Canyon Resources Minim Martap bauxite testing outcomes underpin product technical specifications

Canyon Resources Ltd (ASX:CAY) has completed a range of testing, underpinning the bauxite technical specification datasheet which is the basis for ongoing offtake and strategic partnership negotiations for its Minim Martap Project in Cameroon, Africa. The testing was completed as part of a broad range of chemical, metallurgical and physical test-work to inform the project pre-feasibility study (PFS) and resulting ore reserve estimate. Basic metallurgical program A random selection of field duplicates from the resource estimate sample program from the Beatrice plateau, one of the three priority plateaux, was used in the testing for the basic metallurgical program. The combined test results from historical work and the basic metallurgy program show total alumina converting at an average of 90%-95% and silica at an average of 60%-80%. These results support the mineral resource estimate. Physical properties Sampling for the infield testing program was completed in May 2020 and added further data to rock strength, moisture content and density. Strength testing was conducted with a hydraulic point load tester (model 6510) on the samples, with more than 90% of samples showing a point load uniaxial compressive strength (UCS) of less than 24 megapascals (Mpa) and all 531 samples had a UCS less than 44 Mpa. This demonstrates that the rock UCS is well within the range that will be able to be productively cut using surface miners. In addition, a total of 176 samples tested for relative moisture content (RMC) with results showing an RMC range from 0 to 16.99% with an average value of 5.03%. Samples were also tested for handleability at the Newcastle Institute for Energy and Resources, including angle of repose, density, drawdown angle and dust extinction moisture. Technical specification datasheet The bauxite specifications are underpinned by mine scheduling and were included within the 2020 pre-feasibility study, ore reserve estimate, and the 2019 mineral resource. Canyon's bauxite technical specification datasheet also provides a basis for commercial and technical progression of bauxite offtake agreements and is the basis for the direct shipping ore (DSO) bauxite properties of chemical, digestion and physical/handleability of the product. Robust PFS potential The recently completed PFS demonstrates the potential for a robust, first stage, 5 million tonnes per annum DSO bauxite project with an NPV10 of US$291 million and an IRR of 37% on a capex of US$120 million and an average opex of US$35.1/tonne. This PFS is underpinned by the 2019 mineral resource estimate of 892 million tonnes at 45.1% aluminium oxide, 2.8% silicon dioxide (cut-off grade 35% aluminium oxide) and a high-grade mineral resource estimate of 431 million tonnes at 48.8% aluminium oxide, 2.6% silicon dioxide (cut-off grade 45% aluminium oxide).