Base Resources - Quarterly Activities Report June 2018

Base Resources - Quarterly Activities Report June 2018

Base Resources (ASX:BSE) has released its quarterly corporate, development and operational update for the three months to June 30. At the company's Kwale mineral sands operations in Kenya, the focus has been on ramping up mining rates and optimising the wet concentrator plant recoveries following commissioning of the Kwale Phase 2 upgrade. Work also continued on the Toliara mineral sands project in Madagascar, with the appointment of Lycopodium for the delivery of a pre-feasibility study.


HIGHLIGHTS

  • Further strengthening of rutile and zircon prices.
  • Record rutile production for the quarter of 24,451 tonnes.
  • Successful ramp up of mining operations following commissioning of Kwale Phase 2 optimisation project.
  • No lost time or medical treatment injuries.
  • Production for financial year 2018 consistent with guidance for all products.
  • Near mine exploration drilling continued to the north-east of Kwale Operations.
  • Appointment of a Mineral Technologies and Lycopodium partnership to deliver the Toliara Project PFS which is now underway.
  • Net debt further reduced by US$27.6 million to US$33.2 million.
  • Production guidance for financial year 2019:
    • Rutile - 88,000 to 93,000 tonnes
    • Ilmenite – 420,000 to 450,000 tonnes
    • Zircon – 32,000 to 37,000 tonnes

African mineral sands producer, Base Resources Limited (ASX & AIM: BSE) (Base Resources or the Company) is pleased to provide a quarterly corporate, development and operational update. At its Kwale Mineral Sands Operations (Kwale Operations) in Kenya, the focus has been on ramping up mining rates and optimising the wet concentrator plant (WCP) recoveries following commissioning of the Kwale Phase 2 (KP2) upgrade. The Company continued activity on its Toliara mineral sands project (Toliara Project) in the south-west of Madagascar with the appointment of a Mineral Technologies and Lycopodium partnership to deliver the Pre-Feasibility Study (PFS). On the marketing front, pricing for rutile and zircon continued to strengthen during the quarter.

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Following the successful commissioning of a second hydraulic mining unit (HMU) and upgraded WCP as part of the KP2 mine optimisation project, the Company is pleased to report achieving nameplate mining and WCP throughput rates of 2,400tph.

The second HMU is an upgraded version of the first HMU and operated at an average mining rate of 865tph in the quarter, compared to a design rate of 800tph. With three mining units operating in the quarter (two HMUs and one dozer mining unit (DMU)) a record mining volume was achieved, despite reduced mining in April due to KP2 commissioning. A third and final HMU was commissioned in July, and consequently the DMU has been removed from current service but remains on hand and available, if required.

Following the KP2 WCP upgrade, which included a 69% increase in spiral capacity, recoveries of heavy minerals (HM) to concentrate have been slightly below design levels but ongoing optimisation at the higher throughput rates and lower grades continue to yield improvements.

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