Shares rise as Black Mountain identifies new areas of high grade mineralisation

AIM-listed silver-focused mining company Black Mountain Resources has unveiled an operational update highlighting positive developments at its silver projects in Montana and Idaho.

AIM-listed silver-focused mining company Black Mountain Resources has unveiled an operational update highlighting positive developments at its silver projects in Montana and Idaho.

The company, which has a 70% interest in three projects in the US, reported that positive exploration and development progress had been made at its New Departure Silver Project in Montana, which it said was on target to achieve first quarter 2013 production.

The group reported that initial drill results returned grades of up to 365 grammes per tonne of silver confirming down-dip extension of historic workings and indicating a potential projected strike length of 670m.

Black Mountain also reported the strong prospectivity of the Conjecture Silver Project in Idaho.

Peter Landau, Black Mountain Executive Chairman, said: "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.

He added: "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 the first quarter 2013 at New Departure and second quarter 2013 at Conjecture."

Black Mountain's share price was up 1.67% to 15.25p at 10:55 on Friday.

MF

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