Kwale

Elemental acquired a 0.25% GRR royalty on the Kwale mine in February 2017. In 2019, Kwale provided US$0.5m in gross royalty revenue to Elemental.

The Kwale mineral sands mine is located in Kenya 10km inland and 50km south of Mombasa, the principal port for East Africa. Kwale was acquired by Base Resources Limited (ASX & AIM: BSE) in 2010 and following a feasibility study and financing commenced production 2013.

Kwale produces ilmenite, rutile and zircon using hydraulic mining feeding a wet concentrator plant. The resulting mineral concentrate is then processed to clean and separate the ilmenite, rutile and zircon minerals using combination of attritioning, electrostatic separation, magnetic separation, classification and gravity separation. The ilmenite and majority of the rutile is then transported to Base’s Likoni Port facility, with the balance of the rutile and all of the zircon transported to the main Mombasa port in containers.

The operation is now producing more than 90ktpa of rutile, 400ktpa of ilmenite and 30ktpa of zircon, making Base a significant producer of mineral sands products.

Exploration Potential

Base have recommenced exploration, recently added Resources to the southern dune and intend to convert into Reserves after an extension of the mining tenement is approved. Work has also started to the north on additional dunes. Heavy minerals commodity prices are expected to remain strong in the medium term.

For further information please visit the Base Resources website or the Base Titanium website.

• Unless otherwise noted, the disclosure contained on this website of a scientific or technical nature for the Mercedes mine is based on Base Resources Ltd.’s ASX announcement dated August 13, 2020, “2020 Mineral Resources and Ore Reserves Statement”. The ASX announcements are prepared in accordance with the JORC Code. The ASX announcements are available on Base Resources’ website at https://baseresources.com.au/investors/announcements/

• Mineral Resources are estimated at a cut-off grade of 1% Heavy mineral

• Information contained on this website with respect to each of the royalties has been prepared in accordance with the exemption set forth in section 9.2 of NI 43-101. Richard Evans, FAusIMM, is Senior Vice President, Technical for the Company and a qualified person under National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical disclosure.

• Certain Resource and Reserve estimates covering properties related to certain mining assets in this website have been prepared in reliance upon the JORC Code. Estimates based on JORC Code are recognized under NI 43-101 in certain circumstances. In each case, the Mineral Resources and Mineral Reserves included in this website are based on estimates previously disclosed by the relevant property owner or operator, without reference to the underlying data used to calculate the estimates. Accordingly, the Company is not able to reconcile the Resource and Reserve estimates prepared in reliance on JORC Code with that of CIM definitions. The Company previously sought confirmation from its Qualified Person who is experienced in the preparation of Resource and Reserve estimates using CIM and JORC Code, of the extent to which an estimate prepared under JORC Code would differ from that prepared under CIM definitions. The Company was advised that, while the CIM definitions are not identical to those of JORC Code, the Resource and Reserve definitions and categories are substantively the same as the CIM definitions mandated in NI 43-101 and will typically result in reporting of substantially similar Reserve and Resource estimates.