LONDON, ENGLAND–(Marketwire – June 3, 2011) –Arian Silver Corporation (“Arian” or the “Company”) (TSX VENTURE:AGQ)(AIM:AGQ)(PLUS:AGQ)(FRANKFURT:I3A), a silver exploration, development and production company with a focus on projects in the silver belt of Mexico, today announced a progress update on its San José custom milling operation.
On 31 May 2011, the Company reported a small operating loss for its San José mining and milling operation for the first quarter of 2011. During the period under review several improvements were required as detailed in the 31 May announcement; however, recoveries at the mill were still lower than anticipated. A subsequent investigation revealed the recent theft of approximately eight tonnes of silver-bearing concentrate from the mill and, furthermore, this was not an isolated incident as the ongoing investigation by the Mexican authorities indicates previous thefts occurred during the same quarter.
It is alleged the theft was organised by an individual employed by the plant operator. This individual has been replaced. Security at the mill is the sole responsibility of the mill operator and so are any liability issues. The Company is fully cooperating with the ongoing investigation and several measures to improve security and the overall efficiency of the milling operation are already in place which should mitigate any reoccurrence.
Arian’s Chief Executive Officer, Jim Williams, commented today; “Whilst the discovery of the theft of this concentrate is disappointing news, it does highlight one of the contributing factors to the lower than expected recoveries of silver concentrate during the first quarter reporting period. We were already concerned about inconsistencies between plant and smelter assays which was evidenced during the reconciliation process during this critical start-up period. Now that we have identified and halted this specific security breach and implemented a number of plant improvements we anticipate that our mill recoveries will improve.”
About the Company
Arian is a silver exploration and development company and is listed on London’s AIM; trades on London’s “PLUS” market; is listed on Toronto’s TSX Venture Exchange and on the Frankfurt Stock Exchange. Arian is active in Mexico, the world’s second largest silver producing country. The Company’s main project is the San José project in Zacatecas State. Part of Arian’s forward-looking strategy lies in the envisaged use of large scale mechanized mining techniques over wider mineralized structures, which reduces the overall unit operating cost of metals, and to build up NI 43-101 compliant resources.
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 the contract mining and milling operation at the San José Project (the “SJ Mining Operation”) and the ability of the Company to improve recoveries from plant improvements from the SJ Mining Operation) 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 significant risks and uncertainties and other factors 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.
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 guaranteed of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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.