Bass Metals (ASX: BSM) has reached new sales terms with MinMetals Group’s (MMG) Rosebery concentrator for the supply of an extra 100,000 tonnes of ore from its Que River base metals, silver, and gold mine in Tasmania. The new agreed ore sales terms are for up to a further 100,000 tonnes of ore mined in the current 2010 financial year mine plan, which is based on mining and delivering approximately 5,000 tonnes of ore per month grading 11% zinc, 6% lead, 0.3% copper, 161 gpt silver and 2.3 gpt gold. The company has decided to continue mine operations and ore sales to MMG from Que River to maintain a revenue stream and continuity of operations and staffing. This decision has been underpinned by the successful negotiation with MMG, which resulted in increased ore payment factors for lead and zinc compared to the 2009 factors, effective from the 1 October, 2009, said Bass Metals managing director Mike Rosenstreich. A total of 104,077 tonnes of ore grading 16.1 % zinc, 8.8 % lead, 0.4 % copper, 227 gpt silver and 4.7 gpt gold have been sold by Bass Metals from the Que River Mine since mining commenced in September 2007 to the end of June 2009. These ore sales to the concentrator have generated approximately $35 million of gross revenue at margins of 52 % over all costs. The operating surplus has been used by the company to fund exploration, development and corporate costs as well as the purchase of the Hellyer Mill and the finance of appropriate environmental bonds. The updated combined Mineral Resource (Measured, Indicated and Inferred) at Que River stands at 717,000 tonnes grading 5.4 % zinc, 2.8 % lead, 1.1 % Cu, 85 gpt silver and 0.8 gpt gold. The updated combined Ore Reserve (Proven & Probable) at Que River is 107,000 tonnes grading 7.6 % zinc, 4.0 % lead, 0.6 % Cu, 113 gpt silver and 1.5 gpt gold. Exploration drilling at Que River is poised to commence with the testing for further extensions and new lens positions.

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