Arian Silver signs plant contract

Arian Silver Corporation was a strong riser after it signed a contract for exclusive use of a newly refurbished processing plant in Mexico.

The firm said the plant near the City of Zacatecas would enable it to achieve significantly improved recoveries of silver from this new toll milling operation.

It also offered the potential for additional recoveries from lead and zinc, the company added.

The news had pushed shares up 9% by 14:00 on Tuesday.

The plant has a rated capacity of 500 tonnes per day (tpd) and is expected to become operational during December.

Arian's Chief Executive, Jim Williams, said the plant would also provide a stepping stone towards the construction of a company-owned processing plant on site at San Jose.

"While working to finalise the toll milling agreement, our mining and geological teams have continued to develop the mine and update the mining plan thus ensuring we are well placed to resume full scale contract mining to feed the new mill," he said.

MM