OTCPK:ASLRF - Post by User
Post by
blue_seaon Apr 13, 2010 5:34am
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Post# 16984526
cumulative cash flow of $17M at San Jose
cumulative cash flow of $17M at San JoseSome statements from the website about San Jose ... & I LIKE IT!
The San José Project, covering some 6,500 ha and 100% owned by Arian, islocated some 55 km from Zacatecas City. A past producing silver, leadand zinc mine, San José is set to re-enter production in Q2 2010, onthree of the currently seven demarcated mining blocks. Production willinitially utilize contract mining and milling, producing up to 500tonnes per day (tpd).
Through further exploration activities, San José has the potential for>200 M oz Ag plus Pb and Zn. Arian will use the cash flow to furtherexplore in detail the western strike (~12 km) of the San José Vein(SJV), including infill drilling within the current resource blocks.This will ultimately prepare the Company to complete a feasibility studyfor larger scale commercial mining of circa 2,500+ tpd within 36months.
The mine has one main vertical shaft extending nearly 400 m and threesmaller vertical shafts, all located on the SJV. There is also as alarge underground haulage ramp extending over 3 km strategicallypositioned in the footwall of the main structure of the SJV. ThePreliminary Economic Assessment (PEA) or Scoping Study, completed by ACAHowe, reports a CAPEX requirement of ~$1M including a 30% contingencyfactor giving an undiscounted cumulative cash flow of $17M based onUS$14/oz Ag on only the three selected resource blocks.