Base Resources Limited (AIM:BSE, ASX:BSE) has told investors it achieved production guidance for its 2023 financial year, whilst setting new expectations for the 2024 financial year.
The company said that production in 2023 amounted to 68,784 tonnes of rutile, within guidance of 62,000 to 73,000 tonnes, whilst ilmenite product totalled 297,861 tonnes (versus 260,00 to 310,000 guidance) and zircon came in at 25,954 tonnes (versus 22,000 to 27,000 guidance).
For 2024 the company is forecasting 35,000 to 41,000 tonnes of rutile, 130,000 to 160,000 tonnes of ilmenite, and 13,000 to 16,000 tonnes of zircon.
Base described market conditions in North America and Europe as “relatively stable” though noted that the Chinese market had become challenging as its economic recovery stalled, nevertheless, it said “firm demand” had continued through the June quarter for its product.
The company, in today’s quarterly report for the three months ended 30 June, said it mined some 4.1 million tonnes, up from 3.3 million in the prior quarter, with the heavy minerals grading 3%.
It reported 55,500 tonnes of ilmenite production for the quarter along with 13,800 tonnes of rutile, 5,500 tonnes of zircon and 3,400 of low-grade products. The company said that grades encountered in lower ore zones of the North Dune area, during the quarter, were below those seen previously in the upper ore zone.
Base noted, meanwhile, that ilmenite prices remained steady and zircon prices rose moderately whilst rutile dipped.
Elsewhere, the firm saw encouraging exploration results from the Kwale East project area, confirming the presence of heavy minerals with a peak drill hole grade of 6.3%. A high-value mineral ‘assemblage’ was also found, the company said.
Three such areas areas have been earmarked for further exploration, in the company’s second phase of air core drilling.
In Tanzania, the initial drilling phase at the Umba South exploration project confirmed the presence of rutile mineralisation, though the economic potential of the project is still to be confirmed.
Further assays are awaited and, in the meantime, drilling activity is paused.
On the permitting front, the company is awaiting progress at the Toliara project pending changes to Madagascar’s mining code and upcoming presidential elections. Operations on the ground are suspended, limiting progress.
The company said it does not expect to achieve material progress in securing fiscal terms or lifting of the project’s on-ground suspension until after the elections, which are scheduled for late 2023.