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 finds new base and precious metals zone east of Fossey Mine
Polymetallic miner Bass Metals' (ASX:BSM) diamond drilling has intersected a zone of strong alteration and base metal sulphide mineralisation to the east of the Fossey Deposit with 2.5 metres at 0.3 % copper, 3.8 % lead, 6.3 % zinc, 56 g/t silver and 1.8 g/t gold.
The Fossey Deposit is located at the flagship Hellyer Mine in North West Tasmania which is well advanced and on track for commissioning and production ramp-up commencing November 2010, and will mark the transition and transformation of BSM toward mid-tier zinc, lead and copper producer status.
The high-grade base and precious metals intercept is within a 25 metre zone of alteration 50 metres east of the Fossey Deposit and is interpreted as the top of a new high‐grade massive sulphide lens.
It is in close proximity to the Fossey Mine infrastructure that is currently in development. The zone comprises barite rich alteration similar to the Fossey style alteration envelope that surrounds the high-grade Fossey copper-lead-zinc-silver-gold deposit.
The new zone contains several narrow discrete intervals of massive base metal sulphide mineralisation. Within the 25 metre zone of barite dominant alteration grades include 0.1 % copper, 0.7 % lead, 1.7 % zinc, 31 g/t silver and 1.0 g/t gold.
This new mineralised zone is open down-dip and to the north and south as shown in an interpreted cross section and long-section.
Mike Rosenstreich, managing director, said this is a very exciting growth opportunity for the Hellyer Mine Project to extend or increase production of zinc, lead and copper-precious metals concentrates if further drilling confirms the down dip expansion and continuity of the high-grade massive base metal sulphide zone.
Importantly, the potential for this new mineralised structure is completely open-ended and given the close proximity to the Fossey decline, Bass said it is is hopeful of achieving some economic benefit from this discovery.
A second drill hole is in progress to test the down-dip potential and further results will be reported when assays are available.
Bass Metals confirmed a third mineralised intercept from diamond drilling at the new Switchback target within the Hellyer mine lease on Septemeber 29, confirming excellent potential to define a sizable resource with further drilling.
On September 28 Bass completed the $12 million project financing for the Hellyer Mine and the loan facility has been fully drawn.
The miner is in a strong financial position, with a A$9.5 million cash balance and a A$8.3m working capital position, as reported in its full-year financial report.
