Arian Silver (LON:AGQ, CVE:AGQ) said commissioning of its processing plant at the San Jose project in Mexico remains on track for completion by year-end.
The foundations have been laid for the crushing, milling, flotation and conveyor circuits, the company said in a third quarter update.
The crushing, milling and lead flotation circuits have been mounted and installation of the conveyor circuit has commenced, the company added.
The company is currently non-revenue generating, so not surprisingly it made a loss in the third quarter; the loss was US$1.21mln, versus a loss of US699,000 in the preceding quarter, reflecting costs in transporting the processing plant from its previous location and reassembling it close to Arian’s silver mine at San Jose.
When it is up and running, the plant is expected to deliver substantial cost savings compared to the costs of the previous toll milling arrangement.
"We are at a truly exciting phase of Arian Silver's development as we enter the final stages of the installation of our refurbished processing plant. We expect commissioning to commence in the coming weeks as we prepare for commercial silver production,” said Jim Williams, Arian’s chief executive.
“These Q314 results represent the final quarter before Arian Silver secured the financing necessary to move the San José project, located in Mexico, back into production. As a result, they do not include the $32m Quintana financing allows Arian to return to producer status,” noted house broker Northland Capital.
“We continue to expect commissioning [of the plant] to take place before the end of the year and believe the shares look undemanding at this level,” the broker said.