Arian Silver Corporation plc (LON:AGQ, CVE:AGQ) has been given more time to decide whether it wants to option Tierra Nueva Mining's (TNM) Noche Buena gold and silver tailings project in Mexico.
On May 4, the firm revealed it had paid US$25,000 to evaluate the site exclusively for 120 days.
That has now been extended, at no extra cost, by 60 days to October 28 this year.
Arian is currently in the throes of metallurgical testworks at the site, where a previous NI 43- 10 report for TNM in 2012 showed an indicated resource containing 1 million tonnes with 3 grams per tonne (g/t) gold and 55 g/t silver, representing around 100,000 ounces (oz) of gold and some 1.7 million ounces of silver.
Arian chief executive Jim Williams told investors: “The current suite of tests is intended to demonstrate the delivery of saleable gold concentrate.
"A flowsheet design is being developed based on 500 tonnes per day which given the resource of 1mt would equate approximately to a 5-year operation."
Williams added that the group continued to consider other projects in Mexico and were currently working through potential opportunities all of which are at least at advanced exploration stages.
"These include but are not limited to, all of Arian Silver’s original projects other than Calicanto, such as San Celso and the surrounding satellite concessions," he added.
It was in February this year that Arian inked a memorandum of understanding (MOU) with Tierra Nueva Mining Ltd (TNM) over its portfolio, which includes the former mine and other projects which are gold, with silver and base metals (lead and zinc) as bi-products.
The Noche Buena mine operated from 1926, closing in 1993 due to the low metal prices and historical records show around one million tonnes were mined with up to 20 g/t gold, 800 g/t silver and 8% lead and zinc.
Arian shares shed 10.81% to 0.825p.
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