27th Sep 2021 12:49
Base Resources Ltd - mineral sands developer with assets in Kenya and Madagascar - Updates estimate of Ranobe mineral resources and ore reserves at its 100% owned Toliara project in Madagascar. The minerals resources almost double to 2.6 million tonnes, at an average heavy mineral grade of 4.3%.
Ore reserves estimate increases to 904 million tonnes at an average heavy mineral grade of 6.1% - a 45% increase in contained heavy mineral, company says.
Executive Director Operations & Development Colin Bwye says: "The true size and value of the Ranobe mineral sands deposit is only just beginning to reveal itself, as evidenced by the significant increase in the Ranobe mineral resources and ore reserves estimates, with more expected to come once we can complete the mineralogy work required to incorporate the lower sandy unit which holds great potential.
"Encouraged by this, and the expected future supply deficit in mineral sands markets, we have taken the opportunity to scale up the Toliara Project in DFS2."
Notes the project now supports average annual production of 960,000 tonnes of ilmenite, 66,000 tonnes of zircon and 8,000 tonnes of rutile, with the first 10 years of stage 2 operations.
"While the initial stage 1 capital cost estimate has increased by USD78 million to USD520 million, primarily driven by sector-wide cost escalation for capital development, the economics of the project have been substantially enhanced," Bwye adds.
Managing Director Tim Carstens says project has net present value and free cash flow generated of almost USD6 billion over the life of the project.
Current stock price: 14.90 pence, up 6.4% on Monday
Year-to-date change: down 2.3%
By Paul McGowan; [email protected]
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