Infos Business of Tuesday, 2 December 2014

Source: Ecofin Agency

Canyon Resources employs Camrail services to transport bauxite

The mining company Canyon Resources Ltd. has now settled on the quality of Camrail to transport its bauxite DSO from the Birsok project to the port of Douala and new deep sea port in Kribi.

The concerned railway goes from Ngaoundéré in Douala, via Yaoundé, and passes through the area of the Birsok bauxite project which operates two licence, Birsok and Mandoum covering 1462 km2 in the heart of the Adamawa bauxite province in the centre of Cameroon.

To ensure the quality of the infrastructure, Canyon Resources appealed to Clarendon Irving Pty. Ltd and Andrew Neal & Associates to review the data provided by Camrail. On 26th November, the company listed on ASX announced that the results of the study reports positive conclusion for the transport of commercial quantities of bauxite.

"The study confirmed the likely ability of the railway line for transporting commercial quantities of bauxite directly from the project site to the port of Douala and, possibly, the new port in Kribi", said Phillip Gallagher, DG of Canyon Resources.

Mr Gallagher spoke of an "important step" for the company and added that the value of the project is in these early days and that this preliminary study strengthened confidence in the existence of a "viable infrastructure solution for the project.

Canyon Resources Ltd. tabled on the DSO bauxite production in this project where it has identified a mineralized zone of 3.5 km long bauxite, 40 m wide and thick on average 4m with a content of aluminum oxide ranging between 40% and 45%.

The company, which is working to increase from 51 to 75% its interest in the Birsok project, is also present in Burkina Faso where it holds its gold of 17 permit covering 3,500 km2.