Base Resources Limited FY24 Production Guidance - Kwale Operations

 
TIDMBSE 
 
AIM and Media Release 
 
26 June 2023 
 
BASE RESOURCES LIMITED 
FY24 Production Guidance - Kwale Operations 
 
African mineral sands producer, Base Resources Limited (ASX & AIM: BSE) (Base 
Resources or the Company) provides production guidance for the 2024 financial 
year (FY24) for its Kwale Operations in Kwale County, Kenya. 
 
The FY24 production guidance is set out in the table below, with the Company's 
2023 financial year (FY23) production guidance shown alongside for comparison 
purposes.  The FY23 production guidance remains unchanged from that last 
reported. 
 
The FY24 guidance reflects the planned continuation of the concurrent mining of 
the South Dune and the P199 and P200 pits on the North Dune, which began in 
February 2023, until the South Dune is fully depleted.  This is expected to 
occur in March 2024, at which point, the South Dune mining operation will 
transition to the Bumamani orebody, with mining at the North Dune continuing 
uninterrupted - refer to the map included in the full PDF version of this 
release, available from the Company's website (https://baseresources.com.au/ 
investors/announcements/), for the location of mining operations during FY24. 
 
 
The FY24 production guidance is lower than the FY23 guidance due to: 
 
  * Lower heavy mineral grades - the remaining sections of the South Dune and 
    the areas of the North Dune and Bumamani ore bodies proposed to be mined 
    are estimated to have lower heavy mineral (HM) grades than the grades 
    historically mined at Kwale Operations. 
  * Lower tonnes mined - since commencement of mining at the North Dune in 
    February 2023 and as disclosed in the March 2023 Quarterly Activities 
    Report1, mining rates have been lower than expected in the lower ore zones 
    due to elevated oversize and slimes.  While some improvements in mining 
    rates have been achieved, mining rates are still anticipated to be lower 
    than FY23. 
  * Mining availability - a shutdown of half the mining operation is 
    anticipated to occur in March 2024 for the relocation of the South Dune 
    hydraulic mining units and slurry collection hopper to the Bumamani 
    orebody. 
  * New orebody - the normal uncertainties associated with mining a new orebody 
    (Bumamani) have been factored into the FY24 guidance. 
 
PRODUCTION GUIDANCE (tonnes)               FY23                           FY24 
                                      Guidance Range                 Guidance Range 
 
Rutile                               62,000 to 73,000               35,000 to 41,000 
 
Ilmenite                            260,000 to 310,000             130,000 to 160,000 
 
Zircon                               22,000 to 27,000               13,000 to 16,000 
 
The FY24 production guidance is based on the following assumptions: 
 
  * Mining of 14.1Mt at an average HM grade of 2.23%. 
  * Heavy mineral concentrate (HMC) produced by the wet concentrator plant of 
    311kt. 
  * HMC fed into the mineral separation plant (MSP) of 297kt. 
  * MSP product recoveries of 101% for rutile, 101.5% for ilmenite and 84.5% 
    for zircon. 
 
[Note (1): Refer to Base Resources' announcement on 26 April 2023, "Quarterly 
Activities Report - March 2023".] 
 
Forward looking statements 
 
Certain statements in or in connection with this release contain or comprise 
forward looking statements.  Such statements may include, but are not limited 
to, statements with regard to future production and grades, capital cost, 
capacity, sales projections and financial performance and may be (but are not 
necessarily) identified by the use of phrases such as "will", "expect", 
"anticipate", "believe" and "envisage".  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 today's 
date or to reflect the occurrence of unanticipated events. 
 
ENDS. 
 
For further information contact: 
 
Australian Media Relations                         UK Media Relations 
 
Citadel Magnus                                     Tavistock Communications 
 
Cameron Gilenko and Michael Weir                   Jos Simson and Gareth Tredway 
 
Tel: [phone]                               Tel: [phone] 
 
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, 
is developing the Toliara Project in Madagascar and is conducting exploration 
in Tanzania.  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:  [e-mail] 
Phone: [phone] 
Fax: [phone] 
 
NOMINATED ADVISER & JOINT BROKER 
Canaccord Genuity Limited 
James Asensio / Raj Khatri / Patrick Dolaghan 
Phone: [phone] 
 
JOINT BROKER 
Berenberg 
Matthew Armitt / Detlir Elezi 
Phone: [phone] 
 
 
 
END 
 
 

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June 26, 2023 02:00 ET (06:00 GMT)