Issue link: http://resourceworld.uberflip.com/i/119004
Arian Silver acquiring Zacatecas mill Arian Silver Corp. [AGQ-TSX, AIM; I3A-FSE], a silver producer in the Zacatecas silver belt of Mexico, has signed a provisional agreement with Sandy Hill Ltd. to acquire the El Bote processing plant located close to Zacatecas City, with a capacity to treat up to 1,500 tonnes per day of silver-lead-zinc ore. Arian's CEO Jim Williams said, "I am pleased to announce this important step forward towards achieving our stated intention of becoming a more significant silver producer from our San José Project. We have demonstrated that we have the silver, lead and zinc resources to support an expanded operation at San José. On acquisition, the EL Bote mill would be reassembled in modular fashion on-site at San José which will allow us to synchronize plant construction with increased mine capacity. There are operating efficiencies and increased revenue potential from using a company-owned mill on site and I am confident that our due diligence on the El Bote mill will confirm this." Arian will pay an initial $100,000 to secure a 120-day due diligence period to confirm the El Bote mill, which has a past history of treating run-of-mine ore from the San José Project, is still suitable. Final purchase price for the El Bote mill has been agreed at $3.12 million, subject to satisfactory due diligence. This amount is well within the company's current financing capabilities. Upon completion of the purchase, the plant would be disassembled and relocated to an already permitted 24-hectare site on the east side of the San José property. A contiguous six-hectare plot is designated for the tailings dam. Permitting for this is advancing and expected to be granted shortly. Meanwhile, Arian has begun production at the Juan Reyes toll mill in Zacatecas and initial operating results will be highlighted in Arian's Q1 2013 results. n Underground geological and geotechnical evaluation at Fortuna Silver's San Jose silver-gold mine in Oaxaca, Mexico. Photo courtesy Fortuna Silver Mines Inc. Primero Mining Corp. is a Canadian-based gold and silver producer with operations in Mexico and intentions to become a leading intermediate gold producer in the Americas. Primero is focused on delivering sustainable, superior value for all stakeholders with low-risk exposure to gold. www.primeromining.com 10 www.resourceworld.com TSX: P NYSE: PPP APRIL 2013