still on target for Q1 production1 Feb 2013 08:17
31 January 2013
Black Mountain Resources Limited
Quarterly Report for the Period Ending 31 December 2012
Issued Capital: 75M Ordinary Shares* ASX Code: BMZ Closing price: A$0.21*
+ 25M Performance Shares* AIM Code: BMZ Closing Price: £0.1388*
* as at 31 December 2012
The Board of Black Mountain Resources Limited (Black Mountain or the Company),
the silver focused development company with interests in the US, is pleased to
provide the following commentary regarding its activities during the three
months ended 31 December 2012 and Appendix 5B.
Highlights
- Positive exploration and development progress made at the New Departure
Silver Project, Montana, which is on target to achieve Q1 2013 production:
- Mine development on-going with adit refurbishment almost complete and new
decline extension scheduled to commence to access historic workings
- Initial drill results returned grades of up to 365 g/t of silver confirming
down-dip extension of historic workings and indicate a potential projected
strike length of 670m
- Strong prospectivity of Conjecture Silver Project, Idaho, highlighted
through exploration and development milestones - on target to achieve Q2 2013
production:
- Graham adit and portal installation completed and decline commenced to
access historic workings Additional 20 mining claims staked - a total of 59
mining claims now held over 700 acres in a prolific silver region
- Full drill results confirm high grade silver zones and have identified new
mineralisation structure - best intercepts include:
- 715g/t Ag equivalent intercept over 1.38m (depth of 101m)
- 363g/t Ag equivalent intercept over 3.91mm (depth of 38m)
- 340g/t Ag equivalent intercept over 0.73m (depth of 17m)
- 157g/t Ag equivalent intercept over 3.04m (depth of 40m)
Black Mountain Executive Chairman, Peter Landau, commented, "This
quarter has been highly productive for Black Mountain, both in terms of
exploration and development at our US New Departure and Conjecture Silver
Projects. Drilling at both projects has identified new areas of high grade
mineralisation near to surface outside of the historic workings, demonstrating
the value and potential of these campaigns. The development programmes have
been extremely successful and will enable us to exploit the projects' near
term production capabilities to generate cash flows from historic zones within
our high grade silver portfolio. With this in mind, the coming months will be
focussed on building upon our knowledge of the area whilst pursuing an early
route to production which is targeted for Q1 2013 at New Departure and Q2 2013
at Conjecture."