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 on track to produce 44,000 tonnes of ore at Fossey Mine in June
Bass Metals (ASX: BSM) is on target to achieve the forecast 44,000 tonnes of ore production for June at the Fossey Underground Mine in Tasmania, with a total of 35,000 tonnes of ore mined since the start of June.
This marks an improved performance of the Hellyer mining operations since last updated on June 7 2011, when several unexpected operational matters occurred relating to dewatering and head-grade performance.
The company is bullish that the Hellyer Mine project has a positive outlook and work is ongoing to make the project more robust.
In addition, Bass continues to drill at the Fossey East deposit where it is looking to extend the ore body further.
The mining of high-grade stope has lifted the overall head-grade and the mill is operating well with zinc head-grade now averaging 5.6% for the campaign, up 14% on previously reported levels.
The fourth milling campaign has been underway since the 23rd of May 2011, with the campaign due to be completed on Thursday, June 23.
Concentrate production is strong and within saleable specifications, and planning is underway aimed at providing a higher grade, more robust and flexible mine plan.
Mike Rosenstreich, Bass’ managing director, said “the company has a high-grade polymetallic project with excellent potential to grow through exploration success.
"Recent technical challenges are clearly manageable, as indicated by the improved ongoing operational performance, and we are working hard to make the project even more robust.”
The company is still reviewing and assessing the overall financial and longer term operational plan, but considers it to be sound.
The high-grade nature of the mineralisation provides the flexibility to consider modifications to the underlying mine plan should the need arise.
The company is now focusing on the infill diamond drilling program currently being modelled.
Given the two week delay to the development, Bass is currently reviewing scheduling of ore production and milling, and all operating costs.
To date about 120,000 tonnes of ore has been mined representing 11% of the Fossey Mine Plan and therefore only still a small sample of the overall resource.
The original Fossey Mine Plan was based on the 25 metre spaced diamond drilling undertaken from surface; the grade-control diamond drilling from underground to infill that spacing was completed on 30 May 2011.
Work is in progress to complete the logging and assaying of that grade control drill-core and update the current resource model to reconcile with production to date and if necessary produce a revised Mine Plan. This is expected to be completed shortly.
Ore haulage from the mine for this campaign so far is about 61,400 tonnes and is currently being sourced from three stopes on the 465 level.
The company said two of these stopes (one high-grade one lower-grade) are performing as planned with respect to tonnes and grades, with the third traversing an unpredicted lower grade zone resulting in the overall mined grades falling unexpectedly in early June.
Bass Metals has since been focusing on mining the other high-grade stope, and this has resulted in a higher and more consistent feed grade to the mill, trending close to the original planned head grade of 6% zinc for the current campaign.
There are only 70 metres of decline development remaining to complete access to the base of the planned mine, which will enable establishment of the main 445 ore extraction level and a final permanent water pumping station.
Decline development and 445 level access development has been delayed by several weeks due to the water-in rush event reported on 7 June.
The water flow, whilst still at high (100 litres/sec) levels, is being well managed and the current dewatering rate for the mine is estimated to be 160 litres/second, well below the overall expanded dewatering capacity of 300 litres/second.
Importantly, level development on the 445 level and in the decline resumed over the weekend of 18-19 June.
The Mill is operating normally and the average zinc head grade has improved significantly, and more high-grade ore is planned to be treated to complete the campaign, providing an encouraging outlook.
The following quantities of concentrates are estimated to have been produced in the current milling campaign to date:
- 3,484 tonnes of zinc concentrate grading 51% zinc and 107 g/t silver, 1.0 g/t gold.
- 1,797 tonnes of lead concentrate grading 54% lead and 757 g/t silver, 2.5 g/t gold.
- 185 tonnes of copper concentrate grading 17% copper, 5,959 g/t silver, 8.9 g/t gold and 9.7% lead.
