🕐27.06.13 - 13:27 Uhr

WESTHOUSE - BUY 17P TP - BLACK MOUNTAIN RESOURCES - FURTHER POSITIVE HIGH-GRADE
SILVER SAMPLES FROM NEW DEPARTURE SILVER PROJECT - PRODUCTION DUE JULY 2013



Good Afternoon Westhouse Securities has released a note reiterating its BUY rating for Black Mountain Resources following today’s news that the Company has received further multiple high grade silver samples of up to 3,452 g/t from the Company’s New Departure Silver Project located in Montana, US as it continues to develop the existing workings to commence first production from the project in July 2013.

Conjecture will follow shortly after in H2 2013 which will provide the Company with revenue streams from two extremely high grade silver assets in the politically stable USA. Additionally, the Company has secured a AUD$3M debt financing facility from a syndicate of sophisticated investors which will enable the Company to continue development work at the project. House Broker Rob Broke said “Black Mountain Resources (BMZ) has announced further positive high-grade silver samples from its New Departure project in Montana.

The announcement follows previous updates which have also lent support to the high-grade historic resource at the project.

In addition, BMZ has announced an A$3m debt facility which could be increased by a further A$2m.

We anticipate further positive newsflow from the company over the coming weeks as it uses the new financing to continue development at the project.” Due to the recent fall in silver price, the price target has been reduced from 23p to 17p.

However, this still demonstrates a 100% increase on today’s share price of 8.38p and with both pre-production silver assets benefitting from costs around the US$10/oz mark, the Company is very resilient to falling commodity prices.

In the medium / long term consensus commodity forecasters see silver returning to stronger prices over the coming years. I have also attached XCap’s comment this morning.

Please see the full release below and do let me know if you would like to speak to someone from the Company. Best Lizzie
100oz/t Silver Samples as Mining Development Ramps up and Debt Funding Secured Black Mountain Resources Limited (ASX | AIM: BMZ) the silver focused development company with interests in the US, is extremely encouraged by further multiple high grade silver samples of up to 3,452 g/t at the Company’s New Departure Silver Project located in Montana, US. These results are part of an extensive sampling programme currently underway, including daily samples from the face of workings and bulk samples for mill testing, as the Company continues to develop the existing workings.

The focus being on identifying new mineralisation structures and confirming the location of known mineralisation areas in the Bonanza Zone, as well as developing the decline towards the Main Zone and the recently reached Coppin Zone (see map below).

The results of further sampling and bulk sampling programmes will be announced over the coming weeks. Operations at the New Departure Silver Mine have advanced significantly over recent weeks with the Bonanza Drive continuing through the historic Bonanza mineralization zone.

This has opened access to various levels of historic workings, including the Blue Dot, Silver Springs and Valley of the Moon levels.

The Company has used these historic workings in conjunction with new drifts being developed to enable greater and more cost effective access to known historic mineralization zones.

In addition a further drift has been driven to access the historic Coppin mineralization zone, where these high grade silver results of up to 3,452 g/t were taken from historic stopes and existing pillars.

Work has also commenced on the Main Drive which has been driven from the Bonanza Drive to access the historic Main mineralization zone. Of significant interest is the fact that the high grade samples were taken from multiple faces and various levels forming part of the Coppin Zone in addition to potential new mining zones identified with previous samples.

The most recent results from the Coppin Zone are especially encouraging as these samples come from the southeast face which is shown on historic maps as a tabular body and is open to the north and northwest as well as at depth.

These assays are conforming well with the data as depicted on historic records. Grab Sample Au (g/t) Ag (g/t) Cu (%) Pb (%) Mn (%) Zn (%) Location 432559 0.155 1,891.1 0.256 1.62 0.196 0.168 Coppin Zone 432560 0.249 625.2 0.079 1.21 0.210 0.712 Coppin Zone 432561 0.342 2,055.9 0.350 2.30 0.920 1.64 Coppin Zone 432562 0.124 3,452.5 0.600 2.59 0.267 0.632 Coppin Zone 432565 0.777 1,290.8 0.204 1.41 0.408 2.43 Coppin Zone 432567 0.622 597.2 0.017 19.3 0.044 0.932 Coppin Zone 432573 1.337 3,141.5 0.460 2.92 0.428 1.95 Coppin Zone 432575 0.093 575.4 0.043 0.480 0.399 1.47 Coppin Zone 432577 0.591 1,499.2 0.267 1.80 1.05 3.20 Coppin Zone 432582 0.342 485.2 0.120 1.31 0.440 2.11 Coppin Zone 432585 0.373 793.1 0.179 0.648 0.404 1.12 Coppin Zone Table: Sample results from the Coppin Zone. The tabulated grab samples are 11 face samples of visual mineralisation - 33 additional control and test samples were taken having lower or insignificant grades. These high grade results follow on the back of positive results from sampling of the Bonanza Zone, which reported grades of up to 1,684 g/t.

The Company is currently driving the decline through this zone, towards both the Main and Coppin Zone at various levels. As mentioned previously, during recent development work, the mining contractors encountered previously unknown historic workings from the early 1920’s.

The Company, therefore, plans to perform further mapping and testing of all these workings to establish their significance. The Company is also pleased to announce that it has secured a AUD$3M debt financing facility from a syndicate of sophisticated investors.

The syndicate has also indicated support for a further AUD$2M of funding availability, subject to first commercial production milestones at New Departure.

Key terms of the facility are: * 10% interest rate per annum payable semi-annually and with a maturity date of 19 December 2014; * The issue of 15M options (ASX:BMZO ‐ $0.20, 7 May 2015), and; * Net Smelter Return (NSR) royalty of USD$0.50 per ounce of silver produced from Conjecture and New Departure capped at the first 20M ounces of production.

The royalty increases to USD$1.00 per ounce in respect of sales above USD$20 per ounce silver price.
Black Mountain Chairman Pete Landau said, “We are delighted to report these high grade samples of up to 3,452 g/t of silver from multiple faces.

These, coupled with continued high grade results from sampling of the Bonanza Zone, as well as our recent identification of two new potential mining zones, are highly encouraging as we approach the Main Zone and first silver production.

Black Mountain is also pleased to have secured attractive financing terms to ensure the development of its projects in what are extremely difficult market conditions.

The financing demonstrates the robustness of both Black Mountains projects but in particular the New Departure silver mine with its high grade and low cost parameters which allow for continued development and production at current and lower silver prices.

More importantly, shareholders will be able to derive significant benefits through sustained production both in the short term and in the medium / long term where consensus commodity forecasters see silver returning to stronger prices over the coming years.” [cid:image004.png@01CE732E.B85FA990]For and on behalf of the Board
Peter Landau Executive Chairman For further information please visit www.blackmountainresources.com.au or contact: Black Mountain Resources Limited Shannon Robinson Executive Director | Corporate Relations E: T: +61 (8) 9488 5220
Black Mountain Resources Limited Eva Bezruchko Investor Relations E: T: +44 (0) 207 025 7040
Media (Australia) PPR David Tasker T: +61 (8) 9388 0944
Media (UK) St Brides Media & Finance Limited Elisabeth Cowell T: +44 (0) 207 236 1177
Joint Broker (UK) Westhouse Securities Limited Martin Davison T: +44 (0) 207 601 6100
Joint Broker (UK) Xcap Securities Jon Belliss T: +44 (0) 203 216 2630
Nominated Advisor (UK) RFC Ambrian Limited Stuart Laing T: +61 (8) 9480 2500
About Black Mountain Resources Limited Black Mountain Resources Limited is a dual listed (ASX | AIM: BMZ) silver and gold focused development company focussed 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. Competent Persons Statement The information included in this release that relates to historical mining data and exploration results is based on information compiled by Mr.

Gregory Schifrin, a technical consultant to the Company.

Mr.

Schifrin has worked as a geologist in exploration and mine development for 29 years in precious and base metal exploration and is a professional member (SME Registered Member) of the Society of Mining, Metallurgy and Exploration (SME) #4053449, a ‘Recognized Overseas Professional Organization’ (‘ROPO’) included in a list promulgated by the ASX from time to time.

Mr.

Schifrin has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

Mr.

Schifrin has reviewed this release and consents to the inclusion in the release of the matters based on his information in the form and context in which it appears. 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 Companys 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 Companys 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 todays date or to reflect the occurrence of unanticipated events.
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