Operations
San Jose Project
San Jose
San Jose Aerial Fly-Over Video: High Res | Low Res
The San José Project, covering some 6,300 ha and 100% owned by Arian, is located about 55 km from Zacatecas City. A past producing silver, lead and zinc mine, San José is now producing on one of the three of currently demarcated mining blocks. Production will initially utilize contract mining and milling, producing up to 500 tonnes per day (tpd), with a view to, subject to sourcing additional mill capacity, increasing to 1,500 tpd.
Given that the current NI 43-101 compliant (A.C.A. Howe International, Aug. 15, 2008) Indicated resource of 2,196,000 Mt grading 127.71 g/t Ag, 0.51% Pb, and 0.88% Zn for approximately 9.02Moz Ag, 11,200t Pb and 19,200t Zn. and the Inferred resource of 11,190,000 Mt grading 93.84 g/t Ag, 0.39% Pb, and 0.83% Zn for approximately 33.76Moz Ag, 43,400t Pb and 93,200t Zn. These resources cover seven delineated blocks situated within only 10% of the known strike length of the San Jose Vein ("SJV").
Arian will use the cash flow from the mining operation to further explore in detail the western strike (~12 km) of the SJV, including infill drilling on the current resource blocks and also some strike length extension drilling to the east.
The mine has one main vertical shaft extending nearly 400 m and three smaller vertical shafts, all located on the SJV. There is also as a large modern underground haulage ramp extending over 3 km strategically positioned in the footwall of the SJV.
The 2009 scoping study/Preliminary Economic Assessment by A.C.A. Howe indicated robust economics for the San Jose Mine at US$14/oz silver. Since then Arian has remodelled the mining plan using a different approach - same mining technique, but different milling scenario (producing a concentrate rather than a smelter doré) as well as a higher silver price at US$18/oz and above, reflective of current and forecasted direction for silver. The results show a great deal of flexibility that maintains positive cash flow and profitable operations at the same ore grade or even at a lower ore grade cut-off due to the higher value of the contained metals.
Arian is currently in production on one of three mining blocks (stoping) demarcated in the 2009 Howe Report. In addition, we are developing towards the higher-grade Santa Ana block where assessed silver grades are in excess of 300 g/t (approx 9 oz/t).
We have increased the ventilation throughout the underground area with the installation of a new duct fan and ducting, and are in the process of upgrading the electrical sub-station on the surface to support added exploration activity underground.
Highlights of the economic parameters are:
• Power (upgradeable 3-Ph off main Grid with step-down transformer);
• Transportation;
• Access to water;
• Access to workers (skilled, semi-skilled and general labour); and
• A pro-mining region.
A new phase of core drilling of 10,000 m has been started on the SJV to compliment the resources already identified. The purpose of this drilling phase will be to upgrade existing resources into higher resource categories, and to further define the extensive westward extension of the SJV with a view to adding additional resources.
We have ordered a new semi-mobile assay laboratory which consists of a sample preparation section and a wet chemistry section, complete with both Atomic Absorption Spectrometry (AAS) and Fire Assay facilities. This will greatly speed up the turn-around time for exploration samples once at the laboratory (currently 2+ weeks to ~48 hours).
San Jose Aerial Fly-Over Video: High Res | Low Res
Property
The San José Project, covering some 6,300 ha and 100% owned by Arian, is located about 55 km from Zacatecas City. A past producing silver, lead and zinc mine, San José is now producing on one of the three of currently demarcated mining blocks. Production will initially utilize contract mining and milling, producing up to 500 tonnes per day (tpd), with a view to, subject to sourcing additional mill capacity, increasing to 1,500 tpd.
Given that the current NI 43-101 compliant (A.C.A. Howe International, Aug. 15, 2008) Indicated resource of 2,196,000 Mt grading 127.71 g/t Ag, 0.51% Pb, and 0.88% Zn for approximately 9.02Moz Ag, 11,200t Pb and 19,200t Zn. and the Inferred resource of 11,190,000 Mt grading 93.84 g/t Ag, 0.39% Pb, and 0.83% Zn for approximately 33.76Moz Ag, 43,400t Pb and 93,200t Zn. These resources cover seven delineated blocks situated within only 10% of the known strike length of the San Jose Vein ("SJV").
Arian will use the cash flow from the mining operation to further explore in detail the western strike (~12 km) of the SJV, including infill drilling on the current resource blocks and also some strike length extension drilling to the east.
The mine has one main vertical shaft extending nearly 400 m and three smaller vertical shafts, all located on the SJV. There is also as a large modern underground haulage ramp extending over 3 km strategically positioned in the footwall of the SJV.
The 2009 scoping study/Preliminary Economic Assessment by A.C.A. Howe indicated robust economics for the San Jose Mine at US$14/oz silver. Since then Arian has remodelled the mining plan using a different approach - same mining technique, but different milling scenario (producing a concentrate rather than a smelter doré) as well as a higher silver price at US$18/oz and above, reflective of current and forecasted direction for silver. The results show a great deal of flexibility that maintains positive cash flow and profitable operations at the same ore grade or even at a lower ore grade cut-off due to the higher value of the contained metals.
Production
Arian is currently in production on one of three mining blocks (stoping) demarcated in the 2009 Howe Report. In addition, we are developing towards the higher-grade Santa Ana block where assessed silver grades are in excess of 300 g/t (approx 9 oz/t).
We have increased the ventilation throughout the underground area with the installation of a new duct fan and ducting, and are in the process of upgrading the electrical sub-station on the surface to support added exploration activity underground.
Highlights of the economic parameters are:
- Mining and Milling of 10,000 tonnes per month ("tpm");
- Concentrate produced and sold via off-take agreement;
- 125 tpm of concentrate produced at a mining rate of 500 tpd;
- Assuming US$18 per oz silver and grade of 400 oz/t; 1 tonne of concentrate = US$6,500; at US$21.50 silver this increases to US$7,800;
- Mill upgrade is currently underway with a view to increasing efficiency of the milling;
- With silver > US$25/oz and a significant increase in mill efficiency = >US$10,000/tonne of concentrate;
- Mining throughput can easily be expanded to 1,500 tpd subject to additional mill capacity being sourced; additional mill capacity is currently being assessed.
• Power (upgradeable 3-Ph off main Grid with step-down transformer);
• Transportation;
• Access to water;
• Access to workers (skilled, semi-skilled and general labour); and
• A pro-mining region.
New Drilling Phase
A new phase of core drilling of 10,000 m has been started on the SJV to compliment the resources already identified. The purpose of this drilling phase will be to upgrade existing resources into higher resource categories, and to further define the extensive westward extension of the SJV with a view to adding additional resources.
We have ordered a new semi-mobile assay laboratory which consists of a sample preparation section and a wet chemistry section, complete with both Atomic Absorption Spectrometry (AAS) and Fire Assay facilities. This will greatly speed up the turn-around time for exploration samples once at the laboratory (currently 2+ weeks to ~48 hours).
Technical Reports
Pictures / Maps
December 2010
San Jose Project ROM leaving San Jose Click to enlarge |
San Jose Project ROM exiting San Jose Click to enlarge |
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San Jose Project ROM out of Mine to Stockpile Click to enlarge |
San Jose Project Primary Crusher Ore Click to enlarge |
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San Jose Project Bald Mill Drilling Click to enlarge |
San Jose Project Drilling at San Jose Click to enlarge |
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San Jose Project Jumbo Click to enlarge |
San Jose Project Cleaner Frother Click to enlarge |
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San Jose Project Mill Plant Click to enlarge |
San Jose Project Drill Rigs Click to enlarge |
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San Jose Project Flotation Frother Click to enlarge |
San Jose Project San Jose Core Click to enlarge |
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San Jose Project Concentrate Settling Click to enlarge |
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Prior to 2007 | ||
2007 First drill rig at San Jose Click to enlarge |
2007 San Jose drilling map plan Click to enlarge |
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2007 San Jose mine |
2007 San Jose vein structure up to 20 metres wide Click to enlarge |
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2007 Ramp maintenance at San Jose Click to enlarge |
2007 Exploration Targets Map |
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