BASE RESOURCES LIMITED
Maiden Kwale North Dune and Bumamani Ore Reserves estimates

Key Points

• Maiden Kwale North Dune and Bumamani Ore Reserves estimates underpin the Bumamani definitive feasibility study.
• North Dune Ore Reserves estimate is 13.9Mt at an average HM grade of 2.1% for 0.29Mt of contained HM.
• Bumamani Ore Reserves estimate is 3.9Mt at an average HM grade of 2.3% for 0.09Mt of contained HM.

African mineral sands producer, Base Resources Limited (ASX / AIM: BSE) (Base Resources) is pleased to announce maiden Ore Reserves estimates for the Kwale North Dune (2022 Kwale North Dune Ore Reserves) and the Bumamani deposits (2022 Bumamani Ore Reserves) at its 100% owned and operated Kwale Operations in Kenya.

The 2022 Kwale North Dune Ore Reserves and 2022 Bumamani Ore Reserves are presented together because of the close proximity of the underlying deposits. They also underpin the definitive feasibility study (the Bumamani DFS) undertaken to assess their potential to extend the mine life of Kwale Operations, the outcomes of which, and the decision to proceed with project implementation, are the subject of a separate release (also released today).

The 2022 Kwale North Dune Ore Reserves are estimated to be 13.9 million tonnes (Mt) at an average heavy mineral (HM) grade of 2.1% for 0.29Mt of contained HM. The classifications of the 2022 Kwale North Dune Ore Reserves are set out in Table 1 below. Table 1 also contains an updated estimate of the Kwale North Dune Mineral Resources (2022 Kwale North Dune Mineral Resources) and a comparison against the Kwale North Dune Mineral Resources estimate as at 30 June 2021.

The 2022 Kwale North Dune Mineral Resources are estimated to be 171 million tonnes at an average HM grade of 1.5% for 2.6Mt of contained HM, at a 1% HM cut-off grade. This represents a decrease of 23Mt of material and 0.3Mt of contained HM compared with the previously announced Kwale North Dune Mineral Resources, which was the consequence of some low-grade material no longer being within the boundary of Prospecting Licence 2018/0119 (PL 2018/0119) following its automatic reduction in size upon renewal in accordance with Kenya’s Mining Act of 2016 (see Figure 1)1.

The 2022 Bumamani Ore Reserves are estimated to be 3.9Mt at an average HM grade of 2.3% for 0.09Mt of contained HM. The classifications of the 2022 Bumamani Ore Reserves are set out in Table 2 below. To allow comparison against the Bumamani Mineral Resources estimate, Table 2 also sets out that estimate which is unchanged from the last estimate as at 30 June 2021.

Base Resources’ wholly-owned Kenyan subsidiary, Base Titanium Limited (Base Titanium), is the operator of Kwale Operations and has a net attributable interest of 100% in the Ore Reserves and Mineral Resources estimates referred to in this release.

The 2022 Kwale North Dune Mineral Resources, 2022 Kwale North Dune Ore Reserves and 2022 Bumamani Ore Reserves are each reported in accordance with the JORC Code. Further information about the 2022 Kwale North Dune Ore Reserves and 2022 Bumamani Ore Reserves is set out in the section below. This information should be read in conjunction with the applicable explanatory information provided for the purposes of Table 1 of the JORC Code, included in Appendices 1 to 3 of this release. Base Resources does not consider that the reduced 2022 Kwale North Dune Mineral Resources constitutes a material change. The area containing the Mineral Resources no longer included in this estimate was relinquished following renewal of PL 2018/0119 and was selected by Base Resources because those Mineral Resources were assessed to have the lowest prospects of eventual economic extraction taking into account, among other things, the outcomes of the pre-feasibility study undertaken in 2021 to assess the potential to mine the whole of the Kwale North Dune and Bumamani deposits, which concluded that mining the whole of those deposits was not presently economically viable.

A glossary of key terms used in this release is contained at the end. Graphics/figures referenced in this release have been omitted.

A full PDF version of this release, including all graphics/figures, is available from the Company’s website: www.baseresources.com.au.

News in full