Arian Silver Corporation is a silver exploration, development and production company with a focus on projects in the silver belt of Mexico; one of the richest known silver-bearing districts in the world.
Arian Silver re-starts processing at San Jose, eyes own mill
Arian Silver (LON:AGQ) has re-started the processing of ore from its San Jose mine in Mexico through a new toll mill.
The silver miner added that it has also identified a second-hand processing plant that would be suitable for material from San Jose, and discussions have already started over its possible acquisition.
Jim Williams, Arian’s chief executive, said: "The commencement of processing at the Juan Reyes toll mill once again puts Arian back into the ranks of silver producers after frustrating delays since mid-2012.”
Arian halted processing in July after a dispute with the owner of its previous toll mill, the Contracuna mill.
It has now received all the money owed by the owners of the Contracuna mill, though is still in dispute over a damages claim.
The new processing plant, the Juan Reyes mill, commenced processing on 16 February. It will handle 500 tonnes per day at maximum throughput and produce a zinc credit as well as silver and lead concentrate.
Arian has exclusive use of Juan Reyes, with an initial contract for 90,000 tonnes of run-of-mine material from the San Jose mine or approximately six months at the maximum daily throughput rate. MRI Trading will a provide 100% off-take service.
Williams added that the new toll mill arrangement should be regarded as only a stepping-stone towards the company acquiring its own processing plant.
“We have already established very significant resources of silver, lead and zinc at San Jose and the proposed acquisition of our own plant will accelerate our aim of becoming a significant silver producer in the medium term."
The company added that to date it had used 18% of its £5mln stand-by equity facility.