Name of the Project
Minim Martap bauxite project.

Location
Central Cameroon.

Project Owner/s
ASX-listed exploration and development company Canyon Resources.

Project Description
A definitive feasibility study (DFS) has confirmed the project’s strong economics and has outlined a pathway for the phased development of what is planned to be a major new bauxite producer.

The ore reserve estimate has been increased by one-third, to 144-million tonnes of direct shipping ore-grade ore at 51.2% alumina and 1.7% silicone dioxide, which will underpin the long-term future of the project. The current 20-year mine plan and production schedule are based solely on the proved ore reserve. Canyon has reported that the overall project lifespan can be increased beyond 20 years. Pending mine plans being completed for the Makan and Ngoundal deposits, the overall project life span could be increased beyond 20 years.

Mining operations are proposed to be undertaken at three plateaus – Danielle, Beatrice and Raymonde – using surface miners. Stage 1 involves production of 1.2-million wet metric tonnes, which could be expanded to two-million tonnes a year and then 6.5-million tonnes a year before peaking at 10-million tonnes a year by Year 7 of operations.

Production will be ramped up in line with rail network operator Camrail’s PQ2 rail upgrade initiative, in Cameroon, which will result in existing rail capacity being upgraded.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at 6% discount rate, of $835-million and an internal rate of return of 29%, with a payback of 4.1 years.

Capital Expenditure
Total project capital expenditure (capex) is estimated at $446-millon.

Stage 1 capex to first ore shipment is estimated at $96-million. Total capex to two-million tonnes a year is estimated at $158-million, to 6.5-million tonnes a year at $345-million, and to 10-million tonnes a year at $101-million.

Planned Start/End Date
Project construction started in July 2025. First ore production is planned for the first quarter of 2026 and the first bauxite shipment for the first half of 2026.

Latest Developments
Canyon Resources has reported that a surface miner has been mobilised to the project, with mining expected to start before the end of March.

The company is targeting first bauxite production early in the second quarter, an important step as the project moves from development to operations.

At an extraordinary general meeting on March 9, shareholders did not approve a second-tranche private placement of shares worth A$70-million to Afriland Bourse & Investissement or a further A$100-million placement to Eagle Eye Asset Holdings.

Even so, the company says Stage 1 remains fully funded through the estimated $95-million still available under its $140-million credit facility with AFG Bank Cameroon, together with its unaudited cash balance of about $43-million as at February 28.

According to Canyon, updated cash flow modelling has shown that these funds are sufficient to cover capital expenditure until first shipment, as set out in the September 2025 DFS, meaning no additional funding is required from Afriland or Eagle Eye.

On the current development schedule, the company has said it remains on track for first ore shipment in the third quarter of this year.

CEO Peter Secker has said the arrival of the surface miner is a significant step forward for the project, with mining expected to start shortly and funding secured through to first shipment. Canyon is also progressing logistics planning, offtake negotiations and its downstream feasibility study to support the long-term value of the high-grade project.

Logistics preparations are also advancing. Canyon has reported that talks with locomotive manufacturer CRRC Ziyang are continuing, with the first locomotives expected to arrive at the Port of Douala in the second quarter. That schedule is expected to support ore transport from the inland rail facility to port ahead of the first shipment in the third quarter.

The company is also in discussions with Camrail about potentially increasing its equity stake above the current 9.1%, which would provide it with greater involvement in the PQ2 upgrade and help reduce mine-to-port logistics risk. Canyon has said the funding required for such an increase has been factored into its updated cash flow modelling.

Offtake discussions with several potential partners are continuing. Canyon intends to finalise offtake agreements after the first bauxite shipments, enabling customers to confirm the quality of Minim Martap’s ore reserve, including alumina content of about 51% and silica of about 2%.

Key Contracts, Suppliers and Consultants
SRK Consulting (Australasia) (study on geology, mineral resource estimation, geotechnical analysis, mining and ore reserve estimation); Bhygraph Engineering Sarl (design of haul road from mine to the IRF); MR Technofin Consultants (IRF design); SYSTRA (rail capacity studies); Grafix Engineering Consultant (port studies: planning and design); Geostratum (hydrogeology study); CM Group (bauxite marketing studies); Golder Associates-Africa, Rainbow Environment Consultant (Cameroon), ESS-Senegal (environment- and social-impact studies, or ESIA – mine); Andal & Synergy Engineering (ESIA updates – IRF and road); Glonar (ESIA update – port); and CRRC Ziyang (locomotives).

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