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from Hellyer to fund upwards of at least two organic growth
initiatives. These include the reprocessing of the tailings to
increase payable lead and zinc metal in concentrate production by
about 10,000 to 15,000 tonnes a year.
The company is also undertaking a feasibility study into the
processing of the tailings to recover gold. It is estimated that in the
tailings dam alone there is about 800,000 ounces of gold and about
32 million ounces of silver. Put together on a gold equivalent ratio
of about 1 to 45, that will provide Bass Metals with 1.5 million
ounces of gold – a pretty nice asset to have considering the price
of gold these days.”
Bass Metals also has the opportunity to add to that another
400,000 ounces that it has at its Mt Charter project, providing it
with a very significant gold inventory of around 2 million ounces
gold equivalent. That would allow the company to produce around
100,000 to 110,000 ounces of gold equivalent per annum for 7 to
10 years.
Bass Metals’ growth project plans have been boosted by positive
recent exploration drilling results around Fossey and at Fossey
East and the ongoing gold testwork results. Recent exploration
activity has focussed on drilling in the Fossey East Resource
area and along the Fossey Trend. Both these programs have been
successful with a potential new discovery (McKay Prospect) along
the Fossey trend and further high grade intercepts from Fossey
East infill drilling.
The company has also been successful in overcoming adverse
and unforseen technical events related to increased water inflow
and a lower head grade at Hellyer earlier this year, moving quickly
to overcome the water issue and to develop the updated Hellyer
Mine Plan.
The success of the work now undertaken at the Hellyer Mine
operation located in north-west Tasmania is running as planned
with a smooth start to the fifth milling campaign in August 2011,
and resultant lead and zinc concentrate already stockpiled and
ready for trucking to Burnie Port.
MIKE ROSENSTREICH
MANAGING DIRECTOR
BASS METALS LTD
BASS
ass Metals Ltd is a growth focused Australian
base and precious metal producer with a portfolio
of high quality zinc, lead, copper and gold assets
in the rich Mt Read Volcanic belt in northwest
Tasmania. It is positioning itself to take advantage
of a number of identified opportunities that will continue the
company’s growth in north-west Tasmania.
The company recently updated its Hellyer Mine Project mine
plan to provide it with a clearer path forward for its business plan
focused on progressing the three key assets that are its main value
drivers: the producing Hellyer Mine Project (HMP), prospective
exploration acreage and a major gold-silver resource.
The HMP is estimated to generate a $55 million operating
surplus for Bass Metals in 18 months. However, this figure may
be boosted significantly from further development from Fossey
East resources.
Bass Metals believes HMP is now a significantly lower risk
project on the basis that mining is now planned to focus solely on
the updated high-grade massive base metal sulphide zones and
with the benefit of the dewatering system upgrades in progress.
The company’s other assets have continued to deliver on
their potential, including the positive exploration drilling around
Fossey and at Fossey East and the ongoing gold testwork results.
Therefore, whilst there has clearly been a production setback,
which manifested very rapidly, the high-grade nature of its
resources, the local prospectivity and the determination of the
work force means that Bass Metals is well positioned to rebuild
that lost value and realise its growth potential.
Bass’ Managing Director Mike Rosenstreich said, “We have
a long term view of the growth potential associated with its
Tasmanian assets and is planning to utilise the cash generated
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FORGROWTH
DETERMINED
FOSSEY MINE DEVELOPMENT
MINESITE 2011
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