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Toliara mineral sands project, Madagascar

10th May 2019

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Toliara mineral sands project.

Location
South-west Madagascar.

Project Owner/s
Base Resources.

Project Description
The Ranobe deposit, which has total resources of 1.29-billion tonnes grading 5.1% heavy minerals, is the basis for the Toliara project.

Mineral Resources forming the basis of the prefeasibility study (PFS) comprises 588-million tonnes grading 6.6% heavy minerals, from existing measured and indicated resources, for an initial life-of-mine of 33 years. With only 46% of the existing Ranobe deposit mineral resources being used, there is significant potential to extend the mine life even further.

The PFS envisages a two-stage development, with the operation expected to deliver average production of 806 000 t/y of ilmenite, 54 000 t/y of zircon and 8 000 t/y of rutile.

The project could produce about 37.1-million tonnes of heavy mineral concentrate over the 33-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of $671-million and an internal rate of return of 22.4%, with a capital payback for stages 1 and 2 at four years.

Capital Expenditure
Stage 1 capital expenditure (capex) is estimated at $439-million for a 13-million- tonne-a-year processing operation. Stage 2 capex, estimated at $67-million, will increase  capacity to 19-million tonnes a year.

Planned Start/End Date
The project could be in operation by the end of 2021.

Latest Developments
Base Resources is working on the definitive feasibility study, which it aims to complete by year-end, ahead of a planned final investment decision in the first quarter of 2020.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Base Resources manager – communications and investor relations James Fuller, tel +61 8 9413 7426 or email jfuller@baseresources.com.au.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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