Name of the Project
Minim Martap bauxite project.

Location
Central Cameroon.

Project Owner/s
ASX-listed exploration and development company Canyon Resources.

Project Description
A bankable feasibility study has confirmed it as a robust long-term project with an updated proven ore reserve of 108.91-million tonnes grading 51.1% total aluminium oxide and 2% total silica oxide. The project is expected to produce up to 6.4-million tonnes of high-grade bauxite a year over 20 years.

The low-strength ore and near-surface nature of the bauxite deposits support a conventional free-dig mining operation using surface mining, with no drill and blasting required.

The bauxite recovered from the surface mining process does not require any additional processing. The surface miner crushes the ore to the required size as part of the mining process, after which the ore is exported.

The 20-year mining schedule represents only 10.6% of the current project resource, and technical studies have identified opportunities for a significant future increase in production tonnages.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $452-million and an internal rate of return of 22%, with a payback of 4.1 years.

Capital Expenditure
Capital expenditure is estimated at $253.09-million, which includes the capital cost of the initial fleet of company-acquired rail rolling stock. The project will be funded through a combination of equity and debt financing.

Planned Start/End Date
Construction is expected to start in the second quarter of 2024, subject to regulatory approvals and financing.

Latest Developments
Canyon Resources remains on schedule to complete a definitive feasibility study (DFS) during the third quarter of the year.

The company is also advancing studies to ensure optimised operational efficiency and sustainable economics, which will confirm a preferred pathway to production, as well as discussions with select debt providers as Canyon seeks to secure funding.

As part of the DFS, Canyon is evaluating the implementation of a two-stage development strategy aimed at accelerating production, including through a phased ramp-up to allow for a first bauxite shipment in 2026.

This two-stage approach will also allow for earlier revenue generation, strengthen supply chain relationships and strategically position Minim Martap for future growth, CEO Jean-Sebastien Boutet has stated.

The company’s future growth hinges largely on rail capacity expansion, in Cameroon, and Canyon has engaged several international consultants to refine and optimise the existing rail infrastructure required to transport   bauxite ore.

These detailed assessments will enhance logistics efficiency and explore capacity expansion strategies that can support long-term operational growth for the company.

Meanwhile, Boutet has said strong market interest in Minim Martap’s high-quality bauxite product is evidenced by positive discussions with potential offtakers as Canyon works to secure long-term sales agreements.

This while bauxite market fundamentals and pricing have strengthened over the past 12 months, with the Chinese Cost, Insurance and Freight  price for 45% aluminium oxide reported to be about $100/t in February.

The product from Minim Martap, with a proved reserve grade of 51.1% total aluminium oxide, should, therefore, achieve a considerable premium price.

Boutet remains confident that the company will transform the project into a world-class operation that delivers sustainable, long-term value for shareholders.

Key Contracts, Suppliers and Consultants
Resolve Mining Solutions (mineral reserve estimate).

Contact Details for Project Information
Canyon Resources, tel +61 8 6382 3342 or email info@canyonresources.com.au.