AIM and Media Release 

12 August 2022

BASE RESOURCES LIMITED
2022 Mineral Resources and Ore Reserves Statement

Key Points

• Kwale South Dune Mineral Resources and Ore Reserves estimates reduced due to mining depletion during the year to 30 June 2022, with:
  • Mineral Resources reducing by 26Mt containing 0.9Mt of heavy mineral.
  • Ore Reserves reducing by 18Mt containing 0.6Mt of heavy mineral.
• Kwale North Dune Mineral Resources estimate updated and maiden Ore Reserves estimate announced on 20 June 2022, resulting in:
  • Mineral Resources of 171Mt at an average heavy mineral grade of 1.5%, containing 2.6Mt of heavy mineral, a reduction of 23Mt containing 0.3Mt of heavy mineral due to some low-grade material no longer being within the prospecting licence area.
  • Ore Reserves of 13.9Mt at an average heavy mineral grade of 2.1% containing 0.29Mt of heavy mineral.
• Maiden Bumamani Ore Reserves estimate announced on 20 June 2022 of 3.9Mt at an average heavy mineral grade of 2.3%, containing 0.091Mt of heavy mineral.
• Ranobe Mineral Resources and Ore Reserves estimates updated on 27 September 2021, resulting in:
  • Mineral Resources of 2,580Mt at an average heavy mineral grade of 4.3%, containing 111Mt of heavy mineral.
  • Ore Reserves of 904Mt at an average heavy mineral grade of 6.1%, containing 55Mt of heavy mineral.

The 2022 Mineral Resources and Ore Reserves estimates for Base Resources Limited (ASX / AIM: BSE) are summarised in the table below, together with the 2021 Mineral Resources and Ore Reserves estimates for comparison.

Notes:

1. Table subject to rounding differences.
2. Rutile reported is rutile + leucoxene mineral species.
3. Recovered leucoxene will be split between rutile and chloride ilmenite products depending on product specification requirements.
4. Kwale incorporates the Kwale South Dune, Kwale North Dune and Bumamani deposits.
5. Ranobe Mineral Resources as at 30 June 2022 also specify the monazite and garnet within the mineral assemblage as a percentage of HM, refer to the standalone table for the Ranobe Mineral Resources below.

Mineral Resources and Ore Reserves estimates in this statement are reported in accordance with the JORC Code.  A glossary of key terms used in this statement is below.

For further information about the estimates in this statement, including information that is material to understanding the estimates in relation to the applicable criteria in Table 1 of the JORC Code, refer to the following announcements⁶:

[Note (6): Announcements are available at https://baseresources.com.au/investors/announcements/.]

Kwale Deposits

The Company’s Kwale Mineral Sands Operations in Kenya is located approximately 50 kilometres south of Mombasa and 10 kilometres inland from the Kenyan coast.  The Company’s wholly owned subsidiary, Base Titanium, is the 100% owner and operator of Kwale Operations and has a net attributable interest of 100% in the 2022 Kwale Mineral Resources and Ore Reserves estimates.  Base Titanium also holds Prospecting Licence 2018/0119 (PL119) and Special Mining Lease 23 (SML 23), which contain the Kwale South Dune, the Kwale North Dune and Bumamani deposits. 

Mineral Resources

The 2022 Kwale Mineral Resources, as at 30 June 2022, are estimated to be 205 million tonnes (Mt) at an average heavy mineral (HM) grade of 1.7% for 3.5Mt of contained HM, at a 1% HM cut-off grade.

Table 2: 2022 Kwale Mineral Resources estimate compared with the 2021 estimate at a 1% HM cut-off grade.

Table subject to rounding differences. 

The 2022 Kwale Mineral Resources estimate represents a decrease of approximately 49Mt (or 19%) in material tonnes containing 1.2Mt of HM compared to the 2021 Kwale Mineral Resources estimate.  This was due to Kwale South Dune mining depletion and removal of low-grade Kwale North Dune material that was no longer within the boundary of PL119 following its automatic reduction in size upon renewal in accordance with Kenya’s Mining Act of 2016.

The Kwale South Dune Mineral Resources are estimated to be 28Mt at an average HM grade of 2.9% for 0.81Mt of contained HM as at 30 June 2022, a decrease of 26Mt containing 0.9Mt of HM compared to the 2021 Kwale South Dune Mineral Resources estimate.

The 2022 Kwale North Dune Mineral Resources are estimated to be 171Mt at an average HM grade of 1.5% for 2.6Mt of contained HM, a decrease of 23Mt containing 0.3Mt of HM compared to the 2021 Kwale North Dune Mineral Resources estimate.

The 2022 Bumamani Mineral Resources are estimated to be 5.9Mt at an average HM grade of 1.9% for 0.115Mt of contained HM.  The Bumamani Mineral Resources at 30 June 2022 are unchanged from the 2021 estimate.

Ore Reserves

Included within the Kwale Mineral Resources are the Kwale Ore Reserves, estimated to be 40Mt at an average HM grade of 2.7% for 1.1Mt of contained HM as at 30 June 2022. 

Table 3:  The 2022 Kwale South Dune Ore Reserves estimate compared with the 2021 estimate.

Table subject to rounding differences.

Compared to the 2021 Kwale Ore Reserves estimate, there was no net change in total ore tonnes.  There was, however, a decrease of 19% in contained HM tonnes.  This was the net result of:

• mining depletion, decreasing Kwale South Dune Ore Reserves by 18Mt containing 0.6Mt of HM, inclusive of unmined material caused by an elevated basement floor in some areas compared to that predicted in the underlying model;
• the maiden Kwale North Dune Ore Reserves estimate adding 13.9Mt of ore and 0.29Mt of contained HM; and
• the maiden Bumamani Ore Reserves estimate adding 3.9Mt of ore and 0.091Mt of contained HM.

Ranobe Deposit

The Company’s Toliara Project is based on the Ranobe deposit, located approximately 45 kilometres north of the town of Toliara and 15km inland from the coast in south west Madagascar.  The Ranobe deposit sits within Permis d’Exploitation 37242, which is a mining lease under Malagasy law.  The Company’s wholly owned subsidiary, Base Toliara SARL, is the 100% owner and operator of the Toliara Project and has a net attributable interest of 100% in the 2022 Ranobe Mineral Resources and Ore Reserves estimates.  The Company is currently progressing the project towards development.

Mineral Resources

The 2022 Ranobe Mineral Resources are estimated to be 2,580Mt at an average HM grade of 4.3% for 111Mt of contained HM, based on a 1.5% HM cut-off grade. 

Table 4: The 2022 Ranobe Mineral Resources estimate compared with the 2021 estimate at a 1.5% HM cut-off grade.

Table subject to rounding differences. 

*Rutile reported in the table is rutile + leucoxene mineral species.

The Ranobe Mineral Resources were updated on 27 September 2021 to incorporate the results of previous drilling programs.  The 2022 Ranobe Mineral Resources estimate represents an increase of 99% in material tonnes and 68% in contained HM tonnes when compared with the 2021 Ranobe Mineral Resources estimate.  

Ore Reserves

Included within the Ranobe Mineral Resources are the Ranobe Ore Reserves, estimated to be 904Mt at an average HM grade of 6.1% for 55Mt of contained HM as at 30 June 2022.  No monazite or garnet is incorporated in the Ranobe Ore Reserves estimate because the existing mining tenure, Permis D’Exploitation 37242, does not currently provide the right to exploit these minerals.

Table 5: The 2022 Ranobe Ore Reserves estimate compared with the 2021 estimate.

Table subject to rounding differences.

^Recovered Leucoxene will be split between Rutile and Chloride Ilmenite products depending on product specification requirements.

The Ranobe Ore Reserves estimate was also updated on 27 September 2021 following the update to the Ranobe Mineral Resources estimate mentioned above.  The 2022 Ranobe Ore Reserves estimate represents an increase of 54% in material tonnes and 45% in contained HM tonnes when compared with the 2021 Ranobe Ore Reserves estimate.

Mineral Resources and Ore Reserves Governance

A summary of the governance, internal controls and estimation process applicable to Base Resources’ Mineral Resources and Ore Reserves estimates is as follows:

Mineral Resources

• Review and validation of drilling and sampling methodology and data spacing, geological logging, data collection and storage, sampling and analytical quality control.
• Geological interpretation – review of known and interpreted structure, lithology and weathering controls.
• Estimation methodology – relevant to mineralisation style and proposed mining methodology.
• Comparison of estimation results with previous mineral resources models, and with results using alternate modelling methodologies.
• Visual validation of block model against raw composite data.
• Use of external Competent Persons to assist in preparation of Mineral Resources estimate updates.

Ore Reserves

• Review of potential mining methodology to suit deposit and mineralisation characteristics.
• Review of potential Modifying Factors, including cost assumptions and commodity prices to be utilised in mining evaluation.
• Ore Reserves estimate updates initiated following material changes in the relevant Modifying Factor assumptions.
• Optimisation using appropriate software packages for open pit evaluation.
• Design based on optimisation results.
• Use of external Competent Persons to assist in preparation of Ore Reserves estimates.

Competent Persons’ Statements

The information in the 2022 Mineral Resources and Ore Reserves Statement that relates to Mineral Resources and Ore Reserves is based on, and fairly represents, information and supporting documentation prepared by the Competent Persons named in the table below.  Each Competent Person:

• is a Member or Fellow of The Australasian Institute of Mining and Metallurgy or the Australian Institute of Geoscientists;
• has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the JORC Code and as a qualified person for the purposes of the AIM Rules for Companies; and
• consents to the inclusion in this statement of matters based on their information in the form and context in which the relevant information appears.

Mr. Scott Carruthers has also approved this statement as a whole.

Mr. Scott Carruthers is employed by Base Resources, holds equity securities in Base Resources, and is entitled to participate in Base Resources’ long-term incentive plan and receive equity securities under that plan.  Details about that plan are included in Base Resources’ 2021 Annual Report.  Mr. Ian Reudavey is also employed by Base Resources.  He does not presently hold equity securities in Base Resources and is not entitled to participate in Base Resources’ long-term incentive plan. 

Forward looking statements

Certain statements in or in connection with this statement contain or comprise forward looking statements.  Such statements may include, but are not limited to, statements with regard to future production and grades, capital cost, capacity, sales projections and financial performance and may be (but are not necessarily) identified by the use of phrases such as “will”, “expect”, “anticipate”, “believe” and “envisage”.  By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside Base Resources’ control.  Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in product prices and exchange rates and business and operational risk management.  Subject to any continuing obligations under applicable law or relevant stock exchange listing rules, Base Resources undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events.

Glossary

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For further information contact:

About Base Resources

Base Resources is an Australian based, African focused, mineral sands producer and developer with a track record of project delivery and operational performance.  The Company operates the established Kwale Operations in Kenya and is developing the Toliara Project in Madagascar.  Base Resources is an ASX and AIM listed company.  Further details about Base Resources are available at www.baseresources.com.au

PRINCIPAL & REGISTERED OFFICE
Level 3, 46 Colin Street
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Email:  info@baseresources.com.au
Phone: +61 8 9413 7400
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Stephen Allen
Phone: +61 8 9480 2500

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