Arian confirms gold, copper resource at Tepal (March 10, 2008)

Vancouver – A recent resource estimate for Arian Silver‘s (AGQ-V, AGQ-L) Tepal porphyry project in Mexico’s Michoacn State confirms historic estimates and tables more than one million contained oz. gold plus considerable copper.

The study reviews 78.8 million inferred tonnes of oxide material grading 0.47 gram gold (1.18 million contained oz.) and 0.24% copper (422 million contained lbs.) plus silver values contained in the North and South zones. The inferred resource is based on 31 historic diamond drill holes and 23 core holes completed by Arian.

Tepal is a copper-gold porphyry system with mineralization primarily hosted in disseminated and stockwork copper sulphides (oxidized up to 40 metres depth in sections) occurring along a line of small tonalite intrusives exhibiting multiple phases and breccia structures. A thin zone of supergene enrichment is noted in sections.

The project was previously explored in the 1970s and 1990s by several companies including Inco (now part of Companhia Vale do Rio Doce (RIO-N)), Teck Cominco (TCK.B-T, TCK-N) predecessor company Teck and by Hecla Mining (HL-N).

The junior says it has completed a further 15 holes, not included in its resource estimate, that were collared within or near to its currently delineated North and South zones. It recently commenced another round of drilling at Tepal with plans to complete about 7,500 metres.

Arian is earning a 100% interest in the project for total payments of US$5 million over five years. The vendor, Minera Tepal, retains a 2.5% net smelter return (NSR) royalty on the project.

San Jose resource

The Mexican-focused junior also recently posted an initial inferred resource estimate for its San Jose silver project in Zacatecas State. The study reviews roughly 8.4 million tonnes (within four blocks) averaging 102.8 grams silver per tonne, 0.25% lead and 0.8% zinc equating to a contained metal tally of 27.7 million oz. silver, 65 million lbs., lead and 148 million lbs. zinc.

The estimate is based on 31 holes (totaling 4,500 metres) on four resource blocks covering roughly 1,600 metres of combined strike along the company’s 12.5 km section of the San Jose vein system. Drilling tested to about 200 metres depth.

Mineralization is hosted in a low-to-intermediate sulphidation epithermal environment within the San Jose vein system.

In late 2006 Arian acquired its option for 100% of the project under an agreement where it is paying US$1.5 million over three years with the vendor retaining a 2% NSR.

The San Jose project includes a previously operated mine run by a subsidiary of Minera Peoles from 1973-1991 and by De Sarrollo Monarca from 1993-2001. Over 2 million tonnes of ore averaging about 250 grams silver plus base metal values was extracted from underground workings.

Arian looks to rehabilitate and resume operations at San Jose by early-2009 using existing infrastructure including a development ramp that extends about 3 km along the San Jose vein plus a 500-tonne-per-day capacity vertical shaft sunk to 300 metres depth on the vein.

Shares of Arian have recently traded in the 43 range giving the company a $54-million market capitalization based on its 125-million shares outstanding. The stock has a 52-week trading range of 32-73.