BSE Base Resources Limited

 
TIDMBSE 
 
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 
 
 
This information was brought to you by Cision http://news.cision.com 
 
 
END 
 
 

(END) Dow Jones Newswires

October 30, 2023 03:00 ET (07:00 GMT)

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