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 encouraging
results from the Company's Phase 4 exploration drilling programme
at its 100% owned San Jose Property ("San Jose"), located in
Zacatecas State, Mexico.
Highlights:
-- 24 drill holes for 6,600 metres (m) so far completed;
-- Multiple high-grade silver intercepts with step-out and infill drilling
along the San Jose Vein ("SJV");
-- Drilling continues at a good pace with completion anticipated this
quarter;
-- Drilling commenced along the Bety Vein; and
-- Further resource estimate update at San Jose following completion of
Phase 4 drilling.
Drilling Update
The Phase 4 drilling programme is for 40 drill holes totaling
10,000m comprising both step-out and in-fill drilling along the
extensive strike length of the SJV. The strategy is two-fold;
firstly, to identify additional resources, and secondly, to upgrade
the current resources by size and by category.
A number of drill holes on the Bety Vein are also planned. Two
of these have been completed and Arian is awaiting assay results.
The Bety Vein, where surface samples returned grades of up to 500
g/t of silver, is located a short distance to the south of the SJV
along the same general directional trend. Selected intercepts from
the current drilling include:
-- Hole GW-11-041 comprising 4.07m(i) with 436 g/t Ag;
-- Hole GW-11-043 comprising 5.19m(i) with 221 g/t Ag;
-- Hole GW-11-046 comprising 8.02m(i) with 170 g/t Ag;
-- Hole SJ-11-124 with multiple intercepts, including 5.60m(i) with 336 g/t
Ag, and 2.03m(i) with 512 g/t Ag; and
-- Hole SJ-11-126 comprising 0.70m(i) with 391 g/t Ag.
(i)representing true thicknesses.
Commenting on today's operations update, Arian's President and
Chief Executive Officer, Jim Williams, said:
"Once again, these most recent drill results show continuity of
vein thickness, silver mineralization and grade from both the
in-fill and step-out drilling as we drill along the SJV. Drilling
continues at a good pace using two Longyear 44 rigs and we are
currently anticipating completion during this reporting quarter. We
have so far drilled two holes on the Bety Vein with a view to
testing its extension in a westerly direction and the assay results
will be reported in due course. The Bety Vein, as previously
stated, is located to the south of and is more or less parallel
with, the SJV where grades of up to 500 g/t silver were recorded
from surface sampling.
"We continue to believe the San Jose Project still has
considerable potential upside to offer and we anticipate a further
resource estimate update after the completion of our Phase 4
drilling."
A schematic plan showing the location of the updated drilling in
relation to the SJV strike is available at the following link:
http://www.ariansilver.com/i/pdf/Plan-for-SJ-News-24-Oct-11.pdf
A schematic section showing multiple drill holes some distance
west of the village of Guanajuatillo is available at the following
link:
http://www.ariansilver.com/i/pdf/Section-for-SJ-news-24-Oct.pdf
A complete list of all the latest batch of assay results can be
obtained via the following link:
http://www.ariansilver.com/i/pdf/HOLE-IDTable-NR_10-24-11.pdf
Resource Recap
At San Jose, Arian has already reported significant NI 43-101
compliant Indicated and Inferred resources of:
-- Indicated comprising 8 Million ("M") tonnes ("t") containing
approximately 30 M ounces ("oz") of silver ("Ag"), 70 M pounds ("lbs")
of lead ("Pb") and 127 Mlbs of zinc ("Zn"), and;
-- Inferred comprising 17 Mt containing approximately 58 Moz of Ag, 140
Mlbs of Pb and 291 Mlbs of Zn.
These resources are detailed in the Company's news release dated
20 July 2011. On completion of the Phase 4 drilling a further
resource update will be announced.
Forward Looking Strategy
The Company, as previously reported, has commenced small-scale
production using contract mining and toll milling at San Jose to
generate cash flow and to investigate the optimal processing route
for an expanded operation in due course. Arian's forward looking
strategy continues to include the building up of additional NI
43-101 compliant resources to support the eventual use of
larger-scale mechanized mining methods over wide mineralized
structures that will result in reduced unit operating costs.
QA/QC
All technical information for the San Jose Project is obtained
and reported under a formal quality assurance and quality control
(QA / QC) programme. The core is logged and photographed by Arian's
staff and then split using a diamond saw. Half the core is stored
on-site in a secure core shed and the other half is labelled,
bagged and secured before transporting to Stewart Group's sample
preparation facility in Zacatecas, Mexico. Each sample has its own
unique sample number. The entire half-core is crushed to minus 10
mesh and a half kilogram riffle split is pulverized and homogenized
to minus 200 mesh. The pulp samples are then air freighted to
Stewart Group's analytical laboratory in Canada for analysis.
Systematic assaying of duplicates, blanks and certified reference
material is performed for precision and accuracy; quality
procedures and processes are continually reviewed and monitored
with protocols in place to deal with any non-conformity. Stewart
Group's laboratories in Zacatecas, Mexico, and Kamloops, BC Canada
are ISO 9001:2000 accredited.
Approximately 5% of the analysed samples are re-sampled and sent
to ALS Chemex preparation facility in Guadalajara, Mexico. The
samples consist of both coarse reject samples as well as pulp
samples. The coarse material is crushed and pulverised according to
the same protocol, and the pulp samples are air freighted to ALS
Chemex's analytical laboratories in Vancouver, Canada, for
analysis. Results from all duplicate analyses are compared to
identify potential analytical or sampling errors.
Stewart Group and ALS Chemex Laboratories are independent of
Arian.
The samples were analysed for a multi element scan by aqua regia
digestion and ICP (inductively coupled plasma) finish. High-grade
samples (greater than 200 g/t Ag) were re-analysed by fire assay
with a gravimetric finish.
About the Company
Arian is a publicly quoted silver exploration, development and
production company, operating in one of the richest silver-bearing
districts in the world, Zacatecas State, Mexico. The Company is
committed to mining in existing silver areas, and to exploring new
opportunities. Arian's main project is San Jose, in Zacatecas
State, where we anticipate increasing production in due course.
Arian Silver Corporation was founded by Jim Williams (President
& CEO) and Tony Williams (Chairman) and is listed on AIM,
London, TSX Venture Exchange, Toronto and on the Frankfurt Stock
Exchange (as I3A). The company's headquarters are in Berkeley
Square, London.
Further information can be found by visiting Arian's website:
www.ariansilver.com or the Company's publicly available records at
www.sedar.com.
Qualified Person
Mr. Jim Williams, Eur Ing, Eur Geol, BSc, MSc, D.I.C., FIMMM,
the Chief Executive Officer of Arian, is a "Qualified Person" as
defined in the AIM guidelines of the London Stock Exchange, and a
"Qualified Person" as such term is defined in Canadian National
Instrument 43-101 ("NI 43-101"). This news release has been
prepared under Mr. Williams' supervision. Mr. Williams has verified
the data disclosed in this release.
Forward-Looking Information
This news 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 relating to the San Jose
Project with respect to estimates of mineral resource quantities,
mineral resource qualities, the potential scope and context of the
mineralized area, the potential for upgrading the mineral resource
estimate and the Company's exploration and drilling targets, goals,
objectives and plans) 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. Factors that could cause actual results or
events to differ materially from current expectations include, but
are not limited to: failure to establish estimated mineral
resources, the grade, quality and recovery of mineral resources
varying from estimates, risks related to the exploration stage of
the Company's properties, the possibility that future exploration
results will not be consistent with the Company's expectations
(including identifying additional and/or deeper mineralization),
changes in the price of silver, changes in equity markets,
political developments in Mexico, uncertainties relating to the
availability and costs of financing needed in the future, changes
to regulations affecting the Company's activities, delays in
obtaining or failures to obtain required regulatory approvals, the
uncertainties involved in interpreting drilling and exploration
results and other geological data and other factors (including
exploration, development and operating risks).
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.
Readers are reminded that mineral resources are not mineral
reserves and have not demonstrated economic viability. There is no
certainty that mineral resources can be upgraded to mineral
reserves through continued exploration.
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 Berkeley Square House
Berkeley Square London W1J 6BD England Arian Silver Corporation Jim
Williams CEO (London) +44 (0)20 7887 6599jwilliams@ariansilver.com
Grant Thornton Corporate Finance Gerry Beaney (London) +44 (0)20
7383 5100gerry.d.beaney@gtuk.com XCAP Securities PLC John Grant
(London) +44 (0)20 7101 7070John.Grant@xcapgroup.com XCAP
Securities PLC Karen Kelly (London) +44 (0)20 7101
7070Karen.Kelly@xcapgroup.com Yellow Jersey PR Limited Dominic
Barretto (London) +44 (0) 7768 537 739dominic@yellowjerseypr.com
CHF Investor Relations Cathy Hume (Canada) +1 416 868 1079 x
231cathy@chfir.com