Name of the Project
Minim Martrap bauxite project.

Location
Central Cameroon.

Project Owner/s
ASX-listed exploration and development company 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' major shareholder, Eagle Eye Asset Holdings (EEA), has agreed to underwrite the full debt requirements to finance the acquisition of 22 locomotives and 550 wagons, as well as a five-year warranty and service agreement on the rolling stock, for the project.

The full underwritten loan amount is $123.96-million and, under the terms of the agreement, an underwriting fee of 3% of the total underwritten amount, equivalent to $3.72-million, will be payable upfront to EEA and, where EEA is called upon under its underwriting, EEA will lend the money to Camalco Cameroon on an unsecured basis.

The purpose of the financing is to enable Camalco to close out negotiations and then place an order for the delivery of the rolling stock for Minim Martap.

The company has said that the acquisition of these long-lead items will mark a significant milestone for the project and will ensure control over logistics, cost efficiency and reliability, with investment in this essential infrastructure demonstrating unwavering confidence in the project.

Camalco is in advanced stages of agreeing the terms for access to the rail assets of CamRail.

Canyon is working towards finalising the acquisition of the rolling stock.

The company has said that, upon completion, the rolling stock will bolster Minim Martap’s logistical framework, underscoring Canyon’s commitment to rapidly develop the project towards production status at a time when the definitive feasibility study is in progress and on track for completion in the second quarter of this year.

“Having our own inventory of rolling stock will play a crucial role in mitigating potential logistical challenges, ensuring the reliability of the project over the long term and strengthening our ability to maintain control over schedules and costs,” Canyon CEO Jean-Sebastien Boutet has said.

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.