BLACK MOUNTAIN RESOURCES LIMITED: Drill Results High Grade Silver at Conjecture

BLACK MOUNTAIN RESOURCES LIMITED: Drill Results High Grade Silver at Conjecture
17 October 2012 
Further Drill Results Confirm High Grade Silver Zones and Identifies New
Mineralisation Structure at Conjecture Silver Project in Idaho 
- 715g/t Ag and Ag equivalent intercept over 1.38m (depth of 101m)
- 363g/t Ag and Ag equivalent intercept over 3.91m (depth of 38m)
- 340g/t Ag and Ag equivalent intercept over 0.73m (depth of 17m)
- 157g/t Ag and Ag equivalent intercept over 3.04m (depth of 40m) 
- Further high grade intercepts from additional four holes highlight the
  potential scale of Conjecture
- Results confirm the presence of historic ore blocks outlined in 1981 reserve
- New mineralisation structure also identified with high grades close to
  surface on Conjecture Shear Zone
- Further anomaly targets identified by geophysical work program for further
  test work
- Management team strengthened with the appointment of Shannon Robinson as
  Executive Director 
Black Mountain Resources Limited (ASX | AIM: BMZ) (the "Company"), the silver
focused development company with interests in the US, is pleased to announce
positive assay results from a further six holes and initial results from
geophysical work at its maiden drill program at the Conjecture Silver Project
in the prolific Lakeview Mining District in Idaho. 
Conjecture Silver Project 
The Company recently completed a 16 hole diamond core drill program (1,800m)
at the previously producing mine. The drilling was undertaken from 3 drill pad
locations, Drill Pad 1, Drill Pad 2 and the Rainbow Pad, each location drilled
into the hanging wall through the vein structure into the footwall material.
The vein structures encountered showed mineralisation and the assays results
returned have confirmed high concentrations of silver with gold that
correspond with historical values of mineralisation and correlate to mapping
and underground structures seen in the historical Conjecture workings. The
decision was made to extend the program from 10 holes to 16 due to positive
results from drilling undertaken at the Rainbow Pad, where shallow
mineralisation was intercepted in an area previously untested. 
The program, which was the first exploration drilling undertaken at the
Conjecture Silver Project since the 1980's, successfully confirmed the grades
and the presence of historic mining blocks identified by previous sampling,
exploration and mining undertaken at the property. Significantly, each hole
drilled encountered mineralisation structures, although some of the samples
are still being processed with final assay results anticipated to be available
in the next fortnight. This new data, combined with the wealth of historic
reports and information, will be integral to the Company as it focusses on the
successful development of the project with an objective of achieving first
production in Q1 2013. 
                      Conjecture Silver Project Assay Results 
 Hole    Northing    Easting   Azimuth   Angle  From (m)  To (m)   Width        
Drill Pad 1 
1    530691      542283    S45E      -85                         NRI 
2    530691      542283    S45E      -70      94.17     1.27     0.6      
85.5g/t Ag, 
0.72g/t Au, 
Pb, 0.38% Zn 
(123g/t Ag-eq) 
2    530691      542283    S45E      -70      101.36   102.74   1.38   
692g/t Ag, 0.43g/t 
Pb, 0.39% Zn 
(715g/t Ag-eq) 
3                                   Assay results pending 
Drill Pad 2
  4*    5,306,846   542,231   -112.9    -51.7    100.41   101.00   0.59m     
1,106g/t Ag, 
0.81g/t Au, 
Pb, 0.23% Zn 
(1,149g/t Ag-eq)
  5*    5,306,846   542,231   119.4     -67.7    122.00   122.32   0.32m     
1,060g/t Ag, 
0.72g/t Au, 
Pb, 0.53% Zn 
(1,098g/t Ag-eq)
  6*    5,306,846   542,231   -273.3    -88.1    236.46   236.82   0.36m  
898g/t Ag, 0.47g/t 
Pb, 1.77% Zn 
(923g/t Ag-eq) 
7                                   Assay results pending 
Rainbow Drill Pad 
8    5307178     542561    S46E      -50      36.70    39.73    3.04      
90.6g/t Ag, 
1.25g/t Au, 
Pb, 0.24% Zn 
(157g/t Ag-eq) 
9    5307178     542561    S46E      -70                         NRI
  10    5307178     542561    S46E      -85                         NRI
  11                                   Assay results pending
  12                                   Assay results pending
  13                                   Assay results pending
  14    5307178     542561    S71E      -50      17.58    18.31    0.73   
320g/t Ag, 0.37g/t 
Pb, 0.43% Zn 
(340g/t Ag-eq)
  14    5307178     542561    S71E      -50      38.41    42.32    3.91   
264g/t Ag, 1.87g/t 
Pb, 0.39% Zn 
(363g/t Ag-eq)
  15                                   Assay results pending
  16                                   Assay results pending 
* Assay results previously disclosed 
1. Intersections were calculated using minimum criteria of 100g/t Ag and Ag
2. NRI = no reportable intersection 
3. Ag-eq (equivalent) grades in this release are gross value equivalents 
the following metal prices US$33/oz silver price and US$1,740/oz gold price. 
4. These are calculated by gross $ value of any Ag and Au in drill 
For the purposes of this release, values have not be attributed to Pb and Zn
5. It should be noted that AgEQ is for the purpose of illustrating gross 
values compared as a ratio to other metals in the drill intersection. 
Holes 1-7 targeted the historic "31" mining block, where high grade silver
mineralisation was delineated in the early 1980s. This is depicted on Diagram
1 as the ore shoot from the Spider Adit. The assay results from holes 1 and 2
(Drill Pad 1) are set out below together with the results from holes 4 to 6
(Drill Pad 2), previously announced on 24 August 2012. 
These results are consistent with the historic data for mining block 31
identified in the 1981 Reserve Report on the Conjecture Silver Project which
estimated the block to contain 50,000 - 60,000 tons1 of silver at an estimated
grade of 350 - 375 grams Ag per ton1. 
A further 8 holes were then drilled from the Rainbow Pad targeting the
Conjecture Shear Zone, an area which has not previously been explored or
tested to the east of the historic ore shoot, as depicted on Diagram 1. The
mineralised structure identified by results from holes 8 and 14 is much closer
to the surface than anticipated, with results of almost 320g/t Ag at only
17.6m from the surface (refer to results for hole 14). The results from drill
hole numbers 7, 11 - 13, 15 and 16 are anticipated to be available in the next
The Company is encouraged by the results of the drill program with the
confirmation and identification of mineralisation structures at the Conjecture
Silver Project. Importantly the results also highlight the high gold, lead and
zinc content of the structures. The credit for these minerals further improves
the economics and enhances the potential of the Conjecture Silver Project. 
Black Mountain CEO John Ryan, commented: "The exciting results from drilling
and geophysical work at Conjecture continue to demonstrate the exceptional
prospectivity and the potential scale of Conjecture. Not only have we
confirmed the presence of previously known areas of high grade silver
mineralisation, thereby strengthening our confidence in the accuracy of
previous work but we have also identified very promising new targets within
our patented claims. With this in mind, we look forward to receiving the
results from the remaining five holes over the coming weeks, which we already
know have encountered mineralisation, in tandem with advancing development as
we move towards initial production in H1 2013." 
Geophysical Work 
In preparation for the geophysical work program at the Conjecture Silver
Project, further field geological reconnaissance was undertaken with the
assistance of Dr Steve Reynolds which identified an area of intense
brecciation and silicification accompanied by relic sulphide box works. 
Having commenced the geophysical program in September 2012, the Company
recently completed an initial Induced Polarity ("IP") survey strike line along
the Conjecture Shear Zone of approximately 6 kilometres. The strike identified
a number of target anomalies along the zone which will require further test
work. Further desktop modelling and mapping is being undertaken on these
results and a program involving cross lines across prospective areas is being
developed. The IP work continues to develop new potential drilling targets and
will require geochemical and structural geology work to be done on the new
targets for further development. 
The Company is also please to advise that Ms Shannon Robinson has been
appointed to the Board as an Executive Director, effective immediately.
Shannon is a former corporate lawyer and corporate advisor with significant
experience in providing corporate, capital raising, transaction and strategic
advice to numerous public companies. Shannon has been involved with Black
Mountain since its incorporation and is also currently a director of Kaboko
Mining Limited. 
For and on behalf of the Board 
Peter Landau
Executive Director 
1. This estimated mineralisation is an Exploration Target only and does not
represent JORC Code compliant Mineral Resources. The potential quantity and
grade of the Conjecture Exploration Target is conceptual in nature. There has
been insufficient exploration to define a Mineral Resource and it is uncertain
if further exploration will result in the determination of a Mineral Resource. 
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. 
For further information please visit or
Black Mountain Resources Limited         Black Mountain Resources Limited
Shannon Robinson                         Eva Bezruchko
Executive Director                       Investor Relations
E: E:
T: +61 (8) 9488 5220                     T: +44 (0) 207 025 7040 
Broker (Australia)                       Broker (UK)
708 Capital                              Xcap Securities
Matthew Lumb                             Jon Belliss
T: +61 (2) 9112 2550                     T: +44 (0) 20 32162630 
Media (Australia)                        Media (UK)
PPR                                      St Brides Media & Finance Limited
David Tasker                             Elisabeth Cowell
T: +61 (8) 9388 0944                     T: +44 (0) 20 7236 1177 
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. It plans to
implement low cost production and development programmes across all three
assets, targeting first production from New Departure and Conjecture by Q1
2013. 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 and London's AIM Market (BMZ). 
Black Mountain Resources Limited 
Suite 1A, Prince's House
38 Jermyn Street
London SW1 6DN
Tel: +44 (0) 207 025 7040 
Ground Floor
1 Havelock Street
West Perth WA 6005
Tel: +61 (8) 9488 5220 
-0- Oct/17/2012 06:06 GMT
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