REG-Base Resources Limited: Kwale East - Exploration update
30/10/2023 07:15
AIM and Media Release
30 October 2023
Base Resources Limited
Kwale East – Exploration update
Base Resources Limited (ASX & AIM: BSE) (Base Resources or the Company)
advises that, following conclusion of a limited phase 2 air core drilling
program (Phase 2) at its Kwale East exploration project (Kwale East) in Kwale
County, Kenya, exploration activities at Kwale East have been discontinued.
Explorations activities undertaken
Kwale East is located within Prospecting Licence 2018/0119 and is the
eastern expression of a large, mineralised Plio-Pleistocene dune system also
covering the Kwale Central, South and North Dunes and the Bumamani deposit –
refer to Figure 1. Kwale East was considered a near-term mine life extension
opportunity due to its close proximity to Kwale Operations’ infrastructure.
An initial phase 1 scout auger drilling program (Phase 1) completed over 2022
and 2023 identified three targets – Magaoni, Masindini and Zigira – for
follow-up aircore drilling as part of Phase 2. Refer to Figure 2 for the
location of these target areas and the Phase 1 drill holes, and the
Company’s announcement of 3 July 2023, titled “Kwale East exploration
drilling update” (the July Announcement), for further details in relation to
Phase 1.
As was noted in the July Announcement, land access was a particular challenge
in the more prospective areas of Magaoni and Zigira during Phase 1, with
access to approximately 35% of those target areas unable to be obtained.
With community engagement trending positively and optimism over the
Company’s ability to secure the necessary landholder consents, the Phase 2
program was commenced. The priorities for Phase 2 were to:
* drill the remaining ~35% of Magaoni and Zigira;
* complete infill drilling to achieve 100m north by 50m east spacing for all
three targets for resource estimate purposes; and
* twin Phase 1 drill holes with average HM grades of greater than 1% to enable
better sample quality and allow drilling through to basement, as well as
confirm mineralisation.
Despite securing some additional landholder consents, the Company was
ultimately unable to secure full access to the more prospective areas in
Magaoni and Zigira, largely limiting the program undertaken for Phase 2 to
twinning some of the Phase 1 holes. In total for Phase 2, 65 holes for
1,054.5m were completed in the Magaoni and Zigira target area, resulting in
703 samples – refer to Figure 2 for the location of these holes.
While the Phase 2 assay results confirmed the existence of the mineralisation
identified from the Phase 1 auger program, the Company has decided to
discontinue exploration activities at Kwale East. This decision followed an
evaluation of the likely mineralisation for the three targets using the
results from both Phase 1 and Phase 2 drill programs and applying optimistic
assumptions on the continuity of mineralisation in the Magaoni and Zigira
target areas that were not able to be drilled. Even on these optimistic
assumptions, the evaluation concluded that there is unlikely to be sufficient
volume or heavy mineral grade to support an economically viable mining
development. For further details about the evaluation undertaken, refer to
the Company’s announcement titled “Kwale Operations to complete mining at
end of 2024”, also released today.
For further details about the results from Phase 2 drilling, refer to the
Appendices below, comprising a table of assay results for all drill holes
having an average grade equal to or greater than 1% HM (refer to Appendix 1)
and the information provided for the purposes of Sections 1 and 2 of Table 1
of the JORC Code (refer to Appendix 2). For completeness, Appendix 1 also
discloses further assay results from Phase 1 received subsequent to the
cut-off for the July Announcement and having an average grade equal to or
greater than 1% HM, and Appendix 2 also contains information provided for the
purposes of Sections 1 and 2 of Table 1 of the JORC Code in respect for those
assay results.
A glossary of key terms used in this announcement is contained below.
Competent Person’s Statement
The information in this announcement that relates to Kwale East exploration
results is based on, and fairly represents, information and supporting
documentation prepared by Mr. Edwin Owino. Mr. Owino is a member of the
Australian Institute of Geoscientists. Mr. Owino is employed by Base
Resources’ wholly-owned subsidiary, Base Titanium. Mr. Owino 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’ 2023 Annual
Report. Mr. Owino has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which he is 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. Mr. Owino has reviewed this announcement and consents to the
inclusion in this announcement of the Kwale East exploration results and the
supporting information in the form and context in which the relevant
information appears.
Figure 1: Kwale East Project location
Figure 2: Kwale East Project drilling location
Appendix 1
Kwale East drill hole table
All drill holes have dip of -90 degrees and azimuth of 0 degrees (i.e
vertical). Local coordinates given to allow cross reference to cross
sections, which are named after Local_Y. The table is sorted by a rounded
Local_Y and then by Local_X. The reported intervals are combined ore zones
averaged from the surface with a minimum 3m thickness that equals or exceed 1%
HM. The reason for averaging from the surface is that the hydraulic mining
method, which would likely be employed if any of this material were to be
mined, results in the blending of the various ore zones.
Hole_ID Type Arc60_X Arc60_Y Local_X Local_Y DTM_Z From To Interval Avg HM Avg Slime Avg OS
MH348 Auger 550,036 9,516,037 2,951 10,650 70 0 3 3 1.4 37.9 0.9
MH347 Auger 550,096 9,516,252 2,850 10,850 78 0 9 9 1.2 28.5 0.7
MH349 Auger 550,017 9,516,461 2,650 10,950 80 0 7.5 7.5 1.1 33.6 0.8
MH350 Auger 549,942 9,516,529 2,550 10,950 81 0 7.5 7.5 1.0 30.0 1.0
CD052 RCAC 551,503 9,515,640 4,300 11,349 52 0 7.5 7.5 1.0 18.7 1.1
CD053 RCAC 551,464 9,515,673 4,249 11,347 56 0 6 6 1.6 23.9 1.9
CD054 RCAC 551,430 9,515,708 4,201 11,350 56 0 4.5 4.5 1.7 38.4 1.9
CD059 RCAC 551,409 9,515,731 4,170 11,353 52 0 4.5 4.5 1.6 30.7 1.8
CD046 RCAC 551,502 9,515,710 4,252 11,400 57 0 7.5 7.5 1.3 24.6 1.9
CD055 RCAC 551,463 9,515,745 4,200 11,399 57 0 6 6 2.1 31.4 2.6
CD058 RCAC 551,435 9,515,774 4,160 11,402 52 0 3 3 1.6 18.6 1.7
CD044 RCAC 551,571 9,515,714 4,301 11,449 53 0 9 9 1.0 19.1 1.0
CD045 RCAC 551,534 9,515,749 4,250 11,450 58 0 6 6 1.7 21.4 1.2
CD056 RCAC 551,498 9,515,782 4,201 11,450 59 0 7.5 7.5 2.4 28.0 2.7
CD057 RCAC 551,460 9,515,816 4,150 11,450 53 0 4.5 4.5 1.8 29.4 2.1
CD039 RCAC 551,639 9,515,788 4,301 11,550 54 0 10.5 10.5 1.5 22.3 1.3
CD038 RCAC 551,607 9,515,822 4,254 11,553 58 0 7.5 7.5 1.8 19.0 0.9
CD037 RCAC 551,564 9,515,856 4,200 11,549 62 0 9 9 1.7 24.9 0.8
CD060 RCAC 551,536 9,515,893 4,154 11,558 58 0 4.5 4.5 1.6 28.5 1.8
CD061 RCAC 551,512 9,515,911 4,124 11,555 53 0 4.5 4.5 1.4 29.6 1.2
CD035 RCAC 551,670 9,515,895 4,251 11,650 60 0 10.5 10.5 1.5 25.6 1.8
CD036 RCAC 551,633 9,515,930 4,200 11,651 63 0 12 12 2.4 22.4 1.1
CD064 RCAC 551,595 9,515,964 4,149 11,650 59 0 4.5 4.5 2.2 26.0 1.1
CD063 RCAC 551,577 9,515,980 4,125 11,650 54 0 3 3 2.2 25.2 1.2
CD062 RCAC 551,559 9,515,997 4,101 11,650 51 0 6 6 1.4 25.9 1.3
MH351 Auger 551,079 9,516,436 3,450 11,650 72 0 12 12 1.0 18.9 0.9
MH346 Auger 551,005 9,516,504 3,350 11,650 69 0 3 3 1.0 29.8 0.8
CD002 RCAC 551,769 9,515,944 4,295 11,750 56 0 4.5 4.5 1.2 19.8 1.2
CD003 RCAC 551,734 9,515,974 4,251 11,750 61 0 10.5 10.5 1.7 25.6 1.4
CD007 RCAC 551,697 9,516,007 4,199 11,748 64 0 12 12 2.2 22.2 1.7
CD065 RCAC 551,626 9,516,071 4,100 11,750 51 0 6 6 1.8 24.5 3.2
CD008 RCAC 551,765 9,516,081 4,201 11,850 62 0 12 12 1.1 24.4 1.0
CD026 RCAC 551,945 9,516,049 4,350 11,949 51 0 7.5 7.5 1.5 17.7 1.5
CD027 RCAC 551,909 9,516,083 4,301 11,950 54 0 7.5 7.5 1.5 23.4 1.8
CD028 RCAC 551,873 9,516,117 4,251 11,951 55 0 6 6 1.2 26.7 1.2
CD029 RCAC 551,835 9,516,151 4,200 11,950 51 0 3 3 1.3 23.7 2.1
CD031 RCAC 551,976 9,516,157 4,300 12,050 46 0 4.5 4.5 1.0 15.7 2.1
CD030 RCAC 551,941 9,516,181 4,258 12,044 46 0 6 6 1.0 14.9 3.7
CD019 RCAC 551,775 9,516,597 3,864 12,236 74 0 16.5 16.5 3.8 16.8 0.5
CD017 RCAC 551,941 9,516,595 3,984 12,347 72 0 16.5 16.5 4.1 16.4 0.7
CD018 RCAC 551,927 9,516,612 3,960 12,347 72 0 18 18 4.5 16.5 1.0
CD004 RCAC 551,871 9,516,656 3,891 12,345 74 0 18 18 5.1 16.8 0.8
CD015 RCAC 552,047 9,516,634 4,040 12,445 69 0 16.5 16.5 3.8 18.2 1.1
CD014 RCAC 552,023 9,516,662 4,000 12,449 71 0 18 18 4.0 15.8 0.8
CD006 RCAC 551,988 9,516,695 3,951 12,449 73 0 19.5 19.5 6.5 15.6 1.6
CD005 RCAC 551,943 9,516,721 3,901 12,450 74 0 18 18 3.9 19.0 1.3
CD016 RCAC 551,902 9,516,744 3,855 12,433 74 0 16.5 16.5 1.8 17.8 0.6
KE923 Auger 552,010 9,516,940 3,796 12,650 72 0 7.5 7.5 1.0 23.7 0.8
KE922 Auger 551,976 9,516,971 3,750 12,650 71 0 4.5 4.5 1.0 24.7 0.7
KE920 Auger 552,007 9,517,078 3,701 12,750 66 0 4.5 4.5 1.0 31.6 1.0
KE901 Auger 553,202 9,517,200 4,499 13,647 58 0 9 9 1.2 28.3 2.2
KE899 Auger 553,494 9,517,072 4,801 13,750 47 0 7.5 7.5 3.5 11.6 4.8
KE915 Auger 553,633 9,517,081 4,898 13,851 45 0 9 9 5.1 12.8 3.5
KE900 Auger 553,551 9,517,145 4,794 13,843 49 0 4.5 4.5 1.0 10.2 2.4
KE918 Auger 553,766 9,517,083 4,994 13,941 45 0 6 6 1.4 17.1 8.0
KE912 Auger 553,503 9,517,603 4,449 14,148 59 0 6 6 1.1 21.8 1.1
KE911 Auger 553,646 9,517,592 4,562 14,236 57 0 7.5 7.5 1.2 28.9 1.4
NE079 Auger 552,614 9,518,556 3,150 14,250 69 0 6 6 1.3 37.2 0.5
NE080 Auger 552,541 9,518,624 3,050 14,250 72 0 9 9 1.3 36.1 0.6
NE104 Auger 551,657 9,519,434 1,851 14,250 90 0 3 3 1.3 39.5 1.0
NE103 Auger 551,583 9,519,501 1,751 14,250 91 0 3 3 1.7 37.0 1.8
NE112 Auger 551,509 9,519,569 1,650 14,250 92 0 3 3 1.9 43.7 0.9
NE119 Auger 551,436 9,519,637 1,551 14,251 90 0 9 9 1.4 29.9 0.4
CD024 RCAC 554,120 9,517,312 5,100 14,350 47 0 9 9 2.1 11.8 5.1
NE115 Auger 553,051 9,518,292 3,650 14,350 79 0 13.5 13.5 1.8 26.2 1.1
NE114 Auger 552,977 9,518,359 3,550 14,349 79 0 9 9 1.2 28.4 0.9
NE109 Auger 552,904 9,518,426 3,451 14,350 78 0 9 9 1.2 34.4 1.3
NE120 Auger 552,534 9,518,761 2,952 14,347 80 0 19.5 19.5 1.7 21.9 0.6
NE121 Auger 552,460 9,518,829 2,852 14,347 82 0 18 18 1.6 23.7 0.9
NE129 Auger 552,386 9,518,896 2,752 14,346 81 0 7.5 7.5 1.0 28.6 0.6
NE125 Auger 552,312 9,518,964 2,651 14,346 76 0 3 3 1.1 41.3 0.7
NE136 Auger 552,165 9,519,099 2,452 14,346 67 0 4.5 4.5 1.1 34.1 1.3
NE135 Auger 552,091 9,519,167 2,351 14,347 72 0 4.5 4.5 1.3 41.1 1.1
CD023 RCAC 554,299 9,517,285 5,251 14,451 45 0 3 3 1.3 5.4 2.8
CD022 RCAC 554,261 9,517,318 5,200 14,449 45 0 6 6 2.5 7.2 11.1
CD021 RCAC 554,224 9,517,355 5,148 14,452 47 0 9 9 1.9 11.3 6.7
CD020 RCAC 554,188 9,517,385 5,101 14,450 48 0 9 9 1.7 8.6 3.5
NE095 Auger 552,677 9,518,770 3,051 14,450 81 0 18 18 1.6 21.7 0.5
NE122 Auger 552,528 9,518,907 2,849 14,450 83 0 13.5 13.5 1.3 30.2 0.6
NE148 Auger 552,238 9,519,170 2,458 14,448 69 0 6 6 1.1 26.8 0.8
NE084 Auger 551,643 9,519,716 1,650 14,449 103 0 7.5 7.5 1.2 37.2 0.1
NE085 Auger 551,571 9,519,784 1,550 14,450 107 0 6 6 1.8 44.9 0.0
NE124 Auger 552,448 9,519,111 2,652 14,547 81 0 3 3 1.0 27.9 0.3
NE123 Auger 552,374 9,519,179 2,552 14,547 78 0 3 3 1.1 34.4 0.3
NE110 Auger 551,779 9,519,864 1,650 14,650 102 0 9 9 1.1 27.4 0.3
NE099 Auger 553,407 9,518,519 3,759 14,758 73 0 7.5 7.5 1.1 32.8 2.1
NE118 Auger 552,953 9,518,924 3,151 14,750 81 0 15 15 1.4 26.8 0.5
NE139 Auger 553,308 9,518,866 3,452 14,947 77 0 16.5 16.5 1.2 25.3 1.4
NE133 Auger 553,234 9,518,933 3,352 14,946 76 0 13.5 13.5 1.2 27.4 1.8
NE144 Auger 553,081 9,519,213 3,050 15,049 81 0 9 9 1.2 30.7 0.5
NE089 Auger 553,143 9,519,428 2,950 15,250 83 0 9 9 1.1 36.0 0.8
NE107 Auger 553,942 9,518,968 3,850 15,450 70 0 3 3 1.0 36.2 0.6
NE105 Auger 553,868 9,519,035 3,751 15,450 75 0 6 6 1.1 37.5 2.6
NE090 Auger 553,720 9,519,170 3,550 15,450 80 0 12 12 1.1 32.2 1.0
NE096 Auger 554,200 9,519,545 3,651 16,050 57 0 3 3 1.1 26.7 2.4
Appendix 2
JORC Code - Section 1 Sampling Techniques and Data
Criteria Explanation Comment
Sampling techniques Nature and quality of sampling (e.g., cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g., ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g., submarine nodules) may warrant disclosure of detailed information. For holes prefixed GN, KE, MH and NE mechanised auger drilling was used to obtain 1.5m samples from which approximately 4.0kg was collected via composite grab sampling of
a homogenised sample to produce a sub-sample for HM analysis utilising heavy liquid separation, magnetic separation and XRF assay. All holes were sampled over consistent
1.5m intervals. Several programs of twin drilling of air core holes have been undertaken and, while some variability was observed, it was concluded that auger drilling is
appropriate for reconnaissance drilling to identify mineralisation potential. For holes prefixed CD, reverse circulation aircore drilling was used to collect the entire
1.5m downhole sample averaging ~10kg from which approximately 3kg was collected via two-stage riffle splitting. Samples were analysed by mineral sands industry standard
techniques of screening, desliming and heavy liquid separation using SPT (sodium polytungstate: SG = 2.85g/cm3). XRF analysis of HM magnetic fractions was used to define
the VHM content.
Drilling techniques Drill type (e.g., core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g., core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). Holes prefixed GN, KE, MH and NE were drilled using trailer mounted mechanised auger equipment, with the fleet comprising three rigs utilising the dead stick auger method
(0.5m sample runs) and one rig utilising the continuous flight auger method. All holes were drilled vertically with the trailer levelled using site preparation and manual
jack legs. Hole diameter was approximately 4” or 102 mm. Holes prefixed CD were drilled used a truck mounted RCAC EVH 2100 drill rig using remet drill rods of 75mm
diameter and a 3 blade aircore vacuum sampling bit. All holes were drilled vertically with the rig levelled using site preparation and rear hydraulic jacks.
Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Sample condition was logged at the rig as either good, moderate or poor, with good meaning not contaminated and appropriate sample size (recovery), moderate meaning not
contaminated, but sample over or undersized, and poor meaning contaminated or grossly over/undersized. It is recognised that open hole auger drilling is subject to
potential sample contamination by smearing as the sample is retrieved (both methods) and material falling downhole during running of the drill string (dead stick method).
To counter downhole contamination the driller nominates material for rejection as potential contamination on each 0.5m drill run. Moist ground conditions meant that best
sample quality for aircore drilling was found to be achieved via slow penetration with water injection to aid in the sample recovery. No relationship is believed to exist
between grade and sample recovery. No bias is also believed to occur due to loss of fine material.
Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. All samples were visually checked on site and a summary log was completed by the site geologist. For the initial auger drilling, detailed logging was completed off-site
to avoid speculation by community observers, whereas for the aircore drilling, logging was completed on-site to also capture ground conditions. Samples are logged for
lithotype, grain size, colour, hardness, and moisture content. Logging was based on a representative grab sample that was panned for heavy mineral estimation and host
material observations. Logging codes were developed into the logging software (LogChief) to capture observations on lithology, colour, grainsize, induration and estimated
mineralisation. Any relevant comments e.g., water table, hardness, gangue HM components and stratigraphic markers (e.g fossilised wood) were included to aid in the
subsequent geological modelling.
Sub-sampling techniques and sample preparation If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. For the auger holes an approximate 25% split of the drilled sample interval is collected on site via manual cone and quarter composite grab sampling. For aircore holes
the entire sample interval was collected mostly wet and bagged on site in polyweave bags with internal plastic lining to avoid loss of slimes. Following air drying of
excess moisture an approximate 25% split of the drilled sample interval was collected via riffle splitting. The split sample was processed in a dedicated sample
preparation facility where it was air-dried when weather permitted, otherwise it was oven dried during the rainy season. After drying, the sample was rotary split to
produce a ~200-400g sample for analytical work. The remaining drill sample material was combined and split down to ~2-3kgs for storage. Improvements to the sample
preparation stage were made in recent years to ensure industry best practice and to deliver a high degree of confidence in the results. These included the following: * A
formalised process flow was generated, posted in all sample preparation areas and used to train and monitor sample preparation staff.
* Regular monitoring was completed by Base Titanium senior staff.
* Field samples were left in their bags for initial air-drying to avoid sample loss.
* TSPP dispersant was introduced to decrease attrition time and improve slimes recovery. A range of attrition times (with 5% TSPP) were trialled and plotted against
slimes recovery figures to determine optimum attrition time (15 minutes).
* Staff were trained to use paint brushes and water spray rather than manipulate sample through slimes screen by hand to remove the potential for screen damage.
* A calibration schedule was introduced for scales used in the sample preparation stage.
* The introduction of LIMS software allowed the capture of sample preparation data digitally at inception and synchronisation in real-time to the master Kwale Laboratory
database.
* Slimes screen number recorded to isolate batches should re-assay be required due to poor adherence to procedure or to identify screen damage.
The sample preparation flow sheet follows conventional mineral sands processes but departed from standard mineral sand practices in one respect; the samples were
generally not oven dried prior to de-sliming to prevent clay minerals being baked onto the HM grains (because the HM fractions were to be used in further mineralogical
test work). Instead, a separate sample was split and dried to determine moisture content, which was accounted for mathematically. Pre-soaking of the sample TSPP
dispersant solution ensured a more efficient de-sliming process and avoided potentially under-reporting slimes content. QA/QC procedures involved the following: *
Prepared laboratory duplicate split samples were processed at every 20 th sample.
* Prepared laboratory repeat samples were processed at every 7th sample.
The manual hard-copy sample preparation records are maintained in files in the event of cross-references due to identified scribing errors into LIMS software. The sample
size is considered appropriate for the grain size of the material because the grade of HM is measured in per cent.
Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g., standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e., lack of bias) and precision have been established. Samples were analysed by conventional mineral sands techniques of screening, desliming and heavy liquid separation using SPT (sodium polytungstate: SG = 2.85g/cm3). XRF
analysis of HM magnetic fractions was used to estimate the VHM content. All drill samples were submitted to the Kwale Operations laboratory, with the following approach
adopted. * All samples were dried and weighed.
* Split to a ~200-400 g sub-sample using a rotary splitter.
* Wet screened using 45 µm and 1 mm sieves, to generate oversize and sand fractions, with slimes lost during screening and calculated by difference.
* Sand fraction processed by SPT heavy liquid separation to generate a HM fraction.
* HM fraction subject to magnetic separation on a roll magnet to generate a magnetic (Mag) fraction and non-magnetic (NonMag) fraction.
* XRF analysis of magnetic fractions, with rutile (assumed 95% TiO2) calculated from TiO2 assay of NonMag by dividing by 0.95, zircon calculated from ZrO2 assay of
NonMag, and ilmenite (assumed 54% TiO2 average) calculated from TiO2 assay of Mag by dividing by 0.54.
* Various quality control samples were submitted routinely to ensure assay quality. A total of 494 duplicate field samples, 492 laboratory duplicate samples, 906
laboratory repeat samples and 26 internal field standards have been assayed at Kwale Operations’ site laboratory.
Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. Drill hole logging and site sample data was collected electronically in Maxwell LogChief software, installed on field Panasonic Toughpads and which synchronise directly
to the Maxwell DataShed exploration database software hosted on the Base Titanium network server. Assay data was captured electronically via LIMS software and merged with
logging and sample data in Datashed. No adjustment to assay data was made.
Location of data points Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Proposed drill holes were sited on the ground using hand-held Garmin GPS units which have an accuracy of between 3 and 5m. The auger drill collars were surveyed using the
same instrumentation while 60 out of 65 aircore holes were surveyed using real time kinematic (RTK) DGPS unit. The survey Geodetic datum utilised was UTM Arc 1960, used
in East Africa Arc 1960 references the Clark 1880 (RGS) ellipsoid and the Greenwich prime meridian. All survey data used has undergone a transformation to the local mine
grid from the standard UTM Zone 37S (Arc 1960). The local Grid is rotated 42.5 o , which aligns the average strike of the deposit with local North and is useful for both
grade interpolation and mining reference during production. The drill collars were projected to a merged local LIDAR and SRTM digital terrain model
Data spacing and distribution Data spacing for reporting of Exploration Results. Whether the data spacing, and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. The drill data spacing for the drilling was nominally 100m X, 50m Y and 1.5m Z. Variations from this spacing resulted from access challenges. This spacing and
distribution is considered sufficient to establish the degree of geological and mineralisation continuity appropriate for reconnaissance exploration. No sample
compositing has been applied for HM, slimes, oversize and XRF assays.
Orientation of data in relation to geological structure Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. With the geological setting being a layered dunal/fluvial/maritime sequences, the orientation of the deposit mineralisation in general is sub-horizontal. All drill holes
were orientated vertically to penetrate the sub-horizontal mineralisation orthogonally. Hole centres were spaced nominally at 50-200m. This cross-profiles the dune so
that variation can be determined. Down hole intervals were nominated as 1.5m. This provides adequate sampling resolution to capture the distribution and variability of
geology units and mineralisation encountered vertically down hole. The orientation of the drilling is considered appropriate for testing the horizontal and vertical
extent of mineralisation without bias.
Sample security The measures taken to ensure sample security. Sample residues from the preparatory stage were transferred to pallets and stored in a locked shed beside the warehouse at Kwale Operations. Residues from the Kwale
Operations site laboratory were placed in labelled bags and stored in numbered boxes. Boxes were placed into a locked container beside the laboratory. Sample tables are
housed on a secure, network-hosted SQL database. Full access rights are only granted to the Exploration Manager and senior IT personnel. Data is backed up every 12 hours
and stored in perpetuity on a secure, site backup server.
Audits or reviews The results of any audits or reviews of sampling techniques and data. In-house reviews were undertaken by Mr. Scott Carruthers and Mr. Ian Reudavey, both employees of the Base Resources group and Competent Persons under the JORC Code.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria Explanation Comment
Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. The Kwale East exploration area is situated on a Prospecting Licence 100% owned by Base Titanium– PL/2018/0119 located in Kwale County, Kenya. Base Titanium is a wholly
owned subsidiary of ASX and AIM-listed resources company, Base Resources. The 40km 2 Prospecting Licence was re-granted on 26 of May 2021 for a second, three-year term
ending 25 May 2024. The PL is in good standing with the Kenya State Department of Mining at the time of reporting, with all statutory reporting and payments up to date.
Local landowners have been generally supportive of exploration activities, though blanket access was not achieved. The existing Special Mining Lease No. 23 is adjacent
to the PL. The SML boundary has been varied on multiple occasions, most recently to include the Bumamani Project deposits. The Kenyan Mining Act 2016 includes a provision
for existing mineral rights to transition to mining licences upon their expiry on a priority basis. Landowner access permission is required to both complete the
exploration program and then progress conversion of the PL to a mining licence. The Mining Act 2016 provides greater flexibility on securing land rights, specifically
allowing for a mineral right to be issued on private land. The Mining Act 2016 additionally, provides for fair and adequate compensation to be paid to lawful landowners,
occupiers and users.
Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. No historical exploration by third parties was undertaken in the Kwale East area.
Geology Deposit type, geological setting and style of mineralisation. The Kwale East deposits are primarily hosted in reddish dunal sands (Ore Zone 1) which is underlain by a transitional and occasionally lateritic zone (Ore Zone 4). To the
east and around the 50-60mRL, these deposits are hosted in shallow paleo-beach sands (Ore Zone 20) originating from a Pleistocene marine transgression event. This zone is
low in slime and typically has a high valuable heavy mineralogy content. All three formations have a regional strike direction of about 40 degrees East of North and range
in age from mid-Pliocene to Pleistocene.
Drill hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: * easting and northing of the drill hole collar A tabulation of drilling data with significant intersections ≥1% HM is included in Appendix 1. All drill hole locations are shown in Figure 2, and those holes not
* elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar tabulated have not reported significant intersections. The exclusion of detailed collar information for all drill holes is justified on the basis that: * auger drilling
* dip and azimuth of the hole represents a reconnaissance exploration tool with over 1,000 holes drilled; and
* down hole length and interception depth * the air core drilling completed was primarily for better quality samples in areas identified as prospective by the auger drilling program and to ensure the holes were
* hole length. drilled down to basement.
If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. Drilling by year (max, min and average depths) is as follows. * 2018/2019
* 123 air core drill holes (depth: max 33m, min 6m, avg 15m).
* Total 1,851.5m drilled
* 2023
* 1,134 auger drill holes (depth: max 24m, min 3m, avg 11.5m).
* Total 13,105.5m drilled by auger
* 65 aircore drill holes (depth: max 24m, min 6m, avg 16m).
* Total 1,054.5m drilled by aircore
All drill holes are drilled vertically (-90 degrees). All collars have been projected to the DTM surface.
Data aggregation methods In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g., cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. Exploration results are reported as length weighted averages from surface. No grade cutting has been applied and a nominal cut-off grade of 1% HM has been utilised.
However, lower grade intervals may be included to provide geological continuity and in recognition of bulk mining techniques used for mineral sands. No metal equivalent
values were used.
Relationship between mineralisation widths and intercept lengths These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g., ‘down hole length, true width not known’). The deposit sequences are sub-horizontal, and the vertically inclined holes are a fair representation of true thickness.
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. See body of the announcement - Figure 2. Additional diagrams, including cross sections, have not been included as no significant discovery is being reported. Given the
Company’s decision to discontinue exploration activities at Kwale East, these are not considered material. Further, detailed cross sections were included in the July
Announcement.
Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. The drilling location plan shows the average HM assay results for all drill holes.
Other substantive exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. Geological observations suggest that the Kwale East dunal material contains significantly lower slimes than the deposits currently being mined. This would be beneficial
to support the co-disposal of tails, while still having sufficient slimes to support hydraulic mining. Due to the reconnaissance nature of exploration to date and the
decision to not proceed with further exploration, there is no other substantive exploration data to report.
Further work The nature and scale of planned further work (e.g., tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Exploration activities at Kwale East have been discontinued. This decision followed an evaluation of the likely mineralisation for the three targets using the results
from the Phase 1 and Phase 2 drill programs and applying optimistic assumptions on the continuity of mineralisation in the Magaoni and Zigira target areas that were not
able to be drilled. Even on these optimistic assumptions, the evaluation indicated that there is unlikely be sufficient volume or heavy mineral grade to support an
economically viable mining development. For further details about the evaluation undertaken, refer to the Company’s announcement titled “Kwale Operations to transition to
post-mining at end of 2024 as planned”, also released today.
Glossary
Base Titanium Base Resources’ wholly-owned Kenyan operating subsidiary and the owner and operator of Kwale Operations.
collar Location of a drill hole.
Competent Person Has the meaning given in the JORC Code. The JORC Code requires that a Competent Person be a Member or Fellow of The Australasian Institute of Mining and Metallurgy, or of the Australian Institute of Geoscientists, or of a ‘Recognised Professional Organisation’. A Competent Person must have a minimum of five years’ experience working with the style of mineralisation or type of deposit under consideration and relevant to the activity which that person is undertaking.
DTM Digital Terrain Model.
GPS Global positioning system.
HM Heavy mineral.
JORC Code The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.
Kwale Operations Base Titanium’s mineral sands mining operations in Kwale County, Kenya.
LIDAR Light Detection and Ranging, a remote sensing method that uses pulsed laser to measure ranges.
LIMS Laboratory information management system.
PL Prospecting licence.
QA/QC Quality assurance and quality control.
RCAC Reverse circulation aircore drilling method
RL Reduced level, equating elevations with reference to a common assumed vertical datum
SG Specific gravity, or relative density.
SML Special mining lease.
SPT Sodium polytungstate heavy liquid used for mineral separation based on relative density.
SQL Structured Query Language, a standardized programming language used to manage relational databases.
SRTM Shuttle Radar Topography Mission, a modified radar system used by a Space Shuttle Endeavour mission to capture a high-resolution topographic database of the earth.
TSPP Sodium (Tetra) Pyrophosphate.
UTM Universal Transverse Mercator, a plane coordinate grid system.
VHM Valuable heavy mineral.
XRF A spectroscopic method used to determine the chemical composition of a material through analysis of secondary X-ray emissions, generated by excitation of a sample with primary X-rays that are characteristic of a particular element.
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
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
West Perth, Western Australia, 6005
Email: info@baseresources.com.au
Phone: +61 8 9413 7400
Fax: +61 8 9322 8912
NOMINATED ADVISER & JOINT BROKER
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James Asensio / Raj Khatri / George Grainger
Phone: +44 20 7523 8000
JOINT BROKER
Berenberg
Matthew Armitt / Detlir Elezi
Phone: +44 20 3207 7800
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