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Silver grades of 5,000gpt from newly opened up level

Released 08:11 09-Oct-2013

Silver grades of 5,000gpt from newly opened up level

9 October 2013

Samples in newly opened up level return over 5,000 g/t silver grades

Black Mountain Resources Limited (ASX | AIM: BMZ), the silver focused
development company with interests in the US, is delighted to announce that
further multiple 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 will access
both the Bonanza Zone and Main Zone historical mining blocks and will form a
key part of production moving forward.

Highlights

- Additional grab samples confirm bonanza silver grades of up to
  5,194g/t from samples from the Blue Dot Level

- High grades further underpin prospectivity of the Bonanza Zone
  and are in line with the extensive historic data

- Development drives now provide access to three historic
  mineralisation blocks, with the main decline continuing to be developed
  towards the Main Zone

- Increased silver recoveries to over 85% from optimized flotation
  metallurgical testing anticipated to improve to over 90% recovery in the near
  term

- Potential for CIL with tests yielding 89.51% silver recovery with
  low NaCN and lime consumption

- First phase of underground surveying completed

- 3-D mine model being finalised with results expected in the
  coming weeks

Black Mountain Chairman Pete Landau said, "We are delighted with the
consistent high silver grades being returned from grab samples from all of the
targeted zones at our New Departure project. The results are in line with the
extensive historic data and underpin our high grade, low cost production model
which we are working towards in the near term. We look forward to providing
further updates on the completion of metallurgical testing, toll treat
arrangements, the 3-D mine model and commencing development ore over the
coming weeks. These will represent key milestones as we focus on first cash
flow from the New Departure Silver Project."

High Grade Silver Sample Results

The recent samples were collected at the Blue Dot level from the Bonanza Zone,
which 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 are in line with the extensive historic data available for the
New Departure Silver Project.

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: 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

In recent months, the Company has undertaken a comprehensive sampling
programme, underground and surface surveying, and geologic mapping which, in
conjunction with new drifts being developed, have opened access to various
levels of historic workings to enable 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.

The 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.

Increased Silver Recoveries of Over 85% from Optimized Flotation Metallurgical
Testing

As previously announced, the initial phase of metallurgical test work was
completed and yielded up to 79% silver recovery, producing 359 oz/t (11,160
g/t) silver concentrate from flotation processing. Following optimization of
reagents and gravity separation of tails, the Company is very pleased to
report that the results show the flotation test improved to around 85% silver
recovery.

A representative composite sample selected from a 500lb (227kg) bulk sample
extracted from the upper Coppin Ore Zone on which flotation and bottle roll
cyanide leach testing was undertaken to determine the potential recovery. 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.

The Company anticipates flotation recoveries 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.

The Company is currently completing metallurgical testing in order to finalise
toll treat arrangements with nearby mills, as well as completing 3-D
geological mapping, which will be announced to the market shortly.

For and on behalf of the Board

Peter Landau
Executive Chairman

For further information please visit www.blackmountainresources.com.au or
contact:

Black Mountain Resources Limited         Black Mountain Resources Limited
Shannon Robinson                         Eva Bezruchko
Executive Director | Corporate Relations Investor Relations
E: shannon@blackmountainresources.com.au E: eva@blackmountainresources.com.au
T: +61 (8) 9488 5220                     T: +44 (0) 207 025 7040
 
Media (Australia)                        Media (UK)
PPR                                      St Brides Media & Finance Limited
David Tasker                             Elisabeth Cowell
T: +61 (8) 9388 0944                     T: +44 (0) 207 236 1177
 
Joint Broker (UK)                        Joint Broker (UK)
Westhouse Securities Limited             Xcap Securities
Martin Davison                           Jon Belliss
T: +44 (0) 20 7601 6100                  T: +44 (0) 203 216 2630
 
Nominated Advisor (UK)
RFC Ambrian Limited
Stuart Laing
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, 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 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.

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Silver grades of 5,000gpt from newly opened up level - RNS