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 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 has announced that the location of its inland rail facility (IRF) has been approved by the Cameroon government. The signing of this land approval is a key milestone in the development of the project.

In addition, Canyon Resources’ in-country subsidiary Camalco Cameroon has been allocated 105 ha by the Lamido, or ruler, of the City of Ngaoundere, to be used for future additions to the IRF and associated infrastructure.

The approved IRF location is strategically situated near the existing Makor railway station, allowing for integration with existing local infrastructure to enhance construction efficiency.

The approval for the IRF location and the allocation of additional land comes after the signing of an underwriting agreement with Eagle Eye Asset Holdings to finance the buying of rolling stock for the development of Minim Martap.

Canyon Resources said on February 4 that it now focused on progressing key logistical and infrastructure solutions to further derisk the project and support the ongoing definitive feasibility study.

Upon completion and the start of production, the IRF will be used as a loading station for wagons of bauxite ore, brought by road from Minim Martap, before being transported by the main rail line to port using the company’s own rolling stock.

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.