AIM and Media Release
3 December 2018
BASE RESOURCES LIMITED
2018 Mineral Resources and Ore Reserves Statement (corrected)
This release corrects an error in Table 3 (Kwale Ore Reserves)
of the original announcement released to AIM on 8 October
2018. The previously reported 2018 Heavy Mineral (HM) tonnes,
HM Grade and HM Assemblage figures for the Proved and Probable
categories within the Total Kwale Ore Reserves section of
Table 3 were incorrect, however, the combined total was
correctly reported. The full 2018 Mineral Resources and Ore
Reserves Statement with the corrected Table 3 is presented
below.
Summary
- The recently acquired Toliara Project has an estimated Mineral
Resource of 857 million tonnes at 6.2% Heavy Mineral (HM) in the
Ranobe deposit.
- The Kwale deposit was reduced by mining depletion in the year
to 30 June 2018 with the effect of:
- reducing the Central Dune Mineral Resources by 13Mt containing
0.9Mt of in situ HM; and
- reducing the Central Dune Ore Reserves by 11Mt containing 0.8Mt
of in situ HM.
- The Kwale South Dune Mineral Resources estimate increase
announced on 4 October 2017,
delivered a 19% or 560kt increase in contained HM tonnes within the
Measured and Indicated Resource categories.This increase was
included in the 30 June 2017 Kwale
Mineral Resources estimate.
The 2018 Mineral Resources and Ore Reserves for Base Resources
(ASX & AIM: BSE) are summarised in the table below together
with the 2017 Ore Reserves and Mineral Resources for
comparison.
|
2018
as at 30 June 2018 |
2017
as at 30 June 2017 |
Project |
Tonnes |
HM |
HM |
SL |
OS |
HM Assemblage |
Tonnes |
HM |
HM |
SL |
OS |
HM Assemblage |
|
|
|
|
|
ILM |
RUT |
ZIR |
|
|
|
|
ILM |
RUT |
ZIR |
|
(Mt) |
(Mt) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
(Mt) |
(Mt) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
Mineral Resources
(Measured + Indicated + Inferred, inclusive of Reserves) |
Kwale |
134 |
4.2 |
3.1 |
25 |
2 |
57 |
13 |
6 |
147 |
5.2 |
3.5 |
25 |
2 |
57 |
13 |
6 |
Ranobe |
857 |
53.0 |
6.2 |
4 |
0 |
72 |
2 |
6 |
n/a |
n/a |
n/a |
n/a |
n/a |
n/a |
n/a |
n/a |
Ore Reserves
(Proven + Probable) |
Kwale |
80 |
3.1 |
3.9 |
26 |
2 |
56 |
13 |
6 |
91 |
3.9 |
4.3 |
26 |
2 |
57 |
13 |
6 |
Table subject to rounding
differences.
Mineral Resources and Ore Reserves estimates in this statement
are reported in accordance with the JORC Code (2012 edition).
Accordingly, this statement should be read in conjunction with the
respective explanatory Mineral Resources and Ore Reserves
information included in the following announcements[1]
for the relevant deposits:
Deposit |
Announcement
Title |
Estimate date |
Release date |
Ranobe |
Acquiring the Toliara
Sands Project – investor presentation |
19
December 2017 |
19
December 2017 |
2017
Comparatives |
2017 Kwale Mineral
Resources and Ore Reserves Statement |
30 June
2017 |
9 October
2017 |
Kwale South
Dune |
Mineral Resources
Increase for Kwale South Dune |
30 June
2017 |
4 October
2017 |
Kwale Central
Dune |
2016 Kwale Mineral
Resources and Ore Reserves Statement |
30 June
2016 |
9 October
2017 |
[Note 1: Refer to ASX
announcements available at
http://www.baseresources.com.au/investor-centre/asx-releases/.]
Kwale Deposits
The Company’s Kwale Operation contains the Kwale Central Dune
and South Dune deposits, located approximately 50 kilometres south
of Mombasa and approximately 10 kilometres inland from the Kenyan
coast.
Mineral Resources
The 2018 Kwale Mineral Resources, as at 30 June 2018, are estimated to be 134Mt at an average HM grade of 3.1% for 4.2Mt of
contained HM, at a 1% HM cut-off grade. The 2018 Kwale
Mineral Resource estimate has decreased by 9% for material tonnes
and by 18% for contained HM tonnes when compared with the previous
2017 Kwale Mineral Resource estimate due to mining depletion.
The Kwale Central Dune Mineral Resources at 30 June 2018 are estimated to be 20Mt at an
average HM grade of 3.9% for 0.8Mt of contained HM, decreased by
13Mt containing 0.9Mt of HM compared to the 2017 estimate due to
mining depletion during the year. The South Dune Mineral
Resources at 30 June 2018 are
unchanged from the 2017 estimate as the increase announced on
4 October 2017, was incorporated into
the 2017 estimate and mining has not yet commenced on this
deposit.
Table 2: 2018 Kwale Mineral Resources estimate
compared with the 2017 Kwale Mineral Resources estimate.
|
2018
as at 30 June 2018 |
2017
as at 30 June 2017 |
Category |
Tonnes |
HM |
HM |
SL |
OS |
HM Assemblage |
Tonnes |
HM |
HM |
SL |
OS |
HM Assemblage |
|
|
|
|
|
ILM |
RUT |
ZIR |
|
|
|
|
ILM |
RUT |
ZIR |
|
(Mt) |
(Mt) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
(Mt) |
(Mt) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
Kwale Central
Dune |
Measured |
13 |
0.6 |
4.1 |
24 |
1 |
57 |
14 |
6 |
25 |
1.4 |
5.5 |
24 |
0 |
58 |
13 |
6 |
Indicated |
7 |
0.2 |
3.4 |
25 |
2 |
57 |
14 |
6 |
8 |
0.3 |
3.9 |
26 |
2 |
58 |
14 |
6 |
Total |
20 |
0.8 |
3.9 |
24 |
1 |
57 |
14 |
6 |
33 |
1.7 |
5.1 |
25 |
1 |
58 |
14 |
6 |
Kwale South
Dune |
Measured |
81 |
2.6 |
3.2 |
25 |
1 |
59 |
14 |
6 |
81 |
2.6 |
3.2 |
25 |
1 |
59 |
14 |
6 |
Indicated |
33 |
0.8 |
2.5 |
26 |
7 |
52 |
12 |
6 |
33 |
0.8 |
2.5 |
26 |
7 |
52 |
12 |
6 |
Inferred |
0.2 |
0.003 |
1.5 |
27 |
7 |
48 |
13 |
7 |
0.2 |
0.003 |
1.5 |
27 |
7 |
48 |
13 |
7 |
Total |
114 |
3.5 |
3.0 |
25 |
3 |
56 |
13 |
6 |
114 |
3.5 |
3.0 |
25 |
3 |
56 |
13 |
6 |
Total Kwale
Mineral Resources |
Measured |
94 |
3.2 |
3.4 |
25 |
1 |
59 |
14 |
6 |
106 |
4.0 |
3.8 |
25 |
1 |
59 |
13 |
6 |
Indicated |
40 |
1.1 |
2.7 |
26 |
6 |
53 |
13 |
6 |
41 |
1.2 |
2.8 |
26 |
6 |
54 |
13 |
6 |
Inferred |
0.2 |
0.003 |
1.3 |
27 |
7 |
54 |
15 |
7 |
0.2 |
0.003 |
1.3 |
27 |
7 |
54 |
15 |
7 |
Total |
134 |
4.2 |
3.1 |
25 |
2 |
57 |
13 |
6 |
147 |
5.2 |
3.5 |
25 |
2 |
57 |
13 |
6 |
Table subject to rounding
differences, Mineral Resources estimated at a 1% HM cut-off
grade.
Ore Reserves
Contained within the Kwale Mineral Resources are the Kwale Ore
Reserves, estimated as at 30 June
2018 to be 80Mt at an average HM grade of 3.9% for 3.1Mt of
contained HM. The 2018 Kwale Ore Reserves estimate represents
a decrease of 13% in total ore tonnes and 22% in contained HM
tonnes over the previously reported 2017 Kwale Ore Reserves
estimate.
The Kwale Central Dune Ore Reserves at 30
June 2018 are estimated to be 18Mt of ore at an average HM
grade of 4.0% for 0.7Mt of contained HM, decreased by 11Mt
containing 0.8Mt of HM compared to the 2017 estimate due to mining
depletion during the year.
Mining has not yet commenced on the South Dune and its Ore
Reserves estimate is therefore unchanged from the 2017
estimate.
Table 3: The 2018 Kwale Ore Reserves estimate
compared with the 2017 Kwale Ore Reserves estimate.
|
2018
as at 30 June 2018 |
2017
as at 30 June 2017 |
Category |
Tonnes |
HM |
HM |
SL |
OS |
HM Assemblage |
Tonnes |
HM |
HM |
SL |
OS |
HM Assemblage |
|
|
|
|
|
ILM |
RUT |
ZIR |
|
|
|
|
ILM |
RUT |
ZIR |
|
(Mt) |
(Mt) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
(Mt) |
(Mt) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
Kwale Central
Dune |
Proved |
13 |
0.6 |
4.3 |
23 |
0 |
57 |
14 |
6 |
23 |
1.3 |
5.7 |
24 |
0 |
59 |
13 |
6 |
Probable |
5 |
0.2 |
3.5 |
25 |
1 |
57 |
14 |
6 |
7 |
0.3 |
3.4 |
26 |
1 |
49 |
11 |
5 |
Total |
18 |
0.7 |
4.0 |
24 |
1 |
57 |
14 |
6 |
30 |
1.6 |
5.1 |
24 |
1 |
57 |
13 |
6 |
Kwale South
Dune |
Proved |
39 |
1.6 |
4.0 |
27 |
1 |
59 |
14 |
6 |
39 |
1.6 |
4.0 |
27 |
1 |
59 |
14 |
6 |
Probable |
23 |
0.8 |
3.3 |
26 |
5 |
53 |
13 |
6 |
23 |
0.8 |
3.3 |
26 |
5 |
53 |
13 |
6 |
Total |
62 |
2.3 |
3.8 |
27 |
3 |
57 |
13 |
6 |
62 |
2.3 |
3.8 |
27 |
3 |
57 |
13 |
6 |
Total Kwale Ore
Reserves |
Proved |
52 |
2.1 |
4.1 |
26 |
1 |
58 |
14 |
6 |
62 |
2.9 |
4.7 |
26 |
1 |
58 |
13 |
6 |
Probable |
28 |
0.9 |
3.4 |
26 |
4 |
54 |
13 |
6 |
30 |
1.0 |
3.3 |
26 |
4 |
54 |
13 |
6 |
Total |
80 |
3.1 |
3.9 |
26 |
2 |
56 |
13 |
6 |
91 |
3.9 |
4.3 |
26 |
2 |
57 |
13 |
6 |
Table subject to rounding
differences.
As announced on 4th October
2017[2], an updated Mineral Resources estimate
for the Kwale South Dune (the 2017 Kwale South Dune Mineral
Resource) was completed, resulting in a 19% increase in
contained HM tonnes in the Measured and Indicated categories.
Completion of an updated Kwale South Dune Ore Reserves estimate
based on the 2017 Kwale South Dune Mineral Resource is subject to
finalisation of mining tenure arrangements, which are currently
being progressed with the Kenyan Ministry of Petroleum and
Mining.
[Note 2: Refer to Base Resources market
announcement “Mineral Resource Increase for Kwale South Dune”
released on 4 October 2017, which is
available at
http://www.baseresources.com.au/investor-centre/asx-releases.]
Ranobe Deposit
The Company completed the acquisition of the Toliara Project on
the 23rd January 2018 and
is currently progressing the project through a full study
phase. The Toliara Project is founded on the Ranobe deposit,
located approximately 40 kilometres north of the town of
Toliara in south west Madagascar
and approximately 15 kilometres inland from the coast.
Mineral Resources
The 2018 Ranobe Mineral Resources as at 30 June 2018, are estimated to be 857Mt at an average HM grade of 6.2% and 4%
slimes containing 53Mt HM, based on a 3% HM cut-off grade.
Table 4: 2018 Ranobe Mineral Resources
estimate.
|
2018
as at 30 June 2018 |
2017
as at 30 June 2017 |
Category |
Tonnes |
HM |
HM |
SL |
OS |
HM Assemblage |
Tonnes |
HM |
HM |
SL |
OS |
HM Assemblage |
|
|
|
|
|
ILM |
RUT |
ZIR |
|
|
|
|
ILM |
RUT |
ZIR |
|
(Mt) |
(Mt) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
(Mt) |
(Mt) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
Toliara Mineral
Resources |
Measured |
282 |
20 |
7.2 |
4 |
0 |
72 |
2 |
6 |
not applicable – prior to Base Resources’ acquisition |
Indicated |
330 |
21 |
6.2 |
4 |
0 |
72 |
2 |
6 |
Inferred |
245 |
12 |
5.0 |
5 |
1 |
71 |
1 |
5 |
Total |
857 |
53 |
6.2 |
4 |
0 |
72 |
2 |
6 |
Table subject to rounding
differences, Mineral Resources estimated at a 3% HM cut-off
grade.
Ore Reserves
No Ore Reserves estimate has been completed for the Ranobe
deposit. The drilling program currently underway on the
Ranobe deposit aims to define the boundaries of the Mineral
Resources, upgrade the existing Inferred Resource to Indicated
status, and complete an Ore Reserves estimation for incorporation
into the planned definitive feasibility study.
Competent Persons Statements
The 2018 Mineral Resources and Ore Reserves Statement has been
approved by the following competent persons, as detailed below.
Mineral Resources – Kwale Central and
South Dune Deposits
The information in this report that relates to Kwale Central and
South Dune Deposit Mineral Resources is based on, and fairly
represents, information and supporting documentation prepared by
Mr. Richard Stockwell (for the South
Dune deposit) and Mr. Scott
Carruthers (for the Central Dune deposit). Mr.
Stockwell is a member of the Australian Institute of Geoscientists
and Mr. Carruthers is a Member of The Australasian Institute of
Mining and Metallurgy. Mr. Stockwell acts as Consultant
Geologist for Base Resources. Mr. Carruthers is employed by
Base Resources, he holds equity securities in Base Resources and is
entitled to participate in Base Resources’ equity long term
incentive plan, details of which is included in the 2018
Remuneration Report. Both Mr. Stockwell and Mr. Carruthers
have sufficient experience that is relevant to the style of
mineralisation and type of deposits under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves (JORC Code), and both are considered Qualified Persons for
the purposes of the AIM Rules for Companies. Mr. Stockwell
consents to the inclusion in this report of Kwale South Dune
Deposit Mineral Resource estimates and supporting information in
the form and context in which it appears. Mr. Carruthers
consents to the inclusion in this report of Kwale Central Dune
Deposit Mineral Resource estimates and supporting information in
the form and context in which it appears.
Ore Reserves – Kwale Central and South
Dune Deposits
The information in this report that relates to Kwale Central and
South Dune Deposit Ore Reserves is based on, and fairly represents,
information and supporting documentation prepared by Mr.
Per Scrimshaw (for South Dune
deposit) and Mr. Scott Carruthers
(for Central and South Dune deposits). Mr. Scrimshaw and Mr.
Carruthers are both Members of The Australasian Institute of Mining
and Metallurgy. Mr. Scrimshaw is employed by Entech, a mining
consultancy engaged by Base Resources to prepare Ore Reserves
estimation for the Kwale Operations. Mr. Carruthers is employed by
Base Resources, he holds equity securities in Base Resources and is
entitled to participate in Base Resources’ equity long term
incentive plan, details of which is included in the 2018
Remuneration Report. Mr. Scrimshaw and Mr. Carruthers have
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 Competent Persons
as defined in the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves (JORC Code) and both are considered Qualified Persons for
the purposes of the AIM Rules for Companies. Mr. Scrimshaw and Mr.
Carruthers each consent to the inclusion in this report of Kwale
Central and South Dune Deposit Ore Reserve estimates and supporting
information in the form and context in which it appears.
Mineral Resources – Ranobe Deposit
The information in this report that relates to the Ranobe
Deposit Mineral Resources is based on, and fairly represents,
information and supporting documentation prepared by Mr.
Scott Carruthers. Mr.
Carruthers is a Member of The Australasian Institute of Mining and
Metallurgy. Mr. Carruthers is employed by Base Resources, he
holds equity securities in Base Resources and is entitled to
participate in Base Resources’ equity long term incentive plan,
details of which is included in the 2018 Remuneration Report. Mr.
Carruthers has sufficient experience that is relevant to the style
of mineralisation and type of deposits under consideration and to
the activity which he is undertaking to qualify as a Competent
Person as defined in the 2012 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves (JORC Code) and be considered a Qualified Person for the
purposes of the AIM Rules for Companies. Mr. Carruthers consents to
the inclusion in this report of the Ranobe Deposit Mineral Resource
estimates and supporting information in the form and context in
which it appears.
ENDS.
For further information contact:
James Fuller, Manager -
Communications and Investor Relations |
UK Media Relations |
Base Resources |
Tavistock Communications |
Tel: +61 (8) 9413 7426 |
Jos Simson and Barnaby Hayward |
Mobile: +61 (0) 488 093 763 |
Tel: +44 (0) 207 920 3150 |
Email:
jfuller@baseresources.com.au |
|
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 1, 50 Kings Park Road
West Perth, Western Australia, 6005
Email: info@baseresources.com.au
Phone: +61 (0)8 9413 7400
Fax: +61 (0)8 9322 8912 |
NOMINATED ADVISOR
RFC Ambrian Limited
Andrew Thomson / Stephen Allen
Phone: +61 (0)8 9480 2500 |
GLOSSARY
Assemblage |
the relative proportion of valuable
heavy mineral components of ilmenite, rutile and zircon |
Competent Person |
The JORC Code requires that a
Competent Person must 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. |
Cut-off grade |
An industry-accepted standard
expression used to determine what part of a mineral deposit to
include in a Mineral Resource Estimate or Ore Reserve
Estimate. |
Grade |
The percentage of heavy mineral
found in a deposit. |
Heavy mineral |
In mineral sands, heavy minerals
with a specific gravity greater than 2.85 t/m3. |
ILM |
Ilmenite, a valuable heavy
mineral. |
Indicated Resource |
An Indicated Mineral Resource is
that part of a Mineral Resource for which quantity, grade (or
quality), densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of
Modifying Factors in sufficient detail to support mine planning and
evaluation of the economic viability of the deposit. |
Inferred Resource |
An Inferred Mineral Resource is that
part of a Mineral Resource for which quantity and grade (or
quality) are estimated on the basis of limited geological evidence
and sampling. Geological evidence is sufficient to imply but not
verify geological and grade (or quality) continuity. It is based on
exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes. |
JORC |
The Joint Ore Reserves Committee:
The Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves (‘the JORC Code’), 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. |
Measured Resource |
A Measured Mineral Resource is that
part of a Mineral Resource for which quantity, grade (or quality),
densities, shape, and physical characteristics are estimated with
confidence sufficient to allow the application of Modifying Factors
to support detailed mine planning and final evaluation of the
economic viability of the deposit. |
Mineral Resources |
Mineral Resources are a
concentration or occurrence of solid material of economic interest
in or on the Earth’s crust in such form, grade (or quality), and
quantity that there are reasonable prospects for eventual economic
extraction. The location, quantity, grade (or quality), continuity
and other geological characteristics of a Mineral Resource are
known, estimated or interpreted from specific geological evidence
and knowledge, including sampling. Mineral Resources are
sub-divided, in order of increasing geological confidence, into
Inferred, Indicated and Measured categories. |
Ore Reserves |
Ore Reserves are the economically
mineable part of Measured and/or Indicated Mineral Resources. |
OS |
Oversize material. |
RUT |
Rutile, a valuable heavy
mineral. |
SL |
Slimes, being a waste product from
the processing of mineral sands. |
ZIR |
Zircon, a valuable heavy
mineral. |