BASE RESOURCES LIMITED
Updated Kwale North Dune and Maiden Bumamani Mineral Resources Estimates

Key Points

• As part of the pre-feasibility study currently underway to assess the viability of mining the Kwale North Dune and Bumamani deposits, seeking to extend the mine life of Kwale Operations, additional drilling and mineralogy assessments have been conducted.
• The Kwale North Dune Mineral Resources estimate has increased by 13% to 194 million tonnes at an average HM grade of 1.5%, containing 2.9Mt HM, based on a 1% HM cut-off grade.
• 99% of the Kwale North Dune Mineral Resources estimate is now reported in the Measured and Indicated categories.
• The maiden Bumamani Mineral Resources estimate is 5.9 million tonnes at an average HM grade of 1.9%, containing 0.115Mt HM, based on a 1% HM cut-off grade.
• The pre-feasibility study for the Kwale North Dune and Bumamani deposits is due for completion early in Q2 2021.

African mineral sands producer, Base Resources Limited (ASX / AIM: BSE) (Base Resources) is pleased to provide an update to the Kwale North Dune Mineral Resources (2021 Kwale North Dune Mineral Resources) estimate and announce a maiden Bumamani Mineral Resources estimate (2021 Bumamani Mineral Resources) at its 100% owned and operated mineral sands operations in Kwale County, Kenya (Kwale Operations).

The 2021 Kwale North Dune Mineral Resources and 2021 Bumamani Mineral Resources estimates are being presented together because of the close proximity of the underlying deposits and as these deposits are the subject of a single pre-feasibility study (the Kwale North Dune PFS) being undertaken to assess their potential to extend the mine life of Kwale Operations. The Kwale North Dune PFS commenced in early 2020 and is due for completion early in the second quarter of 2021.

Since announcement of the maiden JORC 2012 North Dune Mineral Resources estimate in May 2019 (2019 Kwale North Dune Mineral Resources)*, Base Resources has carried out additional drilling, assaying and mineralogy studies of the Kwale North Dune to improve the confidence of the Mineral Resources estimate and further the Company’s understanding of the deposit. As a result of this additional work, 99% of the 2021 Kwale North Dune Mineral Resources estimate is now reported in the Measured and Indicated categories. Material tonnage for the 2021 Kwale North Dune Mineral Resources estimate has also increased by 13% and contained heavy mineral (HM) has increased by 12% from the 2019 Kwale North Dune Mineral Resources estimate.

The 2021 Kwale North Dune Mineral Resources are now estimated to be 194 million tonnes (Mt) at an average HM grade of 1.5% for 2.9Mt of contained HM, at a 1% HM cut-off grade.

The Bumamani deposit is situated approximately 1.5km south of the North Dune deposit (Figure 1) and was discovered by Base Resources in 2017 when drilling to test for mineralisation in the north-east sector of the Kwale Prospecting Licence PL/2018/0119 (PL119). At that time, taking into account the results at hand and the small size of the deposit indicated by such results, it was decided that any Mineral Resources estimate would be deferred until the full drilling program planned for the north-east sector was able to be completed and the full results incorporated into the estimation process. Due to ongoing community access issues, Base Resources has not been able to complete that program. However, with commencement of the Kwale North Dune PFS, the Bumamani deposit has now been revisited due to its proximity to the Kwale North deposit and a Mineral Resources estimate completed to allow its inclusion in that study.

The maiden 2021 Bumamani Mineral Resources estimate was developed from 2,977.5m of drilling from 183 holes and is 5.9Mt at an average HM grade of 1.9% for 0.115Mt of contained HM, at a 1% HM cut-off grade.

The 2021 Kwale North Dune Mineral Resources and the 2021 Bumamani Mineral Resources estimates are reported in accordance with the JORC Code. Base Resources has a net attributable interest of 100% in the 2021 Kwale North Dune Mineral Resources and the 2021 Bumamani Mineral Resources.

The information prescribed by the ASX Listing Rules, including a summary of the information material to understanding each Mineral Resources estimate in respect of the prescribed matters, is set out in the sections below. For each Mineral Resources estimate, such information should be read in conjunction with the explanatory information provided in respect of the applicable estimate for the purposes of Sections 1 to 3 of Table 1 of the JORC Code – see Appendix 1 to this announcement in the case of the 2021 Kwale North Dune Mineral Resources estimate and Appendix 2 in the case of the 2021 Bumamani Mineral Resources estimate.

Figures (graphics) referenced in this announcement have been omitted. A full PDF version of this announcement, including all figures (graphics), is available from Base Resources’ website: https://baseresources.com.au/investors/ announcements/.

[Note *: Refer to Base Resources’ market announcement “Mineral Resource for Kwale North Dune deposit” released on 1 May 2019, which is available at https://baseresources.com.au/investors/announcements/]

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