Ultratradman and ss - Moving from a scoping study to a prefeasibility study is a huge step in defining an ore body and developing a mine. Correct assays will determine the design the mine and define variables such as mining method (cut and fill, caving, open stope etc), declines, workings and chute locations etc, excavation workings, milling (crushing/grinding methods for the given ore), seperation methods suitable for the paticular ore (like floatation, gravitational methods etc).
These variable are dependant on getting the assays right and being very confident on the ore bodies and their locations. It is good to see that indepenant consultants have advised that the assays need to be reassessed to properly define the Fossey ore body.
If they rush the PFS (due to uncertainty about assays) they will be more likely to run into problems as the mine is developed. This would likely lead to higher development costs. I am happy to wait for the PFS as long as it is done properly with all the correct information at hand.
I personally am impressed that Bass have managed to continue operating over 50% margin given the low metal prices over the full year. Highlights as I see them:
- No debt - 5Mil in the bank with 5,000wmt in inventory and another 15k yet to be delivered. This is after spending over $5m on an undevalued Hellyer mill - Full year revenue likely to be over $15mil. - 5 new targets have been identified for exploration. This is good to see that they have obviously seen evidence of further mineralisation to justify the exploration. - Potential to upgrade full year production from 200kt to 400kt. If this occurs, then it will move Bass alongside mid tier producers in terms of annual production.
Bass is a medium to long term play. I would prefer that they get the PFS right based on an accurate definition of the ore reserve rather than pump out an PFS based on uncertain assays to satisfy the market.
My two cents from a happy holder...
BSM Price at posting:
21.3¢ Sentiment: LT Buy Disclosure: Held
