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 definitive feasibility study has confirmed the project’s strong economics and has outlined a pathway for the phased development of what is planned to be a major new bauxite producer.

The ore reserve estimate has been increased by one-third, to 144-million tonnes of direct shipping ore-grade ore at 51.2% alumina and 1.7% silicone dioxide, which will underpin the long-term future of the project.

The current 20-year mine plan and production schedule is based solely on the proved ore reserve. Canyon has reported that the overall project life span can be increased beyond 20 years. Pending mine plans being completed for the Makan and Ngoundal deposits, the overall project life span could be increased beyond 20 years.

Mining operations are proposed to be undertaken at three plateaus – Danielle, Beatrice and Raymonde – using surface miners.

Stage 1 involves production of 1.2-million wet metric tonnes, which could be expanded to 2-million tonnes a year and then 6.5-million tonnes a year before peaking at 10-million tonnes a year by Year 7 of operations. Production will be ramped up, in line with rail network operator Camrail’s PQ2 rail upgrade initiative, in Cameroon, which will result in existing rail capacity being upgraded.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at 6% discount rate, of $835-million and an internal rate of return of 29%, with a payback of 4.1 years.

Capital Expenditure
Total project capital expenditure (capex) is estimated at $446-millon.

Stage 1 capex to first ore shipment is estimated at $96-million.

Total capex to two-million tonnes a year is estimated at $158-million, to 6.5-million tonnes a year at $345-million, and to 10-million tonnes a year at $101-million.

Planned Start/End Date
Project construction started in July 2025. First ore production is planned for the first quarter of 2026 and the first bauxite shipment for the first half of 2026.

Latest Developments
Canyon Resources announced a strategic funding package of about A$215-million to accelerate project development on September 25.

The package comprises a two-tranche placement to raise about A$205-million and an option exercise to raise about A$10-million. Shares will be issued at A$0.26, representing a 5.5% discount to Canyon’s last closing price and a 9.6% discount to its five-day volume weighted average price.

Proceeds will be directed towards expediting the development of Minim Martap, which is on track to start operations in early 2026. Funds will also support Canyon’s increased investment in Camrail, as well as general administration, corporate and offer costs.

Canyon’s major shareholder, Eagle Eye Asset Holdings (EEA), will contribute a strategic investment of about A$110-million comprising the exercise of 137-million options at A$0.07 and a commitment to subscribe for A$100-million under Tranche 2, subject to shareholder approval.

Afriland Bourse & Investissement – a subsidiary of Afriland First Bank, the largest financial services group in Cameroon – has committed to subscribe for up to A$70-million under Tranche 2, also subject to shareholder approval and regulatory clearances in Cameroon.

On completion of Tranche 2, EEA will maintain its 56.5% stake in Canyon while Afriland will hold about 10.1%. Canyon has said its pro forma balance sheet will include A$175-million in undrawn debt and A$266-million cash.

Key Contracts, Suppliers and Consultants
SRK Consulting (Australasia) (study on geology, mineral resource estimation, geotechnical analysis, mining and ore reserve estimation); Bhygraph Engineering Sarl (design of haul road from mine to the inland rail facility, or IRF, facility); MR Technofin Consultants (IRF design); SYSTRA (rail capacity studies); Grafix Engineering Consultant (port studies: planning and design); Geostratum (hydrogeology study); CM Group (bauxite marketing studies); Golder Associates-Africa, Rainbow Environment Consultant (Cameroon), ESS-Senegal (environment- and social-impact studies, or ESIA – mine); Andal & Synergy Engineering (ESIA updates – IRF and road); Glonar (ESIA update – port).

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