.5 |
| 43.90 | 56.30 | 12.40 | 8.92 | 0.00 | 127.6 | |
| 66.65 | 76.60 | 9.95 | 7.15 | 0.10 | 143.5 |
Click here for full summary of historic drilling results currently available to Arian Silver
Technical Reports
Pictures / Maps
 First drill rig at San Jose Click to enlarge |
 San Jose drilling map plan Click to enlarge |
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 San Jose mine |
 San Jose vein structure up to 20 metres wide Click to enlarge |
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 Ramp maintenance at San Jose Click to enlarge |
 Exploration Targets Map |
