News

June 30, 2009

Wheeling And Dealing Down In Tasmania Has Put Bass Metals In A Strong Position To Increase Production Signficantly

By Alastair Ford

One or two mining companies have been getting into financial difficulties of late, as has been fairly widely reported. And many a promoter too, has talked of the opportunities such a set of circumstances present in terms of the opportunities to buy cheap assets, cheap kit, or even cheap companies. Interestingly, though, there has been far more talk than action on this score, so it’s nice to see a company that’s not only spotted an opportunity, but also acted on it, locked the deal down, and is now moving on to the next thing. The company in question is Bass Metals, a gold and base metals mining company with a considerable tenement position on the Mount Read volcanic belt in Australia, and some production to boot, too.

In the Hellyer Mine Project, Bass has just acquired, for the princely sum of A$4 million, what Bass managing director Mike Rosenstreich calls “an entirely intact” processing plant, a permitted tailings dam, a tailings resources currently put at 10 million tonnes of 6% zinc, 104 grammes per tonne silver, and 2.6 grammes per tonne gold, and an environmental water treatment plant. When you consider that the replacement value of the plant alone is estimated at A$100 million, then Bass’s latest deal...