26 June 2014
Manager of Company Announcements
Australian Securities Exchange
Level 6, 20 Bridge Street
Sydney NSW 2000
By E-Lodgement
Channel Sampling at New Departure Silver Mine
Black Mountain Resources Limited (ASX | AIM: BMZ), the silver focused
development company with interests in the US, is pleased to announce an update
on its New Departure Silver Mine in Montana.
In the last week, approximately 118 channel samples (varying from 30cm to 2m)
have been taken from the New Departure mine, 48 from the Blue Dot Level, where
samples last year returned high silver grades up to 5,194g/t. These new
samples, which are being collected in line with the Company's strategy to
complete its 3-D mine model, have been shipped to a laboratory in Nevada with
results expected in the coming weeks.
Encouragingly, the Company's lead geologist at New Departure was able to
identify some clear sulphides on the main haulage level, and was also
encouraged by the samples taken from the Blue Dot Level. The Blue Dot Level
will access both the Bonanza Zone and Main Zone historical mining blocks at New
Departure and will form a key part of production from the mine moving forward.
Black Mountain Chairman, Pete Landau, said:
“Activity is increasing at New Departure as we tick off the remaining milestones
prior to commencing production at our first of two high grade silver mines in
the US. The only outstanding operational hurdles are the receipt of further
results from metallurgical testwork and the confirmation of the toll treat
agreement with a local mill. The results of these channel samples will further
solidify our mine planning in the coming weeks and, upon the finalisation of
additional financing, we will be in a strong position to put our high grade,
low cost production model into gear with a view to creating significant value
for shareholders. We are pleased to see the recent upticks in precious metal
prices and believe that investor interest is returning to the sector. We feel
we are in a strong position in an upcoming renewed positive precious metals cycle.”
A pdf version of this announcement including images is available on the Company's website.
For and on behalf of the Board
Peter Landau
Executive Director
For further information please visit www.blackmountainresources.com.au or
contact:
Black Mountain Resources Limited Nominated Advisor
Peter Landau RFC Ambrian Limited
Executive Director Oliver Morse and Trinity McIntyre
T: +61 (8) 9488 5220 T: +61 (8) 9480 2500
Media (Australia) Media (UK)
PPR St Brides Media & Finance Limited
David Tasker Elisabeth Cowell
T: +61 (8) 9388 0944 T: +44 (0) 207 236 1177
Joint Broker (UK) Joint Broker (UK)
Westhouse Securities Limited Hume Capital Securities plc
Martin Davison Jon Belliss
T: +44 (0) 207 601 6100 T: +44 (0) 203 693 1493
About Black Mountain Resources Limited
Black Mountain Resources Limited is a dual listed (ASX | AIM: BMZ) silver and
gold focused development company focused on the advancement of three highly
prospective previously operating assets located in two of the world's most
developed and proven silver and gold mining regions of Idaho and Montana, USA.
The Company holds a 70% interest in the New Departure Silver Project, the
Conjecture Silver Project and the Tabor Gold and Silver Project pursuant to 45
year leases from Chester Mining Company, Lucky Friday Extension Mining Company
and Brush Prairie Minerals respectively. Black Mountain plans to implement low
cost production and development programmes across all three assets. It is also
implementing exploration programmes to capitalise on the exploration upside
potential apparent across its portfolio.
Black Mountain Resources Limited was incorporated on 29 October 2010 and is
listed on the Australian Securities Exchange (ASX) and London's AIM Market -
trading codes BMZ and BMZO.
Forward Looking Statement
Certain statements made during or in connection with this communication,
including, without limitation, those concerning the economic outlook for the
silver market, expectations regarding silver ore prices, production, cash costs
and other operating results growth prospects and the outlook of the Company's
operations including the likely commencement of commercial operations of the
New Departure and Conjecture Silver Projects, its liquidity and the capital
resources and expenditure, contain or comprise certain forward-looking
statements regarding the Company's development and exploration operations
economic performance and financial condition. Although the Company believes
that the expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will prove to have
been correct. Accordingly, results could differ materially from those set out
in the forward-looking statements as a result of, among other factors, changes
in economic and market conditions, success of business and operating
initiatives, changes in the regulatory environment and other government
actions, fluctuations in silver ore prices and exchange rates and business and
operational risk management. For a discussion of such factors refer to the
Company's most recent annual report and half year report. The Company
undertakes no obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after today's
date or to reflect the occurrence of unanticipated events.