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“The outlook from here velopers such as Diatreme
continues to be positive and Resources Ltd, which last
I think that’s reflected in Ilu- month signed a co-opera-
ka’s recent decision to pro- tion and consulting services
ceed with Cataby,†Carstens agreement with China ENFI
said during Base’s Decem- Engineering Corporation over
ber quarterly conference call the completion of a DFS on
to investors and analysts. the Cyclone zircon project in
While the performance WA’s Eucla Basin.
of Kwale continues to turn ENFI will also assist Dia-
heads, Base’s acquisition of treme in sourcing project
the Toliara Sands project in equity investors and product
Madagascar in late Decem- offtakers, as well as aid the
ber caught a market already company’s ongoing negotia-
in festive mode by surprise. tions for potential project debt
Following a failed bid to funding.
acquire Toliara Sands in “The agreements with
2014, Base finally reached ENFI represent the final push
an agreement with World Ti- forward for our Cyclone pro-
tane Holdings Ltd to acquire ject, with the potential for first
an initial 85% interest, with production by the end of the
an option over the remaining decade in an environment of
15% of the asset exercisable rising prices and constrained
as the project advances to supply,†Diatreme chief exec-
mine development. utive Neil McIntyre said.
“Over the last few years “We now have the right
we’ve made no secret of the technical partner in place to
fact that we’ve been looking deliver the right project at the
for the right project to apply right time, securing increased
our capability to,†Carstens value for our loyal sharehold-
said. ers.â€
“We looked at 44 unde- Tanzania-focused Stran-
veloped minerals sands as- dline Resources Ltd also
sets around the world, but took a major step towards
quite simply we kept coming bringing its Fungoni mineral
Base reported record revenue from its Kwale minerals sands sands project into operation
back to this one as the best mine in Kenya for the December quarter last month when it secured
undeveloped asset that was
available. a binding offtake agreement
“It took 18 months of coaxing and “There’s no question it’s a transforma- with China’s Hainan Wensheng High-
engagement to get ourselves to where tional acquisition for Base,†he said. Tech Materials Co Ltd for 100% of the
we’ve got to, but we’ve got the right asset “We’ve now positioned ourselves quite planned zircon-monazite production.
and we’re absolutely delighted about it.†differently as more than a single asset Based on the pricing formulae con-
Base raised $96 million last month to company across multiple jurisdictions.†tained in the agreement, zircon and mon-
fund the $US75 million initial considera- Confidence in the mineral sands sec- azite is expected to generate over 62% of
tion for Toliara Sands. tor beyond 2018 is shared by junior de- Fungoni’s total revenue. Off-take agree-
A concept study on the project will be- ments for the remaining chloride ilmenite
gin in the coming months, followed by a and rutile products are well advanced,
PFS and then a DFS. A decision to mine according to the company.
is tentatively slated for the second half of Strandline managing director Luke
next year, with one eye on first produc- Graham said locking down an off-take
tion by mid-2021 when a supply deficit deal with China’s largest integrated min-
in sulphate ilmenite opens up, Carstens eral sands processor was a “significant
said. milestone†for Fungoni.
“We’re re-thinking some aspects of it “The agreement provides a strong en-
and plugging some gaps in some other dorsement of the Fungoni project and the
areas,†Carstens said. premium quality of the zircon and mona-
“We’re not having to start from scratch, zite which will be produced over the life of
but we do need to make sure that we end the mine,†Graham said.
up with a project that has the Base stamp “Importantly, it also paves the way for
on it because we’re going to be operating Strandline to finalise project funding, en-
it for a bloody long time.†suring the Company remains on track to
Carstens boldly declared his company unlock the substantial value of what is
“could be operating in Madagascar for the first in its pipeline of exciting and pro-
60 years†due to the abundance of re- spective mineral sands assets.â€
sources at Toliara Sands, coupled with a Tim Carstens – Michael Washbourne
stable regulatory regime in country.
AUSTRALIA’S PAYDIRT FEBRUARY 2018 PAGE 21
