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Canyon finds two-stage development for Minim Martap

Mining
ASX:CAY      MCAP $247.9M
14 November 2019 21:19 (AEDT)

Canyon Resources has identified the potential for a 2-Stage, 2-Port project development pathway for the Minim Martap Bauxite Project.

The company has found the development by utilisation of the existing Camrail rail infrastructure and the two operating ports in Cameroon.

Stage one will export bauxite ore through the Douala Port, which will potentially provide a lower start-up capital expenditure requirement.

Stage two will continue to develop the rail link to the Kribi Deep Water Port, for higher tonnage and direct ship loading.

This development is the opportunity for the company to be in production and exporting bauxite ore while stage two infrastructure is being constructed.

Canyon has partnered with scheduling software company Minemax, in conjunction with PFS consultants Mining pus and Ausenco, to complete pit optimisation studies.

The pit optimisation studies demonstrate the potential for the long-term high-grade product, which are from a cluster of localised plateaux.

Canyon Project Director James Durrant says that Minim Martap continues to show its potential as a strategic global asset for major refiners.

“The optimisation results demonstrate the potential viability of the resource to produce product early via a 2-Stage, 2-Port strategy from consolidated infrastructure, maximising project value,” James said.

“Whilst continuing good progress on the pre-feasibility study (PFS) we are now working to complete an initial Scoping Study in the coming weeks on the viability of the two-stage approach to the project that will allow us to accelerate the development of the Minim Martap Project,” he added.

In September 2019, Canyon announced an increased mineral resource estimate at Minim Martap of 892 megatonnes at 45.1 per cent of aluminium oxide, 2.8 per cent of silicon dioxide, including an indicated resource of 839 megatonnes at 45.2 per cent aluminium oxide, 2.8 per cent silicon dioxide, a high-grade resource of 431 megatonnes at 48.8 per cent aluminium oxide, 2.6 per cent silicon dioxide.

“The mineral resource upgrade showed the Minim Martap Project has one of the largest high-grade, low contaminant bauxite deposits, in the world, located outside of Guinea,” the company said.

Canyon Resources are down 5.13 per cent on the market today and is selling shares for 18¢ apiece at 1:48 pm AEDT.

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