PERTH (miningweekly.com) - Embattled junior Bass Metals was on the hunt for new projects to diversify its project portfolio, and would restart exploration activities, after completing the sale of its Hellyer mill operations.

The A$11-million sale of the mill operations to private firm Ivy Resources was completed over the weekend.

The sales agreement allowed Bass to retain exploration and development rights in respect of base metals in the Hellyer mining lease, through a sublease agreement. The plant would also be available for Bass’ use, subject to Ivy’s development plans.

Bass told shareholders on Monday that following the transaction’s completion, the company was now effectively debt free and had some A$3-million in working capital to restart exploration programmes on its Tasmanian projects, and to pursue new project opportunities.

Exploration activities have now resumed at the Hellyer-Que licence, with preparations for downhole geophysical surveys of some 20 diamond drill holes, to assist in future targeting.

The exploration strategy would be refocused onto large-scale polymetallic orebodies and would no longer be distracted by near-mine, smaller-scale incremental targets, the company said.

“There are several high-grade promising targets in the Hellyer-Que area, and on the Lake Margaret exploration licence, near Queenstown,” said MD Mike Rosenstreich.

Meanwhile, the board of Bass had also agreed that a more direct focus should be placed on diversification into new projects, either through acquisition, farm-in or corporate transactions.

The company has established an initial guiding framework that has outlined copper, gold, tin, lithium and polymetallic base metals as the commodities of choice, with scaleable exploration projects placed at the top of the list.

The company would also assess opportunities not only in Australia, but in emerging countries as well.

“Offering Bass shareholders the diversification into a new project has already started with Bass currently assessing several project offers. However, Bass is also taking a proactive stance to identify opportunities through a systematic investigation of geological terrains, projects and companies,” said Rosenstreich.