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Black Mountain Resources Testwork Yields High Grade Silver At Montana Project

Black Mountain Resources (ASX/AIM: BMZ) has completed first phase of metallurgical test work from bulk samples collected from its underground mine development of the New Departure silver project located in Montana, USA.

UK and Australian-listed Black Mountain is bringing three previously operating assets, with exploration upside, into production which are located in Idaho and Montana, U.S.A.

In the upper ore zone, the testwork has show silver yields of up to 79% recovery from producing 359 oz/t (11,160 g/t) silver concentrate are recoverable from flotation processing.

Significantly, these results are likely to improve as floation tests continue to optimise recoveries and mining moves into fresh sulphide zones where the bulk of the historic ounces are contained.

The laboratory that conducted the flotation testing also replicates the circuit of the proposed mill that Black Mountain will toll treat with.

This provides the Company with significant advantage in expediting the final toll treat arrangements for the New Departure mine in the coming weeks.

Black Mountain Chairman, Pete Landau said, "We are extremely pleased with the initial metallurgical test results which confirm the high grade nature of the silver mineralisation at the New Departure Silver Mine.

"While the bulk ore sample we collected is from the upper portion of the mine, it represents the most oxidised ore mineralogy and we expect the deeper supergene and hypogene sulfide bearing ores to yield much higher recoveries (to over 90%) from flotation processing.

"As the Company continues its progress towards first high grade low cost production, these highly positive results, combined with previous work, further strengthen the foundations of what is a very exciting silver project especially given the recent upturn in silver prices."

Analysis

Metallurgical test results have confirmed the high grade nature of the silver mineralisation of 11,160 g/t silver concentrate at the New Departure Silver Mine from initial work.

With the silver price recovering over 30% since July, the timing is very good for final toll treat arrangements for the New Departure mine to be announced in the coming weeks. Black Mountain will be a low cost producer of high grade silver, current share price of $0.135 looks undemanding.