REG-Base Resources Limited: FY24 Production Guidance – Kwale Operations

Base ResourcesAnnouncement

26/06/2023 07:15

AIM and Media Release 

26 June 2023

BASE RESOURCES LIMITED
FY24 Production Guidance – Kwale Operations

African mineral sands producer, Base Resources Limited (ASX & AIM: BSE) (Base
Resources or the Company) provides production guidance for the 2024 financial
year (FY24) for its Kwale Operations in Kwale County, Kenya.

The FY24 production guidance is set out in the table below, with the
Company’s 2023 financial year (FY23) production guidance shown alongside for
comparison purposes.  The FY23 production guidance remains unchanged from
that last reported.

The FY24 guidance reflects the planned continuation of the concurrent mining
of the South Dune and the P199 and P200 pits on the North Dune, which began in
February 2023, until the South Dune is fully depleted.  This is expected to
occur in March 2024, at which point, the South Dune mining operation will
transition to the Bumamani orebody, with mining at the North Dune continuing
uninterrupted – refer to the map included in the full PDF version of this
release, available from the Company’s website
(https://baseresources.com.au/investors/announcements/), for the location of
mining operations during FY24.    

The FY24 production guidance is lower than the FY23 guidance due to:
* Lower heavy mineral grades – the remaining sections of the South Dune and
the areas of the North Dune and Bumamani ore bodies proposed to be mined are
estimated to have lower heavy mineral (HM) grades than the grades historically
mined at Kwale Operations.
* Lower tonnes mined – since commencement of mining at the North Dune in
February 2023 and as disclosed in the March 2023 Quarterly Activities
Report(1), mining rates have been lower than expected in the lower ore zones
due to elevated oversize and slimes.  While some improvements in mining rates
have been achieved, mining rates are still anticipated to be lower than FY23.
* Mining availability – a shutdown of half the mining operation is
anticipated to occur in March 2024 for the relocation of the South Dune
hydraulic mining units and slurry collection hopper to the Bumamani orebody.
* New orebody – the normal uncertainties associated with mining a new
orebody (Bumamani) have been factored into the FY24 guidance.
 PRODUCTION GUIDANCE (tonnes)  FY23  Guidance Range  FY24  Guidance Range  
 Rutile                          62,000 to 73,000      35,000 to 41,000    
 Ilmenite                       260,000 to 310,000    130,000 to 160,000   
 Zircon                          22,000 to 27,000      13,000 to 16,000    

The FY24 production guidance is based on the following assumptions:
* Mining of 14.1Mt at an average HM grade of 2.23%.
* Heavy mineral concentrate (HMC) produced by the wet concentrator plant of
311kt.
* HMC fed into the mineral separation plant (MSP) of 297kt.
* MSP product recoveries of 101% for rutile, 101.5% for ilmenite and 84.5% for
zircon.
[Note (1): Refer to Base Resources’ announcement on 26 April 2023,
“Quarterly Activities Report – March 2023”.]

Forward looking statements

Certain statements in or in connection with this release 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.

ENDS.

For further information contact:

 Australian Media Relations        UK Media Relations             
 Citadel Magnus                    Tavistock Communications       
 Cameron Gilenko and Michael Weir  Jos Simson and Gareth Tredway  
 Tel: +61 8 6160 4900              Tel: +44 207 920 3150          

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,
is developing the Toliara Project in Madagascar and is conducting exploration
in Tanzania.  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
West Perth, Western Australia, 6005
Email:  info@baseresources.com.au
Phone: +61 8 9413 7400
Fax: +61 8 9322 8912

NOMINATED ADVISER & JOINT BROKER
Canaccord Genuity Limited
James Asensio / Raj Khatri / Patrick Dolaghan
Phone: +44 20 7523 8000

JOINT BROKER
Berenberg
Matthew Armitt / Detlir Elezi
Phone: +44 20 3207 7800



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