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 and its subsidiary Camalco Camaroun have been granted a 20-year mining licence.

The licence is conditional upon the companies’ starting development work on the project within two years, and producing bauxite and alumina within five years.

Canyon has said the award of the licence, as well as a mining convention, follows an extensive approval process and is testament to the strong levels of support from the Cameroon authorities for the project.

The mining licence can be reviewed for one or more periods not exceeding ten years each.

The company has a strong pipeline of activities planned for the next 12 months, including the development of infrastructure for port and rail access and a revised bankable feasibility study (BFS).

Canyon is also progressing discussions with several potential offtakers and financiers.

Further, it is also progressing with a drilling programme on the Makan and Ngaoundal prospects within the Minim Martap project, with results expected before the end of the year. The company aims to update the mineral resource estimate and work the results into the revised BFS.

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.