Base Resources Limited (ASX & AIM: BSE) (Base Resources or the Company) advises that, following conclusion of a limited phase 2 air core drilling program (Phase 2) at its Kwale East exploration project (Kwale East) in Kwale County, Kenya, exploration activities at Kwale East have been discontinued.

Explorations activities undertaken

Kwale East was considered a near-term mine life extension opportunity due to its close proximity to Kwale Operations' infrastructure. An initial phase 1 scout auger drilling program (Phase 1) completed over 2022 and 2023 identified three targets - Magaoni, Masindini and Zigira - for follow-up aircore drilling as part of Phase 2. As was noted in the July Announcement, land access was a particular challenge in the more prospective areas of Magaoni and Zigira during Phase 1, with access to approximately 35% of those target areas unable to be obtained. With community engagement trending positively and optimism over the Company's ability to secure the necessary landholder consents, the Phase 2 program was commenced. The priorities for Phase 2 were to:

drill the remaining 35% of Magaoni and Zigira; complete infill drilling to achieve 100m north by 50m east spacing for all three targets for resource estimate purposes and twin Phase 1 drill holes with average HM grades of greater than 1% to enable better sample quality and allow drilling through to basement, as well as confirm mineralisation.

Despite securing some additional landholder consents, the Company was ultimately unable to secure full access to the more prospective areas in Magaoni and Zigira, largely limiting the program undertaken for Phase 2 to twinning some of the Phase 1 holes. This decision followed an evaluation of the likely mineralisation for the three targets using the results from both Phase 1 and Phase 2 drill programs and applying optimistic assumptions on the continuity of mineralisation in the Magaoni and Zigira target areas that were not able to be drilled. Even on these optimistic assumptions, the evaluation concluded that there is unlikely to be sufficient volume or heavy mineral grade to support an economically viable mining development.

Competent Person's Statement

The information in this announcement that relates to Kwale East exploration results is based on, and fairly represents, information and supporting documentation prepared by Mr. Edwin Owino. Mr. Owino is a member of the Australian Institute of Geoscientists. Mr. Owino is employed by Base Resources' wholly-owned subsidiary, Base Titanium. Mr. Owino holds equity securities in Base Resources and is entitled to participate in Base Resources' long-term incentive plan and receive equity securities under that plan. Details about that plan are included in Base Resources' 2023 Annual Report. Mr. Owino has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code and as a Qualified Person for the purposes of the AIM Rules for Companies. Mr. Owino has reviewed this announcement and consents to the inclusion in this announcement of the Kwale East exploration results and the supporting information in the form and context in which the relevant information appears.

Contact:

Tel: +44 (0) 207 920 3150

(C) 2023 Electronic News Publishing, source ENP Newswire