🕐01.11.13 - 10:27 Uhr

BLACK MOUNTAIN RESOURCES - QUARTERLY REPORT HIGHLIGHTS KEY MILESTONES HIT AT NEW
DEPARTURE SILVER MINE, MONTANA US - EXPLOITING NEAR-TERM PRODUCTION POTENTIAL



Black Mountain Resources Limited Quarterly Report for the period ended 30 September 2013 The Board of Black Mountain Resources Limited (Black Mountain or the Company), the silver focused development company with interests in the US, is pleased to provide the following commentary regarding its activities during the three months ended 30 September 2013 and the Appendix 5B. Highlights · Bonanza grade grab samples of up to 5,194 g/t silver received from the New Departure Silver Mine, further underpinning its prospectivity and confirming the extensive historic data · Development drives now provide access to three historic mineralisation blocks which are planned to form a key part of proposed near term production · Metallurgical test work completed positively · Increased silver recoveries to over 85% from optimised flotation metallurgical testing · Anticipated to improve to over 90% recovery as the mining operations move into fresh sulphide zones · Potential for CIL with tests yielding 89.51% silver recovery with low NaCN and lime consumption · First phase of underground surveying completed and 3-D mine model in progress
Black Mountain Executive Chairman, Peter Landau, commented, “Exploiting the near term production potential of the New Departure Silver Mine in Montana is our main area of focus at present, and during the quarter we have hit key development milestones towards this target.

This includes advancing access to three historic ore blocks which will comprise a key part of production, significantly progressing the decline currently being developed towards the Main Zone and demonstrating the potential to enhance flotation concentrate recoveries to over 90% through metallurgical testwork.
“Historic bonanza silver grades at the New Departure mine are confirmed by grab sample fire assay analysis, generating additional substance to the project.

The new results along with historic data, will be included in the 3-D mine model to be completed shortly.

The completion of this, and our advanced metallurgical testwork, will represent important pre-production milestones as we finalise toll treat arrangement with a local mill and we look forward to updating shareholders in the near term regarding our progress across these areas.”
New Departure Silver Project, Montana During the quarter, the Company announced that additional underground grab samples returned up to 5,194 g/t silver grades at the Company’s New Departure Silver Project located in Montana, US.

Importantly the samples were taken from the newly opened up Blue Dot Level which accesses both the Bonanza Zone and Main Zone historic ore blocks (see Figure 1 below) and will form a key part of production moving forward in the coming months. The Blue Dot level was initially entered through the eastern area from beneath the historic workings.

The drive has been continued through the historic Bonanza Zone, opening access to various levels of historic workings, including the Blue Dot level.

These high grade silver results further underpin the project’s credentials and agree with the extensive historic data available for the New Departure Silver Project.

A summary of the results is shown below (see Table 1). [NDep Drive_ASX 24 06 13 (2)] Figure 1: New Departure Silver Mine
Grab Sample Au (g/t) Ag (g/t) Cu (%) Pb (%) Zn (%) Location 432651 0.155 2,814.9 0.628 2.12 4.32 Blue Dot Level 432654 0.28 780.7 0.083 0.66 0.596 Blue Dot Level 432657 0.653 4,914.3 0.824 5.88 2.94 Blue Dot Level 432658 0.28 1,993.7 0.272 1.96 1.51 Blue Dot Level 432660 0.933 5,194.3 0.984 3.1 4.56 Blue Dot Level 432662 NA 1,334.3 0.156 0.66 0.282 Blue Dot Level
Table 1: Sample results from the Blue Dot Level.

The tabulated grab samples are 6 face samples of visual mineralisation ‐ 5 additional control and test samples were taken having lower or insignificant grades These latest grab sample results follow on the back of previous results from sampling at the historic Coppin and Bonanza Zones, which reported grades of up to 3,452 g/t and 1,684 g/t, respectively (refer to previous announcements made on 1 August 2013 and 27 June 2013 for full result details). During the quarter the Company undertook a comprehensive sampling programme, underground and surface surveying, as well as geological mapping.

These activities, in conjunction with new drifts being developed, have opened access to various levels of historic workings, enabling greater and more cost effective access to known historic mineralization zones as well as new mineralization areas.

As a result of significant progress made so far, the development drives now access three historical mineralisation blocks, in addition to the decline currently being developed towards the Main Zone. In addition, the Company has completed the initial phase of metallurgical test work from bulk samples collected from its underground mine development. Initial results from flotation processing yield up to 79% silver recovery, producing 359 oz/t (11,160 g/t) silver concentrate.

The Company is focussed on optimizing recoveries to ensure that shareholder returns are maximised when production commences in the near term.

With this in mind, following optimization of reagents and gravity separation of tails the recovery results from the flotation test improved to around 85% silver recovery. The Company selected a representative composite sample from a 227kg (500lb) bulk sample extracted from the upper Coppin Ore Zone, accessed from the Silver Springs level (via the Laczay Tunnel), to use for flotation testing and bottle roll cyanide leach testing.

This was focussed on assessing the potential to treat the tailings.

A summary of the results is shown:
Sample Head Grade Float Con 1 Grade Tails Grade Recovery
Ag (g/t) Au (g/t) Ag (g/t) Au (g/t) Ag (g/t) Au (g/t) Ag % Au % ABM met1-1 425.18 0.37 10,924 3.48 131.26 0.53 69.58 17.90 ABM met1-2 425.18 0.37 21,284 8.46 126.90 0.19 75.75 48.36 ABM met1-3 425.18 0.37 4,398 3.73 226.12 0.43 53.76 41.03 ABM met1-4 425.18 0.37 11,159 4.98 96.11 0.34 78.97 37.19
Table 2: Sample results from initial phase of metallurgical test work extracted from the upper Coppin Ore Zone The material comes from the upper mine workings where the ore zone is strongly oxidised and is composed of silver chlorides and base metal carbonates.

A mineralogy study was undertaken to characterize the Coppin Zone material that was used for the metallurgical testing.

Ore minerals were identified using scanning electron microscopy, reflected light and thin section petrographic analysis.

Results show that silver from the New Departure mine occurs as acanthite, tetrahedrite, native silver and electrum.

The study aids in the identification of ore and in the selection of mineral processing routes and parameters. [SEMimage] Figures 2 and 3: Images from New Departure’s ore mineralogy study The Company anticipates these results to improve further (to over 90%) as the mining operations move into fresh sulphide zones where the bulk of the historic ounces are contained as opposed to older oxidised areas where the bulk samples were taken. Importantly, the laboratory that conducted the flotation tests uses the same style circuit of the mill that Black Mountain proposes to use to toll treat ore from the New Departure mine.

This provides the Company with significant advantage in expediting the final toll treat arrangements for the New Departure mine. Toll treat arrangements with nearby mills will be finalised when the Company completes its advanced metallurgical testing. Conjecture Silver Project, Idaho The Company anticipates recommencing mine development at the Conjecture Silver Project in Q2 2014 given weather conditions and short term focus on the New Departure Project.

Mine development will entail completion of the decline ramp to access historic workings and drifting on exposed vein structures.

In the meantime the Company has focussed on the development of the mine plan, permitting and exploration programme for the project, including a detailed 3-D mine model, using Vulcan software and incorporating the data from historic production and mapping at the project.
Tabor Silver and Gold Project Black Mountain continues with the collation, digitisation, mapping and review of historic data on the project.

The Company will evaluate the development of this project once production at both the New and Departure and Conjecture projects is underway.
For and on behalf of the Board [cid:image009.png@01CED6E4.79801DD0] 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 Nominated Advisor (UK) RFC Ambrian Limited Stuart Laing T: +61 (8) 9480 2500 Joint Broker (UK) Xcap Securities Jon Belliss T: +44 (0) 203 216 2630
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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