Bass Metals has doubled its base metal inventory in north-west Tasmania after announcing an initial resource estimate for the Hellyer Mine Project.

The estimate encompasses mineralization adjacent to previously mined areas of the Hellyer deposit.

The initial combined resource of 748,000 tonnes at 7% zinc, 4% lead, 0.3% copper, 87 grams/tonne silver and 1.3 grams/tonne gold gives the company's a base metal resource inventory of 1.5 million tonnes at 6.3% zinc, 3.5% lead, 0.7% copper, 85 grams/tonne silver and 1.1 grams/tonne gold. At current metal prices, this is comparable to a zinc equivalent grade of 15%.

Bass Metals' managing director Mike Rosenstreich says the estimate represents a significant milestone for the company, complementing the existing 740,000 tonne polymetallic resource at the Que River Project, where Stage 1 mining recently began with ore deliveries to Zinifex Ltd's nearby Rosebery operations under a long-term off-take agreement.

The Hellyer Mine Project resource comprises both massive base metal sulphide zones and stringer mineralization generally occurring in the footwall position to the main mined portion of the Hellyer deposit as well as areas of remnant mineralization within the Hellyer mine. The Hellyer deposit was mined from underground between 1986 and 2000.

Mike Rosenstreich says: "We have confirmed the potential for this initial resource to grow significantly with recent drilling, including the outstanding intercept of 57 metres at 14% combined lead and zinc which was returned recently from the Southern Barite Lens at Hellyer."

The recently commenced Stage 1 mine at Que River comprises two open pits to extract a mining inventory of 115,900 tonnes grading 8.3% zinc, 4.0% lead, 0.7% copper, 105 grams/tonne silver and 2.3 grams/tonne gold, 77% of which comprises a JORC-compliant Ore Reserve and 13% an Inferred Resource.

Bass Metals is completing a $5.4 million share placement to bolster general working capital for ongoing development at Que River and the company's exploration programme.

www.bassmetals.com