Kwale East exploration drilling update

AIM and Media Release 

3 July 2023

 

BASE RESOURCES LIMITED
Kwale East exploration drilling update

 

Key Points

  • Three areas of mineralisation have been identified for further targeted exploration – Magaoni, Masindeni and Zigira.  This follows results from 1,019 holes drilled for a total of 11,536.5m as part of the Phase 1 scout auger drilling program at the Kwale East project, adjacent to Kwale Operations.  
  • Access for exploration remains constrained, including to the highly prospective areas of Magaoni and Zigira, with landowner consents yet to be obtained for ~35% of these areas. 
  • A Phase 2 air core drilling program, focusing on the three identified exploration targets, will commence shortly.  As part of this program, the remaining ~35% of Magaoni and Zigira will be drilled as landholder consents are obtained and all Phase 1 auger holes with an average heavy mineral grade greater than 1% will be twinned to enable better sample quality and allow drilling through to basement.
  • Notable drill hole intercepts from surface included:
    • KE464 - 7.5m at an average grade of 6.3% HM in Zigira.
    • KE392 - 9m at an average grade of 4.3% HM in Zigira.
    • MH183 - 13.5m at an average grade of 3.9% HM in Magaoni.
    • KE693 – 13.5m at an average grade of 3.5% HM in Magaoni.
    • MH181 – 15m at an average grade of 3.4% HM in Magaoni.
  • Mineral assemblage analysis indicates elevated concentrations of rutile and zircon relative to the Kwale deposits currently being mined, with average ilmenite of 52%, rutile of 18% and zircon of 10% of the heavy mineral content.

 

Base Resources Limited (ASX & AIM: BSE) (Base Resources or the Company) is pleased to release initial assay results from the first phase of scout auger drilling at its Kwale East exploration project (Kwale East) in Kwale County, Kenya (Phase 1). 

 

Kwale East is located within Prospecting Licence 2018/0119 and is the eastern expression of a large, mineralised Plio-Pleistocene dune system also covering the Kwale Central, South and North Dunes and the Bumamani deposit.  Kwale East is located to the immediate east of the Company’s Kwale Operations, with distances from Kwale Operations’ processing facilities ranging from 2 to 6 km – refer to Figure 1.  Kwale East’s close proximity to Kwale Operations’ infrastructure makes it a near-term mine life extension opportunity.  

 

Details about exploration activities

 

Exploration at Kwale East started in 2015 when a regional mapping exercise and desktop geological, geographical and geomorphological investigations of the mineral potential of the late Pliocene sediments were carried out.

 

Historical geophysical surveys were reviewed but found to be insufficiently resolved.  Consequently, a new airborne survey was commissioned to cover the southern coastal plain, from Mombasa to the Tanzanian border, as aeromagnetic and radiometric surveys are known to be effective tools for exploration of strand and dune deposits.  Scout drilling targets were subsequently identified from coincident geophysical anomalism and compelling geomorphological features. 

 

In 2018, a 400m north by 100m east scout air core drilling program was completed in the northern part of Kwale East and 123 holes for 1,851.5m were drilled, with no significant continuous mineralisation intersected.  This program did not extend over other portions of Kwale East, as landowner consents for those areas were not forthcoming at that time.   

 

Following a lengthy and concerted community engagement and sensitisation program, further landowner consents began to be obtained and a scout auger drilling program was commenced over other portions of Kwale East in October 2022.  While landowner consents for large portions of Kwale East have been obtained, access to all targeted drilling areas is yet to be obtained.  Land access is a particular challenge in Magaoni and Zigira, with access to approximately 35% of the targeted areas yet to be obtained.  Based on drilling to date, the areas where access is yet to be obtained appear to cover highly prospective areas – refer to Figure 2.  Focused community engagement seeking the remaining landowner consents is ongoing and remains positive.  

 

The scout auger drilling was undertaken using the Company’s own auger rigs and personnel and covered broad areas in order to establish mineralised trends for follow-up drilling with an air core rig in the second phase of the program.  Drillhole spacing was fluid and dependant on land access.  However, where blanket access was obtained either a 100m north-south x 100m east-west grid or a 100m north-south x 50m east-west grid was achieved, depending on landowner expectations.  As at 27 June 2023, a total of 1,019 auger drill holes for 11,536.5m generating 7,691 samples, at a 1.5m downhole sample interval, have been analysed.  A further 38 auger drill holes for 391m have been completed, with assays results pending.  Refer to Figure 2 for the drill hole locations.

 

All assays were completed at the Kwale Operations laboratory.

Kwale East auger drilling activities

 

Results from Phase 1 drilling

 

Phase 1 assays confirmed the presence of HM within the different mineralised geological domains, with a peak drill hole grade of 6.3% HM, as well as a high value mineral assemblage.

 

Three targets – Magaoni, Masindeni and Zigira – were identified for follow-up drilling in phase 2 – refer to Figure 2 for the location of these targeted areas.  The considerations for target identification were grade tenor (assuming a 1% HM economic cut-off grade), as well as reasonable lateral and downhole continuity in mineralisation.

 

Drill logging identified four primary geological domains.  These are described below, also refer to Figure 3 for a type section by geological domain, Figure 4.1 for a plan view of the drill hole sections and Figures 4.2 to 4.21 for specific cross sections across each of the Magaoni, Masindeni and Zigira target areas.

 

  • Ore Zone 1 – Reddish-brown dunal sands, comprising approximately 60% of the project volume, with thicknesses of up to 18m.  This zone also has the highest HM grades.  Geologically referred to as the Margarini Formation, it is ubiquitous in the highland areas of the south-east Kenya and northern Tanzanian coast and is thought to have been deposited as coastal dunes under conditions of intense aridification and erosion.

 

  • Ore Zone 4 – Ore Zone 4 lies below Ore Zone 1 and has a distinct geological contact believed to represent a palaeo-surface.  Ore Zone 4 is often dominated by clayey-sands and variable laterisation and HM concentration is generally reduced.  The occurrence of this layer is usually not correlated with a change in the colour of sand and it may also occur at the contact with the basement. Ore Zone 4 has been domained separately to Ore Zone 1, as the quality of mineralisation is generally poorer than Ore Zone 1.

 

  • Ore Zone 20 – Ore Zone 20 is a low-slime paleo-beach sand unit representing the Pleistocene marine-cut platform between the 40-60m RL.  This marine transgression likely reworked the existing deposits, locally concentrating them into high-grade deposits.  The wave action also likely winnowed out the lighter heavy minerals like Kyanite, Garnet and Tourmaline and upgraded the ilmenite product by leaching out iron.

 

  • Basement – The basement at Kwale East is a poorly-sorted, weathered, clay, clay sand and sand.  Further to the east, a coralline limestone basement is typically encountered.  Grainsize range from clay to pebbles.  It is variably coloured in hues of red, grey and cream and carries a background concentration of HM.  It shows a poor mineral assemblage with an increased incidence of Garnet and Kyanite.  There is localised induration at the upper contact and intersection of white sand and clay is common.

 

The three Ore Zones have demonstrated economic potential following encouraging initial HM assay results.  Analysis also indicates high value mineral assemblages, with average ilmenite of 52%, rutile of 18% and zircon of 10% of the heavy mineral content.  That said, the generally shallow thickness of Ore Zone 20 may limit the tonnage potential and development where it is the primary host material.  There are also some high-slime areas in Magaoni and Masindeni which may limit development potential due to slime tails disposal constraints. 

 

Notable auger drill hole intercepts from surface across all the Ore Zones from each of the target areas are set out below. 

 

Magaoni:

 

  • MH183 13.5m at 3.9% HM
  • KE693 13.5m at 3.5% HM
  • MH181 15m at 3.4% HM
  • KE804 18m at 2.5% HM

 

Zigira:

 

  • KE464 7.5m at 6.3% HM
  • KE568 7.5m at 4.5% HM
  • KE392 9m at 4.3% HM
  • KE461 10.5m at 2.5% HM

 

Masindeni:

 

  • NE063 12m at 2.1% HM
  • NE030 10.5m at 2.1% HM
  • NE067 13.5m at 1.6% HM

 

For further details about the Phase 1 exploration results, refer to the Appendices to this announcement, comprising a table of assay results for all drill holes exceeding an average grade of 1% HM (refer to Appendix 1) and the information provided for the purposes of Sections 1 and 2 of Table 1 of the JORC Code (refer to Appendix 2).  A glossary of key terms used in this announcement is also contained below.

 

Phase 2 air core drilling and other planned activities

 

A phase 2 follow-up drill program is expected to commence in early July 2023 using an EVH 2100 air core rig (Phase 2) focusing on the three identified target areas and involve:  

 

  • drilling the remaining ~35% of the Magaoni and Zigira target areas that were not drilled in Phase 1 on a priority basis, as landowner consents are obtained;
  • infill drilling to achieve 100m north by 50m east spacing; and
  • twinning all Phase 1 auger holes with average HM grades of greater than 1% to enable better sample quality and allow drilling through to basement. 

 

Issues with the Phase 1 auger method included coarser material being under-represented in samples, holes collapsing in wet ground and the possibility of sample contamination as the auger string is pulled from the ground.  The auger drilling samples are not considered appropriate for resource estimation purposes, but have successfully delineated areas of interest for Phase 2 air core drilling.

 

As mentioned above, focused community engagement to secure exploration access to the remaining portions of the targeted areas is ongoing and remains positive.

 

Other planned activities to assist with assessment and determination of any Mineral Resources estimate are as follows:

 

  • Extension of the LIDAR DTM survey at 2m spatial resolution to cover the eastern part of Kwale East.
  • Undertaking microscopic heavy mineral logging to identify gross mineralogical changes and aid in creating robust geological boundaries.
  • Collecting large samples from test pits for bulk metallurgical and processing test work.

 

Competent Person’s Statement

 

The information in this announcement that relates to Kwale East exploration results is based on, and fairly represents, information and supporting documentation prepared by Mr. Edwin Owino.  Mr. Owino is a member of the Australian Institute of Geoscientists.  Mr. Owino is employed by Base Resources’ wholly-owned subsidiary, Base Titanium.  Mr. Owino holds equity securities in Base Resources, and is entitled to participate in Base Resources’ long-term incentive plan and receive equity securities under that plan.  Details about that plan are included in Base Resources’ 2022 Annual Report. Mr. Owino has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person for the purposes of the AIM Rules for Companies.  Mr. Owino has reviewed this announcement and consents to the inclusion in this announcement of the Kwale East exploration results and the supporting information in the form and context in which the relevant information appears.

 


Figure 1: Kwale East Project location

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Figure 2: Kwale East Project drilling location

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Figure 3: Type section for Kwale East, 12,200 North showing relationships between geological domains – x10 vertical exaggeration

 

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Figure 4.1: Plan view of the Kwale East drill hole sections (local grid transformation)

Figure 4.2: Cross section showing assayed HM grade on 11,2000N Magaoni

 

Figure 4.3: Cross section showing assayed HM grade on 11,4000N Magaoni

Figure 4.4: Cross section showing assayed HM grade on 11,550N Magaoni

 

Figure 4.5: Cross section showing assayed HM grade on 11,750N Magaoni

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Figure 4.6: Cross section showing assayed HM grade on 11,850N Magaoni

 

Figure 4.7: Cross section showing assayed HM grade on 11,950N Magaoni

Figure 4.8: Cross section showing assayed HM grade on 12,050N Magaoni

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Figure 4.9: Cross section showing assayed HM grade on 12,250N Magaoni

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Figure 4.10: Cross section showing assayed HM grade on 12,350N Magaoni

 

Figure 4.11: Cross section showing assayed HM grade on 12,450N Magaoni

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Figure 4.12: Cross section showing assayed HM grade on 12,550N Magaoni

 

Figure 4.13: Cross section showing assayed HM grade on 12,650N Magaoni

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Figure 4.14: Cross section showing assayed HM grade on 12,750N Magaoni

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Figure 4.15: Cross section showing assayed HM grade on 12,850N Magaoni

Figure 4.16: Cross section showing assayed HM grade on 12,950N Magaoni

 Figure 4.17: Cross section showing assayed HM grade on 13,750N Zigira

Figure 4.18: Cross section showing assayed HM grade on 13,950N Zigira

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 Figure 4.19: Cross section showing assayed HM grade on 14,050N Zigira

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Figure 4.20: Cross section showing assayed HM grade on 14,150N Zigira

 

Figure 4.21: Cross section showing assayed HM grade on 14,650N Masindeni

Appendix 1

 

Table 1: Kwale East drill hole table.  All drill holes have dip of -90 degrees and azimuth of 0 degrees (i.e vertical).

 

Local coordinates given to allow cross reference to cross sections, which are named after Local_Y.  The table is sorted by a rounded Local_Y and then by Local_X.  The reported intervals are combined Ore Zones averaged from the surface with a minimum 3m thickness that exceed 1% HM.  The reason for averaging from the surface is that the hydraulic mining method, which would likely be employed if any of this material were to be mined, results in the blending of the various Ore Zones.

 

Hole_ID

Arc60_X

Arc60_Y

Local_X

Local_Y

DTM_Z

From

To

Interval

Avg_HM

Avg_Slime

Avg_OS

MH022

552,075

9,514,641

5,398

10,999

35

0

3

3

1.1

17.8

1.7

MH003

552,071

9,514,786

5,296

11,103

38

0

4.5

4.5

1.1

17.2

1.5

MH018

552,144

9,514,716

5,398

11,101

36

0

3

3

1.1

4.6

2.1

MH024

552,137

9,514,855

5,299

11,199

43

0

3

3

1.1

27.4

1.7

MH002

552,211

9,514,790

5,397

11,201

37

0

3

3

1.1

15.4

1.5

GN060

551,466

9,515,746

4,201

11,402

57

0

9

9

1.4

39.5

-

GN061

551,504

9,515,713

4,252

11,403

57

0

9

9

1.5

30.0

2.6

GN062

551,540

9,515,679

4,301

11,403

53

0

9

9

1.1

20.9

1.2

GN059

551,534

9,515,891

4,154

11,555

58

0

7.5

7.5

1.2

40.6

-

GN058

551,566

9,515,852

4,203

11,548

62

0

10.5

10.5

1.3

28.0

-

GN057

551,608

9,515,820

4,256

11,552

58

0

7.5

7.5

1.6

26.4

-

GN055

551,642

9,515,789

4,302

11,553

53

0

7.5

7.5

1.1

21.6

0.8

MH317

551,294

9,516,375

3,650

11,750

56

0

3

3

2.0

27.5

1.4

MH314

551,367

9,516,308

3,749

11,750

63

0

3

3

1.5

38.3

4.5

MH313

551,405

9,516,274

3,801

11,750

63

0

3

3

1.5

47.6

3.1

KE864

551,518

9,516,172

3,952

11,751

55

0

3

3

1.4

36.0

1.6

KE863

551,553

9,516,139

4,000

11,750

49

0

9

9

1.3

26.6

1.4

GN083

551,667

9,516,036

4,154

11,752

60

0

6

6

2.2

35.1

0.9

GN072

551,702

9,516,000

4,204

11,749

64

0

13.5

13.5

2.0

23.5

1.8

GN071

551,737

9,515,968

4,251

11,749

61

0

12

12

2.1

23.5

1.5

GN065

551,776

9,515,934

4,303

11,750

56

0

7.5

7.5

1.4

26.1

1.5

GN089

552,066

9,515,667

4,697

11,749

48

0

3

3

1.1

18.7

1.3

GN090

552,103

9,515,631

4,749

11,748

46

0

3

3

1.1

21.9

0.9

MH046

552,765

9,515,096

5,598

11,801

39

0

6

6

1.0

7.0

2.9

MH321

551,288

9,516,516

3,550

11,850

57

0

4.5

4.5

1.1

4.7

1.5

MH316

551,363

9,516,449

3,651

11,850

73

0

6

6

1.3

41.4

1.1

KE862

551,398

9,516,415

3,700

11,849

73

0

10.5

10.5

1.2

27.3

2.6

KE861

551,436

9,516,381

3,750

11,850

72

0

12

12

2.4

31.0

2.5

KE790

551,472

9,516,347

3,800

11,850

69

0

10.5

10.5

1.4

25.2

3.0

KE789

551,509

9,516,314

3,850

11,850

67

0

7.5

7.5

1.2

29.7

1.1

KE719

551,546

9,516,280

3,900

11,850

69

0

7.5

7.5

1.1

28.3

1.7

KE720

551,583

9,516,246

3,950

11,850

67

0

9

9

1.0

28.4

2.2

MH319

551,621

9,516,212

4,001

11,850

62

0

4.5

4.5

1.3

37.9

1.5

MH320

551,656

9,516,178

4,050

11,850

55

0

6

6

1.2

8.6

1.4

KE718

551,393

9,516,556

3,600

11,950

73

0

9

9

1.0

24.7

1.4

KE717

551,429

9,516,523

3,650

11,950

75

0

7.5

7.5

1.0

20.7

1.0

KE716

551,466

9,516,488

3,700

11,949

75

0

15

15

1.2

27.5

1.7

KE715

551,503

9,516,455

3,750

11,950

71

0

15

15

1.9

24.9

1.5

KE714

551,540

9,516,421

3,800

11,950

72

0

15

15

1.4

23.7

2.5

KE713

551,577

9,516,387

3,850

11,950

74

0

10.5

10.5

1.2

25.9

1.4

KE712

551,614

9,516,353

3,900

11,950

71

0

9

9

1.1

25.2

1.2

MH182

551,651

9,516,319

3,950

11,950

67

0

9

9

1.1

28.6

1.6

MH185

551,688

9,516,286

4,000

11,950

64

0

6

6

1.8

33.8

3.8

MH180

551,724

9,516,252

4,050

11,950

60

0

4.5

4.5

2.2

32.2

2.4

MH179

551,762

9,516,218

4,100

11,950

56

0

7.5

7.5

1.8

16.9

2.1

GN084

551,868

9,516,119

4,246

11,949

56

0

6

6

1.1

33.0

2.1

GN085

551,910

9,516,081

4,303

11,949

57

0

4.5

4.5

1.4

26.9

1.2

GN086

551,948

9,516,047

4,353

11,950

54

0

3

3

1.2

16.2

1.3

MH318

551,673

9,516,412

3,904

12,033

74

0

7.5

7.5

1.7

24.0

1.1

MH181

551,718

9,516,394

3,950

12,050

73

0

15

15

3.4

26.2

1.7

MH183

551,755

9,516,360

4,000

12,050

72

0

13.5

13.5

3.9

25.4

2.1

KE704

551,792

9,516,326

4,050

12,050

68

0

9

9

2.6

24.4

2.4

KE705

551,829

9,516,292

4,100

12,050

64

0

6

6

1.7

32.6

2.9

MH327

551,866

9,516,258

4,150

12,050

59

0

6

6

1.4

22.3

3.9

KE813

551,123

9,517,075

3,050

12,150

64

0

3

3

1.0

16.5

1.5

KE848

552,633

9,515,692

5,099

12,151

44

0

3

3

1.1

10.3

1.6

KE814

551,228

9,517,114

3,102

12,250

76

0

9

9

1.1

37.2

2.0

KE692

551,448

9,516,913

3,400

12,250

82

0

9

9

1.0

24.6

0.9

KE691

551,484

9,516,879

3,449

12,249

81

0

6

6

1.0

22.9

0.7

KE690

551,522

9,516,845

3,500

12,250

82

0

9

9

1.0

27.1

1.2

KE693

551,775

9,516,592

3,857

12,235

79

0

13.5

13.5

3.5

18.9

1.1

KE803

551,778

9,516,592

3,860

12,237

74

0

12

12

3.5

19.9

0.8

KE706

552,296

9,516,136

4,550

12,250

55

0

3

3

1.1

18.1

1.9

KE707

552,332

9,516,100

4,601

12,248

53

0

6

6

1.1

18.7

1.9

MH187

552,443

9,516,000

4,750

12,250

54

0

7.5

7.5

1.0

17.0

2.0

MH267

551,257

9,517,222

3,050

12,350

81

0

3

3

1.1

24.7

0.5

KE723

551,515

9,516,986

3,400

12,349

81

0

6

6

1.1

21.6

0.7

KE804

551,846

9,516,684

3,848

12,351

75

0

18

18

2.5

19.9

-

KE747

551,849

9,516,684

3,850

12,352

83

0

12

12

2.0

18.1

0.9

KE753

552,065

9,516,625

4,049

12,455

75

0

12

12

2.2

20.7

0.7

MH249

552,136

9,516,553

4,150

12,450

63

0

10.5

10.5

1.4

25.8

1.2

KE703

552,173

9,516,520

4,200

12,451

65

0

9

9

1.3

21.6

1.8

MH264

552,210

9,516,486

4,250

12,450

55

0

10.5

10.5

1.2

22.0

1.9

MH263

552,250

9,516,452

4,303

12,452

52

0

6

6

1.0

6.9

1.6

MH265

552,284

9,516,418

4,350

12,450

49

0

6

6

1.2

19.0

1.6

MH198

552,430

9,516,283

4,550

12,450

52

0

4.5

4.5

1.1

12.6

3.5

KE878

552,873

9,515,878

5,150

12,450

43

0

3

3

1.0

16.2

1.4

KE865

551,835

9,516,965

3,650

12,550

70

0

3

3

1.1

28.7

0.8

KE752

552,094

9,516,728

4,001

12,550

77

0

15

15

2.3

23.0

1.6

MH229

552,130

9,516,694

4,050

12,550

76

0

15

15

1.9

23.7

1.7

KE809

552,167

9,516,661

4,100

12,550

67

0

15

15

2.5

25.1

1.9

MH174

552,204

9,516,627

4,150

12,550

69

0

13.5

13.5

1.4

23.2

1.4

KE682

552,241

9,516,593

4,200

12,550

64

0

9

9

1.6

27.5

1.3

KE681

552,277

9,516,560

4,250

12,550

63

0

9

9

1.4

21.6

2.1

MH178

552,314

9,516,525

4,300

12,550

59

0

7.5

7.5

1.1

20.3

1.9

MH175

552,351

9,516,492

4,350

12,550

55

0

6

6

1.1

11.0

1.5

MH176

552,388

9,516,458

4,400

12,550

55

0

4.5

4.5

1.1

13.2

2.6

MH205

552,536

9,516,323

4,600

12,550

44

0

4.5

4.5

1.0

7.4

2.4

MH204

552,572

9,516,289

4,650

12,550

43

0

4.5

4.5

1.2

18.5

3.4

MH203

552,609

9,516,255

4,700

12,550

43

0

4.5

4.5

1.2

21.3

1.2

MH294

552,683

9,516,188

4,800

12,550

46

0

4.5

4.5

1.1

26.8

1.9

KE830

551,350

9,517,545

2,900

12,650

87

0

15

15

1.5

19.6

0.6

KE675

551,386

9,517,511

2,950

12,650

89

0

15

15

1.3

25.0

0.6

KE677

551,423

9,517,477

3,000

12,650

84

0

13.5

13.5

1.2

23.2

1.3

KE676

551,460

9,517,443

3,050

12,649

87

0

12

12

1.1

24.6

0.9

MH171

551,497

9,517,410

3,100

12,650

87

0

16.5

16.5

1.2

24.6

1.3

MH170

551,534

9,517,377

3,150

12,650

84

0

15

15

1.1

23.8

1.9

MH166

551,607

9,517,309

3,250

12,650

84

0

12

12

1.0

24.1

1.1

KE869

552,194

9,516,772

4,045

12,651

76

0

13.5

13.5

1.2

25.6

1.6

MH275

552,308

9,516,667

4,200

12,650

62

0

13.5

13.5

1.2

22.8

1.8

MH257

552,345

9,516,633

4,250

12,650

59

0

10.5

10.5

1.3

25.3

1.6

MH256

552,382

9,516,600

4,300

12,650

55

0

7.5

7.5

1.1

22.4

1.4

MH184

552,455

9,516,532

4,400

12,650

52

0

7.5

7.5

1.2

12.1

2.2

KE835

552,640

9,516,363

4,650

12,650

47

0

4.5

4.5

1.1

16.1

2.6

MH065

553,631

9,515,523

5,948

12,700

35

0

7.5

7.5

1.2

9.0

2.5

KE678

551,597

9,517,447

3,149

12,744

76

0

4.5

4.5

1.2

24.1

0.9

MH168

551,675

9,517,383

3,250

12,750

81

0

3

3

1.1

23.3

0.7

MH258

552,006

9,517,079

3,699

12,750

66

0

4.5

4.5

1.1

37.4

1.1

KE701

552,376

9,516,737

4,203

12,748

69

0

9

9

1.0

18.3

1.8

KE697

552,412

9,516,707

4,250

12,750

64

0

7.5

7.5

1.2

22.1

1.2

KE698

552,449

9,516,673

4,300

12,750

60

0

7.5

7.5

1.1

24.3

1.3

MH156

552,927

9,516,236

4,948

12,750

48

0

6

6

1.2

21.5

1.2

MH287

552,965

9,516,200

5,000

12,750

48

0

3

3

1.1

19.8

0.8

MH143

553,147

9,516,033

5,247

12,750

48

0

4.5

4.5

1.1

13.1

1.7

KE680

551,780

9,517,422

3,300

12,850

74

0

3

3

1.5

24.7

1.2

MH172

551,927

9,517,288

3,500

12,850

67

0

3

3

1.3

5.9

1.5

MH162

551,961

9,517,255

3,547

12,850

66

0

6

6

1.2

20.8

4.2

MH246

552,332

9,516,916

4,050

12,850

75

0

16.5

16.5

1.7

21.1

1.8

KE782

552,406

9,516,848

4,150

12,850

69

0

15

15

1.1

22.2

4.0

MH335

552,627

9,516,646

4,450

12,850

51

0

7.5

7.5

1.1

14.3

1.7

MH288

553,033

9,516,274

5,000

12,850

49

0

7.5

7.5

1.2

20.2

1.3

MH148

553,068

9,516,242

5,047

12,850

50

0

4.5

4.5

1.1

22.5

1.7

KE791

552,364

9,517,023

4,001

12,950

66

0

9

9

1.0

24.2

0.9

MH157

552,988

9,516,451

4,848

12,950

50

0

7.5

7.5

1.1

25.9

1.3

MH147

553,136

9,516,314

5,049

12,949

52

0

6

6

1.1

18.8

1.7

MH145

553,283

9,516,181

5,248

12,950

48

0

3

3

1.1

20.5

1.9

MH253

552,358

9,517,165

3,901

13,050

66

0

7.5

7.5

1.1

29.5

1.3

KE727

552,431

9,517,098

4,000

13,050

68

0

4.5

4.5

1.2

22.8

1.1

KE724

552,467

9,517,063

4,050

13,050

67

0

12

12

1.1

27.3

1.6

MH283

552,799

9,516,759

4,500

13,050

46

0

4.5

4.5

1.3

17.9

4.5

MH161

553,055

9,516,524

4,848

13,049

48

0

3

3

1.0

15.1

1.5

MH233

553,094

9,516,489

4,900

13,050

48

0

6

6

1.0

20.1

5.5

MH163

553,129

9,516,457

4,947

13,050

48

0

4.5

4.5

1.2

24.3

3.2

MH153

553,277

9,516,322

5,148

13,050

45

0

4.5

4.5

1.1

9.6

3.3

MH150

553,351

9,516,255

5,247

13,051

47

0

3

3

1.1

5.7

3.1

KE796

552,425

9,517,238

3,900

13,150

57

0

3

3

1.1

32.5

2.0

MH206

552,535

9,517,137

4,050

13,150

62

0

9

9

1.1

27.1

0.8

KE726

552,646

9,517,036

4,200

13,150

65

0

10.5

10.5

1.0

26.8

1.1

MH278

552,923

9,516,782

4,575

13,150

49

0

6

6

1.2

31.3

1.2

KE822

552,959

9,516,749

4,625

13,151

49

0

7.5

7.5

1.0

26.6

2.3

MH151

553,419

9,516,328

5,248

13,151

46

0

6

6

1.1

20.1

1.9

KE780

553,045

9,516,805

4,650

13,250

55

0

6

6

1.0

15.7

1.8

MH245

553,113

9,516,879

4,650

13,350

55

0

6

6

1.1

18.1

2.0

MH280

553,217

9,516,919

4,700

13,450

47

0

7.5

7.5

1.6

12.6

3.4

KE405

552,878

9,517,365

4,149

13,550

60

0

4.5

4.5

1.0

43.4

1.0

KE889

553,322

9,516,958

4,751

13,550

47

0

6

6

1.4

10.3

6.9

KE396

552,872

9,517,505

4,049

13,649

63

0

6

6

1.2

39.4

1.6

KE560

553,164

9,517,236

4,447

13,647

64

0

6

6

1.0

33.0

1.1

KE559

553,313

9,517,097

4,651

13,646

56

0

6

6

1.0

23.2

1.4

KE558

553,387

9,517,035

4,747

13,650

50

0

6

6

1.5

14.1

3.4

KE418

553,461

9,516,967

4,848

13,650

46

0

6

6

1.6

12.8

3.4

KE394

552,864

9,517,648

3,947

13,749

66

0

9

9

1.3

29.2

2.0

KE395

552,939

9,517,581

4,048

13,750

71

0

9

9

1.0

29.9

1.2

KE397

553,014

9,517,514

4,148

13,751

72

0

7.5

7.5

1.0

37.4

1.0

KE401

553,090

9,517,447

4,250

13,753

67

0

7.5

7.5

1.1

38.0

1.1

KE568

553,526

9,517,039

4,847

13,748

47

0

7.5

7.5

4.5

19.4

4.4

KE561

552,859

9,517,790

3,848

13,851

65

0

6

6

1.1

35.5

1.9

KE462

552,932

9,517,723

3,947

13,850

70

0

15

15

1.7

27.6

1.2

KE887

553,377

9,517,315

4,551

13,850

60

0

3

3

1.3

25.3

0.5

KE880

553,414

9,517,281

4,601

13,850

68

0

7.5

7.5

1.1

29.8

1.0

KE605

553,505

9,517,326

4,638

13,945

66

0

9

9

1.1

29.2

1.7

KE376

553,556

9,517,285

4,702

13,949

67

0

9

9

1.1

29.5

1.3

KE393

553,628

9,517,222

4,798

13,951

59

0

9

9

1.1

15.8

2.2

KE392

553,700

9,517,154

4,897

13,949

53

0

9

9

4.3

11.7

4.0

NE033

552,848

9,518,071

3,650

14,050

65

0

6

6

1.2

38.0

1.7

KE461

552,994

9,517,937

3,848

14,050

75

0

10.5

10.5

2.5

32.1

2.3

KE460

553,067

9,517,870

3,947

14,050

75

0

7.5

7.5

1.2

33.1

1.8

KE459

553,142

9,517,802

4,048

14,051

76

0

7.5

7.5

1.1

33.2

1.8

KE601

553,508

9,517,463

4,546

14,048

66

0

7.5

7.5

1.2

27.9

1.9

KE375

553,658

9,517,332

4,747

14,052

71

0

7.5

7.5

1.4

28.7

1.1

KE389

553,732

9,517,262

4,848

14,050

58

0

6

6

1.2

14.8

1.8

KE390

553,768

9,517,228

4,898

14,050

52

0

7.5

7.5

1.4

19.1

7.1

KE391

553,807

9,517,194

4,949

14,051

53

0

7.5

7.5

2.0

21.3

8.5

NE032

552,842

9,518,212

3,550

14,150

66

0

4.5

4.5

1.2

39.9

2.1

NE031

552,916

9,518,144

3,651

14,150

74

0

7.5

7.5

1.1

28.7

1.5

NE030

552,990

9,518,077

3,750

14,150

74

0

10.5

10.5

2.1

24.5

1.3

KE388

553,836

9,517,298

4,900

14,147

57

0

7.5

7.5

1.6

20.3

3.8

KE387

553,869

9,517,268

4,945

14,148

52

0

9

9

1.6

24.2

7.1

KE464

553,947

9,517,200

5,048

14,150

53

0

7.5

7.5

6.3

7.8

11.3

NE038

552,393

9,518,758

2,850

14,249

81

0

10.5

10.5

1.0

27.9

0.6

NE080

552,541

9,518,624

3,050

14,250

72

0

9

9

1.2

35.8

0.6

NE079

552,614

9,518,556

3,150

14,250

69

0

6

6

1.2

37.3

0.5

NE001

552,762

9,518,421

3,350

14,250

69

0

4.5

4.5

1.5

39.8

0.8

NE063

553,057

9,518,151

3,750

14,250

81

0

12

12

2.1

24.2

2.8

KE623

553,201

9,518,007

3,953

14,242

73

0

6

6

1.1

27.0

1.3

NE078

552,688

9,518,488

3,250

14,250

69

0

9

9

1.6

37.0

1.5

KE423

553,698

9,517,632

4,573

14,300

63

0

6

6

1.2

32.9

2.2

NE009

552,609

9,518,697

3,051

14,350

79

0

18

18

1.3

28.1

-

NE066

552,683

9,518,629

3,151

14,350

83

0

6

6

1.1

25.3

0.3

NE060

552,829

9,518,495

3,349

14,350

81

0

12

12

1.4

36.2

1.4

KE573

553,637

9,517,752

4,447

14,348

66

0

4.5

4.5

1.0

27.4

2.6

KE577

553,673

9,517,718

4,497

14,347

64

0

7.5

7.5

1.0

28.4

4.6

NE037

552,382

9,519,041

2,651

14,450

90

0

9

9

1.0

31.7

0.6

NE040

552,455

9,518,973

2,751

14,449

90

0

10.5

10.5

1.0

30.1

1.0

NE019

552,602

9,518,839

2,950

14,450

82

0

18

18

1.2

25.6

0.8

NE003

552,897

9,518,568

3,350

14,450

79

0

12

12

1.2

31.9

1.3

NE007

552,971

9,518,501

3,450

14,450

79

0

3

3

1.1

23.1

-

NE006

553,045

9,518,433

3,550

14,450

80

0

4.5

4.5

1.0

30.0

0.8

KE419

553,854

9,517,691

4,648

14,450

60

0

4.5

4.5

1.2

31.3

2.6

NE065

552,670

9,518,913

2,950

14,550

86

0

12

12

1.0

32.0

1.4

NE062

552,743

9,518,845

3,050

14,549

89

0

6

6

1.0

23.1

0.5

NE067

552,965

9,518,642

3,350

14,550

84

0

13.5

13.5

1.6

28.7

1.3

NE052

553,260

9,518,372

3,750

14,550

84

0

6

6

1.1

29.8

0.9

NE072

553,334

9,518,304

3,851

14,550

85

0

9

9

1.4

30.8

1.4

NE029

552,517

9,519,189

2,650

14,651

82

0

7.5

7.5

1.2

30.5

3.1

NE015

552,664

9,519,053

2,851

14,650

82

0

10.5

10.5

1.1

35.8

1.3

NE012

552,885

9,518,851

3,150

14,650

83

0

16.5

16.5

1.1

26.3

1.1

NE008

552,959

9,518,783

3,251

14,650

80

0

16.5

16.5

1.1

33.3

-

NE055

553,033

9,518,716

3,351

14,650

85

0

13.5

13.5

1.3

28.0

1.1

NE058

553,106

9,518,648

3,450

14,650

83

0

18

18

1.7

17.6

6.7

KE378

554,431

9,517,435

5,247

14,650

50

0

12

12

1.0

32.0

1.4

NE010

553,023

9,518,857

3,248

14,748

78

0

15

15

1.1

29.0

1.0

NE057

553,100

9,518,789

3,350

14,750

80

0

12

12

1.1

32.9

1.6

NE018

553,174

9,518,722

3,450

14,750

73

0

6

6

1.0

30.9

1.6

NE011

553,021

9,518,998

3,151

14,850

79

0

15

15

1.3

29.2

1.5

NE017

553,094

9,518,931

3,250

14,850

77

0

10.5

10.5

1.0

31.3

1.0

NE036

553,242

9,518,795

3,451

14,850

74

0

13.5

13.5

1.3

30.6

1.6

NE048

553,536

9,518,526

3,850

14,850

75

0

9

9

1.1

33.2

1.4

KE428

554,642

9,517,508

5,352

14,847

49

0

4.5

4.5

1.2

26.9

1.6

NE035

553,162

9,519,004

3,251

14,950

77

0

7.5

7.5

1.1

27.2

1.1

KE640

553,599

9,518,600

3,846

14,947

76

0

4.5

4.5

1.2

28.7

1.4

KE434

554,707

9,517,589

5,346

14,951

48

0

7.5

7.5

1.4

24.3

3.3

KE441

554,841

9,517,734

5,347

15,148

54

0

4.5

4.5

1.3

21.8

1.7

KE442

554,917

9,517,669

5,447

15,151

49

0

7.5

7.5

1.0

22.8

1.7

NE054

553,069

9,519,496

2,850

15,250

75

0

3

3

1.2

34.1

3.0

NE061

553,290

9,519,293

3,150

15,250

86

0

3

3

1.2

23.3

0.4

NE025

553,512

9,519,090

3,451

15,250

81

0

3

3

1.2

24.4

0.7

KE599

554,319

9,518,348

4,547

15,248

59

0

6

6

1.0

18.8

3.7

NE056

553,991

9,519,466

3,550

15,851

78

0

6

6

1.1

40.2

1.2

 

 

Appendix 2

JORC Code - Section 1 Sampling Techniques and Data

 

Criteria

Explanation

Comment

Sampling techniques

Nature and quality of sampling (e.g., cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g., ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g., submarine nodules) may warrant disclosure of detailed information.

Mechanised auger drilling was used to obtain 1.5m samples from which approximately 4.0kg was collected via composite grab sampling of a homogenised sample to produce a sub-sample for HM analysis utilising heavy liquid separation, magnetic separation and XRF assay.

All holes were sampled over consistent 1.5m intervals.  Several programs of twin drilling of air core holes have been undertaken and, while some variability was observed, it was concluded that auger drilling is appropriate for reconnaissance drilling to identify mineralisation potential.

Samples were analysed by mineral sands industry standard techniques of screening, desliming and heavy liquid separation using SPT (sodium polytungstate: SG = 2.85g/cm3).  XRF analysis of HM magnetic fractions was used to define the VHM content.

Drilling techniques

Drill type (e.g., core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g., core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

All holes were drilled using trailer mounted mechanised auger equipment, with the fleet comprising 3 rigs utilising dead stick auger method (0.5m sample runs) and 1 rig utilising continuous flight auger method.

All holes were drilled vertically with the trailer levelled using site preparation and manual jack legs.

Hole diameter was approximately 4” or 102 mm

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Sample condition was logged at the rig as either good, moderate or poor, with good meaning not contaminated and appropriate sample size (recovery), moderate meaning not contaminated, but sample over or under sized, and poor meaning contaminated or grossly over/undersized.

It is recognised that open hole auger drilling is subject to potential sample contamination by smearing as the sample is retrieved (both methods) and material falling downhole during running of the drill string (dead stick method).  To counter downhole contamination the driller nominates material for rejection as potential contamination on each 0.5m drill run.

No relationship is believed to exist between grade and sample recovery.  No bias is also believed to occur due to loss of fine material.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

The total length and percentage of the relevant intersections logged.

All samples were visually checked on site and a summary log completed by the rig geologist, with detailed logging occurring off-site at a later date to avoid speculation by community observers.   Samples are logged for lithotype, grain size, colour, hardness, and moisture content.  Logging was based on a representative grab sample that was panned for heavy mineral estimation and host material observations.

Logging codes were developed into Base Titanium process documents to capture observations on lithology, colour, grainsize, induration and estimated mineralisation.  Any relevant comments e.g., water table, hardness, gangue HM components and stratigraphic markers (e.g fossilised wood) were included to aid in the subsequent geological modelling.

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling.

Whether sample sizes are appropriate to the grain size of the material being sampled.

An approximate 25% split of the drilled sample interval is collected on site via manual cone and quarter composite grab sampling.  This sample is taken to a dedicated sample preparation facility where it is air-dried when weather permits, otherwise oven dried during rains.  After drying, the sample is rotary split to produce a ~200-400g sample for processing.  The remaining drill sample material is combined and split down to ~2-3kgs for storage.  Improvements to the sample preparation stage were made in recent years to ensure industry best practice and to deliver a high degree of confidence in the results.  These included the following:

  • A formalised process flow was generated, posted in all sample preparation areas and used to train and monitor sample preparation staff.
  • Regular monitoring was completed by Base Titanium senior staff.
  • Field samples were left in their bags for initial air-drying to avoid sample loss.
  • TSPP was introduced to decrease attrition time and improve slimes recovery.  A range of attrition times (with 5% TSPP) were trialled and plotted against slimes recovery figures to determine optimum attrition time (15 minutes).
  • Staff were trained to use paint brushes and water spray rather than manipulate sample through slimes screen by hand to remove the potential for screen damage.
  • A calibration schedule was introduced for scales used in the sample preparation stage.
  • The introduction of LIMS software allowed the capture of sample preparation data digitally at inception and synchronisation in real-time to the master Kwale Laboratory database.
  • Slimes screen number recorded to isolate batches should re-assay be required due to poor adherence to procedure or to identify screen damage.

The sample preparation flow sheet follows conventional mineral sands processes but departed from standard mineral sand practices in one respect; the samples were generally not oven dried prior to de-sliming, to prevent clay minerals being baked onto the HM grains (because the HM fractions were to be used in further mineralogical test work).  Instead, a separate sample was split and dried to determine moisture content, which was accounted for mathematically.

Pre-soaking of the sample TSPP dispersant solution ensured a more efficient de-sliming process and to avoid potentially under-reporting slimes content.

QA/QC procedures involved the following:

  • Prepared laboratory duplicate samples are processed at every 20th sample.
  • Prepared laboratory repeat samples are completed at every 7th sample.

The manual hard-copy sample preparation records are maintained in files in the event of cross-references due to identified scribing errors into LIMS software.

The sample size is considered appropriate for the grain size of the material because the grade of HM is measured in per cent.

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

Nature of quality control procedures adopted (e.g., standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e., lack of bias) and precision have been established.

Samples were analysed by conventional mineral sands techniques of screening, desliming and heavy liquid separation using SPT (sodium polytungstate: SG = 2.85g/cm3).  XRF analysis of HM magnetic fractions was used to define the VHM content.

All drill samples were submitted to the Base Titanium laboratory at the Kwale mine site in Kenya.

All samples were:

  • Dried, weighed.

Mechanical sample rotary split to produce ~200-400 g sample.

  • Sample wet screened using 45 µm and 1 mm sieves, to generate oversize and sand fractions, with slimes lost during screening and calculated by difference.
  • SPT heavy liquid separation of sand fraction to generate a HM fraction.
  • HM fraction subject to magnetic separation on a roll magnet to generate a magnetic (Mag) fraction and non-magnetic (NonMag) fraction.
  • XRF analysis of magnetic fractions, with rutile (assumed 95% TiO2) calculated from TiO2 assay of NonMag by dividing by 0.95, zircon calculated from ZrO2 assay of NonMag, and ilmenite (assumed 54% TiO2 average) calculated from TiO2 assay of Mag by dividing by 0.54.
  • Various quality control samples were submitted routinely to assure assay quality.  A total of 429 duplicate field samples, 160 preprepared laboratory duplicate samples and an unspecified number of internal laboratory standards, repeats and blanks have been assayed at Kwale Operations’ site laboratory.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The use of twinned holes.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Discuss any adjustment to assay data.

Drill hole logging and site sample data is collected electronically in Maxwell LogChief software, installed on Panasonic Tough pads and which synchronise directly to the Maxwell DataShed exploration database hosted on the Base Titanium network server.  Assay data is captured electronically via LIMS software and merged with logging and sample data in Datashed.

No adjustment to assay data has been made.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

Specification of the grid system used.

Quality and adequacy of topographic control.

Proposed drill holes were sited on the ground using hand-held GPS and drill collars surveyed using the same instrumentation. DGPS RTK surveys will be employed for the follow-up resource drilling collars to enable JORC Code compliant resource estimates.

The survey Geodetic datum utilised was UTM Arc 1960, used in East Africa Arc 1960 references the Clark 1880 (RGS) ellipsoid and the Greenwich prime meridian.  All survey data used has undergone a transformation to the local mine grid from the standard UTM Zone 37S (Arc 1960). The local Grid is rotated 42.5o, which aligns the average strike of the deposit with local North and is useful for both grade interpolation and mining reference during production.

The drill collars were projected to a combined local LIDAR and SRTM digital terrain model

Data spacing and distribution

Data spacing for reporting of Exploration Results.

Whether the data spacing, and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Whether sample compositing has been applied.

The drill data spacing for the drilling was nominally 100m X, 100m Y and 1.5m Z.  Variations from this spacing resulted from access challenges.

A sample interval of 1.5m was employed in the 2018 air core and 2023 auger drilling campaign by Base Titanium. 

This spacing and distribution is considered sufficient to establish the degree of geological and mineralisation continuity appropriate for reconnaissance exploration.

No sample compositing has been applied for HM, slimes, oversize and XRF assays.

Orientation of data in relation to geological structure

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

With the geological setting being a layered dunal/fluvial/maritime sequences, the orientation of the deposit mineralisation in general is sub-horizontal.  All drill holes were orientated vertically to penetrate the sub-horizontal mineralisation orthogonally.

Hole centres were spaced nominally at 50-200m.  This cross-profiles the dune so that variation can be determined.  Down hole intervals were nominated as 1.5m.  This provides adequate sampling resolution to capture the distribution and variability of geology units and mineralisation encountered vertically down hole.

The orientation of the drilling is considered appropriate for testing the horizontal and vertical extent of mineralisation without bias.

Sample security

The measures taken to ensure sample security.

Sample residues from the preparatory stage were transferred to pallets and stored in a locked shed beside the warehouse at Kwale Operations.

Residues from the Kwale Operations site laboratory were placed in labelled bags and stored in numbered boxes.  Boxes were placed into a locked container beside the laboratory. 

Sample tables are housed on a secure, network-hosted SQL database.  Full access rights are only granted to the Exploration Manager and senior IT personnel.

Data is backed up every 12 hours and stored in perpetuity on a secure, site backup server.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

In-house reviews were undertaken by the Mr. Scott Carruthers and Mr. Ian Reudavey, both employees of the Base Resources group Competent Persons under the JORC Code.

 

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

  

Criteria

Explanation

Comment

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The Kwale East exploration area is situated on a Prospecting Licence 100% owned by Base Titanium– PL/2018/0119 located in Kwale County, Kenya.  Base Titanium is a wholly owned subsidiary of Australian and AIM-listed resources company, Base Resources.

The 40km2 Prospecting Licence was re-granted on 26 of May 2021 for a second, three-year term ending 25 May 2024.

The PL is in good standing with the Kenya Ministry of Petroleum & Mining at the time of reporting, with all statutory reporting and payments up to date.

Local landowners have been generally supportive of exploration activities though blanket access is yet to be achieved.  With the support of government and local leaders, engagement continues with community members to secure drilling access to the remaining targeted areas.

The existing Special Mining Lease No. 23 is adjacent to the PL and covers the original Kwale Central and Kwale South deposits.  The SML boundary has been varied on multiple occasions, most recently to include the Bumamani Project deposits.

The Kenyan Mining Act 2016 includes a provision for existing mineral rights to transition to mining licences upon their expiry on a priority basis.  The potential for this transition has been raised with the Government of Kenya in preparation for a possible application.

Landowner access permission is required to both complete the exploration program and then progress conversion of the PL to a mining licence within a timeframe that meets Kwale Operations’ operational requirements.  The Mining Act 2016 provides greater flexibility on securing land rights, specifically allowing for a mineral right to be issued on private land.  The Mining Act 2016 additionally, provides for fair and adequate compensation to be paid to lawful landowners, occupiers and users.

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

No historical exploration by third parties was undertaken in the Kwale East area.

Geology

Deposit type, geological setting and style of mineralisation.

The Kwale East deposits are primarily hosted in reddish dunal sands (Ore Zone 1) which is underlain by the transitional and occasionally lateritic zone (Ore Zone 4).  To the east and around the 50-60mRL, these deposits are hosted in shallow paleo-beach sands originating from a Pleistocene marine transgression event.  This zone is low in slime and typically has a high valuable heavy mineralogy content.

All three formations have a regional strike direction of about 40 degrees East of North and range in age from mid-Pliocene to Pleistocene.

Drill hole Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

  • easting and northing of the drill hole collar
  • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
  • dip and azimuth of the hole
  • down hole length and interception depth
  • hole length.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

A tabulation of drilling data with significant intersections >1% HM is presented as Appendix 1, Table 1.  All drill hole locations are shown in Figure 3, and those holes not tabulated have not reported significant intersections.  The exclusion of detailed collar information is justified on the basis that auger drilling represents a reconnaissance exploration tool and that air core drilling will be utilised to twin and infill areas identified as prospective by the auger drilling program. A comprehensive set of drilling cross sections is presented in Figure 4 that allows additional understanding of the exploration results.

Drilling by year (max, min and average depths) are as follows.

  • 2018/2019
  • 123 air core drill holes (depth: max 33m, min 6m, avg 15m).
  • Total 1,851.5m drilled
  • 2023
  • 1,019 auger drill holes (depth: max 22.5m, min 3m, avg 11.5m).
  • Total 11,536.5m drilled

 

All drill holes are drilled vertically (-90 degrees).

All collars have been projected to the DTM surface.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g., cutting of high grades) and cut-off grades are usually Material and should be stated.

Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

Exploration results are reported as length weighted averages from surface.  No grade cutting has been applied and a nominal cut-off grade of 1% HM has been utilised.  However, lower grade intervals may be included to provide geological continuity and in recognition of bulk mining techniques used for mineral sands.

No metal equivalent values were used.

 

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g., ‘down hole length, true width not known’).

The deposit sequences are sub-horizontal, and the vertically inclined holes are a fair representation of true thickness.

Diagrams

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

See body of the announcement - Figures 2 and 4.

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Drill sections include all available HM assay results of composited Ore Zone 1, Ore Zone 4 and Ore Zone 20 for all drill holes and the drilling location plan shows the average HM assay results for all drill holes.

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Geological observations suggest that the Kwale East dunal material contains lower slimes than current being mined, and this will be beneficial to support co-disposal of tails, while still having sufficient slimes to support hydraulic mining.

Many of the auger holes did not reach the basement owing to drilling challenges and follow-up air core drilling to this formation will likely increase the currently observed mineralisation thickness.

Further work

The nature and scale of planned further work (e.g., tests for lateral extensions or depth extensions or large-scale step-out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Twinning of mineralised auger holes and infilling mineralised areas with air core holes to ensure data confidence/ integrity for JORC Code compliant resource estimates.  This drilling will be completed at a 100m North by 50m East grid to achieve measured/indicated resource categorisations.

LIDAR topographical survey to cover the eastern Zigira prospect at a 2m spatial resolution.

Test pits for bulk sample mineralogy test work.

Logging of HM sink fractions to aid in geological domaining.

 

Glossary

 

Base Titanium

Base Resources’ wholly-owned Kenyan operating subsidiary and the owner and operator of Kwale Operations.

Collar

Location of a drill hole.

Competent Person

Has the meaning given in the JORC Code. 

The JORC Code requires that a Competent Person be a Member or Fellow of The Australasian Institute of Mining and Metallurgy, or of the Australian Institute of Geoscientists, or of a ‘Recognised Professional Organisation’.

A Competent Person must have a minimum of five years’ experience working with the style of mineralisation or type of deposit under consideration and relevant to the activity which that person is undertaking.

DTM

Digital Terrain Model.

Easting

A figure representing eastward distance on a map.

GPS

Global positioning system.

HM

Heavy mineral.

JORC Code

The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

Kwale Operations

Base Titanium’s mineral sands mining operations in Kwale County, Kenya.

LIDAR

Light Detection and Ranging, a remote sensing method that uses pulsed laser to measure ranges.

LIMS

Laboratory information management system.

Mineral Resource

A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction.

Northing

A figure representing northward distance on a map.

NSR

No significant result.

PL

Prospecting licence.

QA/QC

Quality assurance and quality control.

RL

Reduced level, equating elevations with reference to a common assumed vertical datum

RTK

Real-time kinematic positioning, the application of surveying to correct for common errors in satellite survey systems.

SG

Specific gravity, or relative density.

SML

Special mining lease.

SPT

Sodium polytungstate heavy liquid used for mineral separation based on relative density.

SQL

Structured Query Language, a standardized programming language used to manage relational databases.

SRTM

Shuttle Radar Topography Mission, a modified radar system used by a Space Shuttle Endeavour mission to capture a high resolution topographic database of the earth.

TSPP

Sodium (Tetra) Pyrophosphate.

UTM

Universal Transverse Mercator, a plane coordinate grid system.

VHM

Valuable heavy mineral.

XRF

A spectroscopic method used to determine the chemical composition of a material through analysis of secondary X-ray emissions, generated by excitation of a sample with primary X-rays that are characteristic of a particular element.

 

ENDS

 

For further information contact:

Australian Media Relations

UK Media Relations

Citadel Magnus

Tavistock Communications

Cameron Gilenko and Michael Weir

Jos Simson and Gareth Tredway

Tel: +61 8 6160 4900

Tel: +44 207 920 3150

 

This release has been authorised by the Base Resources Disclosure Committee.

 

About Base Resources

Base Resources is an Australian based, African focused, mineral sands producer and developer with a track record of project delivery and operational performance.  The Company operates the established Kwale Operations in Kenya, is developing the Toliara Project in Madagascar and is conducting exploration in Tanzania.  Base Resources is an ASX and AIM listed company.  Further details about Base Resources are available at www.baseresources.com.au.

 

PRINCIPAL & REGISTERED OFFICE
Level 3, 46 Colin Street
West Perth, Western Australia, 6005
Email:  info@baseresources.com.au
Phone: +61 8 9413 7400
Fax: +61 8 9322 8912

 

NOMINATED ADVISER & JOINT BROKER
Canaccord Genuity Limited
James Asensio / Raj Khatri / Patrick Dolaghan
Phone: +44 20 7523 8000

 

JOINT BROKER
Berenberg
Matthew Armitt / Detlir Elezi
Phone: +44 20 3207 7800
 

 




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