is the current management ok?, page-15

The following strengths and risks were posted as a research note by Bass Metals in October 2010 and is viewable on their website.

STRENGHTS

? Imminent production & solid production
history
? High grade poly-metallic nature of ore
? Good quality mill with room for
expansion
? Production alliance with long history of
operating mine & mill, resulting in low
CAPEX requirements & a focus on
keeping the OPEX down
? Pipeline of projects
? Good exploration targets & potential

RISKS
? Water ingress management problems
? Metallurgical recovery does not perform
as anticipated with either less payable
metal recovered &/or penalty metals
occurring in the concentrates
? Short mine life if no further reserves are
defined

Management have been upfront and open with the risks and therefore in my opinion they are a good managment team .

If the risks were not identified then they would have a case to answer.

The UPSIDE is that now that the risks have eventuated - and in the process of being managed (abeit at an extra cost)there should be no more hidden surprises.

Bass metals still has a lot of strengths, upside and growth potential.