THE BOURSE WHISPERER: Canyon Resources (ASX: CAY) has had an independent assessment carried out of the existing Camrail rail network located adjacent to the company’s Minim Martap bauxite project in Cameroon.
The assessment was completed by Canyon Resource’s infrastructure partner Mota Engil Africa, which has concluded that the existing rail has the capacity to transport commercial tonnages of bauxite.
A further assessment also carried out on the proposed route and ground conditions for the proposed rail extension to the Kribi Deep Water Port.
Canyon said the existing rail line is under-utilised at current usage levels and the company has has formed a working committee with Cameroon rail operators to identify a solution for Canyon to access the existing rail line.
As part of this, Canyon will present a solution including design, construction and operation of the Kribi rail link to the Cameroon Government.
“A logistics solution is a crucial component of the Minim Martap bauxite project and we are pleased with the very positive feedback from this assessment of the existing rail infrastructure, in particular, that ongoing maintenance and upgrade works are underway,” Canyon Resources managing director Phillip Gallagher said in the company’s announcement to the Australian Securities Exchange.
“The study confirmed our belief that the existing rail line is in good condition and has the capacity to transport bauxite from Minim Martap to the Kribi Port via the future rail link.
“Canyon has demonstrated the Minim Martap project is very large and one of the highest-grade bauxite deposits globally, confirmed by our recently-announced very high-grade Inferred Resource of 250.9 million tonnes at 50.8 per cent aluminium oxide (total) and 1.9 per cent silicon dioxide.
“Importantly, we have now confirmed the rail line is accessible and operational and when the rail extension is completed, it will provide access to the deep-water port that we can utilise to transport bauxite to customers.
“This is a key, positive differential to many other West African bauxite projects.”