Welcome To The Arian Silver HUB On AGORACOM
Advancing substantial silver and polymetal properties in Mexico
Message: MD&A and Financial Results for the Three Months Ended 31 March 2009
| May 28, 2009 | |
| Arian Silver's MD&A and Financial Results for the Three Months Ended 31 March 2009 | |
|
LONDON, ENGLAND--(Marketwire - May 28, 2009) - NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES NOR FOR DISTRIBUTION IN THE UNITED STATES Arian Silver Corporation ("Arian" or the "Company") (TSX VENTURE:AGQ) (AIM:AGQ) (PLUS:AGQ) (FRANKFURT:I3A) today announced the release of its Management's Discussion and Analysis ("MD&A") and unaudited Financial Statements for the three months ended 31 March, 2009 ("Financials"). Extracts from the MD&A and unaudited results are reported below. Arian's Chief Executive Officer, Jim Williams, commented today, "During the period under review we have continued to defer all significant exploration activities in Mexico pending the receipt of new funding. We currently anticipate that funding from the transaction with Grafton will be forthcoming in the near future which should enable us to implement our planned work programmes at our San Jose project." The MD&A and Financials are available at SEDAR at www.sedar.com or on the Company's website at www.ariansilver.com. These documents can also be obtained on application to the Company. The following information has been extracted from the MD&A and Financials. All amounts are expressed in US dollars unless otherwise stated. The financial information in this announcement does not constitute full statutory accounts. HIGHLIGHTS Financial - As at 31 March, 2009, the Company had total assets of $8.2 million, including intangible assets of $6.2 million, available for sales assets of $972,000, receivables of $646,000 and cash of $247,000. - Expenditure on projects in Mexico and on other assets in Q1 was $449,000. - The consolidated pre-tax loss for Q1 was $481,000. Post 31 March, 2009 - The Company completed the share exchange transaction with Grafton Resource Investments Ltd ("Grafton") pursuant to which the Company received in total 128,591 Grafton shares. - Placing of the Grafton shares to raise new funding for the Company anticipated to take place in the near future. - Grafton made a further advance of $250,000 for working capital purposes pending the receipt of funding from the placing of the Grafton shares. Operations - Dewatering of the San Jose mine workings continued. - A.C.A Howe International Limited was commissioned to carry out a Canadian National Instrument 43-101 ("NI 43-101") independent evaluation of the economics for contract mining and milling at San Jose. - Option agreement renegotiated in respect of San Jose to give Arian a 66.67% controlling interest in the project, subject to completion of legal and registration formalities. Arian has the right to take 100% ownership interest on payment of final instalment of $500,000 due in December 2009. OVERALL FINANCIAL PERFORMANCE For the quarter ended 31 March, 2009, the Company incurred a loss of $0.5 million (2008 - $0.9 million) which loss includes expensing the fair value of options vesting of $16,000 (2008 - $60,000), and other administrative expenses of $0.5 million (2008 - $0.8 million). There was no income other than interest of $1,000 (2008 - $18,000) from short term cash deposits. The Company continued to incur costs in relation to its Mexican operations and in respect of corporate overheads. As at 31 March, 2009, intangible assets amounted to $6.2 million (31 December, 2008 - $6.0 million). These costs arise in respect of deferred exploration and evaluation costs related to the Mexican projects. During the quarter the Company issued 26,097,230 common shares to Grafton in exchange for 26,322 participating shares in Grafton. The value of the Grafton shares is shown as an available for sale asset of $972,000 as it is intended to dispose of this investment to generate funding for the Company. LIQUIDITY, CAPITAL RESOURCES AND GOING CONCERN The Company's management is continuing to work with the principals of Grafton and their associates on the planned disposal of the 128,591 Grafton participating shares (the "Grafton Shares"). The proposal is to place the Grafton Shares for cash with third parties in order to raise working capital finance for the Company. It is anticipated that the placing of the Grafton Shares will take place in the near future following the listing of Grafton on the Dublin Stock Exchange. The principals of Grafton and their associates have experience in providing funding for junior mining and exploration companies using this type of transaction. The Company is, however, reliant on Grafton being able to replicate this experience to provide the significant new funding sought by the Company by this transaction and on a timely basis. In May Grafton provided a further advance of $250,000 to the Company for working capital purposes. This brought the total advanced to the Company by Grafton to $550,000. These advances are interest free and are intended to be repaid from the proceeds of sale of the Grafton Shares. The Company has accumulated IVA (sales tax) on past exploration expenditure in Mexico which amounted to $556,000 at 31 March, 2009. IVA is generally repaid in instalments by the Mexican tax authorities. However, there is no certainty as to the timing of future repayments of this IVA receivable. REVIEW OF OPERATIONS The Company owns, or has options to purchase, 39 mineral concessions in Mexico totaling 21,691 hectares. The Company's main projects are the Calicanto Group and San Jose, in Zacatecas State, and the Tepal project in Michoacan State. During the period under review exploration operations in respect of its three principal projects in Mexico were largely deferred in order to preserve the Company's cash resources pending receipt of new financing planned from the transaction with Grafton. Qualified Person Mr. Jim Williams. Eur Ing, Eur Geol, BSc, MSc, D.I.C., FIMMM, the Chief Executive Officer of Arian, a "Qualified Person" as defined in the AIM guidelines of the London Stock Exchange, and a "Qualified Person" as such term is defined in NI 43-101 has reviewed and approved the technical information in this document other than the mineral resource estimates. San Jose Project, Ojocaliente District, Zacatecas State During the period under review the dewatering of the San Jose mine workings was ongoing and some of the previously inaccessible workings have been made safe to enter. Within these recently accessible workings it is planned to initiate a sampling programme together with a continuation of the surface drilling programme, subject to financing. In addition, the Company recommenced the submission of its stockpiled drill and channel samples for assay. A.C.A. Howe International Limited has been commissioned to carry out an NI 43-101 independent evaluation of the economics for contract mining and custom milling following an in-house scoping study which confirmed the potential for near term contract mining of certain near surface resource blocks. The current NI 43-101 Resources at San Jose are set out below: ---------------------------------------------------------------------
Resource Grade Contained Metal
Category Tonnes Ag Pb Zn Ag Pb Zn
---------------------------------------------------------------------
g/t % % (Moz) (t) (t)
---------------------------------------------------------------------
Indicated 2,196,000 127.7 0.51 0.88 9.02 11,200 19,200
---------------------------------------------------------------------
Inferred 11,190,000 93.8 0.39 0.83 33.76 43,400 93,200
---------------------------------------------------------------------
1. Geological characteristics and +30 ppm grade envelopes used to
define resource volumes
2. The mineral resource estimates are in accordance with CIM and JORC
standards
3. The effective date of the mineral resource estimates is August 15, 2008
4. The estimates are based on geostatistical data assessment and
computerised IDW3, Ag grade wireframe restricted, linear block
modeling.
Tepal Project; Michoacan State
The current NI 43-101 Resources at Tepal are set out below:
---------------------------------------------------------------------------
Grade Contained Metal
Tonnes Au Cu AuEq Au Cu Au Eq
---------------------------------------------------------------------------
('000) g/t % g/t (oz x 000's) (Mlbs) (oz x 000's)
---------------------------------------------------------------------------
Indicated 24,995 0.54 0.27 1.2 440 147.1 938
---------------------------------------------------------------------------
Inferred 54,964 0.41 0.22 0.9 720 265.4 1,612
---------------------------------------------------------------------------
1 Au equals Gold. Cu equals Copper. AuEq equals Gold Equivalent
2 Arian has an exclusive option agreement to purchase 100% of the Tepal
properties
3 Gold Equivalent Grades (g/t) were calculated using metal prices of
US$600/oz Au, US$2/lb Cu and assuming 100% recoveries
4 The mineral resource estimates are in accordance with CIM and JORC
standards
5 The effective date of the mineral resource estimates is September
24, 2008
6 The estimates are based on geostatistical data assessment and computerized
IDW3, 0.18 g/t Au grade wireframe envelope restricted, linear block
modeling
About the Company Arian Silver Corporation is a silver exploration and development company and is listed on London's AIM; trades on London's "PLUS" market; is listed 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 Michoacan 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 unit operating cost of metals, and to build up NI 43-101 compliant resources. Further information can be found by visiting Arian's website: www.ariansilver.com or the Company's publicly available records at www.sedar.com. |
2 Recommendations
Loading...
Loading...
New Message
Please
login
to post a reply