Shares in Canyon Resources Ltd (ASX: CAY) were trading sharply higher on Thursday after the company said it was on track to start mining at its project in Cameroon next month.
Canyon said the surface miner had arrived at the Minim Martap mine development, which would enable mining to start in February.
Locomotives and wagons to transport the mined ore to port were scheduled for delivery in the first quarter, with ore haulage set to begin in the second quarter, "supporting first bauxite shipment targeted for late June 2026''.
Looking to value add
While the company will initially export bauxite ore, it was also working on a feasibility study for an alumina refinery, and this work was 45% complete, the company said.
That study was "advancing Canyon's downstream value-add strategy and supporting its objective of positioning the company as an integrated participant in the global aluminium value chain. The study leverages the cost benefits of operating in Cameroon and the project's low-silica, high-grade bauxite, with completion targeted for Q3, 2026''.
The positions of Mine Director and Port Manager had also been filled, the company said.
The company added:
Both appointees are scheduled to be in-country in this month, materially strengthening Canyon's on-the ground leadership team as the company transitions from development into operations. These appointments significantly enhance operational readiness across mining and port logistics and support the continued progression of the Minim Martap Bauxite Project toward first production.
Canyon Chief Executive Officer Peter Secker said the company continued to achieve key operational milestones.
Project readiness continues to be strengthened, with key senior leadership appointments now completed. Downstream value creation remains a key focus, with the alumina refinery feasibility study advancing well and reinforcing Canyon's long-term, value-add development strategy. Canyon is fully funded through stage 1 production through a balanced mix of debt and equity, underpinned by strong support from domestic and international investors and key in-country stakeholders, as the company remains firmly on track toward first production.
The Minim Martap project is located in central Cameroon, near the main rail line leading to the port of Douala.
The company has raised US$160 million in debt and equity to build the mine, which has a mineral resource of 1.1 billion tonnes of ore, and a 144 million tonne reserve at a grade of 51.2%.
The project has an initial 20-year mine plan.
Canyon was valued at $453.7 million at the close of trade on Wednesday.
