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Thursday, 29 August 2013
Arian Silver narrows net loss as financing talks for own mill progress
Mexico-focused Arian Silver (LON:AGQ) (CVE:AGQ) narrowed its net loss in the second quarter (Q2) this year as arrangements to finance its own mill for the San Jose mine continue to advance.
The new El Bote plant will have the capacity to treat 1,500 tonnes per day and is expected to result in significant cost savings, the firm has said.
Milling on a toll basis at the Juan Reyes plant, not owned by the firm, restarted in February this year, but operations were ceased in June due to the volatility in the silver price.
Tonnes mined in the second quarter to June 30 totalled 4,628 tonnes compared to 26,268 tonnes in Q2, 2012, but the head grade was 191 grams per tonne (g/t), representing an improvement on previous quarters.
Arian produced 9,294 ounces of silver concentrate during the latest quarter - a big increase on 878 ounces produced in the first quarter, but lower than the 98,616 ounces produced in Q2 last year.
The net loss for the three months to June 30 was US$947,000 compared to a loss of US$1.13mln in the comparable quarter in 2012.
The firm's chief executive Jim Williams said: "Today's results come at a time of significant potential change for Arian.
"Arrangements to finance the acquisition of the company's own mill continue to progress, and I hope to be able to provide a full update on this very soon."
In July this year, the firm revealed its plans to raise up to C$15mln through a placing of convertible loan notes.
Funds from the issue will be used on numerous things, including the acquisition of the El Bote processing plant, which will need to be transported piece by piece to a more convenient location.
The second-hand custom mill is expected to deliver cost savings of some 75% compared to previous toll milling operations."