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BassMetalsLtd.(ASX:BSM)
Email:[email protected]:(07)32035894
Post:POBox1048,SubiacoWA6904Web:www.bassmetals.com.au 1
ASXANNOUNCEMENT9OCTOBER2017
GRAPHMADAGRAPHITEMINEOPERATIONALUPDATE
HIGHLIGHTS
• BassMetalsLtdnearingcompletionofStage1oftheoptimisation
program:theestablishmentof6000tonnesperannum(tpa)
productionofpremiumgraphiteconcentratesatits100%owned
GraphmadaLargeFlakeGraphiteMine.
• MajorprocessingequipmentitemshavenowarrivedinMadagascar.
• ProcessPlantcivilworksarenearingcompletion,totimewiththe
releasefromcustomsofthemajorequipmentitems.
• ModularDryerSystem(MDS)constructionhascommencedandison
timeandbudget,withexpectedcommissioninginNovember2017.
• PricesforgraphiteconcentratesinBass’intendedendmarketshave
improvedmateriallyoverthelast2quarters.
Figure1:ThecommencementofMDSinstallation;layingoutofframes,completionofstructuralfooting,
andcontrolroomconstructionnearingcompletion.
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BassMetalsLtd.(ASX:BSM)
Email:[email protected]:(07)32035894
Post:POBox1048,SubiacoWA6904Web:www.bassmetals.com.au 2
ASXANNOUNCEMENT9OCTOBER2017
BassMetalsLimited(ASX:“BSM”)(the“Company”)ispleasedtoprovideanupdateonits
optimization and refurbishment of the Graphmada Graphite Mine, located in
Madagascar.
MINEHEALTHANDSAFETYUPDATE
TheCompanyispleasedtoreportthatwhilsttheoptimizationandrefurbishmentofthe
minehasbeeninprogressnoLostTimeInjurieshavebeenreported.TheCompany
continuesitsfocusofapplyingsoundsafetymanagementpracticestoitsactivitiesand
maintainsitsstrategyofengineeringasafeoperatingenvironmentintothe
refurbishmentofthemine.
OPTIMISATION&REFURBISHMENTPROGRAMUPDATE
Refurbishmentworkscontinueasplannedwiththeprogramonbudgetandonschedule.
SignificantactionsundertakensincethelastOperationalUpdateinclude:
ü ProcessingplantequipmentshippedandinMadagascarawaitingcustoms
clearance;
ü ManufactureofnewpumpscompleteandshippedtoMadagascar;
ü Allproceduresforheavyloadtransportofequipmenttositearranged;
ü Onsiteoff-loadingsafetyproceduresfinalised;
ü Plansforrefurbishingelectricalcontrolroomandplantofficesfinalised;
ü Manufacturingofallelectricalcontrolboardsandcablesinprogress;
ü Finalplanforelectricalcablingroutingconfirmed;
ü Extensionoftheexistinggeneratorshedtoaccommodateelectricaldistribution
boardsinprogress;
ü ProcessPlantcivilworksnearingcompletionintimeforthearrivalonsiteof
majorprocessingequipmentitems;
ü Integrationbetweenoldandnewfloatationcellscompleteandwaterfilltest
successful;
ü Floatationcellspipingandmaterialflowconnectionworkunderway;
ü Refurbishingofpreviouslyusedplantpumpsunderway;
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BassMetalsLtd.(ASX:BSM)
Email:[email protected]:(07)32035894
Post:POBox1048,SubiacoWA6904Web:www.bassmetals.com.au 3
ASXANNOUNCEMENT9OCTOBER2017
ü Surgebins,pumpsandpipinginstallationunderway.
ü AllcivilworktoaccommodateModularDryerSystem(MDS)complete;
ü AssemblyanderectionofMDScomponentsinprogress;
ü MDSelectricalcontrolroomnearingcompletion;
ü Manufacturingofdrysortingandscreeningequipmentcomplete;
ü Graphitesizefractionstoragebinscomplete;
ü Mahefadokmineplanningunderway;
ü Planningforextendedstockpilearearevisedandconfirmed.
Figure2:Completedflotationrecyclebinsinstalled.
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BassMetalsLtd.(ASX:BSM)
Email:[email protected]:(07)32035894
Post:POBox1048,SubiacoWA6904Web:www.bassmetals.com.au 4
ASXANNOUNCEMENT9OCTOBER2017
Figure3:MDSinstallationunderway.
SALES&MARKETUPDATE
Theminecurrentlyhas298 tonnesofgraphiteconcentrates in stock.TheCompany is
negotiatingthesaleofthisstockaspartofmaintainingregularsuppliestoGraphmada’s
maincustomers.
Smallsampleshavealsobeendispatchedfromexistingstocktopotentialnewcustomers
whoareenquiringastoGraphmada’splanstosupplynaturalflakegraphitein2018.Most
interest is centred on the large to very large flake size concentrates as the market
continuestoseeasignificantdecreaseinsupplyintheseflakesizes.
Table1:CurrentStock
GRADEFC% MeshSize
+50 -50+80 -80 -100
<85 1
85-90 45 78 10
90-94 13 43 69 36
>94 1
TOTAL 14 88 150 46
Atotalof298tonnesproduct.
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BassMetalsLtd.(ASX:BSM)
Email:[email protected]:(07)32035894
Post:POBox1048,SubiacoWA6904Web:www.bassmetals.com.au 5
ASXANNOUNCEMENT9OCTOBER2017
PricesforgraphiteconcentratesinBass’intendedendmarketshaveimprovedmaterially
over the last 2 quarters due to weakening supply out of China from the continued
environmentalcrackdowns,particularlyintheuseofcoalindryingclosingmanyfactories
in Shandong. Reports also indicate that Expandable Graphite usage is increasing
significantlyinChinaduetorecentlegislativechangesintheuseoffireretardants.
Pricesareexpectedtocontinuetoriseinthecomingmonthsparticularlyforlargeflake
sizeswithFC>94%,thetargetofoptimizedproductionactivitiesatGraphmada.
Figure4:6monthflakegraphiteprices.
BASSMETALSCEO,MRTIMMCMANUS:
“WearenearingcompletionofStage1ofouroptimizationandrefurbishmentofthe
GraphmadaMineandaimtorampupproductionfromlate2017throughtoearly2018
toreach500tonnesamonthofhigh-valuegraphiteconcentrates(Stage1:6000tpa
run-rate).
AstheonlyindustrialmineralscompanyontheASXcapableofenteringallgraphite
marketsegmentsatpremiumpricinglevels,andwithpricingcontinuingtogrowby
doublefiguresmonthonmonth,theCompanyisexperiencingsignificantenquiresforits
futureproduction,particularlyinthelargerflakesizes.
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BassMetalsLtd.(ASX:BSM)
Email:[email protected]:(07)32035894
Post:POBox1048,SubiacoWA6904Web:www.bassmetals.com.au 6
ASXANNOUNCEMENT9OCTOBER2017
AssuchtheteamatBassremainsencouragedthatourstrategictimingtore-commission
theGraphmadaMinewillprovetoaddsignificantvaluetoallshareholdersandprovide
anexcellentbasetoimplementaStage2expansionto20,000tpa.”
Formoreinformation,pleasecontact:
TimMcManus
ChiefExecutiveOfficer
Phone:(07)32035894
Email:[email protected]
PeterWright
Director
Phone:(07)32035894
Email:[email protected]
Pleasevisitusat:www.bassmetals.com.au
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BassMetalsLtd.(ASX:BSM)
Email:[email protected]:(07)32035894
Post:POBox1048,SubiacoWA6904Web:www.bassmetals.com.au 7
ASXANNOUNCEMENT19JUNE2017
ABOUTTHEGRAPHMADAJUMBOFLAKEGRAPHITEMINE
Bass Metals Ltd. is one of only three
publicly listed graphite producers in the
world. The Company 100% owns and
operates the Graphmada large flake
graphite mine, Bass’ flagship project,
located in eastern Madagascar.
Madagascar has been a recognized
producer and exporter of premium
graphite forover100yearsandsets the
world standard for product quality and
flakesize.
TheGraphmadaminehas40-yearmining
permitsinplace,containingfourpremium
quality,largeflake,graphitedepositshostedinweatheredgraphiticgneiss,asoft,easilyminablerock
thatincurslowminingcosts.Withallassociatedmininginfrastructureandlogisticsinplace,themine
currently produces and sells a range of graphite concentrates into multiple market segments, to
customersinIndia,theUnitedStatesandEurope.
Withtheaimofgeneratingrevenuethroughlowestquartilecostproduction,themineiscurrentlybeing
optimizedbyanexperiencedmanagementteamto6000tonnesperannum(Stage1)with improved
finalgraphiteconcentrategrades,inordertogrowcashmargins.
Graphmadaalsohassignificantpotentialforlowcapitalintensityexpansion.Bassplanstoinvestcapital
toexpandproductiontogreaterthan20,000tonnesperannum(Stage2)ofgraphiteconcentratesales
by2019.
InadditiontoexploringthegreatermineralizationpotentialofMadagascar,theCompanyhasalsomade
thestrategicdecision,inparallelwiththeoptimizationofGraphmada,toactivelyexploreanddevelop
depositsintheimmediateproximitytothemine,tomateriallyexpanditsresourceinventories.
TheLoharanodeposithasprovidedthebulkofthefeedtotheGraphmadaprocessingplantandhastotal
JORC compliant Indicated and Inferred resources of 5.7Mt@ 4.1% Grade with a 2% cut-off1. This
mineralizationisknowntogotodepthwithincreasinggrade,andisopeninalldirections.
WiththeCompanyhavingastrongcommunityengagementprogramandbeingwelldownthepathin
achievingitsoptimisationplansandgrowingitsresourceinventory,theteamatBassisconfidentofits
plansforexpansionanditsfuturevaluecreationforshareholders.
1TheseestimateswerepreparedandfirstdisclosedbyStratminGlobalResourcePLCundertheJORCCode2004.Theestimates
havenotbeenupdatedtoJORCCode2012onthebasisthattheinformationhasnotmateriallychangedsinceitwaslastreported.
ReferenceismadetotheCompany'sannouncementof2September2015,whichprovidesfurtherdetailregardingthisinformation.
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BassMetalsLtd.(ASX:BSM)
Email:[email protected]:(07)32035894
Post:POBox1048,SubiacoWA6904Web:www.bassmetals.com.au 8
ASXANNOUNCEMENT19JUNE2017
DISCLAIMER&CAUTIONARYSTATEMENTS
DISCLAIMER
ThisdocumenthasbeenpreparedbyBassMetalsLimited(the“Company”).Itshouldnotbeconsidered
asaninvitationoroffertosubscribefororpurchaseanysecuritiesintheCompanyorasaninducement
tomakeaninvitationorofferwithrespecttothosesecurities.Noagreementtosubscribeforsecurities
intheCompanywillbeenteredintoonthebasisofthisdocument.Thisdocumentisprovidedonthe
basis that neither the Company nor its officers, shareholders, related bodies corporate, partners,
affiliates, employees, representatives and advisersmake any representation orwarranty (express or
implied) as to the accuracy, reliability, relevance or completeness of the material contained in the
documentandnothingcontainedinthedocumentis,ormayberelieduponasapromise,representation
orwarranty,whetherastothepastorthefuture.TheCompanyherebyexcludesallwarrantiesthatcan
beexcludedbylaw.
FORWARDLOOKINGSTATEMENTS
Thisdocumentmaycontaincertainforward-lookingstatements.Suchstatementsareonlypredictions,
basedoncertainassumptionsandinvolveknownandunknownrisks,uncertaintiesandotherfactors,
manyofwhicharebeyondtheCompany’scontrol.Actualeventsorresultsmaydiffermateriallyfrom
the events or results expected or implied in any forward-looking statement. The inclusion of such
statements should not be regarded as a representation,warranty or predictionwith respect to the
accuracyoftheunderlyingassumptionsorthatanyforwardlookingstatementswillbeorarelikelytobe
fulfilled. TheCompany undertakes no obligation to update any forward-looking statement to reflect
events or circumstances after the date of this document (subject to securities exchange disclosure
requirements).The information inthisdocumentdoesnottake intoaccounttheobjectives, financial
situationorparticularneedsofanyperson.Nothingcontainedinthisdocumentconstitutesinvestment,
legal,taxorotheradvice.
COMPETENTPERSONSTATEMENT
TheinformationinthisdocumentthatrelatestoExplorationResultsisbasedoninformationcompiled
byTimMcManus,aCompetentPersonwho isamemberof theAustralasian InstituteofMiningand
Metallurgyandafull-timeemployeeoftheCompany.
TimMcManushassufficientexperiencethatisrelevanttothestyleofmineralisationandtypeofdeposit
underconsiderationandtotheactivitybeingundertakentoqualifyasaCompetentPersonasdefinedin
the2012EditionoftheAustralasianCodeforReportingofExplorationResults,MineralResourcesand
OreReserves.
TimMcManusconsentstotheinclusionoftheinformationinthisdocumentintheformandcontextin
whichitappears.
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