www.bassmetals.com.au
Bass Metals (ASX: BSM) is a growth focused and profitable Australian base and precious metal producer with a portfolio of high quality zinc, lead, copper and gold assets in the rich Mount Read Volcanic mineral belt in northwest Tasmania. Listing in 2005, Bass delivered its maiden profit in 2008 from its profitable base metals production hub at Que River in Tasmania, which has generated $25 million in cash flow over the last two years.
The Company also has an active and successful exploration programme and is currently following up on recent discoveries at Switchback and Fossey East which are high-grade and located in close proximity to existing mines and milling infrastructure. Bass has an experienced Board and operating team who have a strong track record of delivering profitable production underpinned by exploration success and are highly motivated to improve on that record.
The Company’s growth strategy centres on the development of a ‘pipeline’ of production, near-production and exploration assets in this prolific mineral belt, with strong leverage to a substantial new discovery through its extensive regional ground holding.
Bass Metals provides update on Hellyer Mine
Bass Metals (ASX:BSM) has encountered water bearing structures in the Fossey decline at its Hellyer Mine Project development in NW Tasmania, bringing extra pumping capacity to manage the unexpected water flows.
The Fossey decline is at approximately 625 metres of the 911 metre total planned decline length but its advance in recent weeks has continued to encounter significant unexpected highwater bearing structures.
Difficulties associated with these water bearing structures have been exacerbated by snow storms which have restricted access to site for several shifts.
The increased water flow has made mining activities difficult and placed the interim pumping and power supply services under maximum load, with no contingency if further such structures are intersected.
In response Bass has decided to bring forward in the development schedule the installation of permanent services and upgrade of the pumping capacity to ensure sufficient contingency.
The original planned final pumping capacity was to be 80 litres per second, which is now being upgraded to 180 litres per second. The current pumping requirement is estimated to be 50 to 60 litres per second.
The water flows have caused a further delay in the decline advance and Bass now estimates that the overall mine development is four weeks behind the original schedule.
The upgrades to the dewatering circuit and modification to the schedule is likely to result in a capital cost increase of approximately $0.7 million.
The refurbishment of the Hellyer Mill is approximately 60% complete with costs to date consistent with the planned expenditure schedule.
The issues in the underground mine development have prompted a review of the overall development and production schedule. In late July 2010, it was regarded as realistic, albeit, “tight” to have the Mill commissioned and in production in December 2010.
Bass still expects ore production from the Fossey mine in November-December, but given the recent issues in the decline development, plant commissioning will be completed prior to Christmas and then after the work force has had a break over Christmas, start treating Fossey ore early in the new Year, 2011.
In dealing with the water inflow and the installation of the extra power and given the occurrence of Christmas in the middle of that schedule it was decided to plan to start processing Fossey ore in January 2011, rather than in December 2010.
The company said in the overall scheme it is regarded as a very modest and prudent revision to the schedule.
