Toll milling has resumed at Arian Silver Corporation's project in the Zacatecas silver belt in Mexico.

The AIM-listed silver exploration and development company faced a setback in July when its toll milling operations had to be suspended due to a dispute with the owners of the Contracuna Mill.

The company has now commenced processing at a different mill owned and operated by Beneficiadora de Jales y Minerales Juan Reyes SA de CV (Juan Reyes).

The Juan Reyes mill is located 50km from Arian's San Jose mine.

Since the dispute was resolved and milling resumed Ariana reported that it had submitted a claim for damages which had been met by a counter-claim by Contracuna.

Jim Williams, Chief Executive Officer of Arian silver Corp, commented: "The commencement of processing at the Juan Reyes toll mill once again puts Arian back into the ranks of silver producers after frustrating delays since mid 2012.

"However, as we have previously stated, this new toll mill arrangement, while providing useful cash flow, should be regarded as only a stepping-stone towards acquiring our own processing plant.

"We have now identified such a plant and are currently in discussions regarding its acquisition, which if successful will eventually allow greater daily ore throughput from the San Jose mine with increased efficiencies all round."

MF

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