Name of the Project
Minim Martrap bauxite project.

Location
The project is located in central Cameroon.

Project Owner/s
Canyon Resources.

Project Description
A prefeasibility study (PFS) has confirmed the project’s ability to produce high-quality, low-contaminant bauxite over a long mine life of at least 20 years through a multistage development.

The project is underpinned by a large, shallow mineral resource of more than one-billion tonnes.

It has a maiden ore reserve of 97.30-million tonnes grading 51.10% aluminium oxide and 2.30% silicon dioxide.

Canyon is planning the development of the project as a two-stage, two-port execution programme.

The PFS envisages a Stage 1 mining and direct shipping ore (DSO) export operation of five-million tonnes a year, exported through the Douala port and using existing infrastructure to provide an economic and faster startup. This capacity has been identified through the optimisation of rail schedules, integrating the mine development with ongoing in-country rail upgrades and allocating a more efficient rail fleet.

The mine will begin at four-million tonnes a year before ramping up to five-million tonnes a year, in line with the rail axle load increase from 17 t to 20 t an axle, which is part of the ongoing rail upgrades currently under construction by the Cameroon government.

The mine design, upon which the ore reserve estimate is based, comprises simple, edge-to-edge strip mining and openpit, resulting in very low structural geotechnical risk.

Stage 1 provides a foundation that allows for the ongoing operation of the mine through the potential Stage 2 development. Completion of Stage 2 is expected to provide increased tonnage and a decrease in operating costs by shipping through the Kribi deep-water port.

The project is expected to use existing rail networks and integrate with rail upgrades currently under way, increasing the probability of a rapid startup.

Potential Job Creation
About 650 direct local jobs are expected to be created during operations, with many more expected in indirect employment through supporting industries.

Net Present Value/Internal Rate of Return
The project has a net present value, at a 10% discount rate, of $291-million and an internal rate of return of 37%.

Capital Expenditure
The project will require development capital of $119-million.

Planned Start/End Date
A final investment decision is expected to be made in the second half of 2021.

On-site construction is expected to start during the second half of 2022, with operations expected to start in mid- to late 2023.

Latest Developments
Canyon announced on August 31 that it would raise A$10-million through a share placement to fund a definitive feasibility study on the Minim Martap bauxite project and to advance strategic project and offtake discussions.

The placement would be made under the company’s existing capacity and would not require shareholder approval.

Strategic investor Peter Su has become a cornerstone investor in Canyon, taking up A$5.60-million of the placement, and a 9.40% stake in Canyon.

Under the terms of the subscription agreement, Su will be appointed to the board of directors, and will have the right to appoint a second director to the company, subject to maintaining a minimum shareholding of 7.50%.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Canyon Resources, tel +61 8 6382 3342 or email info@canyonresources.com.au.