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
Despite reports of unrest in several cities in Cameroon following the re-election of President Paul Biya, Canyon Resources continues to progress the development of the project, with minor delays to construction work in key areas.

Canyon has noted that upgrades to the Minim Martap haulage road, including access to the Daniel Plateau and the inland rail facility, as well as bypass construction, are ongoing. Despite some delays, the company has assured shareholders that the works remain on track for completion in the first quarter of 2026.

The company has indicated that locomotives ordered recently from China-based CRRC Ziyang are being built in China and are on schedule to be delivered to Canyon in the first quarter of 2026.

The delivery of rail wagons is also scheduled for the first quarter of 2026, in line with the planned first shipment of bauxite ore in the second quarter.

Meanwhile, the mining contractor appointed to the project has visited the site and has confirmed it will be in position to start with mining operations in the first quarter of 2026.

Importantly, with first bauxite shipment scheduled for the second quarter of 2026, Canyon has said that the project remains fully financed to Stage 1 production through a combination of debt and equity facilities.

Funding comprises the previously announced facility of an estimated $140-million from AFG Bank Cameroon, and the recent A$35.6-million equity raise in September that resulted in 56.5% shareholder, Eagle Eye Assets (EEA), also committing to exercise about 137-million options to raise an additional A$10-million.

Tranche 2 of the equity raise, comprising a placement of A$100-million to EEA and a A$70-million placement to Central African Economic and Monetary Community (CEMAC) investors being undertaken by Afriland Bourse & Investissement, remains conditional on shareholder approval.

In addition, Canyon has said the Afriland tranche requires approval from the Banque des États de l'Afrique Centrale, the central bank for the CEMAC; the Commission de Surveillance du marché financier de l’Afrique Centrale, the market regulator for the CEMAC; and the Cameroon government, which is ongoing.

The AGM is scheduled for November 25.

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); and CRRC Ziyang (locomotives).

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