21st Mar 2019 11:37
LONDON (Alliance News) - Base Resources Ltd on Thursday said its new pre-feasibility for the Toliara project confirms its position as one of the best of its kind in the world.
The pre-feasibility study for the Madagascan mineral sands project gives a post-tax, pre-debt net present value of USD671 million.
The mineral resources at Toliara are 588 million tonnes of ore at a grade of 6.6% heavy mineral, with a life-of-mine of 33 years.
This would give revenue of USD292 million over the period, free cash flow of USD3.70 billion, and a cash margin of USD197 per tonne produced.
Base would expect to produced 806,000 tonnes of ilmenite, a titanium ore, per year as well as 54,000 tonnes of zircon and 8,000 tonnes of rutile.
The cost of the first stage of development, Base said, would be around USD439 million to build a 13 million tonne of ore per year site, and then another USD67 million to increase this capacity to 19 million tonnes a year.
Managing Director Tim Carstens said: "We are delighted to be able to share these pre-feasibility study findings. They confirm our long-held view, which informed the project's acquisition by Base Resources in early 2018, the Toliara project is one of the best mineral sands development opportunities in the world.
"The release of the pre-feasibility study findings today is a significant milestone for Base Resources as it provides a clear basis for understanding our value proposition as we progress towards becoming a multi-operation mining company."
Shares were 1.8% higher on Thursday at a price of 14.50 pence each.
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