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, reports a positive start to the refurbishment programme for the Company's recently purchased El Bote processing plant ("El Bote" or the "Plant"), which is expected to process up to 1,500 tonnes per day ("tpd") when fully commissioned.
Today's news follows on from the Company's transformational statement reported on 2 September 2013 regarding the successful completion of its private placement debt financing in the principal amount of US$15,585,000 consisting of a senior secured convertible note.
Jim Williams, Chief Executive Officer of Arian, commented: "I am very pleased with the progress already made on the refurbishment of El Bote. The successful commissioning of the Plant and development of the mine will give Arian the capacity to achieve a scale of production that will create a robust project."
In August 2013, Arian purchased El Bote, situated approximately 50 km from the site of the San Jose mine. El Bote comprises a crushing circuit with a reported throughput of 150 tonnes per hour, a grinding circuit comprising a series of ball mills, and flotation circuits, thickening tanks, and filters.
The refurbishment programme includes the reconditioning of the Plant in-situ, its dismantling, transport and reinstallation in a modular manner at the Company's 100%-owned San Jose project. An internal team is leading the refurbishment of the Plant which is proving to show cost efficiencies and quality of work. Third-party contractors will, in due course, commence the development of the necessary site works, tailings dam and electrical infrastructure for the Plant.
Arian Silver's investment in its owner-operated Plant is expected to enable the Company to deliver reduced operating costs through improved overall efficiencies, including metal recoveries, the reduction of transport costs, increased control of the entire operation and no more toll fees to a third-party for processing.
It is anticipated the initial stage of the plant, providing a capacity of 750 tpd, will be commissioned towards the end of 2014. The second commissioning stage to increase capacity up to 1,500 tpd is expected to complete shortly afterwards. Meanwhile, a programme of further mine development is on-going to prepare sufficient mining areas to supply the Plant on a sustainable basis.
