AIM and Media Release
20 August 2021
BASE RESOURCES
LIMITED
Updated Kwale South Dune Mineral Resources and Ore Reserves
estimates
Key Points
- The South Dune Ore Reserves estimate has been updated to
incorporate existing estimated Mineral Resources located within the
proposed expanded Kwale Special Mining Lease 23, increasing ore by
19Mt and contained heavy mineral by 0.6Mt and taking Kwale mine
life to December 2023 following such
expansion.
- South Dune Mineral Resources and Ore Reserves estimates were
reduced by mining depletion in the year to 30 June 2021.
- The combined effect is that:
- estimated South Dune Mineral Resources have reduced by 22Mt
containing 0.7Mt of in situ heavy mineral; and
- estimated South Dune Ore Reserves remain the same at 40Mt of
ore but contained heavy mineral has reduced by 0.1Mt.
African mineral sands producer, Base Resources Limited (ASX /
AIM: BSE) (Base Resources) announces an update to the
estimated Kwale South Dune Mineral Resources (2021 Kwale
South Dune Mineral Resources) and Ore Reserves (2021
Kwale South Dune Ore Reserves) at its 100% owned and
operated Kwale Operations in Kenya.
The 2021 Kwale South Dune Mineral Resources are estimated at
30 June 2021 to be 54 million tonnes
(Mt) at an average heavy mineral (HM) grade of 3.2%
for 1.7Mt of contained HM, at a 1% HM cut-off grade. The 2021
Kwale South Dune Mineral Resources estimate represents a decrease
of 22Mt of material and 0.7Mt (or 26%) of contained HM compared
with the previously announced Kwale South Dune Mineral Resources
estimate as at 30 June 2020 due to
mining depletion, inclusive of sterilisation of sub-economic
low-grade material (see Figure 1).
Table 1: 2021 Kwale South Dune Mineral Resources and Ore
Reserves estimates compared with the 2020 estimates.
|
2021
as at 30 June 2021 |
2020
as at 30 June 2020 |
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 South Dune
Mineral Resources |
Measured |
38 |
1.2 |
3.3 |
24 |
1.0 |
59 |
14 |
5.6 |
55 |
1.8 |
3.2 |
24 |
1 |
58 |
14 |
6 |
Indicated |
16 |
0.5 |
3.0 |
25 |
5.9 |
54 |
13 |
5.7 |
20 |
0.6 |
2.9 |
26 |
7 |
52 |
12 |
6 |
Total |
54 |
1.7 |
3.2 |
24 |
2.4 |
57 |
14 |
5.6 |
76 |
2.3 |
3.1 |
25 |
3 |
57 |
13 |
6 |
Kwale South Dune
Ore Reserves |
Proved |
30 |
1.0 |
3.4 |
24 |
0.9 |
59 |
14 |
5.6 |
35 |
1.2 |
3.5 |
26 |
0.8 |
58 |
14 |
6 |
Probable |
11 |
0.4 |
3.3 |
24 |
5.5 |
56 |
13 |
5.7 |
5 |
0.2 |
2.9 |
27 |
7 |
51 |
12 |
5 |
Total |
40 |
1.3 |
3.3 |
24 |
2.1 |
58 |
14 |
5.7 |
40 |
1.4 |
3.4 |
26 |
1.7 |
57 |
13 |
6 |
Table subject to rounding
differences, Mineral Resources estimated at a 1% HM cut-off grade
and are inclusive of Kwale South Dune Ore Reserves.
The 2021 Kwale South Dune Ore Reserves are estimated at
30 June 2021 to be 40Mt at an average
HM grade of 3.3% for 1.3Mt of contained HM. While ore tonnage
did not change, the updated Ore Reserves estimate represents an
overall decrease of 2% in contained HM tonnes from the previously
reported 2020 Kwale South Dune Ore Reserves estimate due to:
- depletion due to mining of 19Mt of ore and 0.7Mt of contained
HM, inclusive of unmined material caused by an elevated basement
floor in some areas compared to that predicted in the underlying
model; and
- an additional 19Mt of ore and 0.6Mt of contained HM being
included as a result of incorporation of additional Kwale South
Dune Mineral Resources located within the proposed expanded SML
23.
The effect of these changes is shown in plan view in Figure
2.
The 2020 Kwale South Dune Ore Reserves estimate was constrained
within the current SML 23 boundary and did not include any
additional estimated Mineral Resources within the much larger
Prospecting licence 2018/0119 (PL119). Following the
Cabinet Secretary for the Ministry of Petroleum and Mining’s
previously disclosed public statements that the proposed extension
to SML 23 had been approved and the licence will be issued soon,
the Company has greater certainty as to the timing for finalising
the necessary mining tenure arrangements with the Kenyan Ministry
of Petroleum and Mining. As a consequence, Base Resources has
incorporated the portion of the Mineral Resources estimate within
the proposed expanded SML 23 into the 2021 Kwale South Dune Ore
Reserves estimate.
On the basis of the 2021 Kwale South Dune Ore Reserves estimate,
following the expansion of SML 23, mining is scheduled to continue
on the Kwale South Dune until December
2023.
Base Resources has a net attributable interest of 100% in the
2021 Kwale South Dune Mineral Resources and Ore Reserves.
The 2021 Kwale South Dune Mineral Resources and Ore Reserve
estimates are reported in accordance with the JORC Code.
Further information about both estimates is set out in the sections
below and includes the information prescribed by the ASX Listing
Rules. For both the 2021 Kwale South Dune Mineral Resources
and Ore Reserve estimates, the information provided should be read
in conjunction with the explanatory information provided for the
purposes of Sections 1 to 3 of Table 1 of the JORC Code,
included as Appendix 1 to this announcement. For the
2021 Kwale South Dune Ore Reserves estimate, the information
provided should also be read in conjunction with the explanatory
information provided for the purposes of Section 4 of Table 1 of
the JORC Code.
A glossary of key terms used in this announcement is contained
at the end of this announcement. Figures (maps and graphics)
referenced in this announcement have been omitted. A full PDF
version of this announcement, including all figures (maps and
graphics), is available from Base Resources’ website:
https://baseresources.com.au/investors/announcements/.
Further information about the 2021
Kwale South Dune Mineral Resources estimate
Kwale Operations is located on SML 23, which lies within
PL119. The Prospecting Licence has an area of 88.7
km2 and is located approximately 50 kilometres south of
Mombasa and approximately 10 kilometres inland from the Kenyan
coast (see Figure 3).
The Kwale Project initially comprised three areas that contained
concentrations of heavy minerals. They were the South Dune,
Central Dune (now totally depleted by mining and currently the
repository for sand tailings from the South Dune) and the North
Dune deposits, with the Bumamani deposit being discovered
subsequently (see Figure 4).
The project was initially owned by Tiomin Resources Inc.
(Tiomin) which conducted drilling in 1997 and then by Base
Titanium Limited (a wholly owned subsidiary of Base Resources)
(Base Titanium) which purchased the project late in 2010 and
commenced confirmatory drilling of the Central, South and North
Dune deposits.
Mineral Resources estimation work previously carried out on the
Kwale deposits is as follows:
- 2006 by Tiomin;
- 2010 by Base Resources via a consulting company, Creative Mined
Pty Ltd, and under the direction of Base Resources Competent
Person, Scott Carruthers;
- 2014 by GNJ Consulting, and under the direction of the
Competent Person, Greg Jones;
- 2016 by Base Resources Competent Person, Scott Carruthers;
- 2017 by Base Resources Competent Person, Richard Stockwell; and
- 2020 by Base Resources Competent Person, Scott Carruthers.
The rocks of the area are of sedimentary origin and range in age
from Upper Carboniferous to Recent. Three divisions are
recognised: the Cainozoic rocks, the Upper Mesozoic rocks (not
exposed on the area) and the Duruma Sandstone Series giving rise to
the dominant topographical feature of the area: the Shimba Hills.
The Shimba grits and Mazeras sandstone are of Upper Triassic
age and form the Upper Duruma Sandstone.
The Margarini sands form a belt of low hills running parallel to
the coast. They rest with slight unconformity on the Shimba
grits and Mazeras sandstone. This formation was deposited
during Pliocene times and consists of unconsolidated fluviatile
sediments derived from the Duruma Sandstone Series.
The Kwale deposits are an aeolian subset of the Margarini sands
and are generally poorly stratified and contain a fraction of
silt/clay of around 25 per cent. Heavy minerals, mainly
ilmenite, rutile and zircon, are locally concentrated and are
abundant in some places, giving rise to deposits such as the
Central, South and North Dunes.
The geological interpretations for each deposit considered the
data in the drill logs, HM assay results, microscopic logging of HM
sinks, detailed mineralogy, knowledge gained from mining the
Central Dune deposit and the results of pilot plant-scale test work
conducted on trial mining pits at the South Dune deposit. Two
mineralised geological domains were identified at the South Dune
deposit. These were used and honoured during the geological
modelling. Mining of the South Dune deposit commenced in
June 2019 and this has not altered
the geological interpretation.
The right to mine the Kwale South Dune deposit was granted to
the previous owner of Kwale Operations by the Government of
Kenya under SML 23 on 6 July 2004. SML 23 was assigned to Base
Titanium (a wholly owned subsidiary of Base Resources) in
July 2010, with consent from the
Commissioner of Mines and Geology of the Government of Kenya.
SML 23 has a term of 21 years from 6 July
2004 and provides the right to carry out mining operations
for the production of ilmenite, rutile and zircon. Prior to
expiry of SML 23, Base Titanium may apply for a new mining lease on
a priority basis pursuant to the Mining Act 2016. The
original prospecting licence, SPL173, which was granted under the
previous Mining Act, was replaced by PL119, which was granted on
26 May 2018 under the 2016 Mining
Act, for a three-year term. A renewal application for a
further three-year term was lodged in February 2021 and is awaiting approval.
The environment and land use in Kwale County is defined as humid
and intensive subsistence agriculture/mixed farming/forestry.
The approximate population of Kwale County is 860,000.
Tiomin conducted drilling in 1997 at Kwale using an open-hole,
rotary mud drilling technique. Subsequent resource drilling
by Base Titanium was completed using the reverse circulation air
core (RCAC) method. Aircore drilling has been
conducted in three campaigns: October to November 2010, January to February 2013 and November
2016 to March 2017 (see Figure
5). Drilling within SML 23 comprises predominantly pre 2016
holes at, generally, 100 x 100 metre spacing. Drilling from
2016 onwards is at 100 x 50 metre spacing.
Predominantly 3m sample intervals
in previous RCAC drilling was replaced by sampling at 1.5m intervals from November 2016 to provide greater control on
geological boundaries. Sample size averaged close to 3kg at
this sample interval when collecting 25% of the rotary splitter
cycle. Samples were dried, weighed, and screened for material
less than 45micrometres (slimes) and +1mm (oversize).
Approximately 100 grams of the screened sample was subjected to
a HM float/sink technique using the heavy liquid, Lithium
polytungstate (LST with an SG of 2.85gcm-3). The resulting HM
concentrate was dried and weighed as were the other separated
constituent size fractions (the minus 45micrometre material being
calculated by difference).
Mineral assemblage analyses were conducted by Base Titanium in
order to characterise the mineralogical and chemical
characteristics of specific mineral species and magnetic fractions.
These mineral assemblage samples were subjected to magnetic
separation using a Mineral Technologies, Reading, induced-roll
magnetic separator, which captured magnetic (mag), middling
(mid) and non-magnetic (non-mag) fractions.
The mid and mag fractions were combined and, with the non-mag
fraction, subjected to XRF analysis using a Bruker, S8 Tiger XRF.
Data from the mag and non-mag XRF analyses were processed
through Base’s proprietary mineralogy system, Minmod, that ran
approximately 100,000 iterations in assigning key chemical species
to a calculated mineralogy determination.
Drill hole collar and geology data were captured by
industry-specific, field logging software with on-board validation.
Field and assay data were managed in an MS Access database
and subsequently migrated to a more secure, SQL database.
Population of the SQL database was completed in July 2017 and was the final stage of data
validation for the 2021 Kwale South Dune Mineral Resource
estimate.
Standard samples were generated and certified for use in the
field and laboratory. Accuracy of HM and slimes (SL)
analysis was verified by standards and monitored using control
charts. Standard error greater than three standard deviations
from the mean prompted batch re-assay. A standard precision
analysis was conducted on the key assay fields: HM, SL and Oversize
(OS) for both laboratory and field duplicate samples.
Normal scatter and QQ plots were prepared for HM, SL and OS
for laboratory and field duplicates.
A twin drilling program was introduced to quantify short-range
variability in geological character and grade intersections.
A water injection versus dry drilling assessment was included
in the twin drilling analysis. Field and laboratory
duplicate, standard and twin drilling analysis show adequate level
of accuracy and precision to support resource classifications as
stated. Analysis of the twin drilling, length of geological
zones and grade distributions led to the decision to exclude the
Tiomin data from the Mineral Resource estimate.
A topographic DTM was prepared by Base Resources in Geovia
(Surpac) software format which was based on a LIDAR survey.
Construction of the geological grade model was based on coding
model cells below open wireframe surfaces, comprising topography,
geology (Ore Zones 1 & 4) and basement (see Figure 6).
Model cell dimensions of 50m x
50m x 1.5m in the XYZ orientations was applied to the
2021 Kwale South Dune Mineral Resources estimate.
Interpolation was undertaken using various sized search ellipses
to populate the model with primary grade fields (HM, SL, OS, and
mineralogy), and index fields (hardness, Induration percent,
Composite ID). Inverse distance weighting to a power of three
was used for primary assay fields whilst nearest neighbour was used
to interpolate index fields.
The bulk density applied to the Kwale South Dune model was a
component-based algorithm, validated by Troxler density
measurements taken in the active Kwale Central Dune mine. The
character of the Kwale South Dune is sufficiently similar to that
of the Kwale Central Dune to validate this approach. This
bulk density algorithm was used for the 2017 Kwale South Dune
Mineral Resources estimate. However, from mine reconciliation
calculations following the commencement of mining at the South
Dune, this was found to be overestimating bulk density. This
prompted a bulk density algorithm that reduced bulk density by 5%
compared to the 2017 algorithm to be used for the 2020 Kwale South
Dune Mineral Resources estimate. No further changes to bulk
density have been made for the 2021 Kwale South Dune Mineral
Resources estimate.
The criteria used for classification was primarily the drill
spacing and sample interval, with consideration also given to the
continuity of mineral assemblage information and confidence in
post-depositional modification of mineralisation (e.g. induration
in Ore Zone 4). Generally, 100 x 100 was considered
sufficient for Measured Resources and 200 x 100 for Indicated
Resources. A reduced level of confidence was applied to the
Ore Zone 4 material at Kwale South Dune due to the unpredictable
ironstone induration and lower density of mineralogical
information.
Modifying factors were considered during the Ore Reserves
estimation process; they were not considered during the Mineral
Resources estimation process. The mining method is hydraulic
mining.
The 2021 Kwale South Dune Mineral Resources estimate is reported
using a 1% HM bottom cut as that is close to the economic cut-off
and allows for comparison to the previous Mineral Resource
estimates.
Further information about the 2021
Kwale South Dune Ore Reserves estimate
The feasibility study that led to the final investment decision
for the Kwale Project was completed in 2011 and is no longer
relevant given production commenced in late 2013.
Accordingly, data derived from actual production statistics and
financial reports were used to form the assumptions underpinning
the 2021 Kwale South Dune Ore Reserves estimate. The
operating cost, recovery and other material assumptions are
detailed in Tables 2 to 5 below and were used to create a value
model to determine economic pit limits. After this, a
two-stage pit limit selection process was followed to determine the
optimum raw pit shell. This was then subject to detailed mine
planning and scheduling, with the outputs used to perform detailed
financial analysis to demonstrate the technical and economic
viability of the extraction of the Ore Reserves.
The reference point for the 2021 Kwale South Dune Ore Reserve
estimate is 30 June 2021.
Table 2: Assumed mineral recoveries
Description |
Units |
Value |
Concentrate grade |
% |
90 |
HM
recovery – wet concentrator plant |
% |
83.5 |
Ilmenite
recovery – wet concentrator plant |
% |
94 |
Rutile
recovery - wet concentrator plant |
% |
90 |
Zircon
recovery - wet concentrator plant |
% |
94.5 |
Ilmenite
recovery – mineral separation plant |
% |
100 |
Rutile
recovery - mineral separation plant |
% |
99 |
Zircon
recovery - mineral separation plant |
% |
77 |
Table 3: Assumed operating costs
Description |
Units |
Value |
Waste
mining |
USD / T
(Waste) |
2.7 |
Ore
mining - fuel |
USD / T
(Ore) |
0.102 |
Ore
mining – pumping power |
USD /
kWhr |
0.14 |
Slime -
flocculant |
USD / T
(Slime) |
0.36 |
HMC dryer
- fuel |
USD / T
(HMC) |
4.46 |
Rutile
circuit reheater - fuel |
USD / T
(HMC – Ilmenite T) |
1.77 |
Zircon
circuit dryer - fuel |
USD / T
(HMC – Ilmenite T – Rutile T) |
0.892 |
Process
plant - power |
kWhr /
HMC T |
14 |
Ilmenite
product haulage and port costs |
USD / T
(Ilmenite Product) |
6.85 |
Rutile
product haulage and port costs |
USD / T
(Rutile Product) |
9.87 |
Zircon
product haulage and port costs |
USD / T
(Zircon Product) |
31.05 |
Fixed –
power |
kWhr /
Operating Hour |
9,662 |
Fixed -
other |
USD /
Annum |
37,989,651 |
Table 4: Process throughput rates (used to limit assumed
feed rate during optimisation)
Description |
Units |
Rate |
Maximum HMU
throughput |
T/Hr
(Ore) |
2,400 |
Maximum process
rougher feed throughput |
T/Hr
(RHF) |
1,850 |
Maximum
process tails throughput |
T/Hr
(Tails) |
1,706 |
Maximum process
thickener throughput |
T/Hr
(Slimes) |
774 |
Maximum process HMC
throughput |
T/Hr
(HMC) |
120 |
Availability |
% |
90 |
Table 5: Product prices (FOB)
Description |
Units |
Price* |
Ilmenite revenue |
USD /
T |
180 |
Rutile revenue |
USD /
T |
1,100 |
Zircon revenue |
USD /
T |
1,800 |
*Assumed average prices over the life of Ore Reserves at time of
optimisation.
The criteria used for classification of the Ore Reserves
followed that used for the Mineral Resources classification, so
Proven Ore Reserves comprise Measured Resources and Probable Ore
Reserves comprise Indicated Resources.
The mining method is hydraulic mining, which Base Titanium has
used successfully since 2017. It is non-selective, with
hydraulic mining units (HMU) using high pressure water jets
to sluice the entire ore face, which flows as a slurry to a sump
and is then pumped, ultimately, to the concentration
plant.
Due to the geometry of the deposit and the non-selective mining
method, there is no ore/waste discrimination (other than topsoil
stripping) and it is not considered appropriate to add additional
dilution factors. A 0.2m
allowance for topsoil has been incorporated into the model and this
material is excluded from Ore Reserves reporting as
non-recoverable.
The wet concentrator plant is typical of a mineral sands
operation, using screens, spirals and cyclones to separate the
heavy minerals from the quartz sand and clay.
Heavy mineral concentrate is fed to a mineral separation plant
which uses magnetic and electrostatic separators, classifiers,
spirals and wet tables to produce ilmenite, rutile and zircon
products. Recovery factors are reported in Table 2.
Pit optimisation was undertaken using CAE NPV Scheduler software
(NPVS). A Value model was first prepared in DATAMINE
Studio 5DP Mine Planning software and revenue and cost adjustment
attributes subsequently imported into NPVS for Lerch-Grossman
optimisation. Because a value model was used to determine the
pit limits, cut-off grades were not used.
The estimation methodology comprised developing nested pit
limits (as described above) by reducing the revenue in 1 per cent
decrements, selection of the most appropriate pit shell by
comparison of several factors (including NPV, life of mine, revenue
to cost ratios, incremental cash flow etc.), mine planning and
scheduling of the selected pit shell and finally confirmation of
positive economics by feeding the scheduled tonnes into the project
financial model.
The material modifying factors impacting the deposit economics
are disclosed in the tables above. As stated above, for Base
Titanium to have the right to mine the whole of the 2021 Kwale
South Dune Ore Reserves estimate, its existing mining tenure, SML
23, needs to be expanded and the necessary environmental licencing
(an EIA Licence) issued. As previously disclosed, the Cabinet
Secretary for the Ministry of Petroleum and Mining has stated
publicly that the proposed SML 23 extension has been approved and
Base Titanium is working with the Government to finalise the form
of Deed of Variation that will give effect to the proposed
extension. In parallel, Base Titanium is also working with
the Kenyan National Environmental Management Authority with respect
to its application for the necessary EIA Licence, which Base
Titanium anticipates receiving in the near term. As an
operating mine, the other modifying factors, being infrastructure
(power, water, roads etc.), regulatory approvals, social
considerations etc. are all in place.
There is only limited potential to add to the 2021 Kwale South
Dune Ore Reserves estimate.
Competent Persons' Statements
2021 Kwale South Dune Mineral
Resources
The information in this announcement that relates to the 2021
Kwale South Dune Mineral Resources estimate 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’ long-term incentive plan and receive
equity securities under that plan. Details about that plan
are included in Base Resources’ 2020 Annual 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 JORC Code and is considered a Qualified
Person for the purposes of the AIM Rules for Companies. Mr.
Carruthers has reviewed this announcement and consents to the
inclusion in this announcement of the 2021 Kwale South Dune Mineral
Resources estimate and supporting information in the form and
context in which the relevant information appears.
2021 Kwale South Dune Ore Reserves
The information in this announcement that relates to the 2021
Kwale South Dune Ore Reserves estimate is based on, and fairly
represents, information and supporting documentation prepared by
Mr. Per Scrimshaw and Mr. Scott
Carruthers. Mr. Scrimshaw and Mr. Carruthers are
Members of The Australasian Institute of Mining and
Metallurgy. Mr. Scrimshaw is employed by Entech, a mining
consultancy engaged by Base Resources. Mr. Carruthers is
employed by Base Resources, he holds equity securities in Base
Resources, and is entitled to participate in Base Resources’
long-term incentive plan and receive equity securities under that
plan. Details about that plan are included in Base Resources’
2020 Annual Report. Mr. Scrimshaw and Mr. Carruthers each
have sufficient experience that is relevant to the style of
mineralisation and type of deposits under consideration and to the
activity which they are each undertaking to qualify as Competent
Persons as defined in the JORC Code and both are considered a
Qualified Person for the purposes of the AIM Rules for
Companies. Mr. Scrimshaw and Mr. Carruthers have each
reviewed this announcement and consent to the inclusion in this
announcement of the 2021 Kwale South Dune Ore Reserves estimate and
supporting information in the form and context in which the
relevant information appears.
Forward Looking Statements
Certain statements in or in connection with this announcement
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, changes in economic and market
conditions, success of business and operating initiatives, changes
in the regulatory environment and other government actions,
fluctuations in product prices and exchange rates 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 after the date of this announcement
or to reflect the occurrence of unanticipated events.
No representation or warranty, express or implied, is made as to
the fairness, accuracy or completeness of the information contained
in this announcement (or any associated presentation, information
or matters). To the maximum extent permitted by law, Base
Resources and its related bodies corporate and affiliates, and
their respective directors, officers, employees, agents and
advisers, disclaim any liability (including, without limitation,
any liability arising from fault, negligence or negligent
misstatement) for any direct or indirect loss or damage arising
from any use or reliance on this announcement or its contents,
including any error or omission from, or otherwise in connection
with, it.
Nothing in this report constitutes investment, legal or other
advice. You must not act on the basis of any matter contained
in this announcement but must make your own independent
investigation and assessment of Base Resources and obtain any
professional advice you require before making any investment
decision based on your investment objectives and financial
circumstances. This document does not constitute an offer,
invitation, solicitation, advice or recommendation with respect to
the issue, purchase or sale of any security in any
jurisdiction.
Appendix 1
JORC Code, 2012 Edition
Section 1 Sampling Techniques and
Data
(Criteria in this section apply to all succeeding sections.)
Criteria |
Explanation |
Comment |
Sampling techniques |
Nature and quality of sampling (e.g. cut channels, random chips,
or specific specialised industry standard measurement tools
appropriate to the minerals under investigation, such as down hole
gamma sondes, or handheld XRF instruments, etc). These examples
should not be taken as limiting the broad meaning of
sampling.
Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any measurement
tools or systems used.
Aspects of the determination of mineralisation that are Material
to the Public Report. In cases where ‘industry standard’ work has
been done this would be relatively simple (e.g. ‘reverse
circulation drilling was used to obtain 1m samples from which 3kg
was pulverised to produce a 30g charge for fire assay’). In other
cases more explanation may be required, such as where there is
coarse gold that has inherent sampling problems. Unusual
commodities or mineralisation types (e.g. submarine nodules) may
warrant disclosure of detailed information. |
The 2021
Kwale South Dune Mineral Resources estimate drill data were
collected using the RCAC method.
Duplicate field and laboratory samples were taken at accepted
industry standard ratios of approximately 1 in 20 to 1 in 40.
Field and laboratory standard samples were inserted every 40
samples. Twin drilling analysis was completed during the
2016-17 Kwale drill program at the South Dune, which included a wet
vs. dry drilling analysis.
RCAC drilling was used to obtain 1 to 3 m samples from which
approximately 1.2-2.5 kg was collected using a rotary splitter,
mounted beneath a cyclone. Drilling completed in the 2016-17
Kwale drill program was sampled at a 1.5m interval, which produced
an average 3kg sample from a 25% split of the rotary splitter
cycle.
The samples were dried, de-slimed (material less than 45µm removed)
and then oversize (material +1mm) removed.
Approximately 100g of the resultant sample was then subjected to a
HM float/sink technique using tetra-bromo-ethane (TBE: SG=2.92-2.96
g/cm3). Assay of the 2016-17 Kwale drill program
samples was completed at Kwale site using lithium polytungstate
(LST) with an SG of 2.85g/cm3.
The resulting HM concentrate was then dried and weighed. |
Drilling techniques |
Drill
type (e.g. core, reverse circulation, open-hole hammer, rotary air
blast, auger, Bangka, sonic, etc) and details (e.g. core diameter,
triple or standard tube, depth of diamond tails, face-sampling bit
or other type, whether core is oriented and if so, by what method,
etc). |
RCAC
drilling utilising 71 mm diameter air-core tooling accounts for all
drill sample data applied to the 2021 Kwale South Dune Mineral
Resources estimate. All holes were drilled vertically with no
downhole surveying to confirm hole direction.
All Tiomin, open-hole drill data were excluded from the 2021 Kwale
South Dune Mineral Resources estimate. |
Drill
sample recovery |
Method of recording and assessing core and chip sample
recoveries and results assessed.
Measures taken to maximise sample recovery and ensure
representative nature of the samples.
Whether a relationship exists between sample recovery and grade
and whether sample bias may have occurred due to preferential
loss/gain of fine/coarse material. |
Ground
conditions vary and, as such, Base Resources logged sample
quality/condition at the rig as either good, moderate or poor, with
‘good‘ meaning not contaminated and of an appropriate sample size
(recovery), ‘moderate’ meaning not contaminated, but sample over or
undersized, and ‘poor’ meaning contaminated or grossly
over/undersized.
For the 2016-17 Kwale drill program, the use of water injection was
also logged in the sample quality field for every sample interval
(dry, moist, injected or wet). Minor sample loss was observed, and
the splitter rectified during the first week of drilling. No
further sample loss has been recorded. The configuration of
drilling and nature of sediments encountered resulted in negligible
loss.
Drill penetration was halted at the end of each sample interval to
allow time for the sample to return to surface and be
collected. Drilling proceeded once sample delivery
ceases.
Sampling on the drill rig was observed to ensure that rotary
splitter remained clean. Water flush and manual cleaning of
the cyclone occurred at regular intervals to ensure contamination
was minimised.
No relationship is believed to exist between grade and sample
recovery. The high percentage of clay and low hydraulic inflow of
groundwater resulted in a sample size that is well within the
expected size range.
Negligible fines losses were identified during twin drilling
analysis of the 2016-17 Kwale drill program. |
Logging |
Whether core and chip samples have been geologically and
geotechnically logged to a level of detail to support appropriate
Mineral Resource estimation, mining studies and metallurgical
studies.
Whether logging is qualitative or quantitative in nature. Core
(or costean, channel, etc) photography.
The total length and percentage of the relevant intersections
logged. |
Base
Resources collected detailed qualitative logging of geological
characteristics to allow a comprehensive geological interpretation
to be carried out.
Logging of HM sinks with a microscope was also used to inform the
geological interpretation.
Logging of RCAC samples recorded sample condition, estimated
slimes, washability, colour, lithology, dominant grainsize,
coarsest grainsize, sorting, induration type, hardness, estimated
rock and estimated HM.
All drill holes were logged in full and all samples with observed
HM (and designated for assay) were assayed. All drill holes were
logged in full and all samples were assayed and used in the
resource estimation exercise. |
Sub-sampling techniques and sample preparation |
If
core, whether cut or sawn and whether quarter, half or all core
taken.
If non-core, whether riffled, tube sampled, rotary split, etc
and whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of
the sample preparation technique.
Quality control procedures adopted for all sub-sampling stages
to maximise representivity of samples.
Measures taken to ensure that the sampling is representative of
the in-situ material collected, including for instance results for
field duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the
material being sampled. |
All
samples were unconsolidated and comprised sand, silt, clay and rock
fragments.
Base Resources rotary split the samples on the drill rig as they
were delivered from drilling (wet, moist, injected or dry). Low
groundwater pressure and rotary splitting delivered a
representative sample for logging. The 25% split delivered
approximately 3kg of sample for analysis during the 2016-17 Kwale
drill program.
Drill samples were dried then riffle split to produce a ~300g
sample for de-sliming and oversize removal. The resultant
sand fraction was then delivered to the laboratory for heavy liquid
(LST) separation.
Sample preparation is consistent with industry best practice.
For the 2016-17 Kwale drill program, a formal procedure and flow
sheet was developed with detailed QA/QC protocols applied.
QA/QC in the form of laboratory and rig duplicates were used to
monitor laboratory performance. Laboratory and rig duplicates were
submitted at the rate of approximately 1 in 20 each for a combined
submission rate of one in 10.
Two standard samples were created for the commencement of the
2016-17 Kwale drill program. Bulk samples of Kwale Central
Dune ore were mixed, rotary split and sent for certification
analysis. Standards were inserted at a rate of 1 in 40 in the
field and another prior to HM assay to test sample preparation and
assay accuracy.
Twin drilling analysis was introduced for the 2016-17 Kwale drill
program, which included water injected vs. dry drilling
analysis.
Analysis of sample duplicates and twin drilling data were
undertaken by standard geostatistical methodologies to test for
bias and to ensure that sample splitting was
representative.
Given that the grain size of the material being sampled is sand and
approximately 70 to 300 µm, an average sample size of 1.2 - 3 kg is
more than adequate. |
Quality of assay data and laboratory tests |
The
nature, quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or
total.
For geophysical tools, spectrometers, handheld XRF instruments,
etc., the parameters used in determining the analysis including
instrument make and model, reading times, calibrations factors
applied and their derivation, etc.
Nature of quality control procedures adopted (e.g. standards,
blanks, duplicates, external laboratory checks) and whether
acceptable levels of accuracy (i.e. lack of bias) and precision
have been established. |
The Base
Resources laboratory flow sheet comprises a sample preparation
stage (completed by Base personnel) and an HM assay stage completed
by contracted laboratories. Assay was completed by Western
Geolabs (Perth) for previous resource drilling using a TBE heavy
liquid separation. The Kwale site lab, managed by SGS, was used for
the 2016-17 Kwale drill program samples. A LST heavy liquid
separation medium was used by SGS.
The sample analysis process produced the following assays: HM >
45 micrometres, < 1 mm, > 2.85 SG, slime (SL) < 45
micrometres, and oversize (OS) > 1 mm.
Sample preparation involved de-sliming the sample prior to oven
drying to prevent clay minerals being baked onto the HM grains. A
separate sample was split and dried to determine moisture content,
which was then back calculated to correct the assayed
grades.
Quality control protocols include two duplicate assaying
procedures. A duplicate sample was generated at the drill rig and
another at the sample preparation stage. Both duplicates were
included at a 1:20 ratio and were subjected to the remainder of the
sample preparation and assay process.
A field and a laboratory standard were introduced for the 2016-17
Kwale drill program. One was inserted in the field and the
other, prior to HM assay at a 1:40 ratio.
Mineralogical analysis was performed by back-calculation of XRF
results to an in-ground mineral assemblage, verified by
quantitative analysis (SEM-EDX and QEMSCAN). Both individual
sample interval XRF and composite sample XRF data were included in
resource estimates.
Assay technique and quality assurance protocols are considered
industry best practice.
No geophysical, portable XRF etc. instruments were used.
Field duplicates, sample preparation duplicates and laboratory
replicates were submitted for precision and bias analysis.
Excepting significant sample size bias as a result of poor splitter
gate construction on the RCAC drill rig observed in recent
drilling, assay results show acceptable correlation and no
bias.
Audit samples were sent to alternative laboratories (Diamantina and
Independent Diamond Laboratories) to verify results from Western
Geolabs for previous resource drill samples. No blanks or standards
were submitted by Base Resources during this period. Results
returned within acceptable limits.
Standard samples were introduced for the 2016-17 Kwale drill
program. Standards were monitored by control charts and
re-assay completed when results fell outside control chart limits
(mean + 3SD). Re-assay was completed for standards failures
and all data are now corrected. |
Verification of sampling and assaying |
The
verification of significant intersections by either independent or
alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic)
protocols.
Discuss any adjustment to assay data. |
The
deposit type and consistency of mineralization leaves little room
for unexplained variance. Verification of intersections was
limited to checking for variance between logged estimates of grade
and the assayed grades. Where there was unexplained variance,
samples were re-submitted for assay.
Twinned holes were completed during the 2016-17 Kwale drill
program. These were used for statistical analysis of
short-range geological and assay field variability for the resource
estimation. Assay fields showed acceptable correlation and an
absence of bias.
A comparison of dry vs. water injection was included in the twin
drilling analysis. Negligible Slimes losses were established
by the practice of dry drilling for the 2016-17 Kwale drill
program.
Data collected by Base Resources was entered digitally in the field
and uploaded to Microsoft Access prior to being migrated to a more
secure SQL database, hosted on the Kwale site server. The SQL
database is subject to regular back-up and access is limited to the
Exploration Superintendent and business applications
administrator.
Assay data adjustments were made to convert laboratory collected
weights to assay field percentages and to account for
moisture. |
Location of data points |
Accuracy and quality of surveys used to locate drill holes
(collar and down-hole surveys), trenches, mine workings and other
locations used in Mineral Resources estimation.
Specification of the grid system used.
Quality and adequacy of topographic control. |
Base
Resources used a RTK GPS to survey drill sites.
The grid system used was the Arc1960 (zone 37 South). Modelling was
conducted in a rotated local mine grid.
LIDAR surveys flown in 2013 and 2015 were joined to cover the
resource areas. Drill holes were projected to this surface
prior to resource estimation. Stated accuracy of the LIDAR
survey is 0.015m. |
Data
spacing and distribution |
Data
spacing for reporting of Exploration Results.
Whether the data spacing and distribution is sufficient to
establish the degree of geological and grade continuity appropriate
for the Mineral Resources and Ore Reserves estimation procedure(s)
and classifications applied.
Whether sample compositing has been applied. |
The
drill data spacing is nominally 100m North, 50m East, and 1.5m down
hole for the 2016-17 Kwale drill program. Previous drilling
is nominally spaced at 200m North, 100m East and has a 3m down-hole
sample interval. Variations occur when lower-density drilling was
applied to exploration areas or from line-clearing difficulties
prior to drilling and drill site survey.
Based on the experience of the competent person, the data spacing
and distribution through the drill hole programs Is considered
adequate for the assigned Mineral Resources classifications. HM
grade continuity was verified using variography of the discrete
geological domains.
No sample compositing or de-compositing has been applied to
previous resource estimates. The majority of previous sampling was
taken on 3 m intervals with some 1 m intervals drilled for
geological boundary definition on a vertical basis. Sample length
weighting was used during the interpolation process.
For the 2021 Kwale South Dune Mineral Resources estimate, all
historic 3m sample intervals were de-composited to 1.5m for the
interpolation. Samples for mineralogical analysis were
composited, generally on-section, on a like-for-like basis with
reference to HM sink logs and conforming to the geological
interpretation. |
Orientation of data in relation to geological structure |
Whether the orientation of sampling achieves unbiased sampling
of possible structures and the extent to which this is known,
considering the deposit type.
If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have
introduced a sampling bias, this should be assessed and reported if
material. |
Sample
orientation is vertical and approximately perpendicular to the dip
and strike of the mineralisation resulting in true thickness
estimates. Drilling and sampling were carried out on a regular
rectangular grid that is broadly aligned and in a ratio consistent
with the anisotropy of the mineralisation.
There is no apparent bias arising from the orientation of the drill
holes with respect to the strike and dip of the deposit. |
Sample
security |
The
measures taken to ensure sample security. |
All
samples were numbered, with samples split and residues stored
securely at the Kwale site, along with HM sinks. |
Audits
or reviews |
The
results of any audits or reviews of sampling techniques and
data. |
GNJ
Consulting Pty Ltd and IHC Robbins conducted reviews of previous
Mineral Resources estimates completed by Base Resources.
Hornet Drilling and Geological Services Pty Ltd conducted three
site visits during preparation and data collection stages relating
to the 2016-17 Kwale drill program. These were made to
establish and review drilling, sample preparation and geological
interpretation procedures and monitor adherence. Minor
recommended changes were made on each occasion.
No audit of the 2021 Mineral Resource estimate was undertaken
because it is unchanged from the 2020 Mineral Resource apart from
depletion by mining or sterilisation. |
Section 2 Reporting of Exploration
Results
(Criteria listed in the preceding section also apply to this
section.)
Criteria |
Explanation |
Comment |
Mineral tenement and land tenure status |
Type,
reference name/number, location and ownership including agreements
or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests,
historical sites, wilderness or national park and environmental
settings.
The security of the tenure held at the time of reporting along
with any known impediments to obtaining a licence to operate in the
area. |
The 2021
Kwale South Dune Mineral Resource lies within PL119. Mining
is currently taking place on the Kwale South Dune deposit within
SML 23.
Ad valorem royalties of 2% are paid to private royalty holders on
products mined from SML 23 as it existed in 2010 when the Kwale
Project was acquired. A royalty of 2.5% is currently payable
to the Government of Kenya, with a further 2.5% accrued.
Discussions with the Government of Kenya on the royalty regime in
line with the terms of SML 23 are ongoing.
There are no known impediments to the security of tenure for the
Kwale Operations deposits. |
Exploration done by other parties |
Acknowledgment and appraisal of exploration by other
parties. |
The
previous owners of the project (Tiomin Kenya Ltd) undertook
exploration over the Kwale Project prior to purchase by Base
Resources. Analysis of twinned holes, grade distributions and
geological zone thickness has led to Tiomin’s data being excluded
from this Mineral Resource estimation. |
Geology |
Deposit type, geological setting and style of
mineralisation. |
The Kwale
South Dune deposit is an aeolian detrital heavy mineral sand
deposit. |
Drill
hole Information |
A
summary of all information material to the understanding of the
exploration results including a tabulation of the following
information for all Material drill holes:
If the exclusion of this information is justified on the basis
that the information is not Material and this exclusion does not
detract from the understanding of the report, the Competent Person
should clearly explain why this is the case. |
There
are no particular drill hole results that are considered material
to the understanding of the exploration and resource drill out.
Identification of the wide and thick zone of mineralisation is made
via multiple intersections of drill holes and to list them all
would not give the reader any further clarification of the
distribution of mineralisation throughout the deposit. |
Data
aggregation methods |
In
reporting Exploration Results, weighting averaging techniques,
maximum and/or minimum grade truncations (e.g. cutting of high
grades) and cut-off grades are usually Material and should be
stated.
Where aggregate intercepts incorporate short lengths of
high-grade results and longer lengths of low-grade results, the
procedure used for such aggregation should be stated and some
typical examples of such aggregations should be shown in
detail.
The assumptions used for any reporting of metal equivalent
values should be clearly stated. |
No grade
cutting was undertaken, nor compositing or aggregation of grades
made prior or post the grade interpolation into the block model.
Selection of the bottom basal contacts of the mineralised domains
were made based on discrete logging and grade information collected
and assayed by Base Resources and Tiomin.
No data aggregation has been performed.
No metal equivalents were used for reporting of Mineral
Resources. |
Relationship between mineralisation widths and intercept
lengths |
These
relationships are particularly important in the reporting of
Exploration Results.
If the geometry of the mineralisation with respect to the drill
hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported,
there should be a clear statement to this effect (e.g. ‘down hole
length, true width not known’). |
All
drill holes are vertical and perpendicular to the dip and strike of
mineralisation and therefore all interceptions are approximately
true thickness.
|
Diagrams |
Appropriate maps and sections (with scales) and tabulations of
intercepts should be included for any significant discovery being
reported These should include, but not be limited to a plan view of
drill hole collar locations and appropriate sectional
views. |
Refer to
main body of this announcement. |
Balanced reporting |
Where
comprehensive reporting of all Exploration Results is not
practicable, representative reporting of both low and high grades
and/or widths should be practiced to avoid misleading reporting of
Exploration Results. |
Reporting
of results is restricted to Mineral Resources and Ore Reserves
estimates generated from geological and grade block modelling. |
Other
substantive exploration data |
Other
exploration data, if meaningful and material, should be reported
including (but not limited to): geological observations;
geophysical survey results; geochemical survey results; bulk
samples – size and method of treatment; metallurgical test results;
bulk density, groundwater, geotechnical and rock characteristics;
potential deleterious or contaminating substances. |
Bulk
density is derived from algorithm. |
Further work |
The
nature and scale of planned further work (e.g. tests for lateral
extensions or depth extensions or large-scale step-out
drilling).
Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling
areas, provided this information is not commercially
sensitive. |
No
further work is planned at this stage. |
Section 3 Estimation and Reporting of
Mineral Resources
(Criteria listed in section 1, and where relevant in section 2,
also apply to this section.)
Criteria |
Explanation |
Comment |
Database
integrity |
Measures taken to
ensure that data has not been corrupted by, for example,
transcription or keying errors, between its initial collection and
its use for Mineral Resources estimation purposes.
Data validation procedures used. |
The surveying, logging
and assay data were stored in a Microsoft Access database prior to
being imported into a more secure SQL database format.
The drill logs were recorded electronically at the rig for the Base
Resources drilling program, and the hole locations recorded by
hand-held GPS at the time of drilling. The hand-held GPS locations
were used by the RTK operator to locate the holes.
Each field of the drill log database was verified against allowable
entries and any keying errors corrected.
Heavy mineral sing logs were completed against a strict set of
codes and captured digitally.
Look-up tables are employed at data capture stage on
industry-leading software equipped with on-board validation and
quarantine capability. Cross-validation between related
tables is also systematically performed by field logging software.
Data were loaded into a secure SQL database where a second
validation was performed.
Visual comparison was undertaken in cross-section using Mapinfo
software. Sanity checks of sample preparation fields were
undertaken to ensure correct procedure was followed (e.g. sample
weight pre v post-oven drying). Calculation of assay fields
were checked to ensure correct moisture adjustment and weight to
percentage adjustment.
Statistical, out-of-range, distribution, error and missing data
validation was completed on data sets before being compiled for
resource estimation. |
Site visits |
Comment on any site
visits undertaken by the Competent Person and the outcome of those
visits.
If no site visits have been undertaken indicate why this is the
case. |
Industry-leading
procedures for data capture and storage were established for the
2016-17 Kwale drill program. Three site visits were completed
by Mr Richard Stockwell during data capture stages and
recommendations were made where improvements were required.
There were no issues observed that might be considered material to
the Mineral Resource under consideration. |
Geological
interpretation |
Confidence in (or
conversely, the uncertainty of) the geological interpretation of
the mineral deposit.
Nature of the data used and of any assumptions made.
The effect, if any, of alternative interpretations on Mineral
Resources estimation.
The use of geology in guiding and controlling Mineral Resources
estimation.
The factors affecting continuity both of grade and
geology. |
The geological
interpretation was compiled from field geological observations
during drill sample logging, microscope investigation of heavy
mineral sinks and interpretation of sample assay data. A
strong correlation between these three sources of information was
observed and a high degree of confidence results.
The interpreted zones were used to control the wireframed zones in
the resource model. Primary data generated by Base Titanium
was used exclusively for the resource estimation. No
assumptions were made.
The weight of mutually supportive data weakens the case for
alternate geological interpretation.
The Mineral Resources estimate was controlled by the geological /
mineralised surfaces and beneath the topographic surface.
Kwale Operations’ deposits sit on top of an erosional high which is
dissected by streams. The extent of geological and
mineralised zones is constrained by the erosional surface
surrounding the basement high.
Heavy mineral grade and geology is consistent within mineralised
horizons, typical of aeolian deposits. Grade and geological
continuity in the lower mineralised horizon (Ore Zone 4) is
compromised by variable induration. |
Dimensions |
The extent and
variability of the Mineral Resources expressed as length (along
strike or otherwise), plan width, and depth below surface to the
upper and lower limits of the Mineral Resources. |
The Kwale South Dune
deposit is approximately 6.5km long, 300-1,000m wide and
approximately 12-20 m thick on average. Mineralisation is present
from surface over the majority of the deposit. |
Estimation and
modelling techniques |
The nature and
appropriateness of the estimation technique(s) applied and key
assumptions, including treatment of extreme grade values,
domaining, interpolation parameters and maximum distance of
extrapolation from data points. If a computer assisted estimation
method was chosen include a description of computer software and
parameters used.
The availability of check estimates, previous estimates and/or
mine production records and whether the Mineral Resources estimate
takes appropriate account of such data.
The assumptions made regarding recovery of by-products.
Estimation of deleterious elements or other non-grade variables
of economic significance (e.g. sulphur for acid mine drainage
characterisation).
In the case of block model interpolation, the block size in
relation to the average sample spacing and the search
employed.
Any assumptions behind modelling of selective mining
units.
Any assumptions about correlation between variables.
Description of how the geological interpretation was used to
control the resource estimates.
Discussion of basis for using or not using grade cutting or
capping.
The process of validation, the checking process used, the
comparison of model data to drill hole data, and use of
reconciliation data if available. |
Geovia Surpac software
was used to estimate the Mineral Resource. Inverse distance
weighting techniques were used to interpolate assay grades from
drill hole samples into the block model and nearest neighbour
techniques were used to interpolate index values into the block
model. The regular dimensions of the drill grid and the
anisotropy of the drilling and sampling grid allowed for the use of
inverse distance methodologies as no de-clustering of samples was
required.
Appropriate and industry standard search ellipses were used to
search for data for the interpolation and suitable limitations on
the number of samples and the impact of those samples was
maintained. An inverse distance weighting of three was used
so as not to over smooth the grade interpolations.
Hard domain boundaries were used and these were defined by the
geological surfaces that were interpreted.
The resource estimate was checked against previous resource
estimates and these are detailed in the report. The 2021
Kwale South Dune Mineral Resource estimate accurately reflects
additional resource discovery in addition to the previously
reported resource estimate.
No assumptions were made during the resource estimation as to the
recovery of by-products.
All potentially deleterious elements were included as part of the
mineral composite analysis and were included in the modelling
report. There is no significant sulphide mineralisation.
The average parent cell size used for the 2021 Kwale South Dune
Mineral Resources estimate is approximately half that for the
average drill hole spacing over the bulk of the deposit (100m*100m)
and equal to the dominant sample spacing down-hole employed by the
2016-17 Kwale drill program (1.5m). This resulted in a parent
cell size of 50m*50m*1.5m for the volume model.
No assumptions were made regarding the modelling of selective
mining units however hydraulic mining is being utilised and the
cell size and the sub cell splitting allowed for an appropriate ore
reserve to be prepared.
No assumptions were made about correlation between variables.
Interpolation was constrained by hard boundaries (domains) that
result from the geological interpretation.
Grade cutting or capping was not used during the interpolation
because of the regular nature of sample spacing and the fact that
samples were not clustered nor wide spaced to an extent where
elevated samples could have a deleterious impact on the resource
estimation.
Sample distributions were reviewed and no extreme outliers were
identified either high or low that necessitated any grade cutting
or capping.
Validation of grade interpolations were done visually In Surpac by
loading model and drill hole files and annotating and colouring and
using filtering to check for the appropriateness of interpolations.
Statistical distributions were prepared for model zones from both
drill holes and the model to compare the effectiveness of the
interpolation. Along strike distributions of section line averages
(swath plots) for drill holes and models were also prepared for
comparison purposes. |
Moisture |
Whether the tonnages
are estimated on a dry basis or with natural moisture, and the
method of determination of the moisture content. |
Tonnages were estimated
on a dry basis. This is based on test work carried out on the bulk
density which was determined on a dry weight basis. |
Cut-off
parameters |
The basis of the
adopted cut-off grade(s) or quality parameters applied. |
A 1% HM bottom cut has
been applied to the Mineral Resources estimate. This cut-off is
used on a sub-economic basis in consideration of the valuable heavy
mineral content indicated by mineral assemblage analysis. |
Mining factors or
assumptions |
Assumptions made
regarding possible mining methods, minimum mining dimensions and
internal (or, if applicable, external) mining dilution. It is
always necessary as part of the process of determining reasonable
prospects for eventual economic extraction to consider potential
mining methods, but the assumptions made regarding mining methods
and parameters when estimating Mineral Resources may not always be
rigorous. Where this is the case, this should be reported with an
explanation of the basis of the mining assumptions made. |
The mining method is
high pressure hydraulic mining, which blends the ore from top of
the face to the bottom.
Hydraulic mining is not selective, which suits the generally thick
and homogenous depositional style of the mineralisation.
Given the thickness of the Kwale South deposit and proposed mining
method, dilution is not considered to be an issue. |
Metallurgical factors
or assumptions |
The basis for
assumptions or predictions regarding metallurgical amenability. It
is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider
potential metallurgical methods, but the assumptions regarding
metallurgical treatment processes and parameters made when
reporting Mineral Resources may not always be rigorous. Where this
is the case, this should be reported with an explanation of the
basis of the metallurgical assumptions made. |
The metallurgical
recovery and separability factors are similar to other mineral sand
operations. There are no fine grained lower shoreface
sediments. The level of kyanite is greater than at other
deposits, and the mineral separation plant has been designed to
cater for this.
Metallurgical recoveries have not been considered at the Mineral
Resource estimation stage, and reported tonnes and grade are
therefore in situ. Metallurgical recoveries were applied
during the Ore Reserves estimation process. |
Environmental factors
or assumptions |
Assumptions made
regarding possible waste and process residue disposal options. It
is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider
the potential environmental impacts of the mining and processing
operation. While at this stage the determination of potential
environmental impacts, particularly for a greenfields project, may
not always be well advanced, the status of early consideration of
these potential environmental impacts should be reported. Where
these aspects have not been considered this should be reported with
an explanation of the environmental assumptions made. |
Thickened clay tailings
are being disposed inside a tailing storage facility that was
constructed from sand tailings. The construction of the
facility was completed in 2018. Since then, sand tailing has
taken place in the Kwale Central mined void. Mineral
separation plant tailing is disposed with the sand tails. |
Bulk density |
Whether assumed or
determined. If assumed, the basis for the assumptions. If
determined, the method used, whether wet or dry, the frequency of
the measurements, the nature, size and representativeness of the
samples.
The bulk density for bulk material must have been measured by
methods that adequately account for void spaces (vugs, porosity,
etc.), moisture and differences between rock and alteration zones
within the deposit.
Discuss assumptions for bulk density estimates used in the
evaluation process of the different materials. |
An extensive program of
test work was designed by GNJ Consulting and implemented by Base
Resources utilising a procedure to collect Troxler nuclear density
meter measurements and HM and SL assays. These were used in the
development of an algorithm to estimate the bulk density of in situ
material within the deposit based on variable HM and clay (SL).
This sampling was undertaken within the mineralised ore zones of
the Kwale Central Dune deposit during mining operations and
representative sampling was undertaken for those domains.
The style of mining has since changed from bulldozers to hydraulic
mining, making it impossible to collect similar troxler data from
the floor of the pit. It was considered appropriate to
utilise the new bulk density algorithm for the Kwale South Dune
deposit given that the geological units are closely related and
part of the same sequence (given the close local proximity this was
also a reasonable assumption).
Assumptions were made regarding packing factor of sand, bulk
density of HM, sand and clay in the development of the bulk density
algorithm. The algorithm was refined using nuclear density
meter measurement of the soil profile being sampled.
The use of a bulk density algorithm is considered industry standard
practice for the estimation of mineral sands Mineral
Resources. However, the algorithm derived for Kwale Central
has been found by monthly mine reconciliations in 2019 to be
exaggerating the bulk density by approximately 5%. Therefore,
the decision was made to cut the algorithm derived bulk densities
by 5% and re-estimate the resource in 2020. The 2021 Mineral
Resources estimate is unchanged from the 2020 estimate, apart from
depletion by mining or sterilisation. |
Classification |
The basis for the
classification of the Mineral Resources into varying confidence
categories.
Whether appropriate account has been taken of all relevant
factors (i.e. relative confidence in tonnage/grade estimations,
reliability of input data, confidence in continuity of geology and
metal values, quality, quantity and distribution of the
data).
Whether the result appropriately reflects the Competent Person’s
view of the deposit. |
The classification for
the 2021 Kwale South Dune Mineral Resources estimate was based on
the following criteria: drill hole spacing; experimental
semi-variograms; the quality of QA/QC processes; post-depositional
modification and the distribution of mineral assemblage
samples.
The classification of the Measured and Indicated Mineral Resources
for the 2021 Kwale South Dune Mineral Resources estimate were
supported by all of the criteria as noted above.
The Competent Person considers that the result appropriately
reflects a reasonable view of the deposit categorisation. |
Audits or
reviews. |
The results of any
audits or reviews of Mineral Resources estimate. |
SRK undertook an audit
of the resource estimate and found it to be suitable for reserve
optimisation. |
Discussion of
relative accuracy/ confidence |
Where appropriate a
statement of the relative accuracy and confidence level in the
Mineral Resources estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the application
of statistical or geostatistical procedures to quantify the
relative accuracy of the resource within stated confidence limits,
or, if such an approach is not deemed appropriate, a qualitative
discussion of the factors that could affect the relative accuracy
and confidence of the estimate.
The statement should specify whether it relates to global or
local estimates, and, if local, state the relevant tonnages, which
should be relevant to technical and economic evaluation.
Documentation should include assumptions made and the procedures
used.
These statements of relative accuracy and confidence of the
estimate should be compared with production data, where
available. |
Variography was
completed for the 2021 Kwale South Dune Mineral Resources
estimate. Results of variography, qualitative assessment of
the Mineral Resource estimate and comparison with previous resource
estimates indicates the robustness of this particular resource
estimation exercise.
The estimates are global.
Trial mining and pilot plant-scale mineral processing of Kwale
South Dune ore has shown it to be similar to the Kwale Central Dune
Ore Zone 1 material currently being mined and fed to the MSP.
No alteration to the MSP was made for treatment of the South Dune
ore. |
Section 4 Estimation and Reporting of
Ore Reserves
Criteria |
Explanation |
Comment |
Mineral Resource
estimate for conversion to Ore Reserves |
Description of the
Mineral Resource estimate used as a basis for the conversion to an
Ore Reserve.
Clear statement as to whether the Mineral Resources are reported
additional to, or inclusive of, the Ore Reserves. |
The 2021 Kwale South
Dune Mineral Resources estimate by Base Resources, reported at 30
June 2021, was used as the basis for this Ore Reserve.
This Mineral Resource estimate was based on that disclosed to the
market on 4 October 2017 but with adjustment to bulk density,
adjustments for boundary change to PL119 and adjustments for mining
depletion to 30 June 2021.
Mineral Resources are reported inclusive of the Ore Reserves. |
Site visits |
Comment on any site
visits undertaken by the Competent Person and the outcome of those
visits.
If no site visits have been undertaken indicate why this is the
case. |
One of the competent
persons visits frequently during the operational phase. |
Study status |
The type and level
of study undertaken to enable Mineral Resources to be converted to
Ore Reserves.
The Code requires that a study to at least Pre-Feasibility Study
level has been undertaken to convert Mineral Resources to Ore
Reserves. Such studies will have been carried out and will have
determined a mine plan that is technically achievable and
economically viable, and that material Modifying Factors have been
considered. |
The most recent study
prior to operations commencing was a detailed feasibility study
(DFS).
The project is now operational and study inputs are based on
operational costs, design, and mine plan.
Mining operations has used HMU’s exclusively since July 2018. |
Cut-off
parameters |
The basis of the
cut-off grade(s) or quality parameters applied. |
Cut-off is economic by
maximum cash flow method. A value model is constructed that assigns
costs and revenue after application of appropriate process
recoveries.
There is no ore/waste delineation within the pit design due to the
mining method employed (non-selective) and dunal
mineralization. |
Mining factors or
assumptions |
The method and
assumptions used as reported in the Pre-Feasibility or Feasibility
Study to convert the Mineral Resource to an Ore Reserve (i.e.
either by application of appropriate factors by optimisation or by
preliminary or detailed design).
The choice, nature and appropriateness of the selected mining
method(s) and other mining parameters including associated design
issues such as pre-strip, access, etc.
The assumptions made regarding geotechnical parameters (e.g. pit
slopes, stope sizes, etc.), grade control and pre-production
drilling.
The major assumptions made and Mineral Resource model used for
pit and stope optimisation (if appropriate).
The mining dilution factors used.
The mining recovery factors used.
Any minimum mining widths used.
The manner in which Inferred Mineral Resources are utilised in
mining studies and the sensitivity of the outcome to their
inclusion.
The infrastructure requirements of the selected mining
methods. |
Mineral Resources were
converted to Ore Reserves by pit optimisation as a guide for
detailed design and scheduling. Potential pit shells were
created by decreasing the revenue by 1% intervals and scheduled at
a high level. These were short listed by analysis of various
factors including NPV, IRR, revenue:cost ratio, marginal cashflow,
product output production rates etc. The schedules for the
short-listed shells were input to the project financial model and
the ultimate shell for detailed mine planning and scheduling
selected.
Schedule physicals have then been incorporated into the Kwale
operating financial model and assessed against up-to-date
inputs.
Mining of the Kwale South dune is undertaken solely by HMU methods.
The HMU mining method has achieved all design throughput rates
since commencement of operations at Kwale South.
The Mineral Resources model used throughout the study mine planning
work was kwsth_171001.mdl.
The pit slopes are currently about 50 degrees in Ore 1 and Ore 4 at
the South Dune. The pit optimisation used a more conservative slope
angles of 35 degrees for South Dune.
The ore is scheduled to be mined in a radial extraction centred on
proposed HMU sump locations. Sump locations have been estimated by
considering low points in the economic mineralisation, constrained
to larger mining blocks defined by watershed analysis of the lower
ore surface. These larger blocks vary in dimension due to the
surface undulation, however the smallest of those remaining to be
mined is 31Ha in plan area. The size of these blocks is not
considered to represent any concerns with respect to minimum mining
width and the proposed HMU method demonstrates the selectivity
required to mine to the pit extents, even at the boundaries of the
dune mineralisation where the depth of pit is low.
No inferred material is included in the Ore Reserve estimate.
There is no ore/waste discrimination and sub-economic material that
cannot be selectively mined is included as planned dilution in the
ore feed.
Mining recovery of hardness > 2 material is largely discounted
by raising pit floor to exclude from design. Small amounts of this
material (representing less than 1% of the pit inventory) report
fully inside the pit design on a localised basis, however these
have been excluded from the process feed and Ore Reserve estimate
as being unrecoverable using a HMU mining method.
Mining recovery makes provision for a 0.2 m topsoil profile which
is excluded from reported ore material.
All infrastructure is in place and operational. |
Metallurgical factors
or assumptions |
The metallurgical
process proposed and the appropriateness of that process to the
style of mineralisation.
Whether the metallurgical process is well-tested technology or
novel in nature.
The nature, amount and representativeness of metallurgical test
work undertaken, the nature of the metallurgical domaining applied
and the corresponding metallurgical recovery factors
applied.
Any assumptions or allowances made for deleterious
elements.
The existence of any bulk sample or pilot scale test work and
the degree to which such samples are considered representative of
the orebody as a whole.
For minerals that are defined by a specification, has the ore
reserve estimation been based on the appropriate mineralogy to meet
the specifications? |
The ore is processed
via screens, thickeners, and spirals, as in almost every other
mineral sands operation to produce a concentrate. Concentrate
is processed using magnetic and conductor separators to produce
ilmenite and rutile products. The remaining material is
further processed using classifiers, wet tables and cleaned with
conductor separators to produce zircon and recover additional
rutile. This is not an unusual process for mineral sands but
has been tailored to suit the higher-than-normal proportion of
kyanite, which has similar physical properties to zircon.
The plant design was based on the results of metallurgical test
work conducted as part of the definitive feasibility study.
Test work on site is ongoing to find ways to improve zircon and
rutile recovery.
Wet Plant Recovery used is 94%, 90%, and 94.5% for Ilmenite, Rutile
and Zircon respectively.
Dry Plant Recovery used is 100%, 99%, and 77% for Ilmenite, Rutile
and Zircon respectively.
Plant recoveries used are supported by actual operating recoveries
currently achieved by the operation, with wet plant recoveries
discounted due to projected reduced feed HM grade associated with
the lower grade South Dune Mineral Resources. Actual MSP mineral
recoveries are currently higher than the pit optimisation inputs as
separation efficiency has improved since feeding the Kwale South
ore. |
Environmental |
The status of
studies of potential environmental impacts of the mining and
processing operation. Details of waste rock characterisation and
the consideration of potential sites, status of design options
considered and, where applicable, the status of approvals for
process residue storage and waste dumps should be
reported. |
All environmental
approvals are in place and appropriate monitoring and reporting
processes implemented. There is no waste material.
There are two tailings streams: sand and clay. The sand tails are
clean sand having been washed in concentrator. The clay tails are
flocculated and thickened prior to pumping. There is an approved
tailing storage facility, which is a dam with walls constructed
from sand tails to contain the clay tails. |
Infrastructure |
The existence of
appropriate infrastructure: availability of land for plant
development, power, water, transportation (particularly for bulk
commodities), labour, accommodation; or the ease with which the
infrastructure can be provided, or accessed. |
The Kwale Operations
processing plant has been in operation since 2013. All
infrastructure required to service processing plant is in
existence, including a 132kV power line, an 8Gl dam on the
Mukurumudzi River and supplementary bore field for all water
requirements, a camp to house operational shift workers, an 8km
bitumen access road from the highway for finished product
transportation to the Likoni port and a dedicated ship loading
facility. |
Costs |
The derivation of,
or assumptions made, regarding projected capital costs in the
study.
The methodology used to estimate operating costs.
Allowances made for the content of deleterious elements.
The source of exchange rates used in the study.
Derivation of transportation charges.
The basis for forecasting or source of treatment and refining
charges, penalties for failure to meet specification, etc.
The allowances made for royalties payable, both Government and
private. |
Capital has been
expended and is sunk.
Operating costs were collated and supplied by the site operations
team.
Deleterious minerals kyanite and monazite are present. A
large section of the plant is devoted to separating kyanite from
zircon. Monazite is present in small amounts and it is mixed
with the slime tails and disposed of.
All Revenue and Costs inputs are in USD.
The cost of transportation from the plant to the port is in
accordance with the transport contract.
Ad valorem royalties of 2% are paid to private royalty holders on
products mined from SML 23 as it existed in 2010 when the Kwale
Project was acquired. A royalty of 5% has been assumed
to be payable to the Government of Kenya. Discussions with
the Government of Kenya on the royalty regime in line with the
terms of SML 23 are ongoing. |
Revenue
factors |
The derivation of,
or assumptions made regarding revenue factors including head grade,
metal or commodity price(s) exchange rates, transportation and
treatment charges, penalties, net smelter returns, etc.
The derivation of assumptions made of metal or commodity
price(s), for the principal metals, minerals and
co-products. |
Product price forecasts
were based on the Company’s internal price assumptions over the
period for which Kwale South Dune Ore Reserves are projected to be
mined.
Straight line product prices were used for mine planning studies
(optimization, value modelling) and a variable price deck used for
final economic modelling. |
Market
assessment |
The demand, supply
and stock situation for the particular commodity, consumption
trends and factors likely to affect supply and demand into the
future.
A customer and competitor analysis along with the identification
of likely market windows for the product.
Price and volume forecasts and the basis for these
forecasts.
For industrial minerals the customer specification, testing and
acceptance requirements prior to a supply contract. |
Ilmenite and rutile are
primarily used as feedstock to produce titanium dioxide
(TiO2) pigment, with a small percentage also used in the
production of titanium metal and fluxes for welding rods and
wire. TiO2 is the most widely used white pigment
because of its non-toxicity, brightness, and very high refractive
index. It is an essential component of consumer products such
as paint, plastics, and paper. Pigment demand is therefore
the major driver of ilmenite and rutile pricing.
Demand for mineral sands products has generally been closely linked
to growth in global GDP. Historically demand has grown on
average at 3% per annum. This became more volatile in recent
years due to very large swings in re-stocking and de-stocking
events throughout the supply chains during and following the global
financial crisis. Demand had begun re-aligning with GDP in
recent years but a short-term departure of the relationship with
GDP is likely to re-occur to some extent during the economic
volatility caused by Covid-19.
Base Resources performs its own internal assessment of the market
and also subscribes to the various market outlook and commentaries
provided by TZMI and other independent sources. The latest
consensus indicates prices for rutile and zircon strengthening over
the period to 2023, while ilmenite is expected to weaken slightly
in the same period. |
Economic |
The inputs to the
economic analysis to produce the net present value (NPV) in the
study, the source and confidence of these economic inputs including
estimated inflation, discount rate, etc.
NPV ranges and sensitivity to variations in the significant
assumptions and inputs. |
As an operating mine
with sunk construction cost, optimisation inputs are based on
actual operating costs, design and mine plan, together with Base
Resources’ internal price forecasts. Economic analysis has been
conducted by incorporating these inputs into the Kwale Operations
life of mine financial model.
Economic analysis is based on discounted operating cash flows (at
10% discount rate) and sensitivities +/- 30% have been conducted on
individual product Revenues and operating costs. The project
returns a positive operating NPV under the range of sensitivity
factors assessed.
A ‘stressed’ low product price deck has also been considered in the
schedule model economic analysis (reflecting total revenue at 60%
of study base case assumptions) and the project remains
operationally cash positive under this scenario. |
Social |
The status of
agreements with key stakeholders and matters leading to social
licence to operate. |
Base Resources has all
agreements in place to allow ongoing mining and processing.
The company operates a comprehensive Stakeholder Engagement Plan in
concert with a Community Development Plan. Close liaison with
stakeholders is maintained through the operation of series of
liaison committees representing those affected by the mine’s
presence. |
Other |
To the extent
relevant, the impact of the following on the project and/or on the
estimation and classification of the Ore Reserves:
Any identified material naturally occurring risks.
The status of material legal agreements and marketing
arrangements.
The status of governmental agreements and approvals critical to
the viability of the project, such as mineral tenement status, and
government and statutory approvals. There must be reasonable
grounds to expect that all necessary Government approvals will be
received within the timeframes anticipated in the Pre-Feasibility
or Feasibility study. Highlight and discuss the materiality of any
unresolved matter that is dependent on a third party on which
extraction of the reserve is contingent. |
The material legal
agreements relating to the Kwale Operation are SML 23 and
Investment Agreement with the Government of Kenya. Both legal
instruments remain valid, legally binding, and enforceable as
warranted by the Government most recently in September 2012 in a
direct agreement with Base Resources and its lenders.
A portion of the estimated Ore Reserves are presently outside the
boundary of SML23. The Company is working through mining
tenure arrangements with the Kenyan Ministry of Petroleum and
Mining to extend the SML 23 boundary to incorporate those estimated
Ore Reserves. As previously disclosed, the Cabinet Secretary for
the Ministry of Petroleum and Mining has stated publicly that the
proposed SML 23 extension has been approved and Base Titanium is
working with the Government to finalise the form of Deed of
Variation that will give effect to the proposed
extension.
The Company is also working with the Kenyan National Environmental
Management Authority with respect to its application for the
necessary environmental permitting (an EIA Licence) to mine the
estimated Ore Reserves that fall outside the current boundary of
SML 23. The Company anticipates receiving the necessary EIA
Licence in the near term. |
Classification |
The basis for the
classification of the Ore Reserves into varying confidence
categories.
Whether the result appropriately reflects the Competent Person’s
view of the deposit.
The proportion of Probable Ore Reserves that have been derived
from Measured Mineral Resources (if any). |
Based on the geological
resource estimation categories: Measured = Proved, Indicated =
Probable, Inferred = excluded from Ore Reserves estimation.
The classification appropriately reflects the Competent Person’s
view of the deposit.
No Probable Ore Reserves have been derived from Measured Mineral
Resources. |
Audits or
reviews |
The results of any
audits or reviews of Ore Reserve estimates. |
No audit or review of
this Ore Reserves estimate has been undertaken. |
Discussion of
relative accuracy/ confidence |
Where appropriate a
statement of the relative accuracy and confidence level in the Ore
Reserve estimate using an approach or procedure deemed appropriate
by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative
accuracy of the reserve within stated confidence limits, or, if
such an approach is not deemed appropriate, a qualitative
discussion of the factors which could affect the relative accuracy
and confidence of the estimate.
The statement should specify whether it relates to global or
local estimates, and, if local, state the relevant tonnages, which
should be relevant to technical and economic evaluation.
Documentation should include assumptions made and the procedures
used.
Accuracy and confidence discussions should extend to specific
discussions of any applied Modifying Factors that may have a
material impact on Ore Reserve viability, or for which there are
remaining areas of uncertainty at the current study stage.
It is recognised that this may not be possible or appropriate in
all circumstances. These statements of relative accuracy and
confidence of the estimate should be compared with production data,
where available. |
There are no
assumptions used in this Ore Reserves estimate that differ from
current operating practice and hence subject to a greater degree of
uncertainty.
The statement refers to global estimates.
Mining rates for the financial year to 30 June 2021 exceeded
budget.
For the financial year to 30 June 2021 actual ore tonnes mined was
92.5% of the total depletion of the Ore Reserve model.
For the same period, concentrator recovery of valuable HM was 3.3%
below budget and mineral separation plant recoveries were between
0.4 and 1.4% greater than budget. |
Glossary
Assemblage |
The relative proportion of valuable
heavy mineral components of ilmenite, rutile, zircon and, where
applicable, leucoxene. |
Competent Person |
The JORC Code requires that a
Competent Person be a Member or Fellow of The Australasian
Institute of Mining and Metallurgy, 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 |
The lowest grade of mineralised
material that is thought to be economically mineable and
available. Typically used by Base Resources to define which
material is reported in a Mineral Resource estimate. |
DTM |
Digital Terrain Model. |
Grade |
A physical or chemical measurement
of the characteristics of the material of interest. In this
context, the grade is always a percentage and the characteristics
are heavy mineral, oversize, slime and the various product minerals
(ilmenite, rutile etc). |
Heavy mineral |
In mineral sands, minerals with a
specific gravity greater than 2.85 t/m3. |
ILM |
Ilmenite, a valuable heavy
mineral. |
Indicated Resource or
Indicated |
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 or
Inferred |
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. |
Inverse distance
weighting |
A statistical interpolation method
whereby the influence of data points within a defined neighbourhood
around an interpolated point decreases as a function of
distance. |
JORC Code |
The Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves 2012
Edition, 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. |
LIDAR survey |
LIDAR is a remote sensing technology
that measures distance by illuminating a target with a laser and
analysing the reflected light to produce a DTM. |
Measured Resources or
Measured |
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. |
Minmod |
A company developed mineralogy
modelling technique, it comprises an XRF analysis of the magnetic
and non-magnetic fractions of each composite or sample, the results
from which are then back-calculated to determine in-ground
mineralogy. |
Ore Reserves |
Ore Reserves are the economically
mineable part of Measured and/or Indicated Mineral Resources. |
OS |
Oversize material. |
Probable Reserve or
Probable |
A Probable Ore Reserve is the
economically mineable part of an Indicated, and in some
circumstances, a Measured Mineral Resource. The confidence in
the Modifying Factors applying to a Probable Ore Reserve is lower
than that applying to a Proved Ore Reserve. |
Proved Reserve or
Proved |
A Proved Ore Reserve is the
economically mineable part of a Measured Mineral Resource. A Proved
Ore Reserve implies a high degree of confidence in the Modifying
Factors. |
QEMSCAN |
Is an acronym for Quantitative
Evaluation of Materials by Scanning Electron Microscopy, an
integrated automated mineralogy and petrography solution providing
quantitative analysis of minerals and rocks. |
QQ plot |
Quantile quantile plot. Used
to graphically compare data distributions. |
RL |
The term Reduced Level is denoted
shortly by 'RL'. National survey departments of each country
determine RL's of significantly important locations or
points. RL is used to describe the relative vertical position
of drill collars. |
RTK |
Real time kinematic DGPS uses a base
station GPS at a known point that communicates via radio with a
roving unit so that the random position error introduced by the
satellite owners may be corrected in real time. |
RUT |
Rutile, a valuable heavy
mineral. |
SEM, SEM EDX |
A Scanning Electron Microscope is a
type of electron microscope that produces images of a sample or
minerals by scanning the surface with a focused beam of
electrons. EDX is short for energy dispersive X-ray and is
commonly used in conjunction with SEM. |
SL |
Slimes, being a waste product from
the processing of mineral sands. |
Sterilisation |
Material or Ore that is depleted
from Mineral Resources or Ore Reserves, but which was not
mined. This material still remains in ground but mining has
passed by and, in the competent person’s opinion, it has no
reasonable prospects for eventual economic extraction. |
Variography |
A geostatistical
method that investigates the spatial variability and dependence of
grade within a deposit. This may also include a directional
analysis. |
XRF
analysis |
A spectroscopic method
used to determine the chemical composition of a material through
analysis of secondary X-ray emissions, generated by excitation of a
sample with primary X-rays that are characteristic of a particular
element. |
ZIR |
Zircon, a valuable
heavy mineral. |
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 Gareth Tredway |
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 3, 46 Colin Street
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
JOINT BROKER
Berenberg
Matthew Armitt / Detlir Elezi
Phone: +44 20 3207 7800
JOINT BROKER
Canaccord Genuity
Raj Khatri / James Asensio /
Patrick Dolaghan
Phone: +44 20 7523 8000