AMN - CAMEROON: Canyon adds to bauxite assets

After a significant negotiation period with the Government of Cameroon, Canyon Resources has been granted three exploration permits that comprise the Minim Martap Bauxite Project. This is a large-scale deposit in the Adamawa region, alongside Canyon’s existing Birsok Bauxite Project.

The 1349sqkm project encompasses two deposits, namely the Ngouandal and Minim Martap deposits, which are within 25km of each other.

The three permits are valid for three years and contain a number of pre-defined work commitments that are consistent with the company’s development proposal.

Previous work completed by Canyon on the contiguous Birsok project has given the company a strong understanding of the physical and geochemical characteristics of the local bauxite.

The bauxite is generally high alumina, low total and reactive silica, high gibbsite, low boehemite and low on other contaminants.

Minimum work commitments in year one include a review of existing geological, metallurgical and environmental data; the start of initial geological works and of geological, environmental, community and infrastructure studies; exploration drilling; and definition of an initial JORC 2012-compliant resource.

In year two the minimum commitments are ongoing exploration drilling; and commencing pre-feasibility studies on the mining, metallurgical, infrastructure, environment, community and mine financing.

Year three minimum commitments are finalising any required drilling; completing a definitive feasibility study; and completion of a mining convention in collaboration with the government.

In 2009, the previous owner of the project reported a JORC Code 2004-compliant resource of 550 million tonnes at an average grade of 45.5% total Al2O3 and total 2.06% SiO21.

This included an indicated resource of 88 million tonnes averaging 41.8% Al2O3 and 1.3% SiO21 from the Ngaoundal permit and an inferred resource of 466 million tonnes averaging 46.2% Al2O3 and 2.2% SiO21 from the Minim Martap permits.

Canyon expects to be able to use the results of this previous work, in addition to further exploration results obtained from assessment activities if required, to upgrade the defined bauxites to a JORC Code 2012-compliant resource.

The previous drilling campaign only drilled on around 40% of the suitable bauxite plateaux within the permit areas and identified some very high grade, low impurity zones.

Canyon will begin activities to further define the deposit size and to identify very high-grade zones within the total deposit area.

The Minim Martap project is supported by its relative proximity to an operating rail line connecting the area to the existing port of Douala. Canyon has engaged with the government regarding an extension of the existing rail line to the new Kribi Deep Sea Port, which lies about 130km from the existing rail line.

The government is at an advanced feasibility and planning stage for this extension and has already started land clearing of the road and rail corridor to connect the port to the existing road and rail infrastructure.

Whilst operating the Birsok project over the past four years, Canyon has been working with Camrail, SA, the rail operator and the Government of Cameroon regarding the under-utilised capacity of the existing rail line.

www.canyonresources.com.au