Bonanza grade base/precious metals discovery a timely find for Bass Metals
New very high grade lead/zinc/copper/silver/gold drill intersections at Bass Metals' McKay prospect, located close to its Fossey operation, in Tasmania are seen as "exciting".
Author: Ross Louthean
Posted: Thursday , 20 Oct 2011
PERTH -
The mid-tier metals producer Bass Metals Ltd (ASX: BSN) has had bonanza grade intersections from drilling on the McKay prospect near an earlier discovery, Fossey, which is now being mined by the company at its Hellyer-Que River mining-milling complex in north west Tasmania.
The best drill hole announced today was an intercept in hole HLD1033 of 1.65 metres grading 21.9% zinc, 14.7% lead, 1% copper, 182 grams/tonne silver and 2.3 g/t gold.
Managing director Mike Rosenstreich said the high grade hits were exciting for two reasons.
"First, this mineralisation is within 120 metres of the Fossey mine development and could with further drilling be upgraded into resources.
"Secondly, and perhaps most significantly, these intercepts validate a new exploration model developed by our exploration team which opens up large tracts of ground that have had virtually no drilling, especially between the Hellyer and Que River deposits."
Another positive factor is that Bass Metals had to undertake a refinancing and the company is completing a shareholder entitlement capital raising next Wednesday.
HLD1033 helped confirm a drill hole 25m to the north (HLD1030) which hit 7m @ 22.3% Zn, 9.9% Pn, 0.7% Cu, 181 g/t Ag and 3.4 g/t Au.
Five diamond drill holes have been completed into the new alteration and mineralised zone at the McKay Prospect The zone has been defined over a vertical extent of at least 60m on one section, with one central high grade base metal zone in HLD 1030.
The sixth milling campaign at Bass Metals' Hellyer plant was now about halfway complete and the budget plan was for treating 67,000t @ 7.8% Zn, 4.6% Pb, 0.3% Cu, 79 g/t Ag and 1.6 g/t Au.
Concentrate stockpiles were currently estimated to comprise:
•· Zinc concentrate - 4,250t @ 52% Zn.
•· Lead concentrate - 1,750t @ 59% Pb.
•· Copper-silver concentrate - 200t @ 17% Cu with silver and gold assays pending.
Rosenstreich said while these were interim estimates, it was encouraging that ore grades were reconciling positively. Zinc and lead concentrate production for this campaign appears to be ahead of budget, with copper concentrate "somewhat behind, whilst we continue to further optimise this circuit."
Mining issues encountered in early June "have clearly been rectified with strong production outcomes for both ore tonnes and grade from the mine, translating into solid production results through the mill."
The company also announced it has extended its current concentrate marketing agreements with LN Metals International Ltd, a London based metals trading company.
"The new relationship includes marketing potential bulk lead-zinc concentrate production arising if the Hellyer tailings re-treatment project is restarted, as well as marketing rights for any copper-precious metals concentrate production from the Fossey East potential mine extensions."