Powering Up. Tasmanian Minerals Council Forum Thursday 13 May, Launceston, Tasmania.

Transcription

1 Powering Up Tasmanian Minerals Council Forum Thursday 13 May, Launceston, Tasmania.

2 Disclaimer & Competent Person An Important Notice Disclaimer Statements contained in this material, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, reserves or potential growth of Bass Metals Ltd, industry growth or other trend projections are, or may be, forward-looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors. Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction. Competent Person The information within this report that relates to exploration results is based on information compiled by Mr Michael Rosenstreich and Mr Kim Denwer who are both full time employees of the Company. Mr Rosenstreich is a Member of The Australasian Institute of Mining and Metallurgy and Mr Denwer is a member of the Australian Institute of Geoscientists. They both, individually have sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activities currently being undertaken to qualify as a Competent Person(s) as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and they consent to the inclusion of this information in the form and context in which it appears in this report. Technical Detail This presentation aims to provide a high level summary of various technical aspects of the Company s projects. For more details on the underlying technical parameters the reader is referred to the ASX Reports on the Bass Metals website:

3 5 Heavy Metal Hits Bass Metals: 1. A profitable precious & base metals producer from Que River Mine, Tasmania. 2. Developing a larger mining and processing operation for production in Q A successful explorer with significant high grade polymetallic resources and +1.0 Moz gold in resources on highly prospective tenements. 4. Owns 1.5mtpa fully complete, modern Hellyer concentrator plant. 5. Financially sound; record of profit results & current strong cash position of $18M High grade, polymetallic deposits - Growth drivers to build shareholder value * Value is calculated on total metal content based on average January 2010 metal prices and exchange rate

4 Bass Metals Project Areas +300km 2 of tenure Compact area Supportive local/state Government Enthusiastic, experienced and skilled labour. Excellent infrastructure Power Roads Towns Mining Services Introduction Location Plan current operations

5 Hellyer-Que River area Orebodies & Infrastructure Sealed Road access Hellyer Tails Resource Rail Link Hellyer Resource 1.5mtpa Hellyer Mill Fossey Mine (Active) Reticulated grid power Mt Charter Resource Que River Mine (Active) 1km

6 Blast from the past Bass formed July 2004 (called RFI Limited) March 2005 purchased Hellyer Que River leases (zero Resource base) October 2005 Floated on ASX September 2007 started mining at Que River October 2007 Fossey discovery December 2008 Purchased Hellyer Mill & all site infrastructure for $4M upfront.cash payment November 2009 DFS Fossey completed January 2010 started HMP 5 year mining project Current status Mkt Cap of $34 million ($0.20/share) 170 million shares on issue & 6 million unlisted options Cash $17.6 million 11% shares held in Europe Frankfurt listing

7 TALK OUTLINE FOLLOWS A STAGED PLAN TO BUILD SHAREHOLDER VALUE

8 THE PRIME OBJECTIVE IS TO BUILD SHAREHOLDER VALUE Realistic plan based on current JORC Resources

9 THE PRIME OBJECTIVE IS TO BUILD SHAREHOLDER VALUE Realistic plan based on current JORC Resources

10 THE PRIME OBJECTIVE IS TO BUILD SHAREHOLDER VALUE Realistic plan based on current JORC Resources

11 THE PRIME OBJECTIVE IS TO BUILD SHAREHOLDER VALUE Realistic plan based on current JORC Resources

12 THE PRIME OBJECTIVE IS TO BUILD SHAREHOLDER VALUE Realistic plan based on current JORC Resources...and with Exploration success, multiple increments in value

13 Que River Mine High grade open-pit, mining Cu-Pb-Zn-Ag & Au massive sulphide ore.

14 Recap - Bass sells ore to MinMetals Rosebery Mill 42km away. Generated: Sales revenue of c.a$50m Que River Mine initial growth platform for Bass At Margins on costs of c.50% Funded Bass through the GFC i.e. for past 2 years including the purchase of the 1.5mtpa Hellyer Mill. Current status - March 2010 Quarter operating surplus $1.8M; despite production problems. April 2010 gross value of ore sold was $978/t Forecasting improved operating conditions and financial outcomes for June quarter. Ore Sales phase of Que River Mine due to be completed in July Underground and open pit potential to supply Hellyer Mill Financial, Operational and Sustainability platform to develop the next bigger operation.

15 Que River Mine PQ Pit PQ Nth Cutback looking south. Back filling pit at south end.

16 Hellyer Mine Project : Major growth phase A new growth platform - onto main bill HMP is a 5 year mine plan

17 Development started Production Q4 of 2010 New Project The Hellyer Mine Project (HMP) 2.3Mt of high grade Cu-Pb-Zn-Ag & Au resources-supporting a 5year mine concept. Modern 1.5mtpa flotation plant. utilise 400ktpa (base case) Initial Mine Plan for 1 st 2.5 years: 885kt at 8.6% Zn, 5.0% Pb, 0.3% Cu, 120 g/t Ag & 2.4 g/t Au* Years 3 to 5 from Que River & Hellyer resources. Products high quality Pb & Zn concentrates plus a Cu-precious metals Conc. Brown-fields development means lower risk.. * Refer Appendix for details and attribution

18 HMP-Location Plan Que River -resource 0.71Mt at 5% Zn, 3% Pb, 1.2 g/t Au, 83 g/t Ag & 0.9% Cu Fossey Decline Portal site 0.9km Decline trace Fossey Zone - Ore Reserve 0.85Mt at 9% Zn, 5% Pb, 120 g/t Ag & 2.3 g/t Au c.208m Decline advance to date Hellyer Mill Hellyer Portal & Decline (Plugged) Hellyer Zone-resource 0.75Mt at 7% Zn, 4%Pb, 87 g/t Ag & 1.3 g/t Au

19 New Project - HMP Mine Plans Fossey Decline portal site in late March 2010 Installing ground support for Decline portal Current status: Approx. 208 metres down decline (11 th May) Mancala undertaking mining on an Alliance contract basis $16M Capital expenditure (First Stope ore) First ore production - Sept. Qtr. 2010

20 New Project - HMP Fossey Decline Experienced, mainly local labour force. Excellent local service & supply back-up.

21 Hellyer Mill purpose built for Fossey ore Refurbishment has started-on track. MES carrying our refurbishment A$4M Capital expenditure Nearly all maintenance and mill operators have worked at Hellyer before. Planned commissioning - Sept. Qtr New Project - HMP Processing Fossey Zn & Pb concentrates will be sold to Nyrstar Risdon/Pt Pirie. Marketing Cu concentrates is in progress.

22 SAG Mill Reagent mixing area Flot Circuit Control Room

23 New Project - HMP Improved outcomes with optimisation of DFS into Hellyer Operating Plan Financial Outcomes A$M A$/t ore A$M A$/t ore Gross Revenue Net Smelter Return Site Operating Costs Royalties EBITDA HOP DFS Start-up Capital Costs Ongoing Capital Expenditure EBIT EBIT Margin (%) 31% 28% C1 Cost per lb payable Zn after credits US$0.17 US$0.33 Lower Risk - Robust economics Reduced risk allocated more time and hence more capital Reduced operating costs, improved revenue, strong margins Outstanding C1 Cost lowest quartile on world cost curve.

24 Hellyer Tails & Gold Recovery Potential to increase production and extend project life

25 Tailings re-treatment project: Tails 10Mt at 2.5% Zn, 2.8% Pb, 104 g/t Ag & 2.6 g/t Au. Aim - to use dredge to reclaim tailings to produce a bulk Pb-Zn concentrate grading c. 50% Pb+Zn with Ag credits PFS is underway with Como Engineers and CSA Global. In Progress: New resource model suitable for scheduling. Dredging costs & scheduling. Mechanical modifications to Hellyer Mill to allow swings between tails and hard rock feedstock's. s. Concentrate marketing. Growth from existing resources Excess capacity in Hellyer Mill Preliminary results late May Bass dredge on Hellyer Tails Dam doing Bass dredge on Hellyer Tails Dam doing rehab. In Jan 2010

26 Existing large gold rich Mineral Resources 1.2 Moz Au & 44 Moz Ag in JORC resources. Excellent potential ti to expand resource base. Refractory gold not easily extracted. Gold opportunity must be evaluated + $10M of testwork and studies from s Technological advances since that time? Higher gold price? Growth from existing resources Gold Potential Larger resource base than just tailings to gain a financial return on capital? Existing processing facilities and operational footprint? Current Status Specialist metallurgical consultants, BatteryLimits identified four potential process routes for further evaluation.

27 Exploration Success Huge upside potential for investors especially in the shadow of a Mill

28 Fossey Mine Mt Charter Resource Hellyer Resource Que River Mine Elephant Country World class mineral province Increasing focus on Hellyer- Mt Charter Corridor.

29 Growth through Exploration Bass is an active, effective explorer

30 Exploration Upside Highly Endowed District Fossey Que River Hellyer VMS deposits occur in clusters, and the Hellyer-Que region is an intensely mineralised area with excellent potential to host more ore. Hellyer Deposit: World class VMS deposit 16 Mt -14% Zn, 7% Pb, 0.4% Cu. 167 g/t Ag, 2.6 g/t Au Fossey Deposit 08Mt % Zn, 6% Pb, 0.4 % Cu, 137 g/t Ag & 2.5 g/t Au. Mt Charter Que River Deposit 33Mt % Zn, 7% Pb, 0.7% Cu, 195 g/t Ag & 3.3 g/t Au. Mt Charter 61Mt g/t Au & 36 g/t Ag.

31 We know what we are looking for! High grade Cu-Pb-Zn-Ag-Au Deposits Fossey Ore Que River Ore Hellyer Ore

32 Exploration Upside Large Areas-Untested Ore occurs within the : Host Horizon Historic drilling focused by specific geophysical methods and NE trend Clearly vast tracts of Host Horizon that are not tested by any drilling. Detailed spectral sampling.-new technique Detailed low level multi-element geochem new technology.. Flown close spaced VTEM Generating and drilling targets.

33 Exploration Upside Large Areas-Untested Recent exploration results Nth Hellyer: 0.6m high-grade drill intercept Drilling in progress D-Zone: +100m mineralised lens discovered in outcrop in +600m soil anomaly Drilling planned Switchback: 2.4m high-grade drill intercept Drilling in progress Currently 2 diamond core drill rigs on Currently 2 diamond core drill rigs on leases.

34 In Summary Bass Metals 1. Is a producer, expanding a robust production profile in Tasmania. 2. Is a successful & active explorer. 3. Is exploring in Elephant country for high grade, polymetallic VMS deposits. 4. Owns the infrastructure to add value from new discoveries of all scales. 5. Has a track record of delivery since listing in Oct And is poised for major growth phase

35 Powering On - thank you for listening!

36 Appendix Mineral Resources Combined Polymetallic Massive Sulphide Mineral Resources Deposit JORC Classification Tonnes 4 (m) copper % lead % zinc % silver g/t gold g/t Fossey 1 Inferred Indicated Total Hellyer Remnants 2 Inferred Indicated Total Measured Indicated Que River Inferred Total Total Combined Fossey Resource is as reported to ASX 18 th August 2009 Hellyer Remnant Resource is as reported to ASX 26 October Que River Resource is as reported to ASX 14 September Rounding errors may occur

37 Gold Inventory JORC Compliant Resources Growth from existing resources Gold Potential Tonnes Au Ag Zn Pb Cu Au Ag Mt g/t g/t % % % Moz Moz Mt Charter 1 - (0.7 g/t Au cut-off) Fossey Expanded 2 - (1.0 g/t Au cut-off) Hellyer Tailings Total Gold Resource Inventory Combined Indicated and Inferred JORC Resources (Refer Bass Metals Ltd 2008 Annual Report); 2 Combined Indicated and Inferred JORC Resources (Refer report to ASX 30 September 2008) 3 Combined Indicated and Inferred JORC Resources (refer report to ASX 23 June Rounding errors will occur.

38 Appendix Ore Reserves Ore Reserve & Mining Inventory The resource base underpinning the reserve estimate contains some 8% by mass (60k tonnes), material categorised as Inferred. This material is largely constrained to the periphery of the resource limits. This material has been included in the production schedule as a Mining Inventory. Mining Inventory and Ore Reserves (as at September 2009) Category Volume Tonnes Cu Pb Zn Ag Au (m3) (dmt) (%) (%) (%) (g/t) (g/t) Density Mining Inventory 16,000 62, Probable (Stope Derived) 172, , Probable (Dev. Derived) 17,000 69, , , Competent Persons Attribution This Ore Reserve estimate was prepared by Tim Akerman BSc (Hons) MAusIMM, and Adrian Molinia BE (Hons) FAusIMM. Mr Akerman and Molinia are employees of Mancala Pty Ltd. Mr Molinia has 35 years, and Mr Akerman 25 years experience as professionals in the Australian mining industry, mainly involved in the underground extraction of base metal deposits. Specifically, both were directly involved in the feasibility to and the extraction of the Hellyer deposit as employees of Aberfoyle Limited. They also have extensive experience in the estimation of resources and reserves over a wide variety of deposit styles. As such, Mr Akerman and Mr Molinia both meet the requirements as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (AusIMM/AIG/MCA, 2004), to be Competent Persons for the estimation of Hellyer Mine Project Mineral Resources and Ore Reserves.

39 Appendix Competent Persons Statement Exploration Results The information within this report that relates to exploration results is based on information compiled by Mr. Kim Denwer and Mr. Mike Rosenstreich who are both full time employees of the Company. Mr. Rosenstreich is a Member of The Australasian Institute of Mining and Metallurgy and Mr. Denwer is a Member of the Australian Institute of Geoscientists. They both, individually have sufficient experience relevant to the styles of mineralisation and types of deposits under consideration and to the activities currently being undertaken to qualify as a Competent Person(s) as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and they consent to the inclusion of this information in the form and context in which it appears in this report. Mineral Resources & Ore Reserves Individual attributions relating to each of the Resource and Reserve estimates can be found within the ASX reports cited with each estimate presented within this report. Technical Detail This Report aims to provide a high level summary of various technical aspects of the Company s projects. For more details on the underlying technical parameters the reader is referred to the ASX Reports on the Bass Metals website