Base Resources Ltd (AIM:BSE, ASX:BSE, FRA:B4Z) has almost doubled the resource base at its Ranobe project in Madagascar.
The new estimate puts resources at 2.58bn tonnes at an average heavy mineral grade of 4.3%.
The ore reserves estimate has increased to 904mln tonnes at an average heavy mineral grade of 6.1%, a 45% increase in contained heavy mineral.
The 2018/19 drill programme revealed further significant additional mineralisation at depth in the lower sandy unit.
However, the mineralogy work required to include this geological domain in a mineral resources estimate has not yet been completed due to the suspension of on-ground activities.
Later on Monday, Base also released the outcomes of its enhanced definitive feasibility study (DFS2) for its Toliara project in Madagascar, including a post-tax/pre-debt net present value (NPV10) of US$1bn and an 3.5 average revenue to cost of sales ratio over an initial 38-year mine life.
Life-of-mine free cash flow has been increased by 60% to US$5.9bn under the study, with the first 10 years averaging US$210mln a year.
This has been underpinned by the mineral resources estimate almost doubling to 2,580Mt at an average heavy mineral grade of 4.3%, with the ore reserves estimate increased to 904Mt at an average heavy mineral grade of 6.1%, a 45% increase in contained heavy mineral.
Managing director Tim Carstens said the enhanced DFS2 reaffirms the companby's view that Toliara "is a world class mineral sands development opportunity".
“While capital costs have increased, the subsequent expansion in production has materially improved the financial performance of the project, with a 55% lift in forecast NPV and free cash flow generated of almost US$6bn over the life of the project. Importantly, and despite the increased development costs, the capital payback period is still only 4.5 years.”