AMN - MADAGASCAR – Nameplate production at Graphmada

Bass Metals has reached nameplate production at its 100%-owned, debt-free, Graphmada large flake graphite mine in eastern Madagascar. This is a significant milestone in the company’s progression to becoming a material producer of industrial concentrates.

The process plant has reached and sustained 25 tonnes per hour feed rate at an average head grade of 4.5% Total Graphitic Carbon (TGC), an effective run-rate of 500 tonnes per month production.

The concentrates produced are at materially higher saleable grades than historic production, with a majority of production at or above 94% fixed carbon.

The company reaching this significant milestone provides the pathway to achieving positive cash flow from operations in 2018.

Bass is negotiating the sale of this production with several international groups, including its offtake partner, setting the platform both operationally and financially for Bass to progress its growth strategy both at Graphmada with stage two and Millie’s Reward.

Bass Metals non-executive chairman Rick Anthon said: “We are very pleased to reach this significant milestone for the company. We look forward to working even harder to realise further value from our operations.

"Our focus has always been to establish positive cash flow and achieving the desired run-rate gives us a clear path to this goal. I’d like to thank our shareholders, management and the hard-working team at Graphmada, whose efforts in achieving this milestone have been tremendous.”

Bass is a producer of industrial mineral concentrates post the successful stage one commercial ramp-up of production at Graphmada.

Madagascar has produced benchmark quality graphite for over 100 years due to the high proportion of high purity, large flake, premium quality graphite in soft, easily minable, saprolitic ore.

Therefore, deposits, like those at Graphmada, have low operating costs and extremely low capital costs when compared to other African or Western deposits.

The well-developed export infrastructure is also a significant aspect that makes working in Madagascar attractive.

The Graphmada mine has 40-year mining permits and 20-year landholder agreements in place, with four premium quality, large flake, graphite deposits.

Producing premium large flake concentrates at a time of rising prices, Bass, as one of only two ASX-listed producers and one of only four publicly-listed graphite producers globally, is working to expand production from 6000 tonnes per annum to beyond 20,000 tonnes in stage two and in addition, pursue a strategy to develop downstream expandable graphite production and technologies in stage three.

www.bassmetals.com.au