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) on Minim Martrap has confirmed it as a robust long-term project. The project has 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 secured a near A$12.1-million strategic placement with Eagle Eye Asset Holdings to advance the development of its Minim Martap bauxite project.

Under the placement, Eagle Eye will subscribe for more than 81.12-million shares in Canyon, priced at 6c each, representing a 41.8% premium to Canyon’s 30-day volume weighted average share price and a 40.2% premium to the company’s 15-day volume weighted average share price.

The placement will give Eagle Eye a 19.9% shareholding in Canyon, making it Canyon’s biggest shareholder.

The placement will be undertaken within Canyon’s existing placement capacity and will not require shareholder approval.

Under the subscription agreement, Eagle Eye will also receive one unlisted option for each placement share, each with an exercise price of 7c and an expiry date in August 2025.

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.