The appointment of United Mine Services (UMS) will enable operations at New Departure to run at full capacity in line with its targeted production levels of between 200-250 tonnes per day.
Importantly, UMS will use its own equipment on site, minimising the project's capital expenditure.
"The appointment of UMS as mining contractor brings us one step closer to commencing high grade silver production at New Departure in Montana over the next few weeks," executive chairman Peter Landau said.
"UMS has mobilised both equipment and personnel on site and we are confident that our operations will benefit from improved efficiency and capital expenditure, providing further upside to the New Departure Project during this period of rapid development and value accretion."
The New Departure project includes a previously producing high grade silver mine and will be Black
Mountain's first producing project.
Black Mountain has already completed the reinforcement of the Laczay Adit is driving a 335 metre decline at a 15% decline to access historic workings below the historic blocks known as the Main Zone, additionally allowing access to the Quien Sabe Zones and the Bonanza Zones by way of secondary drifts off the main decline.
A 13 hole drill program carried out in the six months to 31 December 2012 had 13 hole drill had intercepted high grade silver of up to 365 grams per tonne gold confirming mineralisation zones and the down-dip extension of historic workings.
This program also indicated the potential for a projected strike length of about 670 metres.
Black Mountain plans to test the extension area as part of its exploration program for the June 2013 quarter.
The company has a 70% interest in New Departure.
With production just weeks away from starting, Black Mountain is poised to enter the producing ranks.
Production will also bring cash flow with further increases once the company brings the Conjecture Silver Project in in Idaho into production.
At the current share price of A$0.175, investors still have an opportunity to buy into an extremely near-term silver company on the cusp of production.
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