Canyon Resources Strengthens its Presence in Cameroon

Last updated 5 days ago

Building on the success of its Minim-Martap bauxite project, Canyon Resources has clearly stated its intention to obtain two new mining permits in Cameroon in 2025.

This expansion strategy, which strengthens Canyon Resources' presence in the country, demonstrates the growing attractiveness of Cameroon's subsoil and its potential to become a leading regional mining player. Canyon Resources is already a pivotal player in Cameroon thanks to its flagship Minim-Martap bauxite project, located in the Adamawa region, approximately 1,000 km from the Port of Douala. This deposit is globally recognized as one of the largest and highest-quality, with JORC (Joint Ore Reserves Committee) mineral resources estimated at more than 1 billion tonnes of bauxite. This estimate includes indicated resources of 525 million tonnes at 49.6% alumina (Al2O3), with a low reactive silica (SiO2) content of 2.4%, a major asset for processing. The project is in the advanced feasibility study phase, with an initial production target of 5 million tonnes of bauxite per year. The capital investment (CAPEX) for this first phase is estimated at approximately US$500 million (or CFA francs 305 billion), excluding the costs of developing disposal infrastructure.

Canyon Resources' announcement to target two new mining permits as early as 2025 is part of a strategic consolidation and risk diversification strategy for its Cameroonian portfolio. Cameroon has significant reserves of other minerals. For example, the Mbalam and Nkout iron ore deposits are estimated at over 700 million tonnes of high-grade iron ore. The country is also known for its gold potential, with annual artisanal production of several tonnes of gold. If Canyon Resources targets these minerals, exploration costs for a new permit can vary considerably, ranging from US$2 million to US$10 million per year for significant exploration campaigns over 3 to 5 years. It is also plausible that the new permits could target extensions or adjacent deposits at Minim-Martap or Ngaoundal, thereby increasing long-term exploitable reserves. The addition of an additional 200 to 300 million tonnes of reserves would significantly increase the potential life of the project.

Transportation costs represent a substantial portion of mining expenses, potentially accounting for 30% to 50% of the total cost to market. By targeting areas potentially more accessible to existing rail or road infrastructure, Canyon Resources could reduce evacuation costs by 10% to 20% per tonne compared to the most complex scenarios.

Bernardo Carlos NDJOMO

https://www.africafirstclub.com/read/investissement-minier-canyon-resources-renforce-sa-presence-au-cameroun