Bas Resources, an ore mining company listed on the Australian Stock Exchange and London's alternative investment market, has made a final investment decision on the $28.1 million buamani project, which will extend the mine life of its Kwale operations in Kenya by 13 months until December 2024.

The buamani project includes a higher-grade subset of the Buamani and Kwale North Dune deposits.

After a clear feasibility study of the buamani project, the investment decision was made for the project. The study estimates that another 17.9 million tonnes of mineable ore reserves could produce about 42,000 tonnes of rutile, 171,000 tonnes of ilmenite and 20,000 tonnes of zircon.

It is estimated that the operating cost of buamani per ton of mined ore is $4.64.

The project's capital costs are estimated at $28.1 million, which includes the acquisition of land and additional demining services and infrastructure required. Base said those costs would be funded by internally generated cash flows.

On Monday, the company told shareholders that rutile production in 2023 at the Bumanani project is now estimated at between 62,000 and 73,000 tons, while ilmenite production will reach 260,000 to 310,000 tons and zircon production is between 22,000 and 27,000 tons.

In FY2022, rutile production targets will be between 73,000 tonnes and 83,000 tonnes, ilmenite production will be between 310,000 tonnes and 340,000 tonnes, and zircon production will be between 24,000 tonnes and 28,000 tonnes.