Wednesday, October 20, 2010

Bass Metals locks in high silver price selling 558,000 ounces at A$26.04

To lock in decade high silver prices, Bass Metals (ASX:BSM) has sold forward 558,000 ounces of silver at an effective price of A$26.04 per ounce.

The hedging program equates to 27% of the payable silver planned to be recovered to concentrates, and sold from the Fossey deposit.

The hedging program, which is with RMB Resources Ltd, includes a A$5 million cash prepayment, with these funds used to support the Hellyer Mine Project, with a focus on near term growth initiatives.

The sale price is a 33% above the A$19.54 per ounce silver price assumed in the definitive feasibility study for the Fossey mine development.

Spot silver is currently around A$23.80.

Gold and silver is estimated to represent 32% of the overall sales revenue from the Fossey deposit