Trading Symbols
AIM: AGQ
TSX-V: AGQ
"PLUS": AGQ
FWB: I3A
2 July 2008
Exploration Update - San Jose
Project
More High Grades of Ag-Pb-Zn
Across Mineable Widths in 'Solidad' Area
Arian Silver Corporation ("Arian Silver" or the "Company") today announced
that it has received additional assay results from its Phase-One diamond-drill
programme at the San Jose Property, Zacatecas State, Mexico. These results
relate specifically to the 'Solidad' area on the San Jose Vein (SJV),
approximately one kilometre west of the San Jose Mine. The drilling has
confirmed the continuation of the mineralisation between and down-dip of the
currently demarcated resource areas. Additional results, which will mark the
final assay results for the Phase-One drilling, are expected shortly and these
will be reported once received.
Highlights:
?
Phase-1 drilling completed
?
Results include, but are not limited to: -
? 9.6m grading 241.5 g/t (7.8 opt) Ag, 2.26% Pb and 5.21% Zn
? 7.25m grading 164.7 g/t (5.3 opt) Ag, 1.51% Pb, and 2.03% Zn
? 2.3m grading 444.4 g/t (14.3 opt) Ag, 4.11% Pb and 8.81% Zn
? Resource zones appear to be open along strike and down-dip
? Resource estimation update expected during Q3 2008
? Phase-2 drill programme underway, 4,500m completed to date.
Arian's Chief Executive Officer,
Jim Williams, stated, "The continuing discovery of high-grade silver and
base-metals over mechanised-mining widths at our San Jose Project is excellent
news. These latest results from the 'Solidad' area of the SJV further indicate
that the vein appears to be increasing in width and grade with depth. In
addition, now that we have nearly all our Phase-One drill sample assay data we
are in the process of updating our database, which puts us on schedule to
report our updated resource estimation during the current quarter".
The latest drill results of the Phase-One drill
programme include: -
o Drill-hole 07-022, was drilled to explore the SJV 100m below surface. At
a depth of 93.3m it intersected a 11.1m wide (true width) zone of veining and
brecciation that graded 112.4 grams per tonne ("g/t") silver
("Ag") (3.6 ounces per tonne, ("opt)), with minor (<1%) lead
("Pb") and zinc ("Zn") values. Within this zone, the hole
intersected a 1.7m wide (true thickness) banded quartz vein that graded 218.2
g/t (7.0 opt) Ag with minor Pb and Zn values.
o Drill-hole 07-023, was drilled to explore for the SJV 50m below surface
in the eastern part of the Solidad Zone. At a depth of 63.75m, this hole
intersected a 2.5m (true thickness) wide zone grading 196.8 g/t (6.3 opt) Ag,
and minor base-metal credits.
o Drill-hole 07-024, was drilled to explore for the continuation of the
vein below hole 07-023. The hole intersected 7.25m (true thickness) of vein
with a grade of 164.7 g/t (5.3 opt) Ag, 1.51% Pb and 2.03% Zn.
o Drill-hole 07-025, was drilled to explore for the continuation of the
SJV below hole 07-024. At 229.65m depth, the hole intersected 9.6m (true
thickness) of veining with a grade of 241.5 g/t (7.8 opt) Ag, 2.26% Pb and
5.21% Zn. Within this intersection was a 2.3m (true thickness) wide zone that
returned a grade of 444.4 g/t (14.3 opt) Ag, 4.11% Pb and 8.81% Zn.
o Drill-hole 07-026, was drilled to explore for the continuation of the
SJV east of holes 07-023 to 025. At surface, above these holes the vein
consists of 2 separate veins, the 'North' and 'South' splays. At a depth
of 51.9m it intersected the North splay, where it intersected 1.7m (true
thickness) grading 294.9 g/t (8.5 opt) Ag and minor base metal credits. At 75m
below surface, the hole intersected the South splay, but it was unmineralized.
o Drill-hole 07-027, was drilled to explore for the continuation of the
SJV below hole 07-026. At a depth of 81.45m, the hole intersected the North
splay where it intersected a 1.7m wide (true thickness) zone of veining that
graded 271.9 g/t (8.7 opt) Ag, 0.29% Pb and 1.37% Zn. At a depth of 120m, the
hole intersected the South splay, which was unmineralized.
The drilling has been collared at least on 100m
intervals along strike between the previously demarcated inferred resource
areas and in some areas, specifically the 'Solidad' area, on 50m intervals.
During April 2008, Arian Silver started its Phase-Two
(10,000m) diamond-drill programme at the San Jose Property. The programme has
been designed to further explore the continuations of the four resources areas
(see press release dated 3 March, 2008 entitled, "Initial NI 43-101
Resource Calculation at San Jose") along strike and down-dip. To date,
4,500m has been completed in 19 holes.
The table below sets out the latest batch of Phase-One
drill sample results. Further results are pending from additional Phase-One
drill-holes and these will be released when received.
Hole
ID
|
From
|
To
|
Core Length
|
True Thickness
|
Silver
|
Lead
|
Zinc
|
|
(m)
|
(m)
|
(m)
|
(m)
|
(g/t)
|
(%)
|
(%)
|
SJ-07-021
|
61.4
|
71.45
|
10.05
|
8.45
|
No Significant Results
|
SJ-07-022
|
93.3
|
121.9
|
28.6
|
11.1
|
112.4
|
0.35
|
0.82
|
including
|
93.3
|
97.6
|
4.3
|
1.7
|
218.2
|
0.24
|
0.42
|
and
|
114.1
|
121.9
|
7.8
|
3.1
|
138.4
|
0.8
|
1.95
|
SJ-07-023
|
63.75
|
67.4
|
3.65
|
2.5
|
196.8
|
0.11
|
0.32
|
SJ-07-024
|
121.85
|
140.75
|
18.9
|
7.25
|
164.7
|
1.51
|
2.03
|
including
|
130.5
|
139.3
|
8.8
|
3.4
|
245.0
|
1.95
|
2.59
|
and
|
136.5
|
139.3
|
2.8
|
1.1
|
288.0
|
4.92
|
5.48
|
SJ-07-025
|
229.65
|
244.25
|
14.6
|
9.6
|
241.5
|
2.26
|
5.21
|
including
|
240.75
|
244.25
|
3.5
|
2.3
|
444.4
|
4.11
|
8.81
|
SJ-07-026
|
51.9
|
54.35
|
2.45
|
1.7
|
294.9
|
0.13
|
0.36
|
SJ-07-027
|
81.45
|
84.5
|
3.05
|
1.7
|
271.9
|
0.29
|
1.37
|
SJ-07-028
|
132.85
|
160.0
|
27.15
|
17.5
|
No Significant Results
|
SJ-07-028
|
149.7
|
153.7
|
4.0
|
2.4
|
62.0
|
1.65
|
3.04
|
The above drill results were tabulated using the
following Ag cut-off grades: (1) wider intersections are included if they grade
>100 g/t Ag over a minimum core length of 10m; (2) shorter intersections are
included if they grade >150 g/t Ag, or >3% Pb or Zn over a core length of
1m.
Additional
information is illustrated in the longitudinal section in the map below.
About the San Jose
Project
Arian Silver's
6,200-plus hectare (ha) San Jose Property is located in Zacatecas State,
Mexico, 55km east of the mining town of Zacatecas, and within the renowned
Fresnillo Silver Trend that hosts a number of world-class silver deposits.
Arian Silver is currently working on an updated block model for resource
estimation and this is on schedule to be released during Q3 2008.
Resources at San Jose
have been previously reported (see Arian Silver's press release dated 3 March
2008 entitled, "Initial NI 43-101 Resource Calculation at San Jose"
and www.sedar.com) as below: -
Resources
|
Tonnes
|
Silver
|
Lead
|
Zinc
|
Silver
|
Lead
|
Zinc
|
|
('000)
|
(g/t)
|
(%)
|
(%)
|
M
oz
|
Mlbs
|
Mlbs
|
Total
Inferred Resources1
|
8,356
|
102.8
|
0.35
|
0.80
|
27.70
|
64.6
|
147.5
|
Block
4502
|
3,592
|
100.9
|
0.09
|
0.26
|
11.65
|
6.9
|
20.2
|
Santa
Ana3
|
619
|
272.5
|
0.67
|
1.44
|
5.42
|
9.2
|
19.7
|
Solidad3
|
721
|
162.3
|
1.26
|
2.18
|
3.76
|
19.9
|
34.6
|
1
-Total Inferred Resources (100% attributable to Arian) were calculated using a
0 g/t silver cut-off grade
2
- The Block 450 area is a wide zone of veining and stockwork mineralisation
located at surface. Resources for this area are reported using a 0g/t silver
cut-off grade.
3
- The Santa Ana and Solidad areas of the SJV that Arian has explored to a depth
of nearly 200 meters. Resources for this area are reported using a cut-off
grade of 100 g/t silver.
A full breakdown of the resources calculated by James
Hogg of ACA Howe International Limited for the San Jose Project is contained in
Appendix 12 of the technical report prepared by A.C.A. Howe International
Limited, dated 15 April, 2008, and entitled "Resource Estimation Study on
the San Jose silver-lead-zinc prospect, Zacatecas, Mexico". A copy of this
report can be obtained from SEDAR at www.sedar.com.
Arian Silver Mexico S.A. de C.V., a wholly owned
subsidiary of the Company, holds a 100% exclusive option to acquire the San
Jose Project. The Project concessions include the past producing San Jose Mine,
which was operated by a subsidiary of Pe?oles from 1973 to 1991 and then by
Monarca, which operated the mine between 1993 and 2001. In 2001 the mine closed
due to the then prevailing low silver prices.
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 Silver 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 sampled, bagged and secured before being
transported to a preparation facility in San Luis de Potosi, Mexico. The entire
half-core is crushed and two kilograms is pulverized and homogenized. 150-gram
pulp samples are then air freighted to OMAC's analytical laboratory in Ireland
for analysis. Systematic assaying of duplicates is performed for precision and
accuracy, with check assays regularly conducted by OMAC. Each sample has its
own unique sample number. The laboratories in San Luis Potosi, Mexico and
Ireland are ISO 17025 and ISO 9001:2000 accredited.
Approximately 5% of the analysed samples are
re-sampled and sent to the ALS Chemex preparation facility in Guadalajara,
Mexico. The samples consist of both coarse reject samples and 150-gram pulp
samples. The coarse material is crushed and pulverised, and all the pulp
samples are air freighted to ALS Chemex's analytical laboratories in Vancouver,
British Columbia, for analysis. Results from all duplicate analyses are
compared to identify potential analytical or sampling errors..
The OMAC and ALS Chemex laboratories are independent
of Arian Silver.
The samples were analysed for 32 elements by ICP
(inductively coupled plasma), proceeded by an Aqua Regia acid digestion.
High-grade samples (gold >3 g/t and silver >200g/t) were re-analysed by
fire assay with a gravimetric finish.
Additional information with respect to the San Jose
Project is contained in a technical report prepared by A.C.A. Howe
International Limited, dated 15 April, 2008, and entitled "Resource
Estimation Study on the San Jose silver-lead-zinc prospect, Zacatecas,
Mexico". A copy of this report can be obtained from SEDAR at www.sedar.com
The "qualified person" (as such term is
defined in National Instrument 43-101) who prepared the current resource estimates
for the San Jose Project is Mr. James Hogg. Mr. Hogg is an employee of A.C.A.
Howe International Limited.
Mr. Jim Williams, Eur Ing, Eur Geol, BSc, MSc, DIC,
FIMMM, CEng, CGeol, and Chief Executive Officer of Arian Silver, is a
"Qualified Person" as defined in the AIM guidelines of the London
Stock Exchange, and a "Qualified Person" as defined in the Canadian
Securities Administrators National Instrument 43-101. This press release has
been prepared under Mr. Williams' supervision. Mr Williams has verified
the data disclosed by this release (including sampling, analytical and test
data underlying the information).
For further information please contact:
Arian Silver Corporation
Jim Williams - CEO
(London) +44 (0)207 529 7511 / email: jwilliams@ariansilver.com
Fuad Sillem - Investor Relations
(London) +44 (0)207 529 7511 / email:
info@ariansilver.com
Bishopsgate Communications Limited
Nick Rome
(London) +44 (0)207 562 3350 / email:
Nick.Rome@bishopsgatecommunications.com
Vicarage Capital Limited
Martin Wood
(London) +44 (0)207 060 1303 / email:
martin@vicaragecapital.com
Grant Thornton Corporate Finance
Gerry Beaney
(London) +44 (0)207 385 5100 / email: gerry.d.beaney@gtuk.com
CHF Investor Relations
Alison Tullis
(Canada) +1 416 868 1079 Ext. 233 / email:
Alison@chfir.com
About the Company
Arian Silver Corporation is a silver exploration
company listed on London's AIM and "PLUS", on Toronto's TSX Venture
Exchange and on the Frankfurt Stock Exchange. Arian Silver is active in Mexico,
the world's second largest silver producing country. The Company's main
projects are the Calicanto and San Jose projects in Zacatecas State and the
Tepal project in Michoac?n State. Part of Arian Silver's forward-looking
strategy lies in the envisaged use of large scale mechanized mining techniques
over wider mineralized structures, which reduces the overall operating cost per
ounce of silver, and to build up NI 43-101 compliant resources.
Further information can be found by visiting Arian
Silver's website: www.ariansilver.com or the Company's publicly available
records at www.sedar.com.
No stock exchange, securities
commission or other regulatory authority has approved or disapproved the
information contained in this release.
The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press 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, the mineral resource estimates referred
to in this press release and statements regarding exploration results,
potential mineralization, potential mineral resources, future production and
the Company's exploration and development plans and objectives) 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
risks and uncertainties 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, among other things, failure to
establish estimated mineral resources, the possibility that future exploration
results will not be consistent with the Company's expectations, uncertainties
relating to the availability and costs of financing needed in the future,
changes in commodity prices, changes in equity markets, political developments
in Mexico, changes to regulations affecting the Company's activities, foreign
currency fluctuations, delays in obtaining or failures to obtain required
regulatory approvals, the uncertainties involved in interpreting exploration
results and other geological data, and the other risks involved in the mineral
exploration and development industry. 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 guarantees of future performance and
accordingly undue reliance should not be put on such statements due to the
inherent uncertainty therein.
The mineral resource figures
referred to in this press release are estimates and no assurances can be given
that the indicated levels of minerals will be produced. Such estimates are
expressions of judgment based on knowledge, mining experience, analysis of
drilling results and industry practices. Valid estimates made at a given time
may significantly change when new information becomes available. While the
Company believes that the resource estimates referred to in this press release
are well established, by their nature resource estimates are imprecise and
depend, to a certain extent, upon statistical inferences, which may ultimately
prove unreliable. If such estimates are inaccurate or are reduced in the
future, this could have a material adverse impact on the Company.
Mineral resources are not mineral
reserves and do not have demonstrated economic viability. There is no certainty
that mineral resources can be upgraded to mineral reserves through continued
exploration.
________________________________________________
Fuad Sillem
Investor Relations
Arian Silver Corp.
43 North Audley Street
London W1K 6WH
Direct Line
: +44 (0) 20 7529 7376
Direct Fax:
: +44 (0) 20 7491 2244