Canyon Resources Accelerates Minim Martap with Major Drilling and CFO Appointment

Robust Drilling Campaign Completes

Canyon Resources Limited (ASX: CAY) has reported the successful completion of an expanded reverse circulation (RC) and diamond drilling program at its flagship Minim Martap Bauxite Project in Cameroon. Originally planned for 772 holes, the campaign was nearly doubled to 1,526 boreholes, covering 23,254 metres. This comprehensive effort, led by Camalco Cameroon SA with support from SRK Australia, achieved exceptional core recovery, providing a robust geological dataset.

The drilling results, currently under analysis, are anticipated to underpin an updated JORC-compliant Mineral Resource Estimate due in the first half of 2025. This update will be critical in refining the project's resource base and supporting ongoing development studies.

Strategic Financing and Infrastructure Moves

Post-quarter, Canyon secured a significant underwriting agreement with its major shareholder, Eagle Eye Asset Holdings Pte Ltd, to finance the acquisition of essential rolling stock for the project. The USD 123.96 million facility will cover 22 locomotives and 550 wagons, including a five-year warranty and service agreement. This investment marks a pivotal step in establishing control over logistics, cost efficiency, and operational reliability for Minim Martap.

Negotiations for rail access with CamRail are advancing, positioning the project to secure vital infrastructure agreements expected to be finalized in the first half of 2025. These developments underscore Canyon's commitment to advancing Minim Martap towards production readiness.

Corporate Strengthening with New CFO

In a move to bolster its executive team, Canyon appointed Mr Kudzai Mtsambiwa as Chief Financial Officer effective January 15, 2025. Mr Mtsambiwa brings over a decade of financial leadership experience in the mining sector, including recent tenure as CFO of Coda Minerals Ltd. His expertise will be instrumental in managing financing activities, including rail and port access negotiations, Definitive Feasibility Study (DFS) completion, and offtake discussions.

Upcoming Milestones and Financial Position

Looking ahead, Canyon has outlined a busy 2025 schedule: releasing drilling results and updating the Mineral Resource Estimate in H1; securing logistics agreements; delivering the DFS in Q3; finalizing offtake agreements and mining permits in H2; and completing project financing by year-end. The company ended December 2024 with a healthy cash position of AUD 15.6 million, supporting these critical development activities.

Expenditure during the quarter focused on exploration and evaluation, with no mining production or development costs incurred. The company also completed corporate governance milestones, including a successful Annual General Meeting where all resolutions passed.

Contextualizing the Project's Potential

Minim Martap is recognised as a world-class bauxite asset, with over 1 billion tonnes of high-grade, low-contaminant ore. Previous feasibility studies have confirmed its long-term viability, with a 20-year mining schedule representing only a fraction of the total resource. The current drilling and infrastructure investments aim to unlock further production upside and enhance project economics.

Cameroon's established infrastructure, including hydroelectric power and rail networks, provides a supportive environment for mining development. Canyon's strategic moves to secure rolling stock and rail access agreements reflect a proactive approach to mitigating logistical risks and controlling costs.