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