Canyon Resources - June 2024 Quarterly Activities Report
CAY (CAY) Share Update July 2024 Monday 29th
Canyon Resources Reports Progress on Minim Martap Bauxite Project
Canyon Resources Limited (ASX: CAY) has released its June 2024 Quarterly Activities Report, highlighting significant progress in its flagship Minim Martap Bauxite Project in Cameroon.
Instant Summary:
- Continued negotiations with the Cameroon Government for the Mining Convention.
- Extended drill program of 14,502 meters at Minim-Martap, Makan, and Ngaoundal permits.
- Early-stage detailed engineering studies for the Minim Martap Bauxite Project progressing as planned.
- Awarded the Special Jury award at the Cameroon International Mining and Energy Convention (CIMEC).
- Plans to strengthen the Board with a new African-centric Director.
- Cash balance of AUD $22.1 million at Quarter end.
Exploration Program
Following the initial stage of the drill program across the Minim-Martap, Makan, and Ngaoundal permits, Canyon Resources has extended the drill program by 14,502 meters. The Company has increased the number of drill rigs and personnel on site to expedite the completion of the drill program. Led by CAMALCO operators and supported by SRK Mining and exploration consultants, Canyon expects the drill program to be completed in September, with assays to be announced in Q4 2024.
The primary objective of the program is to expand the existing resources of 1,027 million tonnes of bauxite. Canyon is confident that the program will provide an advanced understanding of the orebody across the broader Minim Martap region, which would support the optimization of the Mine Operations Strategy to be undertaken by SRK, Australia as part of the ongoing updating of the DFS for the Project.
Development Studies
Canyon progressed preliminary workstreams for the revised Definitive Feasibility Study (DFS), with key areas covering Front-End Engineering Design (FEED) for mining, hauling, railways, and port facilities. To support these key workstreams, the Company’s key management personnel were in Cameroon for most of the quarter, traveling to the Bobodji campsite to monitor progress and manage the expanded drilling program.
Critical negotiations were held and continue to be progressed with the relevant authorities from CAMRAIL, the Port Authority of Douala (PAD), and the Haul Road. Discussions with these key partners are time-intensive and focused on building a long-term relationship to ensure that Minim Martap grows into a successful and long-term Bauxite operation.
Corporate Activities
Jean-Sebastien Boutet and CAMALCO Chief Executive Officer Rana Singh attended the fourth edition of the Cameroon International Mining and Energy Conference (CIMIC), one of the largest business events in Cameroon. Canyon and CAMALCO acted as the leader sponsors of the event and were presented with the Special Jury award for the branding and sponsoring of the event. Following the event, Canyon received multiple expressions of interest from potential business partners and offtake offers for the future.
During the Quarter, expenditure on the Project totaled $3.8 million, focusing on maintaining the tenements that the Company holds. Canyon is continually exploring growth opportunities in Africa to create a multi-asset African-focused company. The Company had a cash balance of AUD $22.1 million at Quarter end.
The progress in drilling and engineering studies at the Minim Martap Bauxite Project is a positive development for Canyon Resources. Successful completion of these activities could lead to an increase in resource estimates and potentially enhance the project's feasibility. The continued negotiations with the Cameroon Government and infrastructure operators are crucial for the long-term success of the project. The award at CIMEC and the potential addition of a new African-centric Director are also positive indicators for the company's strategic direction.
Investor Reaction:
Analysts are likely to view the progress in the drilling program and engineering studies positively, as these are critical steps towards advancing the Minim Martap Bauxite Project. The company's strong cash position and ongoing negotiations with key stakeholders may also bolster investor confidence. However, the market will be keenly watching the outcomes of the extended drill program and the finalization of the revised DFS.
Conclusion:
Investors should keep a close eye on the upcoming announcements related to the drill program results and the revised DFS. Canyon Resources' strategic initiatives and progress at the Minim Martap Bauxite Project could present significant opportunities for long-term growth. Stay informed and consider the potential impacts on your investment portfolio.