Name of the Project
Minim Martrap bauxite project.

Location
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. In October 2020, Canyon increased the mineral resource estimate for the project ore than one-billion tonnes. The new resource estimate followed the integration of results from the physical testing programme.

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 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 Resources has signed a specifications agreement with the Cameroon government regarding its Minim Martap project.

The agreement was initially proposed by the Ministry of Mines, and following negotiations over sever key points, the agreement was ratified on May 17.

The agreement confirms Canyon’s obligation and rights in relation to the project’s exploration permits, and stabilises Canyon’s position with regard to the project until the signing of a mining convention.

“This agreement gives us the confidence of the positive intentions of the government of Cameroon, and provides security and clarity as the company takes the Minim Martap project to the next phase,” MD Phillip Gallagher has said.

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.