Canyon Resources (ASX: CAY) today announced the Cameroon government has finally granted the Aussie-listed junior explorer the massive Minim Martap bauxite project.
In what has been a protracted negotiation period with the Government of Cameroon spanning the past three years, Canyon has finally been granted three exploration permits comprising the Minim Martap bauxite project for a three-year period.
The project lies in the Adamawa region of Cameroon, alongside Canyon’s existing Birsok Bauxite Project. It encompasses two deposits – the Ngouandal and Minim Martap – which lie within 25km of each other with the permits covering 1349 square kilometres.
Previous drilling at the project has identified some very high grade, low impurity (silicon dioxide) bauxite zones.
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 bauxite and total 2.06% silicon dioxide.
This consisted of an Indicated resource of 88Mt averaging 41.8% bauxite and 1.3% silicon dioxide from the Ngaoundal permit and Inferred resource of 466Mt averaging 46.2% bauxite and 2.2% silicon dioxide from the Minim Martap permits.
What is of particular interest is the previous drilling only took place on around 40% of the suitable bauxite plateaux.
In Canyon’s view, the Minim Martap deposit offers the potential to significantly increase the total tonnage defined and to identify substantial very high grade, low impurity zones within the deposit.
Canyon will commence activities to further define the deposit size and to identify very high-grade zones within the total deposit area.
The company is also seeking to quickly upgrade Minim Martap to a JORC Code (2012) compliant Mineral Resource and commence pre-feasibility work.
According to Canyon Resources managing director Phillip Gallagher, Minim Martap is a very large, high grade, low impurity bauxite deposit which lies alongside an operating rail line to transport the bauxite to port.
“We believe that the large scale and quality of the bauxite within the project plus the access to suitable rail and port infrastructure makes the Minim Martap Project a very exciting and transformational opportunity for Canyon Resources,” he said.
Mr Gallagher believes the company is well-placed to benefit from a long term worldwide deficit of high grade bauxite.
“Canyon has had the benefit of working in Cameroon for the past four and a half years, primarily on the Birsok Bauxite Joint Venture Project with Altus Strategies plc, which is located next to the Minim Martap Project,” he said.
“This has provided us with an advanced understanding of the area, the bauxite and the infrastructure solution for the Project.
We also have a wholly owned drilling rig and assembled a workforce that can start work on site almost immediately.”