Bass Metal announced that a Definitive Feasibility Study to mine and process the Fossey deposit has just been completed. As outlined below, the DFS outcomes highlight that the Fossey mine development and utilisation of the Hellyer plant to produce zinc, lead and copper-precious metals concentrates appears financially and technically robust. The DFS has generated a positive financial and technical outcome with an EBITDA of approximately $75 million and a positive operating surplus of approximately $50 million, after capital expenditure of $26 million at an overall C1 production cost of US$0.39/lb payable zinc (after credits), which is in the lower half of the world cost curve.
Bass Metals announced that a total of 104,077 tonnes of ore grading 16.1 % zinc, 8.8 % lead, 0.4 % copper, 227 g/t silver and 4.7 g/t gold have been sold from the Que River Mine since mining commenced in September 2007 to the end of June 2009. The Board has decided to continue mine operations and ore sales to MMG from Que River to maintain a revenue stream and continuity of operations and staffing.
Bass Metals reported an updated resource estimate for the Fossey Zone within the Hellyer Mine project, Tasmania, Australia. The updated combined Mineral Resource (Indicated and Inferred) of 800,000 tonnes grading 9.9 % zinc, 5.8 % lead, 0.4 % copper, 137 g/t silver and 2.5 g/t gold has been estimated at a 5 % (Pb+Zn) assay cut-off.
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