Shares in West Perth-based Bass Metals Ltd have jumped 45 per cent on news of record sales from the company's Que River mine and a $3 million cash injection.
The company announced today that it has closed out its zinc, lead and currency options to realise a cash gain of $3.14 million, boosting its current cash position to $7 million.
Additionally, the Que River mine in Tasmania has achieved record ore sales for the September quarter which has generated margins over costs in excess of 100 per cent.
Shares in Bass climbed 3.4 cents or 45 per cent to 11c at 14:27 AEST.
Below is the full announcement;
The company has closed out its zinc, lead and currency options to realise a cash gain of $3.14 million bringing the current cash position to approximately $7 million.
The Que River mine has achieved record ore sales for the September 2008 Quarter at high zinc, lead, silver and gold grades generating margins over costs for the Quarter in excess of 100%. Full details will be provided in the September 2008 Quarterly Report.
Given this stabilising track record of very high grade ore production at Que River the Board elected to capitalise on very high volatilities in the underlying metals and currency markets to generate a strong cash injection into the Company.
It is worth noting that Bass Metals, as outlined in a recent presentation to investors, is well positioned to withstand the recent global declines in base metal prices. The fall in the AUD and the strengthening gold price means that the Company is currently receiving higher prices for zinc, lead, silver and gold than its budget forecast metal prices (refer ASX release of 15 September 2008).
The Company is currently on track to achieve its planned work programme on the advanced, high grade polymetallic Hellyer Mine Project and accumulate cash through this financial year.
