Name of the Project
Minim Martrap bauxite project.

Location
Central Cameroon.

Project Owner/s
ASX-listed Canyon Resources.

Project Description
A bankable feasibility study (BFS) 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 subsidiary Camalco Cameroun has entered into a mining convention that details the agreement by which it can mine the project, and export the recovered bauxite and alumina.

The convention is a requirement of a mining permit being granted. The signing thereof marks the culmination of an extensive approval process, enabling Camalco to proceed with further development plans for the project as outlined in the BFS.

The mining convention will also provide Camalco with additional certainty to progress critical workstreams with regard to rail and port access, which are essential to the development of the project.

“There remains a lot of work to be done to progress the project from here, including sourcing funding for development, and concluding outstanding issues in relation to port and rail access,” Canyon CEO Jean-Sebastien Boutet has said.

Camalco has worked on developing local site infrastructure and laying foundational groundwork in recent months in preparation for the signing of the mining convention.

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.