Mineral Resource for Kwale North Dune deposit

	2019 Kwale North Dune Mineral Resources as at 1 May 2019
Category	Material	In Situ HM	HM	SL	OS	HM Assemblage
						ILM	RUT	ZIR
	(Mt)	(Mt)	(%)	(%)	(%)	(%)	(%)	(%)
Measured	-	-	-	-	-	-	-	-
Indicated	136	2.1	1.5	38	2	45	12	5
Inferred	34	0.5	1.4	36	3	46	13	6
Total	171	2.6	1.5	38	2	45	12	5

	2019 Kwale North Dune Mineral Resources as at 1 May 2019
Category	Material	In Situ HM	HM	SL	OS	HM Assemblage
						Ti-Haem.	RUT	ZIR
	(Mt)	(Mt)	(%)	(%)	(%)	(%)	(%)	(%)
Measured	-	-	-	-	-	-	-	-
Indicated	-	-	-	-	-	-	-	-
Inferred	61	1.5	2.5	42	2	45	7	3
Total	61	1.5	2.5	42	2	45	7	3

Criteria	JORC Code explanation	Commentary
*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 drilling work was completed on a Prospecting License (PL) that is 100% owned by Base Titanium Limited â€“ PL/2018/0119 located in Kwale County, Kenya. The 88 km² Prospecting License was granted on the 26th of May 2018 for a three-year term ending 25th May 2021. 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 generally supportive of drilling activities with over 90% of planned holes drilled. The existing Special Mining Lease (SML23) lies within the Prospecting license area and covers the Kwale Central and South Orebodies. The Kenya Mining Act 2016 includes provision for the amendment of an existing SML and for the conversion of an existing PL to SML.
*Exploration done by other parties*	Acknowledgment and appraisal of exploration by other parties.	In 1996, Tiomin carried out reconnaissance surface and hand-auger sampling. Following the encouraging results obtained, mud-rotary drilling was undertaken in 1997. 37 holes for a total of 1,824 m was achieved for the North dune, at 3 m sampling intervals. A pre-stripped resource at 1% cut-off established (47 Mt @ 2.1% HM). The current resource model omits the Tiomin data. This follows a twin drilling analysis of the Tiomin Mud Rotary holes with Base RCAC to determine relevance of historical data to the Kwale South Dune resource estimate in 2016. A total of 18 twin-hole pairs from a geographically dispersed area within the South Dune were included for analysis. A very poor correlation in HM values between the two methods (R2 = 0.1522) resulted from the study. It is assumed that the poor correlation would extend to the North Dune. This is expected, given the open-hole method of drilling employed by Tiomin and supports the decision to exclude Tiomin data from the current interpolation.
*Geology*	Deposit type, geological setting and style of mineralisation.	The North Dune is part of the extensive Kwale Dune systems comprising of reddish, windblown Magarini sand formations that overlie a sequence of mineralised clay-rich fluviatile units, which in turn overlie a Mesozoic sandstone Base, known as the Mazeras formation. These three units are separated by lateritic paleo-surfaces which signify a time-gap between the geological formations. The Mazeras Sandstone, derived from the disintegration of the Mozambique Belt metamorphic rocks, has likely provided the supply of heavy minerals to the Magarini sand dunes and the fluviatile formations. Exploration of the Kenyan Coastline is yet to be successful in terms of mineralised paleo-strandlines related to fossil marine terraces, as these are likely buried beneath recent barren fluvial overburden or were just not developed owing to reduced energy levels from a fringing coral reef that has acted as a barrier to effective winnowing and reworking of HM deposits.
*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 â€“ 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.	Drilling by year (max, min and average depths) used for the resource model build are as follows; 2010 11 drill holes (depth: max 72 m, min 24 m, avg 56 m). Total 581 m drilled. 2012 31 drill holes (depth: max 75 m, min 18 m, avg 60 m). Total 1,681 m drilled. 2013 65 drill holes (depth: max 75 m, min 21 m, avg 54 m). Total 3,234 m drilled. 2018 524 drill holes (depth: max 117 m, min 6 m, avg 46 m). Total 19,176m drilled. See drill hole location plan, Figure 5. All drill holes drilled vertically. Exploration results are not being reported at this time.
*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 not being reported at this time. No equivalent values were used. No aggregation of short length samples used as samples were consistently 1.5 m intervals.
*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. â€˜down hole length, true width not knownâ€™).	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 report.
*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.	Exploration results are not being reported at this time.
*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 â€“ size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	The Minmod mineralogy technique, developed and employed by Base Resources, comprises an XRF analysis of the magnetic and non-magnetic fractions of each composite or sample, the results from which are then back-calculated to determine in-ground mineralogy. Minmod represents an improvement on the previous method (Geomod) that was not as effective at determining accessory minerals in the Kwale assemblage. Minmod has been validated by external quantitative analysis (QEMSCAN and SEM EDX) and is considered sufficiently certified to support quoted resource confidence in this report.
*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.	Geological interpretation of nearby drilling to the East. Additional 100 x 100 m aircore drilling to extend mineralisation in the open NW part of the deposit. Generation of six Ore Zone 5 QEMSCAN composites for a more confident mineralogical modelling. Detailed tests to establish accurate bulk densities. Updated Mineral Resource estimate. Scoping study and a go or no-go decision made to progress to a pre-feasibility study.

Criteria	JORC Code explanation	Commentary
*Database integrity*	Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. Data validation procedures used.	Field data is captured in LogChief logging application and automatically validated through reference to pre-set library table configurations. Typing or logging code errors, duplication of key identifiers (e.g. HOLE_ID, SAMP_ID) and conflicts in related tables (e.g. down-hole depth) are quarantined by the software and require resolving immediately before logging can proceed. The SQL Database also has identical automated validation features. Data import is unsuccessful until these data issues are resolved. Field logging and survey data from the SQL database are imported into Datamine Discover (MapInfo) for sectional interpretation. Validation steps include a visual interrogation of collar versus geology depths, a review of hole locations against the drilling plan and a check for missing or duplicated logged fields and outliers. Any spurious or questionable entries were resolved by the supervising Geologist. At the completion of each hole, an entry was made to the hand-written drilling diary. The diary recorded the hole name, date, depth, number of samples, time of start and finish, a description of the location of the hole in relation to the last hole and other things. Such a diary provides valuable evidence if there is an error in-hole naming or surveying. A Geologist was employed to manage digital data capture at the sample preparation laboratory to reduce the potential for data entry error by unskilled labourers. A number of validation checks were made of sample preparation data to ensure accurate data entry and application of correct procedure by BTL staff. This included: comparison of pre- versus post-oven weights, comparison of split weight versus de-slimed weight, comparison of split weight versus field sample weight, all sample preparation data were sorted by each individual field and outliers investigated. Assay results are delivered via email in 45 sample batches from SGS. These are in the form of CSV text files and imported by batch number directly into the SQL database tables where pre-set algorithms convert weights to percentages and remove the moisture content. The calculated assay results are then checked manually for missing records and out of range or unrealistic values.
*Site visits*	Comment on any site visits undertaken by the Competent Person and the outcome of those visits. If no site visits have been undertaken indicate why this is the case.	Base Resourcesâ€™ Resources Manager Scott Carruthers made one site visit to review the SQL database and the geological interpretations. The Competent Person is satisfied with the integrity of the database as well as the delineation of the geological boundaries.
*Geological interpretation*	Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. Nature of the data used and of any assumptions made. The effect, if any, of alternative interpretations on Mineral Resource estimation. The use of geology in guiding and controlling Mineral Resource estimation. The factors affecting continuity both of grade and geology.	The geological interpretation was undertaken by the BTL Exploration Superintendent using field logs and observations, assays, HM sachet logs, XRF oxide chemistry and mineralogy data. The oversize grades were particularly useful in determining the lateritic paleo-surfaces between the geological zones. The data spacing for the project is considered sufficient for grade and mineralogical continuity. Four mineralised geological zones and a basement zone were identified and are used as constraints in the Mineral Resource Estimation. The uppermost zone at Kwale North, referred to as Ore Zone 1, is a dark brown, predominantly fine grained, well sorted silty sand with very little induration. It is also characterised by a clean, high value heavy mineral assemblage. Ore Zone 4 lies below Ore Zone 1 with a clear lateritic boundary observed in the field with slightly difficult bit penetration, and in HM sink logs, exhibiting elevated iron oxides. Ore Zone 4 is lower in valuable heavy mineral (VHM) content, often dominated by iron oxides and Al2SiO4 polymorphs (kyanite, andalusite and sillimanite). It is considered a fluvial deposit based on the difficulty of wash and the poor grain sorting. Ore Zone 5 lies below Ore Zone 4 and is separated from the former by a lateritic paleo-surface. It is unique mineralogically by an increased amount of almandine garnet that reports to the mag fraction, significantly increasing the magnesium, manganese, aluminium and silicon in the oxide chemistry, and this is also reflected in QEMSCAN mineralogy. Ore Zone 10 lies below Ore Zone 5 and is typically hosted in weathered variants of the Mesozoic (Permo-Triassic) Duruma Sandstones. It ranges in composition from a predominantly primary titano-haematite (<40% TiO₂) to a garnet dominant suite. Some portions show a high zircon enrichment in the non-mag fraction. For Ore Zones 1, 4 and 5, a strong correlation between the field logs, HM sink logs and XRF oxide chemistry and QEMSCAN mineralogy gives confidence to these interpretations. The grade and mineralogy continuity is abruptly truncated at the western edge by an interpreted normal fault that pushed basement material to the surface with resultant low grades and trash HM.
*Dimensions*	The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	The Kwale North Mineral Resource is approximately 6,300 m along strike and about 1,200 m across strike on average, the deposit thickness ranges from 9 m to 109 m.
*Estimation and modelling techniques*	The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. The assumptions made regarding recovery of by-products. Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation). In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. Any assumptions behind modelling of selective mining units. Any assumptions about correlation between variables. Description of how the geological interpretation was used to control the resource estimates. Discussion of basis for using or not using grade cutting or capping. The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	The Kwale North Dune computerised Mineral Resource estimation was undertaken using Datamine Studio RM software. Inverse Distance Weighting (IDW) to the power of three was used to interpolate assay grades (HM, Slimes, Oversize) from the drill hole file. Nearest Neighbour (NN) was used to interpolate the composite ID and mineralogy data. This is the maiden JORC 2012 Mineral Resource estimate for the Kwale North Dune and no previous estimates, or mining production records have been prepared by Base Resources. Prior to acquisition of the Kwale Project by Base Resources, Tiomin prepared and published a Mineral Resource Estimate of 116 Mt @ 2.1% HM using a 0.5% HM cut-off grade. No assumptions have been made as to the recovery of by-products. The parent cell size used in the grade interpolation was half the average drill hole spacing on the X and Y axes, which was 100 m x 100 m. The vertical thickness of the cell was the nominal average drill sample interval i.e. 1.5 m. No assumptions were made behind modelling of selected mining units. No assumptions made about correlation behind variables. Validation was undertaken by swathe plots, population distribution analysis and visual inspection. The geological zones were used to control the resource estimates.
*Moisture*	Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	The resource estimate is on a dry tonnes basis.
*Cut-off parameters*	The basis of the adopted cut-off grade(s) or quality parameters applied.	The economic cut-off of the operating Kwale Mine is between 1 and 1.5% HM, and historically the Kwale Operationâ€™s Mineral Resources Estimate reporting focuses on a 1% HM cut-off grade.
*Mining factors or assumptions*	Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	Prior to commencing any feasibility studies that may find to the contrary, it is assumed that the hydraulic mining method used at the neighbouring Kwale mine would be used. High slime content and low levels, generally, of induration provide support for this mining method.
*Metallurgical factors or assumptions*	The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.	The existing concentrator and separation plant at the Kwale Operation are assumed capable of processing the material with recoveries expected to be aligned with present production.
*Environmental factors or assumptions*	Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	Tailing disposal, in the absence of any feasibility studies, would probably initially use the existing TSF for slime tails storage (it has spare tails storage capacity due to efficient processing practices) and the existing pit void for sand tails. Once space is available, tailings would probably be co-disposed into the Kwale North pit void.
*Bulk density*	Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	A fixed dry bulk density of 1.7 (t/m³) was assumed for the resource estimation, based on operational experience of mining the Kwale Central Dune Deposit.
*Classification*	The basis for the classification of the Mineral Resources into varying confidence categories. Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). Whether the result appropriately reflects the Competent Personâ€™s view of the deposit.	The Mineral Resource classification for the Kwale North deposit was based on the following criteria: drill hole spacing and the distribution and influence of bulk samples. The classification of the Indicated, and Inferred Mineral Resources was supported by the uniform grid spacing of drilling, uncomplicated and consistent geology, relatively good continuity of mineralisation particularly along strike (and supported by the domain controlled variography), and confidence in the down hole drilling data and supporting criteria as noted above. As Competent Person, IHC Robbins Geological Services Manager Greg Jones considers that the result appropriately reflects a reasonable view of the deposit categorisation.
*Audits or reviews*	The results of any audits or reviews of Mineral Resource estimates.	Peer review was undertaken by Scott Carruthers of Base Resources with focus on the process and output of the geology interpretation, database integrity, whether wireframes reflect the geological interpretation, and model vs. drillhole grades. Mr. Carruthers was satisfied with these facets.
*Discussion of relative accuracy/ confidence*	Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	Variography was undertaken to determine the drill hole support of the selected JORC classification. Validation of the model vs drill hole grades by direct observation and comparison of the results on screen. The resource statement is a global estimate for the entire known extent of the Kwale North deposit within the tenement area.

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Arc 1960	The commonly used Geodetic System in East Africa, and is the reference frame used by the Global Positioning System (GPS).
Competent Person	The JORC Code requires that a Competent Person must be a Member or Fellow of The Australasian Institute of Mining and Metallurgy, or of the Australian Institute of Geoscientists, or of a â€˜Recognised Professional Organisationâ€™. A Competent Person must have a minimum of five yearsâ€™ experience working with the style of mineralisation or type of deposit under consideration and relevant to the activity which that person is undertaking.
DGPS	Differential Global Positioning System is a system to provide positional corrections to GPS signals. DGPS uses a fixed, known position to adjust real time GPS signals to eliminate pseudo range errors.
DTM	Digital Terrain Model.
Indicated Resource	An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.
Inferred Resource	An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.
Inverse distance weighting	A statistical interpolation method whereby the influence of data points within a defined neighborhood around an interpolated point decreases as a function of distance.
JORC	The Joint Ore Reserves Committee: The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (â€˜the JORC Codeâ€™), 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.
LIDAR survey	LIDAR is a remote sensing technology that measures distance by illuminating a target with a laser and analysing the reflected light.
Measured Resources	A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit.
Mineral Resources	Mineral Resources are a concentration or occurrence of solid material of economic interest in or on the Earthâ€™s crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade (or quality), continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.
Minmod	A company developed mineralogy modelling technique, it comprises an XRF analysis of the magnetic and non-magnetic fractions of each composite or sample, the results from which are then back-calculated to determine in-ground mineralogy.
NQ	Refers to the diameter of drill rods. It is 69.9mm. Drill bits extend beyond this resulting in a larger diameter hole. NQ is the most common size rod used in mineral sand drilling.
Ore Reserves	Ore Reserves are the economically mineable part of Measured and/or Indicated Mineral Resources.
QEMSCAN	Is an acronym for Quantitative Evaluation of Materials by Scanning Electron Microscopy, an integrated automated mineralogy and petrography solution providing quantitative analysis of minerals and rocks.
QQ plot	Quantile quantile plot. Used to graphically compare data distributions.
RL	The term Reduced Level is denoted shortly by 'RL'. National survey departments of each country determine RL's of significantly important locations or points. RL is used to describe the relative vertical position of drill collars.
RTK	Real time kinematic DGPS uses a base station GPS at a known point that communicates via radio with a roving unit so that the random position error introduced by the satellite owners may be corrected in real time.
SEM, SEM EDX	A Scanning Electron Microscope is a type of electron microscope that produces images of a sample or minerals by scanning the surface with a focused beam of electrons. EDX is short for energy dispersive X-ray and is commonly used in conjunction with SEM.
UTM	The Universal Transverse Mercator (UTM) conformal projection uses a 2-dimensional Cartesian coordinate system to give locations on the surface of the Earth.
Variography	A geostatistical method that investigates the spatial variability and dependence of grade within a deposit. This may also include a directional analysis.
XRF analysis	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.

James Fuller, Manager - Communications and Investor Relations	UK Media Relations
Base Resources	Tavistock Communications
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