🕐21.12.10 - 05:27 Uhr
Ore Intersected in Hellyer Mine Development
Bass Metals Limited
ASX Announcement
21 December 2010
ORE INTERSECTED IN HELLYER MINE DEVELOPMENT
Diversified miner, Bass Metals Ltd (ASX:BSM) ("Bass" or "the Company") is
pleased to provide the following update on its Hellyer Mine Project
development in northwest Tasmania comprising the Fossey underground mine
and the Hellyer Mill refurbishment.
Underground Mine Development
The Fossey underground mine development being undertaken by Bass alliance
mining partner, Mancala Mining, is now within the Fossey high-grade
polymetallic (Cu-Pb-Zn-Ag-Au) ore body (see Figure 1 below).
Ore is
currently being hauled to the Run-of-Mine (ROM) stockpile.
Underground
development work includes: advancing the decline to the lower portions of
the ore body, incline development to access upper ore levels and completion
of the second and final ventilation shaft.
The mine development program is on schedule to meet the ore production
requirements for the Mill and costs are in line with budget forecasts.
Hellyer Mill Refurbishment Completed
All refurbishment work on the Hellyer Mill has now been completed to enable
full production to commence.
A significant quantity of waste rock has been
crushed and fed into the Mill as part of the planned initial commissioning
process.
A stockpile of low-grade material from Que River and Fossey is
being accumulated on the ROM pad.
In early January 2011, the Mill will
commence processing low-grade material, transitioning to typical high-grade
Fossey ore as the circuit stabilises to achieve the key production
milestone of first zinc, lead and copper-silver-gold concentrate production
in January 2011
Comment
"The mine development is progressing well and we are on track to become
cash-flow positive in the first few months of 2011.
We believe the outlook
for base and precious metal prices in 2011 is very positive and this is a
great time to be bringing this project on-stream" said Bass Managing
Director, Mr Mike Rosenstreich.
"In terms of growth, particularly through
exploration -- we need to conserve cash at this stage in case of any
delays, but once we have completed the current commissioning we plan to
accelerate our exploration activities and look forward to keeping at least
2 to 3 drill rigs busy on our projects" he added.
To view the full ASX Announcement, please visit:
http://esp.gewru.com/download/files/12414/1293537/ASX%2021%20Dec2010%20HMP%20Operations%20Update_Final.pdf
For further information, please contact:
Mike Rosenstreich
Managing Director
Bass Metals Ltd
Tel: (+61-8) 6315 1300
Media:
David Brook
Professional Public Relations
T: 09 9388 0944 / M: 0415 096 804
E:
About Bass Metals Ltd (ASX: BSM)
Bass Metals Ltd is a growth focussed 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 Companys larger transformational 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.
The Company also has an active and successful exploration programme and
initiatives underway to generate cash by processing remnant ore from the
Hellyer mine
Que River ore is currently sold to the nearby Rosebery Plant under an Ore
Sales Agreement with the plants owner/operator, MMG Australia.
In
January 2010 the Bass signed a committed off-take contract with leading
global multi-metals business, Nyrstar, for all zinc and lead concentrates
produced from the Fossey mine.
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