1st Oct 2015 10:00
LONDON (Alliance News) - Base Resources Ltd Thursday said it has received and updated mineral resource and ore reserve for the Kwale mineral sands project in Kenya, which has lowered the amount of ore and average grade at the project compared to the report published in 2014.
The miner said the new mineral resource at the project stands at 143.0 million tonnes of ore at an average heavy mineral grade of 4.4%. That compares to the study in 2014 which stated the resource stood at 152.7 million tonnes of ore at a heavy mineral grade of 4.7%.
Of the total resource, measured resources comprised 114.8 million tonnes of ore at a grade of 4.9%, down from 123.9 million tonnes at a grade of 5.2%. The indicated resource made up the balance of 28.3 million tonnes of ore at a grade of 3%, compared to 28.9 million tonnes at a grade of 3% reported in 2014.
The total ore reserve came in at at 110.4 million tonnes of ore at an average heavy mineral grade of 5% from 136.1 million tonnes at an average grade of 4.8%.
That comprised of proven reserves of 95.0 million tonnes at an average grade of 5.3%, up from 82.5 million tonnes with the same 5.3% grade with the balance being made up of probable ore reserves of 15.4 million tonnes at a grade of 3.4%, significantly down from 53.6 million tonnes of ore at a grade of 4%.
Both the mineral resource and ore reserve are JORC compliant, which is the worldwide reporting standard for companies. The mineral resource is the material that have reasonable prospects for eventual economic extraction whilst the ore reserve are the parts of a mineral resource that can at present be economically mined.
Base Resources shares were down 4.0% to 3.0 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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