14th Oct 2014 09:37
LONDON (Alliance News) - Base Resources Ltd Tuesday said the mineral resource at its wholly owned Kwale project in Kenya has increased following new drilling, assaying and mineralogical testwork over the last 12 months.
The updated mineral resource, including the depletion of mining of 360,000 tonnes of heavy minerals, has increased by 5% for total mineral tonnes and a 2% increase for heavy mineral tonnes. Once the depletion of mining has been excluded, the mineral resource has increased by 8% for material tonnes and 7% for heavy mineral tonnes compared to the previous mineral resource declared at the beginning of the project, it said in a statement.
Depletion is the using up of natural resources by mining, quarrying or drilling. The depletion deduction allows an owner or operator to account for the reduction of a project's reserves.
As at June 30, the total mineral resource at the Kwale project was 152.7 million tonnes, comprising of 7.75 million heavy mineral tonnes and 26% slimes, a type of tailing, containing 7.25 million heavy mineral tonnes.
Of the total mineral resource for the project, the measured resource stands at 123.9 million tonnes at 5.2% heavy mineral tonnes, and 26% slimes containing 6.4 million heavy mineral tonnes. From the heavy mineral tonnes, 50% consists of ilmenite, 13% rutile and 6% zircon, said Base.
The indicated resource stands at 28.9 million tonnes at 3% heavy mineral tonnes and 27% slimes containing 870,000 heavy mineral tonnes.
"Compared with the previous mineral resource estimate, the new Kwale Central and South deposit Mineral Resource [the total mineral resource] estimates are dominantly measured, with accessory indicated," said Base in a statement.
From the mineral resource, 81% of material tonnes and 88% of heavy mineral tonnes are in the JORC measured category, it added.
"The ore reserves for the Kwale Project are currently being revised on the back of the updated Mineral Resource estimates. This work is anticipated to be completed over the coming months and will be reported when available," it added.
Base shares were down 4.2% to 15.57 pence per share Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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