Black Mountain Resources strikes mill acess deal for Conjecture silver oreReported by Proactive Investors on Tuesday, 10 July 2012 (on July 10, 2012)
Black Mountain Resources (ASX: BMZ) has secured an exclusive option for a 45 year lease at the Lakeview Mill, which is ideally positioned for near term use by the company’s nearby Conjecture silver project in the prolific Lakeview Mining District, northern Idaho.
The use of the mill, located just 3.5 kilometres from Conjecture, is key in developing both the short and long term production plans for the project, where milling of ore is targeted for the December quarter of 2012.
The mill, which is permitted and has processed ore from the Lakeview District regularly over the past 10 years, has a current capacity of 300 tonnes per day and can be upgraded further. Current mine planning for Conjecture is 100 tonnes per day.
Black Mountain has also acquired an additional option to purchase the historic Weber Mine, which is only 2.5 kilometres from the Conjecture Project.
The Weber Mine is around 2.5 kilometres from the Conjecture Project and has similar geology.
The mine is historically an open pit mine and will assist with mine logistics in developing Conjecture and waste ore disposal.
Terms of the deal*
Consideration includes an option fee of US$500,000 plus the issue of 11 million fully paid ordinary shares in the capital of BMZ in total.
A toll treatment fee of US$10 per ton of ore processed will also apply.
The Company will undertake further due diligence on both the Lakeview Mill and the Weber Mine during the option period.
Expanding investor reach *
Following increased interest in Black Mountain and its suite of high grade silver projects, the company plans to dual list on the AIM Market of the London Stock Exchange. Listing is scheduled for 25 July 2012.
XCAP Securities plc has been appointed as the UK broker and RFC Ambrian Ltd has been appointed as nominated adviser for the listing.
*Near term producer*
Black Mountain has three silver projects in the politically stable north western U.S. region that have a proven record of production and exploration upside potential.
Small scale production is targeted from the New Departure Project in the December quarter of 2012, and while a JORC Resource is yet to be defined, historic data shows the potential for high silver grades of more than 500 grams per tonne.
Conjecture also has the potential for near term production, particularly with the securing of the option over the Lakeview Mill.
*Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.*
Links: Full news story
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