Canyon Resources (ASX: CAY) has identified a “world class” high-grade bauxite zone within its Minim Martap project in Cameroon.
The high-grade inferred resource zone is within the existing resource and totals 250.9 million tonnes at 50.8% aluminium oxide and 1.9% silicon dioxide.
Additionally, more than 50% of the area drilled for the resource grades over 50% aluminium oxide with low silica of 1.3%.
Canyon believes that Minim Martap is one of the world’s highest grade, low silica bauxite resources.
“By conducting a more detailed assessment of the historic resource, we have identified significant areas with very high-grade aluminium oxide and low total and reactive silica on all of the Minim Martap licence plateaux,” Canyon chief geologist Alexander Shaw said.
“The remarkably high grade, combined with the very low levels of contaminants, and significant cumulative volume of greater than 250Mt of bauxite in these areas further reinforces the fact that the Minim Martap project bauxite deposit is a true global tier one bauxite resource.”
He added the company would use the information generated from the resource analysis to assist with developing fresh drill targets to uncover new high-grade zones at the project.
Drilling on the identified the high-grade zones is underway at the project after kicking-off late last year.
To-date about 157 holes have been completed for 1,556m, with samples currently under analysis.
Drilling will also be carried out at an untested bauxite plateaux that has been noted on the Minim Martap and Makan permits.
Canyon’s acquisition of the Birsok project is progressing after it announced in October last year its intent to secure 100% of the asset from joint venture partner Altus Strategies.
Birsok is contiguous to Minim Martap and once the Birsok acquisition has been completed, Canyon will control 100% of the bauxite plateaux in the region surrounding both Birsok and Minim Martap.
“Canyon now controls all of this area and this transaction removes the need to consult and potentially reach agreement with minority joint venture partners in relation to our development plans to build a long-term, high-grade bauxite mining and export operation,” Canyon managing director Phillip Gallagher said.
To lock-in its full ownership of Birsok, Canyon will issue Altus up to 30 million shares and provide a US$1.50 per tonne royalty on ore mined and sold from the project.
After an early morning run, which saw the company’s share price rise to $0.25, Canyon’s share price had dipped 2% to $0.23 by mid-afternoon.