Property
The San José Project, covering some 6,500 ha and 100% owned by Arian, is located some 55 km from Zacatecas City. A past producing silver, lead and zinc mine, San José is set to re-enter production, on three of the currently seven demarcated mining blocks. Production will initially utilize contract mining and milling, producing up to 500 tonnes per day (tpd).
Through further exploration activities, San José has the potential for >200 M oz Ag plus Pb and Zn. Arian will use the cash flow to further explore in detail the western strike (~12 km) of the San José Vein (SJV), including infill drilling within the current resource blocks. This will ultimately prepare the Company to complete a feasibility study for larger scale commercial mining of circa 2,500+ tpd within 36 months.
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 underground haulage ramp extending over 3 km strategically positioned in the footwall of the main structure of the SJV. The Preliminary Economic Assessment (PEA) or Scoping Study, completed by ACA Howe, reports a CAPEX requirement of ~$1M including a 30% contingency factor giving an undiscounted cumulative cash flow of $17M based on US$14/oz Ag on only the three selected resource blocks.
