TASMANIAN miner Bass Metals is expected to come out of a trading halt tomorrow with the news that it will start production on its second mine in the north-west of the state.
Bass Metals, which is focused on base and precious metals exploration and production in Tasmania, has been awaiting an independent due diligence report to confirm the results of its feasibility study released in October.
Market sources told BusinessDay that the independent report is in and that construction has begun on the Fossey base metals mine, which forms part of the company's Hellyer project.
The October feasibility report found that the Fossey deposit could sustain a production rate of 400,000 tonnes a year for the Hellyer plant to produce 80,000 tonnes a year of saleable-quality zinc, lead and copper-precious metals concentrate.
Profit margins from its polymetallic Que River mine has helped it post an annual profit of $8.5 million from the operation.
The share price has more than doubled from a year ago, soaring from about 10¢ a year ago to 24.5¢ when it entered a trading halt last week.
