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 reports $4.4 million profit, Hellyer production nears
Polymetallic miner Bass Metals (ASX: BSM) has reported a FY10 A$4.4 million operating profit from the Que River Mine in north-west Tasmania.
However, the prime focus for BSM during the year has been developing the Hellyer Project, with the Fossey deposit mine plan completed and the Hellyer Mill is on schedule to commence commissioning and production ramp-up by Q4 CY2010.
The miner though is in a strong financial position, with a A$9.5 million cash balance, a A$8.3m working capital position and a A$12m undrawn debt facility.
Revenues were A$18.2 million, down from A$23 million for the corresponding period a year before.
With the flagship Hellyer project well advanced and on track for commissioning and production ramp-up commencing November 2010, it will mark the transition and transformation of BSM toward mid-tier zinc, lead and copper producer status.
Bass initial growth and development has been largely funded from the profitable Que River mining operation, although Bass did conduct a A$15million capital raising during the FY10 to help fund the development of the Hellyer project and maintain a sound cash liquidity position.
Mike Rosenstreich, managing director, said the year was a transformational one in which key strategic growth milestones was achieved.
“Our strategy is to grow the Company into a diversified mid-tier mining house and we are excited that the critical stepping stone toward this is almost in place following the commencement of the A$20 million Capex programme to develop the Fossey deposit and refurbish the Hellyer Plant in January this year.”
“The operating profit result from Que River was also pleasing given that the mine was in its third year of production, more than twice its original mine life.”
The new Hellyer mine is expected to have a five year mine life and the Company is confident of extending this based on continued exploration success.
The Hellyer mill will commence at a rate of approximately 400,000 tonnes of ore a year sourced from the Fossey, Hellyer and Que river deposits, however Mill capacity of 1.5 million tonnes provides substantial scope for increased production on the back of organic enhancements, exploration success and possible future acquisitions.
“A significant advantage for Bass is the prospect of quickly commencing low cost mining operations from potential new discoveries through utilisation of existing infrastructure, including the underutilised Hellyer Mill,” said Rosenstreich.
The Company also reported significant progress toward developing a number of its key organic growth projects which will provide potentially profitable additions to the new Hellyer operations.
This includes the Hellyer Tailings re-treatment and gold recovery study projects which have the potential to process 1 million tonnes per annum of tailings to produce 60,000 tonnes per annum of bulk lead-zinc concentrate as well as adding 50,000 to 100,000oz of gold production to the Company’s annual Hellyer output.
