A major bauxite project, which holds a JORC (2004) Resource of 550 million tones at an average grade of 45.5% total Al2O3 has been picked up by ASX-listed explorer Canyon Resources (ASX:CAY), rocketing shares in the company up more than 40 percent.
The Cameroon-based Minim Martap project contains one of the world’s most appealing undeveloped bauxite deposits, boasting very high-grades with high-tonnage and low impurities.
The project is well advanced, with 88 million tonnes averaging 41.8% Al2O3 and 1.3% SiO2 falling into the Indicated category.
Canyon Resources, which has been developing the neighbouring Birsok project, will be able to apply its extensive knowledge of the region to fast-track project development.
At points, the Birsok project shares the same geological plateaus as Minim Martap, further building upon Canyon’s existing understanding of the physical and geochemical bauxite characteristics.
The Minim Martap Project encompasses two deposits, the Ngouandal and Minim Martap deposits, which are located within 25 km of each other.
The company is already eyeing-off improvements to the project’s sizable resource, noting that there exists significant potential to further increase resource tonnage.
Commenting on the project acquisition, Canyon Resources managing director Phillip Gallagher said: “The Minim Martap Project is a very large, high grade, low impurity bauxite deposit that is located alongside an operating rail line that has the potential to transport the bauxite to the Douala Port and eventually to the new Kribi deep water 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.
“This view is supported by the Company’s belief that there will be a long-term worldwide deficit of high grade bauxite and the Minim Martap Project is ideally placed to supply bauxite into this demand,” he said.
Following the acquisition, the company has outlined an aggressive development timetable, that will see the miner immediately upgrade existing reporting to JORC (2012) standing. The company will also commence feasibility studies focussing on mining, rail and port solutions and commence local community and stakeholder consultation.