REG-Base Resources Limited: Kwale Operations to complete mining at end of 2024

Base ResourcesAnnouncement

30/10/2023 07:15

 

 

 

AIM and Media Release 

30 October 2023

 

Base Resources Limited 
Kwale Operations to complete mining at end of 2024

 

African mineral sands producer, Base Resources Limited (ASX & AIM: BSE) (Base
Resources or the Company) advises that, following an exhaustive exploration
and evaluation process seeking to further extend the life of the Company’s
Kwale Operations in Kenya, mining is expected to end in December 2024 as per
the current mine plan.  Processing activities will conclude shortly
thereafter.

 

After completing the previously announced evaluations of the two remaining
near mine prospective areas, being the Kwale North Dune Mineral Resource not
currently in the mine plan and the Kwale East exploration area, both lack
sufficient grade or scale to support the capital investment required to extend
or establish new mining operations.  A significant factor in these
evaluations is the limited remaining capacity of the Kwale Operations tailings
storage facility, with any extension to the existing mine plan requiring an
alternative tailings disposal solution that comes with a significant capital
expenditure requirement and increased operating costs.  Additional key
factors considered in the Company’s evaluations included the softening
product price outlook for mineral sands over the relevant period, and the
cost, timing and human impact of a substantial land acquisition and community
resettlement program.

 

On this basis, when existing Kwale Ore Reserves are fully depleted by December
2024 as expected, Kwale Operations will transition to post-mining as planned.

 

Managing Director of Base Resources, Tim Carstens, said:

 

“We have explored all avenues for further extending the life of Kwale
Operations.  However, despite these efforts and broad support from the local
community, we have been unsuccessful in identifying additional mineral
deposits of sufficient grade or scale to support a further extension.  The
Company’s focus at Kwale now necessarily turns to detailed closure planning
and transition to post mining land use whilst ensuring we continue to safely
extract maximum value from the remaining ore reserves. 

 

Kwale Operations has been the foundation on which we have built Base
Resources, and while it will be sad to reach the end of a mining operation in
which we have such pride, we see the transition to post-mining as an
opportunity to further cement our reputation for excellence in the full life
cycle of mining.  We look forward to reporting on progress as we move through
this important next phase at Kwale.

 

With Kwale Operations now coming to an end, the next phase of shareholder
value creation will come from progression of the world-class Toliara Project
to development and realising its rare earth potential, accelerating our wider
Kenyan exploration efforts with the recent lifting of the licensing moratorium
and pursuing attractive business development opportunities to broaden our
option set.  We are tackling the challenge with focus, urgency and
resolve.”

 

This release is accompanied by the “Kwale East – Exploration update”
announcement which provides further detail about the recently completed
drilling at the Kwale East exploration area.

 

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          

 

This release has been authorised by the Board of Base Resources.

 

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
Canaccord Genuity Limited
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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