Base Resources BSE Kwale 2

Base Resources (ASX:BSE) has announced an updated resource estimate on the Kwale North Dune zone of its Kwale mineral sands project in Kenya. Base had been looking for satellite zones that could be mined in order to extend the useful mine life of Kwale, where the company has been focusing on the Central Dune, before moving over to the South Dune zone later this month.

Unfortunately this zone will be mined out by 2024 (and the mine life extension from 2022 to 2024 will depend on the government approval of a change to the mining lease), so Base has to find new zones if it wants to continue mining operations at Kwale beyond that year.

Base Resources BSE Kwale

The 171 million tonne resource at the North Dune could be an interesting option, but the average grade of 1.5% Heavy Minerals appears to be a bit on the lower end. Additionally, the slime level of 38% isn’t low either, so Base will have to figure out how it can tackle that issue but according to the company, the high slime level shouldn’t be an issue as it should still be possible to use hydraulic mining.

Go to Base’s website
The author has no position in Base Resources. Please read the disclaimer

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