Canyon Resources Limited’s (ASX: CAY) Bankable Feasibility Study (BFS) has confirmed the Minim Martap Bauxite Project in Cameroon as a robust long-term project producing some of the highest-grade bauxite in the world for an initial 20 years of mining.
The Project will produce up to 6.4Mt of high-grade bauxite per annum over 20 years, representing a 28% increase from the PFS.
The study found the project will produce high-grade bauxite averaging 51.1% Total Alumina and 2.0% average Total Silica for the first 20 years of operation.
Other highlights
• Updated Proved Ore Reserve of 108.91Mt at 51.1% Al2O3 and 2.0% total SiO2.
• A Total Mineral Resource (JORC 2012) estimate of 1,027Mt at 45.3% total Al2O3 and 2.7% total SiO2.
• Optimised rolling stock configuration and scheduling has increased rail capacity, substantially reducing OPEX from the PFS phase, and resulting in improved project economics.
• The 20-year mining schedule represents only 10.6% of the current Minim Martap Resource and technical studies have identified opportunities for a significant future increase in production tonnages.
• The ESIA submission over the Project is complete. The company’s application for a Mining Permit is progressing well with the administrative period for objecting to the processing of the Mining Permit application having passed. The next step is the signing of a Mining Convention with the Government of Cameroon, which the company believes is imminent. The required documentation has been forwarded by the Minister of Mines to the Prime Minister of Cameroon for approval before signing.
Key BFS Financial Outcomes
• Project pre-tax NPV8 of US$452M (on a gross joint venture basis).
• Project IRR of 22%.
• Initial mine life of 20 years, with project payback in 4.1 years.
• NPV based on life of mine average bauxite price of US$45.22/t FOB for Minim Martap’s high grade bauxite averaging 51.1% Al2O3.
• Project development capital expenditure of US$253M, which includes the capital cost of the initial fleet of Company acquired rail rolling stock.
• C1 operating costs US$23.95/t for a 51.1% Al2O3 export product, making Minim Martap very competitive supplying some of the world’s highest-grade bauxite.
• Updated Proved Ore Reserve of 108.91Mt at 51.1% Al2O3 and 2.0% total SiO2 completed by Resolve Mining Solutions.
“The BFS demonstrates that the Minim Martap Bauxite Project is a robust and profitable long term mining project, that will be exporting some of the world’s highest-grade alumina combined with low silica for many years,” CEO, Jean-Sebastien Boutet, said.
“Despite the difficulties of COVID-19 and current global inflationary pressures, the Canyon team along with our Project partners have produced a study that has reduced Project risks and will increase the confidence of potential strategic partners looking to invest in the Minim Martap Bauxite Project.
“Not only is this mine going to produce some of the highest-grade bauxite in the world for decades, but there is also potential to further increase the export tonnage from Minim Martap. The current mining plan mines only 10.6% of the total resource in the first twenty years and the total resource only represents 17 out of 62 bauxite plateaux on the total Project area.
“To leverage this massive upside future potential of the Project, we are already working closely with our logistics partners to fast track and increase the capacity of the rail and port logistics for the Project.”
For further information please visit: https://www.canyonresources.com.au/
