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 announced a subscription agreement with Singapore-based Eagle Eye Asset Holdings (EEA) on August 17 that could result in the investment of up to A$59.7-million.

EEA has agreed to subscribe for A$10.5-million of new fully paid shares in Canyon, at 7c each, and to exercise its existing 202.9-million options at 7c each to acquire the corresponding number of shares.

Following the satisfaction of shareholder approval, the agreement will provide Canyon with an initial capital injection of A$24.7-million.

Canyon has indicated that it will also issue EEA with 500-million new unlisted options, with an exercise price of 7c each and an expiry date of December 2026. The issue of the new options is subject to shareholder approval, with a meeting scheduled for November this year.

The exercise of the new options would be subject to a mining licence for the Minim Martap project being granted, as well as a binding contract for port access and rail transportation on terms relevant to the project.

Canyon CEO Jean-Sebastien Boutet has said the investment will increase the strength of Canyon’s balance sheet, which will assist the company as it progresses discussions with the government of Cameroon regarding the issue of a mining licence for the project and progressing towards production status.

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.