🕐11.02.11 - 01:27 Uhr

Final Hellyer Concentrate Production Milestone Achieved



Bass Metals Limited ASX Announcement 28 January 2011 Record High-Grade Intercept Leads Latest Fossey East Drill Results Record high grade intersection of 20.4 metres at 16.3% zinc, 7.2 % lead, 2.4 g/t gold, 104 g/t silver and 0.6 % copper. Fossey East remains prospective to the south and down-dip. Bass Metals Ltd (ASX:BSM) is mining and exploring for large scale, high-grade polymetallic (copper-lead-zinc-silver-gold) volcanogenic massive sulphide (VMS) deposits in NW Tasmania.

This report provides an update on recent drilling results at the Fossey East Prospect, discovered in September 2010 in close proximity to the new Fossey mine development. Results have been received and assessed for 7 diamond drill holes testing extensions to the Fossey East and Fossey mineralised zones; drill holes HLD1020 to 1023 were drilled from surface and holes FUD0016 -- FUD0018 were drilled from underground.

A complete summary of Fossey East drill results to date is presented in Table 1, with drill hole details in Table 2. At Fossey East (Refer Figures 1 to 3): Drill hole FUD0016 hit the highest grade intercept yet recorded at Fossey East with a zone of 20.4 metres grading 16.3% zinc, 7.2 % lead, 2.4 g/t gold, 104 g/t silver and 0.6 % copper.

The narrow intercepts of low-grade baritic stockwork mineralisation intersected down dip in drill holes FUD0017 and HLD1021 indicate a pinch and swell geometry to the Fossey East mineralisation with a moderate plunge to the south. FUD0018 was drilled between the high grade HLD1019 hole (reported previously) and HLD1020; it intersected 4.05 metres at 8.8% zinc, 4.9% lead, 1.9g/t gold, 88g/t silver and 0.2% copper and suggests a pinching-out of the Fossey East lens in this location. HLD1020 intersected a fault and did not hit any mineralisation.

The significance of this fault is still being investigated and may be indicative of an offset in the mineralised zone. At Fossey, HLD1022 and 1023 (Figure 1) were designed to test for a new lens developing to the south of Fossey; no significant base metal or barite mineralisation was intersected. This initial Fossey East drilling programme has delineated a mineralised geological zone, defined by barite and base metal sulphides, with approximate dimensions of 120 metres (N-S) by 60 metres (vertically) and 20 metres average width and remains open down dip and to the south.

The sectional interpretations e.g.

Figures 2 and 3 highlight the pinch and swell geometry and the ongoing prospectivity of the baritic alteration zones to develop into wide high-grade massive base metal sulphide zones i.e.

repetitions of Fossey and Fossey East lenses. Diamond drilling at Fossey is ongoing with the current focus on testing for down-plunge extensions between holes HLD1020 and HLD1021 and better defining the northern margin of the mineralisation up to and potentially across the Easy Street fault.

This information will enable the completion of a maiden Fossey East Mineral Resource estimate planned for February, 2011. To download the full announcement, click here: http://esp.gewru.com/download/files/12414/1303487/20110128%20-%20Record%20High-Grade%20Intercept%20Leads%20Latest%20Fossey%20East%20.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.
--------------------------------------------------------------------------- This email was sent by David Brook, Professional Public Relations, 588 Hay St, SUBIACO WA 6008 to Unsubscribe: http://esp.gewru.com/forms/u/16c9d30/12414/1785213418/ab2709d/280885.html ---------------------------------------------------------------------------



Products & Services | Jobs