Arian Silver Corporation
TSX VENTURE : AGQ
AIM : AGQ
FRANKFURT : I3A

Arian Silver Corporation

March 31, 2014 02:00 ET

Arian Silver Corporation: Operations Update

LONDON, ENGLAND--(Marketwired - March 31, 2014) - Arian Silver Corporation (TSX VENTURE:AGQ)(AIM:AGQ)(FRANKFURT:I3A) (the "Company" or "Arian Silver") a silver exploration, development and production company with a focus on projects in the silver belt of Zacatecas, Mexico, reports that good progress continues to be made on the refurbishment of the El Bote custom processing plant (the "Plant"), which is expected to process up to 1,500 tonnes per day ("tpd") when operating at full capacity.

Key points:

  • Refurbishment of the Plant is approximately 95% complete and the Plant is on track to be commissioned by end 2014
  • Transportation of the refurbished Plant to the new site has commenced
  • Installation of a new line to supply grid power to the new plant site is complete
  • Pre-construction earthmoving at the new site is complete
  • New decline into the Soledad section of the San José mine has commenced
  • Financing discussions are advancing positively

Jim Williams, Chief Executive Officer of Arian Silver, commented: "Arian Silver is making excellent progress in finalising the refurbishment programme of its wholly-owned custom processing plant, keeping the Company on track for the reassembly of the Plant, and it's commissioning during the final quarter of this year. Refinancing activities are also advancing positively, and I look forward to updating shareholders further, in due course."

El Bote Processing Plant

In August 2013, Arian Silver purchased a custom processing plant, located just 60km from the Company's mine site. The acquisition of this Plant is expected to enable Arian Silver to increase production in a modular manner up to a maximum capacity of 1,500 tpd. This, together with increased mine production and the elimination of Arian Silver's reliance upon third-party toll millers, is expected to provide significantly increased operational control and efficiency, which should therefore translate into significantly reduced operational costs.

The refurbishment of the Plant is now approximately 95% complete and on track to be commissioned by end 2014. Refurbished parts of the plant have begun to be transported to site adjacent to the San José mine.

The land set aside for the Plant has been prepared and is now ready for the first concrete to be poured for the foundations.

A 35KW power line has been installed for exclusive use at the Plant, which is ample to supply the Plant's needs. This is in addition to the existing 13KW exclusive power line to the San José mine.

The offices and associated buildings at the plant site have been refurbished and are ready for use.

San José mine

Mine development continues in the San José and Santa Ana sections of the mine. Construction has commenced on an additional 4x5m ramp at the Soledad section of the mine, which is approximately 1km west of the existing San José ramp. These works will support the required increase in mine production capacity to approximately 1,500 tpd within 18 to 24 months.

The mine has been dewatered to the 180m level (180m below the surface), enabling access to new areas, and significant further development has occurred at these deeper levels.

Financing

In August 2013, the Company entered a 12 month US$15.6 million loan facility, convertible at the lender's option at C$1.10 per share. The Company is negotiating the refinancing of this loan note, and these financing activities are now advancing positively.

Notes to editors

Arian Silver is a silver exploration, development and production company with a focus on projects in Zacatecas, within the silver belt of Mexico, the world's most productive silver district.

Arian Silver's flagship San José silver project comprises the San José underground mine (Ag, Pb, Zn) and the El Bote custom processing plant. The Company is in the process of refurbishing, transporting and constructing the plant, which is expected to be commissioned by the end of 2014.

Full details of the Company's NI 43-101 compliant mineral resource estimate are available from www.ariansilver.com/s/Sanjose.asp.

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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