161117 outstanding mahefedok high grade concentrate results · bass metals ltd. (asx: bsm) email:...

BASSMETALSLTD.(ASX:BSM)

Email:[email protected]:(07)32210783Post:POBox1048,SubiacoWA6904Web:www.bassmetals.com.au

1

ASXANNOUNCEMENT17NOVEMBER2016

OUTSTANDINGMAHEFEDOKHIGHGRADECONCENTRATERESULTS

Highlights

• 48%of the recovered concentrate from the adjacentMahefedokdeposit ishighvalue large to super jumbo flakematerial,withanaveragegradeof>96%.

• Test results confirm significant upside at the 1.8km longMahefedok deposit, which is currently the target of a 2,500 mdrillingprogram.

• ThepotentialmaidenresourceatMahefedok isakeycomponentofvaluecreationattheproducingGraphmadaMine.

• Testing confirms Mahefedok high value concentrates can beproduced from an optimised flowsheet and sold to existingcustomersintheUnitedStates,EuropeandIndia.

BassMetalsLimited(ASX:“BSM”)(the“Company”)ispleasedtoannouncehighgradeconcentrate results from testwork on theMahefedok ore feed at the GraphmadaGraphiteMine,locatedineasternMadagascar.

Independent Metallurgical Operations (“IMO”) completed the testing anddemonstratedofthetotaloresampletested,48%canbeclassifiedintothehighvaluelargetosuperjumboflakecategory,ataTotalGraphiticCarbon(TGC)gradeof>96%.The testing confirms high value concentrates can be produced from MahefedokthroughanoptimisedflowsheetandsoldtoexistingcustomersintheUnitedStates,EuropeandIndia.TheMahefedokdeposit contains soft, easilyminable large flakemineralisation thatincurs lowmining costs, over an approximate strike length of 1.8 km. ThematerialexpansionoftheresourcesatMahefedokandLoharanoisacorecomponentofthecompany’sstrategytorealisetheconsiderablepotentialoftheGraphmadaMine.ThecompanyaimstoestimateaMaidenJORCResource1fortheMahefedokdeposit,basedonapproximately2,500metersofdrillingandresourceestimationworkstobecompletedoverthenext3-6months.1 There is uncertainty that these exploration and evaluation works will be able to be reported as mineral resources or ore reserves in accordance with the 2012 edition of the JORC Code.

For

per

sona

l use

onl

y



2


Bass seespost theoptimisationof currentoperations theability toconsistently sellhighervalueconcentratesfromGraphmadaaskeytolongtermcashflowandvaluegenerationforshareholders,ashighgradelargetosuperjumboflakegraphitetradesatsignificantmarketpremiums.Further drilling and metallurgical test work is expected to improve on the belowresults.ThefinalconcentrateresultsfromMahefedokareshowninTable1below:

FlakeSize Micron FlakeSizeDistribution(%)

TGC(%)

SuperJumbo >500 1.2 96.4Jumbo >300 15.4 96.4Large 180–300 32.0 96.2

Medium 106-180 25.1 96.3Small 75–106 7.5 95.8Fine <75 18.9 94.7

Table1:MahefedokFinalConcentrateResults

BassMetalsDirector,MrJeffMarvin:

“Theseresultsareoutstandingandkeytothe long-termorefeedatGraphmada,asthemine has 40-yearmining permits in place. Combinedwith a strong communityengagementprogramprovidingalong-termsocialoperatinglicenceandacommittedmanagement team at Graphmada, the Board is very pleased with the Company’sprogresssinceobtainingoperationalcontrolinAugust.We are seeking the lowest capital intensity pathway to selling higher valueconcentratesandfeelwehavesignificantlyprogressedthisstrategy.IampersonallyveryencouragedwithourdirectionandIamlookingforwardtoseeingtheresultsofnot only the drilling at Mahefedok, but also the continued positive results of ouroptimisationprogram.”Formoreinformation,pleasecontact:TimMcManusChiefExecutiveOfficerPhone:(07)32210783Email:[email protected]

Pleasevisitusat:www.bassmetals.com.au

For

per

sona

l use

onl

y



3


The1.8kmlongMahefedokdepositandcurrentdrillingprogramisshownbelow:

Figure1:TheMahefedokdepositanddrillplan.

For

per

sona

l use

onl

y



4


ABOUTTHEGRAPHMADALARGEFLAKEGRAPHITEMINE

BassMetalsLtd. isoneofonlyfivepublicly listed graphite producersin the world. The company ownsandoperatestheGraphmadalargeflake graphite mine, Bass’ flagshipproject, located in easternMadagascar.Madagascarhasbeena recognized producer andexporter of graphite since 1907and sets the world standard forproductqualityandflakesize.

The Graphmada mine has 40-yearminingpermitsinplace,containingfourpremiumquality,largeflake,graphitedepositshostedinweatheredgraphiticgneiss,a soft, easily minable rock that incurs low mining costs. With all associated mininginfrastructure and logistics in place, the mine currently produces and sells a range ofgraphiteconcentrates intomultiplemarketsegments, tocustomers in India, theUnitedStatesandEurope.

Generating revenue through ongoing lowest quartile cost production, the mine iscurrently being optimised by an experienced management team to 6000 tonnes perannumwithimprovedfinalgraphiteconcentrategrades,inordertogrowcashmargins.

Graphmadaalsohassignificantpotentialforlowcapitalintensityexpansion.Bassplanstoinvestcapitaltoexpandproductiontogreaterthan20,000tonnesperannumofgraphiteconcentratesalesbylate2018.

TheCompanyhas alsomade the strategic decision, in parallelwith theoptimisation atGraphmada,toactivelyexploreanddevelopdeposits inthe immediateproximitytothemine,withaviewtomateriallyexpandingexistingresourceinventories.

The Loharano deposit has provided the bulk of the feed to theGraphmada processingplant and has total JORC compliant Indicated and Inferred resources of 5.7Mt@ 4.1%Grade with a 2% cut-off2. These resources are to a depth of only 6 meters, andmineralizationisknowntogotodepthwithincreasinggrade,andisopeninalldirections.

With the Company having a strong community engagement program and being welldownthepathinachievingitsoptimisationplansandgrowingitsresourceinventory,theteam at Bass is confident of its plans for expansion and its future value creation forshareholders.2 These estimates were prepared and first disclosed by Stratmin Global Resource PLC under the JORC Code 2004. The estimates have not been updated to JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Reference is made to the Company's announcement of 2 September 2015 which provides further detail regarding this information.

For

per

sona

l use

onl

y



5


DISCLAIMER&CAUTIONARYSTATEMENTS

Disclaimer

ThisdocumenthasbeenpreparedbyBassMetalsLimited(the“Company”).ItshouldnotbeconsideredasaninvitationoroffertosubscribefororpurchaseanysecuritiesintheCompany or as an inducement to make an invitation or offer with respect to thosesecurities.NoagreementtosubscribeforsecuritiesintheCompanywillbeenteredintoon thebasisof thisdocument.Thisdocument isprovidedon thebasis thatneither theCompany nor its officers, shareholders, related bodies corporate, partners, affiliates,employees, representativesandadvisersmakeany representationorwarranty (expressor implied) as to the accuracy, reliability, relevance or completeness of the materialcontained inthedocumentandnothingcontained inthedocument is,ormayberelieduponasapromise,representationorwarranty,whetherastothepastorthefuture.TheCompanyherebyexcludesallwarrantiesthatcanbeexcludedbylaw.

The document may contain forward-looking information and prospective financialmaterial,whichispredictiveinnatureandmaybeaffectedbyinaccurateassumptionsorby known or unknown risks and uncertainties, and may differ materially from resultsultimatelyachieved.Allreferencestofutureproduction,productiontargetsandresourcetargetsandinfrastructureaccessaresubjecttothecompletionofallnecessaryfeasibilitystudies, permitting, construction, financing arrangements and infrastructure-relatedagreements.Wheresuchareferenceismade,itshouldbereadsubjecttothisparagraphandinconjunctionwithfurtherinformationabouttheMineralResourcesandExplorationResults, as well as the Competent Persons' statements. All persons should considerseeking appropriate professional advice in reviewing the document and all otherinformation with respect to the Company and evaluating the business, financialperformanceandoperationsoftheCompany.Neithertheprovisionofthedocumentnorany information contained in the document or subsequently communicated to anypersoninconnectionwiththedocumentis,orshouldbetakenas,constitutingthegivingofinvestmentadvicetoanyperson.

Forward-lookingstatements

This document may contain certain forward-looking statements. Such statements areonly predictions, based on certain assumptions and involve known and unknown risks,uncertaintiesandotherfactors,manyofwhicharebeyondtheCompany’scontrol.Actualeventsorresultsmaydiffermateriallyfromtheeventsorresultsexpectedor impliedinanyforward-lookingstatement.Theinclusionofsuchstatementsshouldnotberegardedasarepresentation,warrantyorpredictionwithrespecttotheaccuracyoftheunderlyingassumptionsor that any forward looking statementswill beor are likely tobe fulfilled.The Company undertakes no obligation to update any forward-looking statement toreflect events or circumstances after the date of this document (subject to securitiesexchangedisclosurerequirements).Theinformationinthisdocumentdoesnottakeintoaccount the objectives, financial situation or particular needs of any person. Nothingcontainedinthisdocumentconstitutesinvestment,legal,taxorotheradvice.

For

per

sona

l use

onl

y

161117 outstanding mahefedok high grade concentrate results · bass metals ltd. (asx: bsm) email:...

Documents