THE BOURSE WHISPERER: Black Mountain Resources (ASX: BMZ) has commenced construction of a development drive to access the high-grade silver Bonanza Zone at the company’s New Departure silver project located in Montana, in the United States of America.
Once it has access to the Bonanza Zone, Black Mountain said it intends to take production samples from historic workings for assaying and finalise indicative arrangements with local mills.
In order to access the Main Zone at the project, the company plans to commence a Main Drive from the Bonanza Drive shortly.
“Underground development at New Departure is now in full swing as we focus on commencing first silver production from the aptly named Bonanza Zone shortly,” Black Mountain resources executive chairman Peter Landau said in the company’s announcement to the Australian Securities Exchange.
“The Bonanza Drive will provide us with access to further zones of mineralisation within the historically mined areas of the project which will be extracted in line with our production target of up to 250 tonnes of ore per day, any margins from are intended to be utilised to help fund our exciting exploration campaigns planned at both New Departure and Conjecture in the coming months.
“This is a pivotal time for the company which will see us transform from a developer into a producer and I look forward to updating shareholders regarding our progress as we make this significant transition over the coming weeks.”
New Departure silver project. Source: Company announcement
Black Mountain indicated it also intends to access the Quien Sabe Zone by constructing a new portal higher up the mountainside and cutting a horizontal drive to access historic workings, subject to regulatory approvals.
Due to the shorter horizontal drive required and the shorter distance to haul ore and for waste disposal, the revised development plan will facilitate access to the Quien Sabe Zone sooner than if the company was to access it from the Laczay Adit.
In line with the production at New Departure, the company is in the final stages of completing debt/offtake financing arrangements.