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' Switchback target open in all directions
Polymetallic miner Bass Metals (ASX:BSM) has confirmed a third mineralised intercept from diamond drilling at the new Switchback target within its 100% owned Hellyer mine lease in north-west Tasmania, confirming excellent potential to define a sizable resource with further drilling.
The Switchback target is within close proximity to the Hellyer Mill and the Fossey underground mine which is currently in development.
The Latest drilling yields an intercept of 2.25 metres grading 8.3 % zinc, 4.3 % lead, 74 g/t silver and 1.3 g/t gold; within 11.05 metres grading 4.1% zinc, 1.8 % lead, 37 g/t silver and 0.8 g/t gold.
This is the third potentially economic intercept from the Switchback target and further highlights the exciting nature of this new discovery within the existing mine area. The high-grade massive sulphide clasts may vector exploration drilling into a new primary massive sulphide deposit.
Bass is exploring for large scale, high grade polymetallic (copper-lead-zinc-silver-gold) volcanogenic massive sulphide (VMS) deposits in the Mt Read Volcanic belt, in North-west Tasmania.
These deposit styles generally occur in clusters, and Bass’ exploration focus is around the Hellyer-Que River VMS system which occurs on its Mining Leases within 5km radius of its Hellyer Mill.
Bass's Hellyer Mine Project is on track to commence production toward the end of 2010. With an initial through-put rate of 400,000 tonnes per annum (tpa), the 1.5 million tpa capacity Hellyer Mill will produce 53,000 tpa of zinc concentrate, 27,000 tpa of lead concentrates and 4,500 tpa of copper—silver-gold concentrates.
On September 13 Bass reported a FY10 A$4.4 million operating profit from the Que River Mine in north-west Tasmania.
Que River ore is currently sold to the nearby Rosebery Plant under an Ore Sales Agreement with the plant’s owner/operator, MMG Australia.
In January 2010 Bass signed a committed off-take contract with leading global multi-metals business, Nyrstar (EBR: NYR), for all zinc and lead concentrates produced from the Fossey mine.
The miner 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 for the year ended 30 June, 2010.
On September 28 Bass completed the $12 million project financing for the Hellyer Mine and the loan facility has been fully drawn.
