Bass Metals reports on quarterly activities and cash flow

Bass Metals (ASX:BSM) has released its March 2010 quarterly operating and cash flow report.

In this period Bass received all the statutory and internal approvals for the development of its second and larger scale mine, the Hellyer Mine Project, and commenced development activities.

During the quarter the company immersed itself in the activities associated with the launch of the Hellyer Mine Project with the consequence of significantly advancing its transformation towards becoming a mid-tier diversified mining business.

The company had Strong closing cash position of $17.6 million and operating revenue for the quarter is estimated to be $3.3 million.

Optimisation of the Hellyer Mine Project DFS results was shown in improved project EBIT of $54 million (up 13%) and lower benchmark C1 production cost of US$0.17/lb zinc (48% lower), after credits.

Hellyer Mine Project approvals are completed and work has commenced; the mill refurbishment is progressing well and the Fossey decline has progressed 38 metres from the portal.

A specialist metallurgical consulting group has been retained to undertake a major gold recovery study based on Hellyer Tailings and hard-rock gold resources.

An exciting new outcropping Fossey style VMS mineralisation was discovered south of Fossey over a 100 metre strike extent, within a large 600 metre long soil anomaly not previously drill-tested.

Diamond drilling testing of new target zones is continuing, with a second rig arriving at site in late March.

The company is currently drilling at North Hellyer and Mt Charter West.

http://www.proactiveinvestors.com.au/companies/news/6517/bass-metals-reports-on-quarterly-activities-and-cash-flow-6517.html