Base Resources Limited (AIM:BSE, ASX:BSE) "remains very focused on extending Kwale Operations’ mine life to maximise value for all stakeholders", the company's non-executive chair told shareholders at its annual general meeting (AGM) held on Friday in Perth, Western Australia.
In a statement delivered at the AGM, Michael Stirzaker said: "The 2022 financial year saw the continuation of the buoyant mineral sands markets that characterised the last few years."
He noted: "Kwale Operations was once again metronomic in its reliability, achieving production guidance and meeting customer shipping schedules consistently despite COVID-induced challenges and some unplanned stoppages. Costs were managed tightly, despite inflationary headwinds, contributing to record financial outcomes. The team maintained its focus on safety, health and wellbeing, though the first lost time injury since 2014 was recorded in the year.
"The addition of a further two years taking production to the end of 2024 through the Kwale South Dune extension and the Bumamani Project were significant steps and ones that provide the company with some additional time to pursue further extensions. With exploration tenure in place, the near-mine Kwale East sector represents the most immediate extensional opportunity and we were pleased to commence drilling in that area earlier this month," he added.
Stirzaker continued: "Slightly further afield, and a longer-dated opportunity, exploration on the prospective geological feature that extends from the Kuranze region of Kenya across the border into Tanzania is underway, albeit limited at present to the Tanzanian side. Following an initial reconnaissance program, we recently completed a more extensive 3,000m drill program. In Kenya, the government-imposed industry-wide moratorium on issuance of mineral rights, which has been in place since 2019, continues to impede the company’s ability to undertake any exploration in the Kuranze region. Following recent general elections, and the appointment of a new Minister, we are hopeful that the issuance of prospecting licences will resume soon."
He added: "The Toliara Project in Madagascar continues to represent a significant and attractive growth opportunity for the company. Following a major update and increase to the Ranobe Ore Reserves estimate, the Toliara Project definitive feasibility study was updated in October last year, significantly increasing both the scale and economic value of the Project. The team is now assessing the commercial potential of the monazite mineralisation in the deposit to seek to further add significant value to the project.
"We continue to progress discussions with the Government of Madagascar in relation to the fiscal terms applicable to the project and the lifting of the on-ground suspension."
Stirzaker also told shareholders that the company intends "to reshape the board further in the coming months as part of our approach to both renewal and ensuring the right mix of skills for the coming years’ challenges".
In a separate statement, Base Resources advised that all resolutions as set out in the notice of AGM and put to the company's shareholders at today’s meeting were carried.