Arian Silver Corporation: Operations Update
LONDON, ENGLAND -- (Marketwired) -- 06/25/13 -- Arian Silver Corporation ("Arian" or the "Company") (TSX VENTURE: AGQ)(AIM: AGQ)(FRANKFURT: I3A), a silver exploration, development and production company with a focus on projects in the Zacatecas silver belt of Mexico, announces today it has ceased toll milling at the third-party-owned Juan Reyes toll mill by mutual consent with the mill-owner.
Jim Williams, Chief Executive Officer of Arian, commented today, "In the context of current metal prices, we are preserving value by halting milling operations and, with the knowledge obtained from the toll milling operations, positioning the Company to resume production with its own mill at a significantly reduced cost base.
Having successfully terminated the Juan Reyes toll mill contract without penalty, we are focussed on concluding the financing package to facilitate the acquisition of the second-hand custom mill and funding mine development to increase capacity up to 1,500 tonnes per day.
The second-hand custom mill is expected to deliver cost savings of some 75% compared to previous toll milling operations, which, alongside the additional revenue from lead and zinc credits, would produce considerable profits even at today's silver price."
The exclusive option to acquire the second-hand custom mill, as first reported in March, has been extended at no cost, until mid-August.
Discussions relating to the financing package continue to advance and an update will be provided at the appropriate time.
The foregoing release contains forward-looking statements that can be identified by terminology such as "will," "would," "expected," "potential," "would be," or similar expressions. Such forward-looking statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause the outcome of events to be materially different from management's current expectations. There can be no guarantee of the outcome of either the fundraising or the due diligence programmes. Forecast estimated operating costs are taken from the Company's Technical Report Update dated 23 May 2013. Metal prices as at 21 June 2013: Silver: $19.65/oz (source: LBMA London Silver Fix); Lead: $2017/t (source: LME); Zinc: $1809/t (source: LME). Arian will make additional releases in respect of the foregoing, but does not undertake to update any metals prices or forward-looking statements in this document should one or more risks or uncertainties materialise, or should underlying assumptions prove incorrect, or actual results may vary materially from those anticipated, believed, estimated or expected.
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.
Contacts:
Arian Silver Corporation
Jim Williams
CEO
(London) +44 (0)20 7887 6599
jwilliams@ariansilver.com
Arian Silver Corporation
David Taylor
Company Secretary
(London) +44 (0)20 7887 6599
dtaylor@ariansilver.com
Grant Thornton Corporate Finance
Gerry Beaney / Philip Secrett / David Hignell
(London) +44 (0)20 7383 5100
gerry.d.beaney@uk.gt.com
Yellow Jersey PR Limited
Dominic Barretto
(London) +44 (0)7768537739
dominic@yellowjerseypr.com
XCAP Securities PLC
Jon Belliss
(London) +44 (0)20 7101 7070
jon.belliss@xcapgroup.com
CHF Investor Relations
Juliet Heading
(Canada) +1 416 868 1079 x 239
juliet@chfir.com
