Modern Mining January 2020

MINERAL SANDS

DFS confirms world-class status of Toliara project African mineral sands producer Base Resources, listed on the ASX and AIM, has completed a Definitive Feasibility Study (DFS) on its Toliara project in Madagascar. According to Colin Bwye, Executive Director Operations and Development of Base Resources, the DFS confirms the company’s view that Toliara is “a world class mineral sands development opportunity.” A final investment decision is planned for September this year.

T he DFS outcomes closely align with the Pre-Feasibility Study (PFS) out- comes released in March 2019 and confirm a post-tax/pre-debt (real) NPV 10 of US$652 million and an average revenue to cost ratio of 3,15 over the initial 33-year mine life. Stage 1 capex to establish a 13 Mt/a mining processing operation is estimated at US$442 million and Stage 2 capex, which will increase production to 19 Mt, at US$69 million. “In the first 26 years of full production, the Toliara project is expected to produce an average of 814 kt of ilmenite, 55 kt of zircon and 7 kt of rutile annu- ally, over a period when a global supply deficit of titanium dioxide feedstocks and zircon is expected,” comments Bwye. “This production profile, combined with a highly competitive revenue to cost of sales ratio, will generate estimated average annual free cash flows of US$140,2 million over these years.” The Managing Director of Base Resources, Tim Carstens, makes the point that Toliara, if it goes ahead, will be the first large-scale mining investment in Madagascar in almost a decade. “With the application of the Base Resources’ development model, as demonstrated with the Kwale Operation in Kenya, the

A drill site at the Toliara mineral sands project.

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