30 January 2015
Manager of Company Announcements
Australian Securities Exchange
Level 6, 20 Bridge Street
Sydney NSW 2000
By E-Lodgement
Quarterly Report for the Period Ending 31 December 2014
The Board of Black Mountain Resources Limited ("Black Mountain" or the "Company
"), the silver focused development company with interests in the US, provides
the following commentary regarding its activities during the three months ended
31 December 2014 and the Appendix 5B (Quarterly Cash Flow Report).
OPERATIONS
New Departure Silver Project
The Company principal's focus during the Quarter continued to be on the New
Departure Silver Project in Montana, USA. Only limited field work was completed
during the Quarter, due to access being limited as a result of the winter
weather, however work was completed by the Company's technical team and
consultants on finalising the 3-D mine model.
Results from the two phases of channel sampling, completed in the previous
quarter, which confirmed significant high grade results, highlighted that the
Blue Dot Level has the greatest potential for hosting a mineral resource in the
downward and northwest plunging remainder of the ore body, and extended the
silver mineralisation at the Main Zone. These results will all be incorporated
into the Company's updated mine plan for the Project. As noted in the September
quarter, Hard Rock Consulting ("HRC") has commenced modelling the silver vein
mineralisation to confirm historical resource estimates and to update the mine
plan for New Departure.
Further work during the Quarter targeted a strategy of initially developing
13,000-15,000 identified tonnes at the upper Coppin Level at a targeted diluted
mining grade of approximately 30oz/t Ag before focussing on the Blue Dot Level.
This work is ongoing, however it is expected that development and mining could
possibly be achieved faster and at a reduced capital cost. With silver back up
at over US$17/oz the Company is confident of restarting development and
operations this quarter.
Conjecture Silver Project and Tabor Gold Project
With the Company's focus being on the planned mine development and production
activities at New Departure, no significant work was undertaken during the
Quarter at the Conjecture Silver Project.
As alluded to in the last quarter, in light of the Company's immediate focus on
the New Departure Silver Project and the Conjecture Silver Project, and the
need for the Company to optimise its allocation of capital and human resources,
the Company has chosen to relinquish the Tabor Project to the lease owner.
Black Mountain had concluded very minimal desktop work on the project and
believes the relinquishment is a sensible move.
Corporate
During the Quarter the Company held its Annual General Meeting of Shareholders
on 25 November 2014. Shareholders approved all resolutions at the meeting
including the Financial Statements and Reports, and Remuneration Report.
Shareholders further approved the issuance of ordinary shares in the Company,
up to a value of A$1.0m to creditors.
The Company continued to advance its discussions with financiers during the
Quarter to enable development funding to be finalised and advanced for the New
Departure Silver Project. The process has taken significantly longer than the
Board had anticipated and has been impacted by the very difficult prevailing
market conditions for junior resource companies. However with the silver price
rising considerably in recent weeks, the Company remains confident that
considering the high grade nature of the mineralisation at the project, and its
forecast low cost production credentials, non-dilutive funding for the New
Departure Silver Project will be secured in the current quarter. Further
updates on this will be provided to shareholders as soon as possible.
The Company will not be proceeding with the Alcyone financing.
Black Mountain Chairman, Pete Landau commented: "We are dedicated to securing a
source of non-dilutive financing for Black Mountain so that we can best
position ourselves, despite the difficult market conditions, for high grade,
low cost silver production in the USA. Negotiations are on-going and we hope to
make an announcement in respect to this as quickly as possible so that we may
pursue our strategy to maximise the value of our highly attractive project
portfolio."
For and on behalf of the Board
Peter Landau
Executive Director
Appendix 5B Summary - Consolidated Statement of Cashflow
Cash flows related to operating activities Current quarter Year to date
$A'000 (6 months)
$A'000
1.1 Receipts from product sales and - -
related debtors
1.2 Payments for - -
(a) exploration, permitting & (76) (301)
evaluation
- -
(b) development & equipment
(13) (123)
(c) production
(d) administration
1.3 Dividends received - -
1.4 Interest and other items of a - -
similar nature received
1.5 Interest and other costs of finance - -
paid
1.6 Income taxes paid - -
1.7 Other Receipts (refunds) 6 207
2.7 Other - -
Net Operating Cash Flows (83) (217)
Cash flows related to investing
activities
1.8 Payment for purchases of: - -
(a)prospects - -
(b)equity investments - -
(c) new project acquisition
1.9 Proceeds from sale of: - -
(a)prospects - -
(b)equity investments - 126
(c)other fixed assets
1.10 Loans from other entities - -
1.11 Loans repaid by other entities - -
1.12 Proceeds from underwriting - -
Net investing cash flows - 126
1.13 Total operating and investing cash (83) (91)
flows (carried forward)
Cash flows related to financing
activities
1.14 Proceeds from raising - -
1.15 Proceeds from sale of forfeited - -
shares
1.16 Proceeds from borrowings 70 270
1.17 Repayment of borrowings - (212)
1.18 Dividends paid - -
1.19 Costs associated with issue of - -
shares
Net financing cash flows 70 58
Net increase (decrease) in cash (13) (33)
held
1.20 Cash at beginning of quarter/ 42 62
year to date
1.21 Exchange rate adjustments to (1) (1)
item 1.20
1.22 Cash at end of quarter 28 28
For further information please visit www.blackmountainresources.com.au or
contact:
Black Mountain Resources Limited Black Mountain Resources Limited
Peter Landau Melissa Pellicciotti
Executive Chairman Investor Relations
E: peter@blackmountainresources.com.au E: melissa@blackmountainresources.com.au
T: +61 8 9488 5220 T: +61 8 9488 5220
Media (Australia) Media (UK)
PPR St Brides Media & Finance Limited
David Tasker Elisabeth Cowell
T: +61 8 9388 0944 T: +44 207 236 1177
Joint Broker (UK) Joint Broker (UK)
Westhouse Securities Limited Hume Capital Securities Plc
Martin Davison Jon Belliss
T: +44 207 601 6100 T: +44 203 693 1493
Nominated Advisor
RFC Ambrian Limited
Oliver Morse / Trinity McIntyre
T: +61 (8) 9480 2500
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 and the
Conjecture Silver Project pursuant to 45 year leases from Chester Mining
Company and Lucky Friday Extension Mining Company respectively. Black Mountain
plans to implement low cost production and development programmes across these
two 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. James Baughman,
a technical consultant to the Company. Mr. Baughman is a qualified geologist
and has sufficient experience in exploration and mine development which is
relevant to the style of mineralisation 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. Baughman 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 Company's 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
Company's 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 today's
date or to reflect the occurrence of unanticipated events.
Mining Tenement (Claim) Reference (BLM Serial No.) Interest Held
New Departure Silver Project, Montana US
IM 1- 12 MMC224987 - 224998 70%
IM 14 - 18 MMC225000 - 225004 70%
IM 24 MMC225010 70%
IM 27-30, 32, 34-70 MMC226248 - 226289 70%
MOTHER LODE - 8431 - 70%
DIRECTOR LODE - 5600 - 70%
PROTECTOR LODE - 5601 - 70%
SHIELD LODE - 5602 - 70%
CLIFF LODE - 2264 - 70%
GUARDIAN LODE - 2411 - 70%
QUIEN SABE LODE - 2265 - 70%
SIGNAL LODE - 2505A - 70%
Conjecture Silver Project, Idaho US
SPIDER - SURVEYOR - 70%
GENERAL'S SURVEY #2683
CONJECTURE - SURVEYOR - 70%
GENERAL'S SURVEY #2683
RAINBOW - SURVEYOR - 70%
GENERAL'S SURVEY #2689
COMET - SURVEYOR GENERAL'S - 70%
SURVEY #3071
LUCKY STRIKE - SURVEYOR - 70%
GENERAL'S SURVEY #2744
SILVER CORD - SURVEYOR - 70%
GENERAL'S SURVEY #2744
FEDS #1 - #4 IMC206019 - 206022 70%
FEDCO FR IMC206023 70%
FEDCO #2 IMC206024 70%
NORTHSIDE #1 - #4 IMC206025 - 206028 70%
METEOR #6 IMC206029 70%
METEOR #7 IMC206030 70%
MET #3 - #5 IMC206031 - 206033 70%
UFCO #1 IMC206034 70%
UFCO #2 IMC206035 70%
STAR #4 IMC206036 70%
STAR #5 IMC206037 70%
ROBIN IMC206038 70%
MARS #1 IMC206039 70%
MARS #2 IMC206040 70%
MARS #4 IMC206041 70%
MARS #6 IMC206042 70%
METEOR #1 IMC206043 70%
METEOR #2 IMC206044 70%
METEOR #18 IMC206045 70%
LAKEVIEW 1-81 IMC210780 -210860 70%
LAKEVIEW IMC210780-210783, 70%
1-4,17,29-33,43-47,58-60
IMC210796,
IMC210808-210812,
IMC210822-210826,
IMC210837-210839
CC 1-20 IMC212242-212261 70%
HEWER NO. 2-4 IMC13736-13738 100%
HEWER NO. 5 IMC13739 100%
BUNCO IMC103971 100%
HEWER NO. 1 MILLSITE IMC13743 100%
IDAHO LAKEVIEW NO. 6 IMC13746 100%
MILLSITE
IDAHO LAKEVIEW NO. 9 IMC13749 100%
MILLSITE
TIP TOP MILLSITE IMC13753 100%