Black Mountain Resources (ASX: BMZ, AIM: BMZ) is now ideally positioned to begin high grade silver production from the historic Conjecture Silver Mine in Idaho, having completed the acquisition of the only permitted mill in the region.
The Lakeview Mill will be used to process ore mined from Conjecture following targeted first production in the June quarter of 2013.
Black Mountain has now settled its exclusive long term (45 year) lease over the Lakeview Mill and its acquisition of the historic Weber Silver Mine and Keep Cool Silver Mine clAIMs.
Peter Landau, executive chairman, commented: "Having completed the acquisition of the Lakeview Mill, which would cost over US$8 million to replace and a minimum of two years to permit, Black Mountain is ideally positioned to commence high grade silver production from the historic Conjecture Silver Mine in Idaho in Q2 2013.
"As the only permitted mill in the region, and with a processing capacity of 300 tonnes per day, this is a highly strategic addition to our portfolio and will meet our production requirements going forward.
"Also, the addition of further mining clAIMs provides the company with exposure to exploration upside potential and a waste alternative for our Conjecture project."
To settle the deal, Black Mountain has issued 11 million shares to Shoshone Silver/Gold Mining Corporation.
Black Mountain recently upgraded the facilities at the Lakeview Mill and its key items, including an additional ball crusher and flotation circuit, with the mill now capable of processing over 300 tonnes of ore per day.
The company intends to use the Weber Pit for waste disposal from the Conjecture Silver Mine.
Black Mountain also intends to undertake initial geological and geophysical work over the two historic assets acquired.
In particular, the company will target the intersection of the Conjecture and Weber shear zones to identify further drill targets as part of the exploration program planned for the June/September quarters of 2013.
Black Mountain is focused on implementing low cost production and development programs across its New Departure Silver, Conjecture Silver and Tabor Gold and Silver projects.
First production from New Departure is targeted for the current March quarter, ahead of Conjecture production in the June quarter.
With near term production due in the March quarter and then the June quarter, Black Mountain is transitioning from explorer to producer and some investors may have missed the potential for re-rating during the onset of production.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.