Arian Silver (LON:AGQ) , the AIM quoted silver mining company working on projects in the silver belt of Mexico, has boosted its exploration strategy with a new laboratory installed and now operational at its 100%-owned San Jose property in Zacatecas State. The new lab will mean that Arian can significantly speed up the analysis of samples taken from ongoing exploration work on the San Jose Vein. Arian has already produced 200 tonnes of silver concentrate from San Jose since production started last September. In today’s update it said it had improved the efficiency at its mill by adding an impact crusher and this had increased the composite grade of its concentrate to around 550 ounces per tonne.

Jim Williams, Arian’s chief executive, said: “We are pleased to report further progressive news with the installation and commissioning, on-site at San Jose, of our fully equipped semi-mobile laboratory, comprising sample preparation, wet-chemistry and fire-assay facilities. Our laboratory, which will be independently managed by personnel from the Stewart Group, will significantly speed up the analysis of our exploration samples. Furthermore, fine-tuning of both the mining and milling operations is progressing well. Approximately 200 tonnes of silver concentrate have been produced to date at a concentrate grade of well over 500 ounces of silver per tonne. Recent mill improvements have started to significantly improve the grade of the concentrate we produce and the additional mine development work we are now undertaking will allow access to more mining areas in due course.”

The new laboratory comprises a comprehensive sample preparation facility, a fire assay laboratory and a wet-chemistry laboratory with Atomic Absorption Spectrometry (AAS). The new impact crusher has been added to the crushing circuit of Arian’s custom mill to enable finer grinding of material prior to flotation.

The Arian Silver share price responded to today’s news by rising half a penny to 44.38p. Silver is currently trading at close to record highs at just over $41 per ounce. In an interview with Stockopedia last December, Arian’s Jim Williams said he was confident that that the surging market price was justified given that world demand for silver is outstripping supply. Silver is used in a wide range of applications – from pharmaceuticals to construction – but analysts also say it is increasingly being seen as an investment safe haven from weakening currencies.