AIM and Media Release
13 January 2020
BASE RESOURCES LIMITED
FY20 production guidance increase
African mineral sands producer, Base Resources Limited
(ASX & AIM: BSE) (Base Resources or the Company)
is pleased to provide an update to FY20 production guidance for its
Kwale Mineral Sands Operations (Kwale Operations) in
Kenya.
Since commencing mining on the South Dune orebody in
July 2019, the Company has
encountered higher rutile and marginally lower ilmenite than
expected in the mineral assemblage, with zircon largely as
forecast. In addition, due to the mineral characteristics of
the South Dune ore, separation efficiency has improved, when
compared with the Central Dune ore, and recoveries for all products
in the mineral separation plant (MSP) are higher,
particularly for rutile and zircon.
With the expectation that these trends will continue, in
conjunction with higher mining volumes achieved year to date, the
production guidance for all products has been revised upwards for
the 2020 financial year (FY20) as shown below.
PRODUCTION
GUIDANCE (tonnes) |
Original
FY20 Guidance Range |
Updated
FY20 Guidance Range |
Rutile |
64,000
to 70,000 |
75,000 to 81,000 |
Ilmenite |
315,000
to 350,000 |
335,000 to 355,000 |
Zircon |
25,000
to 28,000 |
29,000 to 32,000 |
The updated FY20 production guidance is based on the following
assumptions:
- Mining of 18.7Mt (increased from 18.0Mt) at an average HM grade
of 3.58% (no change), with the remainder of the FY20 volume coming
entirely from Ore Reserves[1].
- Average MSP feed rate of 79tph (increased from 75tph).
- Average MSP product recoveries of 102% for rutile (increased
from 99%), 101% for ilmenite (increased from 100%) and 85% for
zircon (increased from 77%).
[Note 1: The Ore Reserves
estimates underpinning the above production guidance were prepared
by Competent Persons in accordance with the JORC Code (2012
edition). For further information regarding the Ore Reserves
estimates refer to Base Resources’ announcement on 9 October 2017 “2017 Kwale Mineral Resources and
Ore Reserves Statement” available at
https://www.baseresources.com.au/investor-centre/asx-releases.
The above production guidance is the result of detailed studies
based on the actual performance of the Kwale mine and processing
plant. These studies include the assessment of mining,
metallurgical, ore processing, environmental and economic
factors.]
----- ENDS -----
Forward-looking statements
The production guidance and associated underlying assumptions
provided in this document contain or comprise forward looking
statements. 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, ore body
variations, operational performance, government actions 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 or to reflect the
occurrence of unanticipated events.
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
Stephen Allen
Phone: +61 (0)8 9480 2500
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Berenberg
Matthew Armitt / Detlir Elezi
Phone: +44 20 3207 7800
JOINT BROKER
Numis Securities Limited
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Gillam
Phone: +44 20 7260 1000