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
Some activity at its Toliara project has been suspended by the government of Madagascar, pending the finalisation of discussions on fiscal terms applying to the project.

Base has confirmed that the suspension will not impact on the company’s progression of a definitive feasibility study (DFS), since all on-ground works for the study have been completed.

The DFS will be released in December.

However, the suspension will impact on the community development programmes that have been under way and several hundred local Malagasy people who are undertaking training programmes with the Toliara project.

The company has said that it will continue to engage in a transparent and respectful dialogue with government to deepen its understanding of the significant benefits of the project for Madagascar, and secure agreement on mutually beneficial fiscal terms that represent a sound and sustainable basis on which the Toliara project may proceed to development.

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.