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CANYON RESOURCES LIMITED Capital/Financing Update 2020

Aug 24, 2020

64608_rns_2020-08-24_544ff8f1-5c26-4d04-9882-6db7766462f1.pdf

Capital/Financing Update

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Announcement

25 August 2020

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Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

Highlights

  • Metallurgical test results for low temperature digestion show total Alumina converting to available Alumina at an average of 90% - 95% and Silica converting to reactive Silica at an average of 60% - 80% .

  • Tunra handleability testing at the Newcastle Institute for Energy and Resources tested bulk samples for angle of repose, density, draw down angle and dust extinction moisture.

  • Infield testing programme added further data to rock strength, moisture content and density.

  • The summary of these results was presented in the Bauxite Technical Specification data sheet[1] which provides a basis for commercial and technical progression of bauxite offtake agreements.

  • The bauxite specifications are underpinned by mine scheduling and were included within the 2020 PreFeasibility Study[2] , Ore Reserve Estimate[3] and the 2019 Mineral Resource[4] .

  • The recently completed PFS[1] demonstrates the potential for a robust, first stage, 5 Mtpa DSO bauxite project with an NPV10 of USD $291m and an IRR of 37% on a capex of USD $120m and an average opex of USD 35.1/t .

  • The PFS is underpinned by the 2019 Mineral Resource[4] . The Minim Martap Project has a Total Mineral Resource estimate of 892Mt at 45.1% Al2O3, 2.8% SiO2 (Cut-off Grade 35% Al2O3) and a High Grade Mineral Resource estimate of 431Mt at 48.8% Al2O3, 2.6% SiO2 (Cut-off Grade 45% Al2O3)

Canyon Resources Limited ( Canyon or the Company ) is pleased to provide a summary of the testing that underpins the Bauxite Technical Specification data sheet which is providing a basis for ongoing offtake and strategic partnership negotiations. The testing was completed as part of a broad range of chemical, metallurgical and physical test work to inform the Minim Martap Pre-Feasibility Study and resulting Ore Reserve Estimate.

Chemical properties of the bauxite product are an average of the chemical profile of the direct shipping ore derived from the mining schedule and the resource block model. The physical and metallurgical properties are a combination of interpretations from a number of different relevant and representative tests and investigations. The summary of

1 ASX announcement 08 July 2020. The Company is not aware of any new information or data that materially affects the information included in that announcement and all material assumptions and technical parameters underpinning the Bauxite Technical Specifications in that announcement continue to apply and have not materially changed.

2 ASX announcement 1 July 2020. The Company is not aware of any new information or data that materially affects the information included in that announcement and all material assumptions and technical parameters under the PFS in that announcement continue to apply and have not materially changed.

3 ASX announcement 10 August 2020. The Company is not aware of any new information or data that materially affects the information included in that announcement and all material assumptions and technical parameters underpinning the Ore Reserve in that announcement continue to apply and have not materially changed.

4 ASX announcement 27 September 2019. Refer to Table 2 for a breakdown of the Mineral Resource Estimate. The Company is not aware of any new information or data that materially affects the information included in that announcement and all material assumptions and technical parameters underpinning the Mineral Resource estimates in that announcement continue to apply and have not materially changed.

Canyon Resources Limited ACN 140 087 261

L9/863 Hay street Perth WA 6000 | PO BOX 7606 Cloisters Square WA 6850 | p: +61 8 6382 3342 f: +61 8 9324 1502 | [email protected] | www.canyonresources.com.au

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Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

the test work for the Minim Martap bauxite physical and metallurgical properties are presented within this announcement.

The direct shipping ore (DSO) bauxite properties of chemical, digestion and physical / handleability as presented in the product technical specifications (ASX release 08 July 2020) are based on the following underpinning investigations and supported by the PFS mine scheduling and the Mineral Resource estimate (ASX release 27 September 2019).

Minim Martap bauxite handleability testing report

Name of conducting Tunra, Newcastle Institute for Energy and Resources (Australia). parties: Date of 07 January 2020 – Report completed. investigation/testwork/study:

Sample selection Sampling of the Minim Martap ore for the bauxite handleability testing (Tunra) was completed in 2019. Samples were selected from two pits on two of the three priority plateaux; Danielle and Raymonde. Both of these plateaux are included within the Ore Reserve estimate. 50 kg of sample was collected at metre intervals. Pits were 10m deep each resulting in 1000kg of sample collected in total from the two pits. The sample was blended to generate two composite samples, one from each pit. The samples were shipped to Tunra, Newcastle Institute for Energy and Resources, Australia.

Summary of The plateaux composites were tested individually, and the results summarised investigation outcomes as below:

elow:
Parameter Danielle composite Raymonde composite
Moisture as supplied 0.8% 0.9%
Dust extinction moisture
(DEM)		 7.6% 7.2%
Saturated moisture content
(-31.5mm size fraction)		 14.4% 14.5%
Angle of Repose (moisture
as supplied)		 37o 37o
Angle of repose(DEM) 42o 41o
Loose packed bulk density
(moisture as supplied)		 1366 kg/m3 1350 kg/m3
Loose packed bulk density
(DEM)		 1311 kg/m3 1326 kg/m3

Basic metallurgical programme

Name of conducting SGS ( Australia. South Africa))- Digestion and chemical assays. parties:

Date of May 2020 – final testing of the programme completed. investigation/testwork/study:

Sample selection A random selection of field duplicates from the resource estimate sam,ple programme from the Beatrice plateau, one of the three priority plateaux, was used in the testing for the basic metallurgical programme. As noted in the

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Canyon Resources Limited

Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

resource report, samples across the plateaux are broadly representative of the resource as a whole due to the homogeneous nature of the orebodies.

Summary of investigation outcomes

The basic metallurgical testing utilised micro digestion methodology. The results (see table below) were consistent with the metallurgy tests completed in 2009 and reported upon within the resource report which supports the Mineral Resource estimate. The combined test results from the historical work and the basic metallurgy programme show total Alumina converting at an average of 90% - 95% and Silica at an average of 60% - 80%.

Sample # Low Temp Alumina
recovery		 Low Temp Silica reacting
BE032 4-6 90% 60%
BE023 6-8 96% 85%
BE023 7-9 87% 168%
BE032 9-11 96% 26%
BE040 7-9 77% 93%
BE040 11-13 96% 78%
BE051 7-9 94% 78%
BE051 12-14 93% 71%
BE010 6-8 91% 74%
BE010 10-12 96% 51%
BE01 7-9 96% 71%
BE01 10-12 97% 76%
Average (calculated from the
primary metal assays)		 92% 78%

Minim Martap physical properties programme

Name of conducting Canyon Resources Technical Services team (Cameroon) – Field investigation. parties: Mining Plus (UK) – Consulting and data integration.

Date of April 2020 – Test work completed investigation/testAugust 2020 – Report completed work/study: Sample selection Sampling for the in-field physical properties programme for density, rock strength and moisture content was competed in May 2020. A number of recently constructed and historical shafts exist on the priority plateaux. These shafts range in depth from 4.75 to 11m. Based on accessibility, seven (07) shafts across the three priority plateaux were selected for the physical properties programme (2 on Beatrice, 2 on Danielle and 3 on Raymonde).The shafts were sampled using a hand-held jackhammer, miner’s bars, chisels, and hammers. For surface samples, sampling was undertaken from predetermined locations on the plateau surfaces with 30 samples collected on each plateau. All samples were logged and coded onsite by a geologist prior to transportation to base camp for testing. Over 500 samples were tested in total.

Summary of investigation outcomes Strength testing was conducted with a hydraulic point load tester (model 6510) on over 500 samples across the three priority plateaux and across the depth profile as shown in the table below.

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Canyon Resources Limited

Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

Plateau Pit ID X Y Z (m) Depth (m) Samples/Pit Surface sample
Danielle PIT001 274848 762112 1274 11.00 110 30
PIT002 273093 759732 1268 6.00 60
Beatrice PIT003 265636 766432 1230 5.00 50 30
PIT004 265116 768236 1258 5.50 60
Raymonde PIT005 261398 763123 1219 8.70 90 30
PIT006 263526 762013 1198 7.00 70
PIT007 264675 761842 1217 4.00 -
Total 440 90

The graph below shows a frequency chart of the Point Load UCS test results. The orange pareto line on the chart shows that over 90% of samples tested had a UCS of less than 24Mpa, and all 531 samples had a UCS less than 44 MPa. This demonstrates that the rock UCS is well within the range that will be able to be productively cut using surface miners.

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Samples for Relative Moisture Content (RMC) testing were collected at 0.5 to 0.9 cm interval along the channels of the shafts and immediately placed in labelled bags, sealed to prevent drying prior to their transportation to base camp. Upon arrival in the base camp, samples were weighed logged, and then air-dried for 1 week. After air-drying, the samples were then reweighed. An 8kg capacity electronic balance with a readability of 0.1g was used for weighing the samples. Finally, the RMC was calculated with respect to the dry mass of the sample.

For a total of 176 samples tested, results obtained show that RMC range from 0 to 16.99% with an average value of 5.03%.

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Canyon Resources Limited

Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

About Canyon Resources

Summary

Canyon Resources is focussed on the development of the 100% owned Minim-Martap Bauxite Project, a direct shipping ore (DSO) project development opportunity in central Cameroon. The Project is situated adjacent to the main rail line linking the region to the Atlantic port of Douala. The rail line is currently underutilised and coupled with the existing port of Douala, supports a low capex, low opex solution to deliver high grade, low contaminant, seaborne bauxite to market to fuel the large and growing aluminium industry as described in the 2020 Pre-Feasibility Study[5] . The country is planning a rail extension and is undergoing rail line debottlenecking upgrades giving longer term potential for export through the newly built, deep-water port of Kribi.

Canyon is planning the development of the bauxite Project in a 2 Stage, 2 Port execution programme with initial production exported though the port of Douala utilising the existing rail and port infrastructure and Stage 2 unlocking tonnes and reducing costs by utilising the port of Kribi.

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5 ASX announcement 01 July 2020.

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Canyon Resources Limited

Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

Resources and Reserves

The Project is validated by the Ore Reserve estimate , (ASX announcement 10 August 2020), prepared by a Competent Person, in accordance with the JORC Code (2012) and is presented as:

Reserve
Classification Tonnes (Mt) Al2O3 SiO2
Proven - - -
Probable 97.3 51.1% 2.3%
Total Ore Reserves 97.3 51.1% 2.3%

The underlying Mineral Resource estimate (ASX announcement: 27 September 2019) prepared by a Competent Person, in accordance with the JORC Code (2012) is stated as :

Resource(35% Al2O3cut-off)
Tonnes (Mt) ore Alumina Silica
Total 892 45.1% Al2O3 2.8% SiO2
Indicated 839 45.2% Al2O3 2.8% SiO2
Inferred 53 43.8% Al2O3 3.1% SiO2
Contained High Grade Resource(45% Al2O3cut-off)
Tonnes (Mt) ore Alumina Silica
Total 431 48.8% Al2O3 2.6% SiO2
Indicated 410 48.9% Al2O3 2.6% SiO2
Inferred 21 47.4% Al2O3 2.0% SiO2

Competent Person’s Statement – Ore Reserves

The information in this report that relates to Ore Reserves is based on information compiled or reviewed by Mr John Battista, a Competent Person who is a Member and Chartered Professional (Mining) of the Australasian Institute of Mining and Metallurgy and is currently employed by Mining Plus (UK) Ltd. Mr Battista has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code).

Mr Battista consents to the disclosure of information in this report in the form and context in which it appears.

Competent Person’s Statement – Mineral Resources

The information in this announcement that relates to mineral resources is based on information compiled or reviewed by Mr Mark Gifford, an independent Geological expert consulting to Canyon Resources Limited. Mr Mark Gifford is a Fellow of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code).

Mr Gifford consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

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Canyon Resources Limited

Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

Mineral Resource estimate

The data in this announcement that relates to the Mineral Resource[6] estimates for the Minim Martap Bauxite Project is based on information in the Resources announcement of 27 September 2019 and available to view on the Company’s website and ASX.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed. The Company confirms that the form and the context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement

Pre-Feasibility Study

The data in this announcement that relates to the Pre-Feasibility Study[7] for the Minim Martap Bauxite Project and associated production targets and forecast financial information, is based on information in the PFS announcement of 01 July 2020. and available to view on the Company’s website and ASX.

The Company confirms that all the material assumptions underpinning the production target and forecast financial information derived from the production target continue to apply and have not materially changed.

Ore Reserve estimate

The data in this announcement that relates to the Ore Reserve estimate[8] estimates for the Minim Martap Bauxite Project is based on information in the maiden Ore Reserve announcement of 10 August 2020 and available to view on the Company’s website and ASX.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the original market announcement continue to apply and have not materially changed. The Company confirms that the form and the context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement

Forward looking statements

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Canyon, are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as ‘anticipate”, “believe”, “could”, “estimate”, “expect”, “future”, “intend”, “may”, “opportunity”, “plan”, “potential”, “project”, “seek”, “will” and other similar words that involve risks and uncertainties.

These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Canyon that could cause Canyon’s actual results to differ materially from the results expressed or anticipated in these statements.

Canyon cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Canyon does not undertake to update or revise forwardlooking statements, or to publish prospective financial information in the future, regardless of whether new

6 ASX announcement 27 September 2019

7 ASX announcement 01 July 2020

8 ASX announcement 10 August 2020

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Canyon Resources Limited

Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements.

This announcement has been approved for release by the Board

Enquiries:

PHILLIP GALLAGHER | Managing Director | Canyon Resources Limited T: +61 8 6382 3342 E: [email protected]

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Canyon Resources Limited

Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

Appendix 1 – JORC Code 2012 Table 1

JORC Code 2012 - Table 1, Section 1

Sampling techniques and data.

Criteria JORC Code explanation Commentary
Sampling
techniques		 Nature and quality of sampling
(e.g. cut channels, random chips,
or specific specialised industry
standard
measurement
tools
appropriate to the minerals under
investigation, such as down hole
gamma sondes, or handheld XRF
instruments, etc). These examples
should not be taken as limiting the
broad meaning of sampling.
Include reference to measures
taken
to
ensure
sample
representivity and the appropriate
calibration of any measurement
tools or systems used.
Aspects of the determination of
mineralisation that are Material
to the Public Report.
In cases where ‘industry standard’
work has been done this would be
relatively simple (e.g. ‘reverse
circulation drilling was used to
obtain 1 m samples from which 3
kg was pulverised to produce a 30
g charge for fire assay’). In other
cases more explanation may be
required, such as where there is
coarse gold that has inherent
sampling problems. Unusual
commodities or mineralisation
types (e.g. submarine nodules)
may
warrant
disclosure
of
detailed information.		 Sampling of the Minim Martap Project Resource grade for chemical
assaying, mineralogy and metallurgy was completed by two series
of drill programs completed in 2009 and 2019. The drilling
techniques used were predominantly Aircore and Auger drilling
with a limited number of Rotary Air Blast drilling completed within
a limited area in 2009. All samples were split at site and prepared
in country before being delivered to a registered laboratory facility.
Three registered laboratories were used in the assaying, Stewart
(Ireland) and BRDC (India) in the 2009 exploration period, and ALS
(South Africa) in the 2019 exploration period. Some Diamond
Drilling was completed in 2009 so as to provide geotechnical
information for the bauxite present, and the assaying of this
material was also completed by a registered laboratory (Stewart).
No geophysical or portable assaying techniques have been applied
to the bauxite resource estimation.
All laboratories used in the assaying of the Minim Martap Project
Resource were checked for accuracy and reproducibility through
the addition of standards and blanks (as determined by the client
and added to the sample stream by the client), and repeats (as
determined by the client, and added into the sample stream by the
client). Both standards / blanks and repeats were entered into the
sample stream at a 1:20 ratio each. The repeat sample was from
the primary sample taken from the sample collected at the drill site
and treated equivalently to all other drill samples through the
process. No repeats were taken from dried and crushed samples,
or from prepared pulps.
Bauxite mineralization is a surface ore formed by the
transformation of usually Al rich rocks and sediments through a
lateritic process to form bauxite. Mineralisation usually occurs in
areas of plateau due to the nature of the formation process, and as
such the areal extent can be defined by the field mapping of
outcropping bauxite in many regions. The Minim Martap Project
Resource has clearly defined bauxite rich plateaux surfaces that are
mapped and defined and have been subsequently tested by drilling
across their respective surfaces.
All drill samples were split from a primary sample of ~5kg down to
1-1.5kg and clearly labelled and bagged for drying and sample
preparation. The totalsample was crushed to <2mm and then split
to a ~4-500g charge for pulverizing, and once pulverized a 100g pulp
was sub-sampled and forwarded to an accredited laboratory for
assaying.
Sampling of the Minim Martap ore for the in-field physical
properties programme for density, rock strength and moisture
content was competed in May 2020. A number of recently
constructed and historical shafts exist on the priority plateaux.
These shafts range in depth from 4.75 to 11m. Based on
accessibility, seven (07) shafts across the 3 priority plateaux were
selected for the physical properties programme (2 on Beatrice, 2 on
Danielle and 3 on Raymonde).The shafts were sampled using a
hand-heldjackhammer,miner’s bars,chisels,and hammers. For

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Canyon Resources Limited

Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

surface samples, sampling was undertaken from predetermined
locations on the plateau surfaces and 30 samples collected on each
plateau. All samples were logged and coded onsite by a geologist
prior to transportation to base camp for testing.
Sampling of the Minim Martap ore for the bauxite handleability
testing (Tunra) was completed in 2019. Samples were gotten from
two pits on plateaux Danielle and Raymonde. 50 kg of sample was
collected for each meter of pit. Pits were 10m deep each, therefore
1000kg sample collected in total for the two pits. The entire 1000kg
sample transported to camp and samples for each meter of each
pitwere blended to generate two composite samples to inform the
project PFS. It should be noted that these samples were collected
by a one-off sampling technique rather than as a product of a
continuous operation and therefore the application of the results
requires diligence. If established, the nature of the full-scale mining
and handling operation may result in different physical
characteristics to those of the samples tested in this study and
thereby alternate materials handling performance may be
observed. As such, the range of testing recommended for this study
was deliberately developed as a basic characterisation that may be
applied indicatively in the PFS stage of the project. More detailed
testing may be considered for the purpose of developing design
metrics for storage and handling equipment when the nature of as-
handled material is better understood.
Drilling techniques Drill type (e.g. core, reverse
circulation, open-hole hammer,
rotary air blast, auger, Bangka,
sonic, etc) and details (e.g. core
diameter, triple or standard tube,
depth of diamond tails, face-
sampling bit or other type,
whether core is oriented and if so,
by what method, etc).		 Three drilling techniques were used aircore, auger, and rotary air
blast, with the majority of the samples collected via aircore
techniques. All drilling rigs used NQ sized rods. The NQ Diamond
Drilling was used in geotechnical test work and did not form part of
the estimation process.
Drill
sample
recovery		 Method
of
recording
and
assessing core and chip sample
recoveries and results assessed.
Measures taken to maximise
sample
recovery
and
ensure
representative
nature
of
the
samples.
Whether a relationship exists
between sample recovery and
grade and whether sample bias
may
have
occurred
due
to
preferential
loss/gain
of
fine/coarse material.		 Sample recovery was determined by weight of the cuttings
retrieved. The bauxite occurrence caps the plateau and as such
forms a continuous layer from which the drilling was penetrating.
Sampling was relatively consistent due to the consistency of
returns, with only the occasional voids encountered providing
limited or nil sample returns.
All samples were checked by professional geological staff on the
drill rigs during the drill programs in both 2009 and 2019. All drill
holes were logged and monitored for recoveries and accuracy prior
to sample splitting and logging. Hole reaming and clearing of the
drill holes from remnant samples is relatively easy within bauxite
terrain due to the hard and brittle nature of the material ensuring
a “clean” drill hole with little sample dilution form materials above
the cutting plane.
Sample recovery was very high for all samples. Most of the samples
were predominantly “made” from the primary mineral that formed
the bauxite (Gibbsite), thus the relative grade loss/gain from any
dilution or addition
could only be minor (if present at all), due to the similar grade of
the primary sample to any dilutants or additional material, so as to
in effectprovide no material difference

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Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

Logging Whether core and chip samples
have
been
geologically
and
geotechnically logged to a level of
detail to support appropriate
Mineral
Resource
estimation,
mining studies and metallurgical
studies.
Whether logging is qualitative or
quantitative in nature. Core (or
costean,
channel,
etc)
photography.
The total length and percentage of
the relevant intersections logged.		 All samples were geologically and geotechnically logged, but the
logging was not material to the Mineral Resource estimation, and
as such not used.
Logging is qualitative in nature and was used to confirm the
presence of bauxite to depth and to give some approximations of
the geotechnical parameters of the ore (predominantly hardness).
Logging was completed on a metre by metre basis for all of the
estimation drilling logging. All drill samples were logged.
Logging of the Minim Martap ore for the basic metallurgical
programme testing was as per the geological logging completed
upon the primary samples. All metallurgical tests were completed
upon sample pulps in the primary works with larger samples to be
used in later metallurgical testwork programs.
Logging of the Minim Martap ore for the in-field physical properties
programme for density, rock strength and moisture content: Dry
Bulk Density (DBD) was conducted only on shaft samples. In total,
07 shafts were sampled for a total of 92 samples. Sampling was
done at 0.5m intervals.
Logging of the Minim Martap ore for the bauxite handleability
testing (Tunra) was completed by staff during the collection
process. Bauxite was defined and prepared for delivery by
experienced geological staff.
Sub-sampling
techniques
and
sample preparation		 If core, whether cut or sawn and
whether quarter, half or all core
taken.
If non-core, whether riffled, tube
sampled, rotary split, etc and
whether sampled wet or dry.
For all sample types, the nature,
quality and appropriateness of the
sample
preparation technique.
Quality
control
procedures
adopted for all sub-sampling
stages to maximise representivity
of samples.
Measures taken to ensure that the
sampling is representative of the
in
situ
material
collected,
including for instance results for
field
duplicate/second-
half
sampling.
Whether
sample
sizes
are
appropriate to the grain size of the
material being sampled.		 Sampling of the core was for geotechnical work and the core was
sawn post some minor density test work sampling.
All aircore and auger samples were riffle split after being collected
from the drill rig and were sub sampled at their natural moisture
levels.
The bauxite samples that formed the primary ore were very
accurately sub sampled as shown by a very high level of
repeatability noted in the repeat assay results shown from all drill
programs. Samples taken from material outside of the mineralized
zones (clay and saprolitic rocks) did have a noted increase in
variance, but these samples were not part of the estimated ore
values within the bauxite. Sample preparation in the laboratory was
proved to also be highly repeatable due to the repeats being field
duplicates and as such underwent the identical pulp preparation
process. Weights and relative sizing as a percentage of the primary
bauxite sample were appropriate with between 30-40% of all
primary samples pulped (<75um) and then sub- sampled for
assaying.
The riffle splitter used on each of the drill rigs during exploration
was cleaned by the use of compressed air between the taking of
each sample. All equipment used in sample preparation was also
cleaned by compressed air and “washed” by crushing and
separating abrasive quartz between each sample to ensure no
cross-contamination at any point through the pulp preparation
process.
All repeats used in the assay stream were field duplicates, thus the
repeats were representative of the total field and laboratory
practice used within the Minim Martap Project.
The sample sizes and distribution appear appropriate due to the
“ground” nature of the primary drill cuttings which ensured
consistent and accurate riffle splitting, prior to the drying and pulp
preparation. Havinga veryhighproportion of theprimarysplit

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Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

sample (~40%) pulverized also ensured good consistency of
sampling repeatability, also indicating the appropriate nature of the
sample prep.
Sub-Sampling and Sample prep of the Minim Martap ore for the in-
field physical properties programme for density, rock strength and
moisture was carried out by experienced geologists.
For dry bulk density (DBD) the water displacement method using
candle wax to seal the samples was applied to test the DBD of the
samples. Samples were air-dried for 1 week prior to weighing to
determine their dry mass (ms). Candle wax was used as sealant and
the wax density was determined using a graduated syringe. The
candle wax was melted and allowed to cool slightly to prevent
distortion of the actual volume of the syringe in the course of
measuring. The empty syringe was placed on a bench scale and tare
to zero before weighing the syringe containing wax. Several
measurements were taken and an average value for candle wax
density (ρ wax)was determined at 0.83g/cm3. Samples were coated
with hot candle wax and allowed to cool to room temperature and
then weighed (Ms+wax).A weighing basket was suspended from
the balance in water and tare to zero. Each sample was then
weighed in the basket suspended from the balance in water to have
the weight of the coated sample in water (Ms+wax in water).The
dry bulk density (ρd) was then calculated as the mass of the dry
sample divided by the volume of the sample after accounting for
the volume of the wax.
Relative moisture content (RMC) samples were collected at 0.5 to
0.9 cm interval along the channels of the shafts and immediately
placed in labelled bags, sealed to prevent drying prior to their
transportation to base camp. Upon arrival in the base camp,
samples were weighed (mwet), logged, and then air-dried for 1
week. After air-drying, the samples were then reweighed (mdry).
An 8kg capacity electronic balance with a readability of 0.1g was
used for weighing the samples. Finally, the RMC was calculated with
respect to the dry mass of the sample.
Sub-Sampling and Sample prepof the Minim Martap ore for the
bauxite handleability testing (Tunra) was conducted at base camp.
The samples for each meter of each pitwere blended to generate
two composite samples to inform the project PFS. Each composite
sample was then subdivided for packaging and dispatched for Tunra
laboratories.
Quality of assay
data
and
laboratory tests		 The
nature,
quality
and
appropriateness of the assaying
and laboratory procedures used
and whether the technique is
considered partial or total.
For
geophysical
tools,
spectrometers,
handheld
XRF
instruments, etc, the parameters
used in determining the analysis
including instrument make and
model, reading times, calibrations
factors
applied
and
their
derivation, etc.		 All samples submitted for assaying were analysed by registered
laboratories based in Ireland and India (2009) and South Africa
(2019), with each laboratory providing quality assurance
accreditation supported by internal and external testing and
review. All assays were completed by XRF with the highest level of
accuracy and repeatability assigned to the equipment as defined by
the accredited laboratory completing the assay.
There
was
no
reliance
upon
geophysical
techniques,
spectrometers, handheld XRF instruments or any other technique
that was not within an accredited testing facility.
Standards and blanks were added to the sample stream at a ratio
of 1:20 – these assays were tested against the standards and
confirmed the accuracy of the facilities being used. The high level
of accuracyand repeatabilityshown within all laboratories

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Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

Nature
of
quality
control
procedures
adopted
(e.g.,
standards,
blanks,
duplicates,
external laboratory checks) and
whether acceptable levels of
accuracy (i,e., lack of bias) and
precision have been established.		 indicated a high level of precision and a lack of bias. There has been
no external laboratory tests completed by the company.
The in-field physical properties programme for density, rock
strength and moisture used an8kg capacity certified electronic
balance with a readability of 0.1g for weighing the samples. Rocj
strength utilised a certified Point Load Test apparatus, in
accordance with industry standard methods. Approximately 530
individual rock specimens were tested.
The bauxite handleability testing was conducted at Tunra,
Newcastle Institute for Energy and Resources (Australia).
Verification
of
sampling
and
assaying		 The verification of significant
intersections
by
either
independent
or
alternative
company personnel.
The use of twinned holes.
Documentation of primary data,
data
entry
procedures,
data
verification,
data
storage
(physical
and
electronic)
protocols.
Discuss any adjustment to assay
data.		 Bauxite is a resource which does not lend itself to “significant
intersections” due to the large areal extent of the resource. The
independent author of the Minim Martap Project Resource report
completed a field trip and “pulled” from the sample storage facility
a number of drill cutting samples and confirmed the gibbsite
present and the nature of the bauxite mineralization.
Twin holes have not been used to confirm grade in this project due
to presence of close spaced drilling patterns on most plateaux
tested. The close spaced drilling has confirmed the continuous
nature of the mineralization and the consistency of grade.
The data was imported into MS Access by Mining Plus and
combined into MAKE and APPEND tables with a format suitable for
input to Datamine. The output data consisted of collar, survey and
assay csv files
Checks performed on the data during export from MS Access and
import into Datamine consist of:
•
Total samples of each type for each hole checked
•
Checked for collar discrepancies - hole naming consistent
•
Checked abandoned holes
•
Survey points at collars were imported from collar table
and combined with a survey point at the End of Hole
(vertical drill holes)
All holes from the database provided by the client have been
included, with no exceptions. There were 7 duplicate surveys and
60 missing/duplicate assay intervals identified. These are mostly
due to labelling errors in the provided data.
There was no adjustment to any of the assay data received.
The in-field physical properties programme for density, rock
strength and moisture was conducted by experienced geologists
under the guidance of Mining Plus.
The bauxite handleability testing (Tunra) samples were collected by
experienced geologists.
Location of data
points		 Accuracy and quality of surveys
used to locate drill holes (collar
and down- hole surveys), trenches,
mine workings and other locations
used
in
Mineral
Resource
estimation.
Specification of the grid system
used.
Quality
and
adequacy
of
topographic control.		 Drill hole collar locations were derived by handheld GPS and
therefore have a large error in the Z direction. They have been
draped onto the topography wireframe prior to any estimation. The
collar locations were recorded by Canyon Resources geologists. No
downhole surveys are known to have been performed.
All data conforms to the Kousseri UTM 33N system. All drill hole
collar coordinates were recorded in coordinate system UTM 33N
and correspond to the licence boundaries.
The DSM data was provided to Mining Plus as:
•
Minim Martap_DSM.tif

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Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

•
Makan_DSM.tif
•
Ngaoundal_DSM.tif
The DSM data required time-intensive processing and preparation
by Mining Plus in order to be usable as a topographic surface in
Datamine. The original TIFF files have significant numbers of
erroneous elevation points that manifest as spikes in the
topographic surfaces.
The topographic surface is identified as potentially containing a
vegetation signature from the LIDAR survey. This has led to drill
hole collars having up to 1-2m unquantifiable and uncorrected
error in elevation. This is a significant risk to the location of the ore
and waste zones, and contact boundaries.
Location of data points of the Minim Martap in-field physical
properties programme sample locations for density, rock strength
and moisture was loggedby handheld GPS.
Location of data pointsof the Minim Martap ore for the bauxite
handleability testing (Tunra)was loggedby handheld GPS.
Data spacing and
distribution		 Data spacing for reporting of
Exploration Results.
Whether the data spacing and
distribution
is
sufficient
to
establish the degree of geological
and grade continuity appropriate
for the Mineral Resource and Ore
Reserve estimation procedure(s)
and classifications applied.
Whether sample compositing has
been applied.		 The drill hole spacing is variable across all the plateaux. On the
sparser drilled plateaux the fences are spaced 500m apart, with
holes spaced at 250m in each fence. On the closer drilled plateaus
(i.e. NW of the Minim Martap licence) the holes are spaced on
250m, with infill at 100m spacing. There have been variogram
crosses drilled on several plateaus on 50m spacing. All holes have
been drilled vertically.
The data spacing and distribution is suitable to establish geological
and grade continuity, the variography shows that the continuity can
be established far beyond the 500m maximum drill hole spacing:
•
Indicated Mineral Resource: The areas of the mineralised
domains contained in search volume 1 or 2, and the drill
hole spacing is a maximum of 250 – 500m. The zone is
contained between drill holes, and not extrapolated out
away from drill hole data.
•
Inferred Mineral Resource: Defined by a drill spacing
>500m and contained with search pass 3. All extrapolated
or marginal extensions of mineralisation are classified as
Inferred Resources.
No sample compositinghas been applied to the dataset.
Orientation of data
in
relation
to
geological
structure		 Whether
the
orientation
of
sampling
achieves
unbiased
sampling of possible structures
and the extent to which this is
known, considering the deposit
type.
If the relationship between the
drilling
orientation
and
the
orientation of key mineralised
structures is considered to have
introduced a sampling bias, this
should be assessed and reported if
material.		 Bauxite is a deposit that forms as a remnant laterite and as such
is not dependent on structures for formation due to the residual
nature of its development. The sampling of the drill holes is
solely from vertical drilling and as such all samples relate to each
other on the horizontal. There is no bias from any geological
features apart from large regional overprints and the delineation
of the Minim Martap provinces did conclude that the western
plateaux were to be geostatistically combined separately to the
more eastern plateau – it is assumed that there may be a slight
change in the underlying granites and metamorphosed
sediments in these two regions and separation did improve
statistical analyses.
Individual drill hole orientation was vertical and does not influence
anykeymineralized structures which are regional in character.
Sample security The measures taken to ensure
sample security.		 All samples were secured from the drill rig through to the assay
laboratory through a ticket tagging system and a limited number of
handling points. Each sample was assigned a number at the point
of collection and this sample number is added to the sample and

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Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

stapled onto the outside of the sample bag. It is collated with other
samples for drying and pulp preparation where the sample number
is continued through to the assigned pulp, and the pulp is then
forwarded to the assay laboratory with the primary sample
number. Assays are reported with the primary sample number and
assays collated electronically against the primary dataset. There has
been no recorded occurrences of sample theft or interference
during the development of the Project.
All samples for physical testing followed the same bag and tag as
the assaysamples.
Audits or reviews The results of any audits or
reviews of sampling techniques
and data.		 An audit of the sample preparation laboratory has been completed
indicating the competency of the operator, and this was confirmed
by the author of the Minim Martap Project Resource report during
a visit in July 2019. Continuous review of the repeat and standards
/ blanks data has join an extremely close relationship between the
field sample repeats, and the standards grades for all laboratories
used in the development of the said resource.
No audits or reviews were completed of the Minim Martap in-field
physical properties programme for density, rock strength and
moisture however the field programme was conducted by a
qualified geologist with significant experience in bauxite under the
guidance of Mining plus.
Audits of Tunra laboratory which tested the Minim Martap ore for
bauxite handleability testing has not been completed however the
laboratory is a well-known and accredited institution for bauxite.

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Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

JORC Code 2012 - Table 1, Section 2

Reporting of Exploration Results.

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary
Mineral
tenement
and
land
tenure
status		 Type, reference name/number,
location
and
ownership
including
agreements
or
material issues with third parties
such
as
joint
ventures,
partnerships,
overriding
royalties, native title interests,
historical sites, wilderness or
national
park
and
environmental settings.
The security of the tenure held at
the time of reporting along with
any known impediments to
obtaining a licence to operate in
the area.		 The Exploration tenements that contain the Cameroon Bauxite
Project are held 100% by Camalco SA a wholly owned subsidiary of
Canyon Resources Limited. The Project consists of three
Exploration tenements
Minim Martap – AR 000476BIS/A/MINIMIDT/SG/DM/SDCM –
granted 11th July 2018 with a permit surface area of 499km2
Makan – AR 000477BIS/A/MINIMIDT/SG/DM/SDCM – granted 11th
July 2018 with a permit surface area of 428km2
Ngaoundal – AR 000478BIS/A/MINIMIDT/SG/DM/SDCM – granted
11th July 2018 with a permit surface area of 428km2
There are no third parties, joint venture agreements or
partnerships associated with the Exploration tenements. No
government based royalty streams are allocated as yet due to the
exploration status of the tenements. The area does contain local
villages and regional councils which have an interest in the
development of the Project and negotiations would commence
with these groups (and others) upon the planning of any
exploitation of the resource present. There are no known historical
sites or wilderness areas present. The land use is grazing with no
known national park or unique environmental setting present in
any of the leases.
The Exploration tenements are all in good stead and there is no
known impediments to continued operation in the Project area.
Exploration done by
other parties		 Acknowledgment and appraisal
of exploration by other parties.		 The exploration program completed to develop the Minim Martap
Project Resource has been reviewed by an independent geologist
(Mark Gifford) and estimation completed by an independent
Mining Consultancy firm (Mining Plus). Both parties have concluded
that the exploration works completed meets the requirements of a
JORC compliant resource.
Geology Deposit type, geological setting
and style of mineralisation.		 The deposit defined within the Minim Martap Project Resource is a
Bauxite Deposit. The formation of bauxite within a lateritic setting
requires the presence of Al bearing ground rock, an oxygen-rich
groundwater, a warm temperate – tropical environment with high
rainfall levels, and time. The presence of bauxite relates
predominantly to the reduction of all other elements from the
lateritic
section, especially Si and Fe, leaving Al present within the very
stable series of Al hydroxides of Gibbsite and Boehmite. Bauxite
forms in the top of the lateritic profile where it is preserved (the
top 10-15m), overlying often a 2-5m transition zone), and derived
from the underlying sediments. The surface of the bauxite zone is
dominated by bauxite rubble, with little Fe oxides and other
minerals present – it is clearly a surface that is undergoing physical
erosion over time and it is highly probable that this surface has
reduced in level quite significantly since the period from which the
current plateaus were meant to have been preserved. The bauxite
zone in the Cameroon Ngaoundéré region is predominantly 10-15m
thick, and within it the grades of Al can vary between 35- 62% Al as
well as 5-30%Fe. These elements are the two main constituents.
The Ngaoundal bauxite is formed from the bauxitization of a basalt
and this has meant significantlylower Al Grades,higher Fegrades

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Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

and very low residual Si values. The Minim Martap and Makan
bauxite is formed over more Al rich basal rocks (granites, feldspar
rich gneisses) and Al grades are high, Fe grades lower, and residual
Si values higher.
Drill
hole
Information		 A summary of all information
material to the understanding of
the exploration results including
a tabulation of the following
information for all Material drill
holes:
• easting and northing of the
drill hole collar
• elevation or RL (Reduced
Level – elevation above sea
level in metres) of the drill
hole collar
• dip and azimuth of the hole
• down hole length and
interception depth
• hole length.
If
the
exclusion
of
this
information is justified on the
basis that the information is not
Material and this exclusion does
not
detract
from
the
understanding of the report, the
Competent Person should clearly
explain why this is the case.		 A total of 15,335m of sampled drilling in 1,338 holes has been
provided to Mining Plus from the Minim Martap Project Resource
drilling database. Every drill hole was surveyed with an easting,
northing and RL, each hole was vertical (90 degrees from
horizontal) and had a recorded length. All drill holes can be
accessed from the Minim Martap Project Resource report
Appendices.
Bulk sampling of the Minim Martap ore for the in-field physical
properties programme for density, rock strength and moisture
content was conducted from a number of recently constructed and
historical shafts exist on the priority plateaux. These shafts range in
depth from 4.75 to 11m. Based on accessibility, seven (07) shafts
across the 3 priority plateaux were selected for the physical
properties programme (2 on Beatrice, 2 on Danielle and 3 on
Raymonde).The shafts were sampled using a hand-held
jackhammer, miner’s bars, chisels, and hammers. For surface
samples, sampling was undertaken from predetermined locations
on the plateau surfaces and 30 samples collected on each plateau.
All samples were logged and coded onsite by a geologist prior to
transportation to base camp for testing.Every shaft and surface
location was surveyed with an easting, northing and RL, each shaft
was vertical (90 degrees from horizontal) and had a recorded
length. All shafts and surface sample locations are recorded in the
resource database.
Sampling of the Minim Martap ore for the bauxite handleability
testing (Tunra) as completed on 2019. Samples were gotten from
two pits on plateaux Danielle and Raymonde. 50 kg of sample was
collected for each meter of pit. Pits were 10m deep each, therefore
1000kg sample collected in total for the two pits. The entire 1000kg
sample transported to camp and samples for each meter of each
pitwere blended to generate two composite samples to inform the
project PFS
Data
aggregation
methods		 In reporting Exploration Results,
weighting averaging techniques,
maximum
and/or
minimum
grade truncations (e.g. cutting
of high grades) and cut-off
grades are usually Material and
should be stated.
Where
aggregate
intercepts
incorporate short lengths of high
grade results and longer lengths
of
low
grade
results,
the
procedure
used
for
such
aggregation should be stated
and some typical examples of
such aggregations should be
shown in detail.
The assumptions used for any
reporting of metal equivalent
values should be clearly stated		 No minimum or maximum grade truncations or capping were
applied to the Al2O3 or Fe2O3 grades.
All four estimation domains required capping of the silica values,
due to small zones of high grade silica values having an undue
influence on the silica estimation within the domains. These are
detailed in the Minim Martap Project Resource report.
No aggregation of high grade or waste intervals was introduced
throughout the deposit. The intervals were used for estimation
without compositing or incorporation of shorter/longer grade or
waste intervals.
No metal equivalents were reported within the Cameroon Bauxite
Resource.

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Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

Relationship
between
mineralization
widths and intercept
lengths		 These
relationships
are
particularly important in the
reporting of Exploration Results.
If
the
geometry
of
the
mineralisation with respect to
the drill hole angle is known, its
nature should be reported.
If it is not known and only the
down hole lengths are reported,
there
should
be
a
clear
statement to this effect (e.g.
‘down hole length, true width
_not known’). _		 The depth of the bauxite profiles from surface is between
6-20m in the Cameroon Bauxite Resource. Samples are
collected at 1m intervals.
The geometry of the deposit is as a lateritic “capping” and as
such the deposit is tested by the use of vertical drill holes
placed in semi-equidistant locations across the top of the
various plateau being tested.
On occasion the drilling did not penetrate through the total bauxite
profile often due to high perched water table levels reducing drilling
capacity. Areas underneath these shallow drill holes were not
estimated and did not form part of the resource estimate
presented.
Diagrams Appropriate maps and sections
(with scales) and tabulations of
intercepts should be included for
any significant discovery being
reported These should include,
but not be limited to a plan view
of drill hole collar locations and
appropriate sectional views.		 No significant discovery is being reported. This is the continued
exploration development of a known bauxite resource.
Balanced reporting Where comprehensive reporting
of all Exploration Results is not
practicable,
representative
reporting of both low and high
grades and/or widths should be
practiced to avoid misleading
reporting of Exploration Results.		 All exploration assay results were used in the compilation of the
Resource Estimate.
All material properties data was used in the determination of the
bauxite properties as presented in the technical specification data
sheet (ASX announcement 08 July 2020).
Other
substantive
exploration data		 Other
exploration
data,
if
meaningful and material, should
be reported including (but not
limited
to):
geological
observations;
geophysical
survey
results;
geochemical
survey results; bulk samples –
size and method of treatment;
metallurgical test results; bulk
density,
groundwater,
geotechnical
and
rock
characteristics;
potential
deleterious or contaminating
substances.		 As series of digestion analyses upon the bauxite ores within the
Minim Martap Project Resource were completed to confirm the
suitability of the ore to processing, and the low levels of deleterious
elements located within the ores defined. The test work confirmed
the high quality nature of the bauxite present and the suitability of
the ores to both low and high temperature digestion within Bayer
Process alumina plants globally.
Low temperature digestion tests completed in 2009 and confirmed
in 2019 showed total Alumina converting at an average of 90% -
95% and Silica at an average of 60% - 80%.
Further work The nature and scale of
planned further work (e.g.
tests for lateral extensions or
depth extensions or large-scale
step-out drilling).
Diagrams clearly highlighting
the areas of possible extensions,
including the main geological
interpretations
and
future
drilling areas, provided this
information is not commercially
sensitive.		 Further drilling in the Minim Martap Project Resource will be
directed towards grade definition of the priority mining areas to
improve confidence.
Additional metallurgical testing will be completed to identify the
optimal refinery conditions for Alumina recovery.
Further strength and density testing will reduce uncertainty of mine
productivity.

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Canyon provides Minim Martap Bauxite testing outcomes underpinning Product Technical Specifications

JORC Code 2012 - Table 1, Section 3

Reporting of Mineral Resources.

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria JORC Code explanation Commentary
Database integrity Measures taken to ensure
that data has not been
corrupted by, for example,
transcription or keying errors,
between its initial collection
and its use for Mineral
Resource estimation purposes.
Data
validation
procedures
used.		 Checks performed on the data during export from MS Access and
import into Datamine consist of:
• Total samples of each type for each hole checked
• Checked for collar discrepancies - hole naming consistent
• Checked abandoned holes
• Survey points at collars were imported from collar table and
combined with a survey point at the End of Hole (vertical drill
holes)
All holes from the database provided by the client have been
included, with no exceptions. There were 7 duplicate surveys and
60 missing/duplicate assay intervals identified. These are mostly
due to labellingerrors in theprovided data.
Site visits Comment on any site visits
undertaken by the
Competent Person and the
outcome of those visits.
If no site visits have been
undertaken indicate why this is
the case.		 A site visit was undertaken by the Competent Person for the
completion of the Minim Martap Project Resource report in July
2019. A full review of all of the regional bauxite occurrences was
completed, a review of site and staff protocols associated with
sample collection and collation was completed as well as geological
discussions associated with logging and bauxite interpretation. All
regions tested had significant bauxite occurrences and the samples
stored all showed the presence of high-quality gibbsite dominant
bauxite. The geological staff all were competent and provided a lot
of confidence through their knowledge and presentations of their
work programs and outcomes. A site visit was also carried out to
the sample preparation facilities and the standard in sample prep
was high and met the standards expected to be able to classify the
resource as JORC compliant.
Geological
interpretation		 Confidence in (or conversely, the
uncertainty of ) the geological
interpretation of the mineral
deposit.
Nature of the data used and of
any assumptions made.
The effect, if any, of alternative
interpretations
on
Mineral
Resource estimation.
The use of geology in guiding
and
controlling
Mineral
Resource estimation.
The factors affecting continuity
both of grade and geology.		 Geological and mineralogical interpretation of the deposit is
based on site visits and detailed drill hole interpretation by
Mark Gifford and Julian Aldridge. All available drill hole data
has been used for the interpretation. There is high confidence
in the current geological interpretation.
Any alternative interpretation is only likely to pertain to
continuity of the bauxite plateaus outside of drilled areas and
is unlikely to materially affect the estimate.
The <35% Al2O3and >10% SiO2drill hole assay sample grade
boundaries were used to define the base of mineralised
wireframes; the topographic survey was used for the upper
surface.
The continuity of the bauxite is limited by the areal extents of
each plateau. The bauxite-hosting weathering profile is
horizontal in orientation and cut by incised valleys surrounding
each plateau.
The understanding of the protolith geology with respect to the
weathering profile is not well documented and should be improved
in order to further understand the relationship between the Al2O3
grade and deleterious silica content.
Dimensions The extent and variability of the
Mineral Resource expressed as
length
(along
strike
or
otherwise), plan width, and
depth below surface to the		 Mineralisation as modelled extends over 15 plateaus – within the
Minim Martap licence the plateaus cover an approximate total
area of 20km x 20km, with individual plateaus up to 1km wide,
and 10km in length. In the Makan licence there is one plateau,
approximately1km x 1km in area. In the Ngaoundal licence there

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upper and lower limits of the
Mineral Resource.		 are 3 plateaus, approx.. total area of 1.5km x 1.5km.
All the plateaus are >35% Al2O3mineralised generally between 6
- 10m thick, from surface.
There are multiple other plateaus identified as potentially
economic-grade bauxite-hosts. These are untested by drilling or
surface sampling.
Estimation
and
modelling
techniques		 The nature and appropriateness
of the estimation technique(s)
applied and key assumptions,
including treatment of extreme
grade
values,
domaining,
interpolation parameters and
maximum
distance
of
extrapolation from data points.
If
a
computer
assisted
estimation method was chosen
include
a
description
of
computer
software
and
parameters used.
The
availability
of
check
estimates, previous estimates
and/or mine production records
and
whether
the
Mineral
Resource
estimate
takes
appropriate account of such
data.
The
assumptions
made
regarding
recovery
of
by-
products.
Estimation
of
deleterious
elements or other non-grade
variables
of
economic
significance (e.g. sulphur for acid
mine
drainage
characterisation).
In the case of block model
interpolation, the block size in
relation to the average sample
spacing
and
the
search
employed.
Any
assumptions
behind
modelling of selective mining
units.
Any
assumptions
about
correlation between variables.
Description
of
how
the
geological interpretation was
used to control the resource
estimates.
Discussion of basis for using or
not using grade cutting or
capping.
The process of validation, the
checking process used, the
comparison ofmodel data to
drill hole data, and use of
reconciliation data if available.		 The estimation was performed using Datamine Studio RM, and data
analysis performed using Snowden Supervisor.
The estimation used Ordinary Kriging (OK) with check estimations
(for comparison) by Inverse Distance Squared and Nearest
Neighbour methods. The OK method used estimation parameters
defined by the variography.
The mineralised zone model was generated using a 25m x 25m x
5m block model coded by geological and mineralisation wireframes.
The block size was chosen based on Kriging Neighbourhood
Analysis and morphology of the deposit. The block model was
subcelled to 12.5m x 12.5m x 2.5m. Average drill hole spacing is
250m x 250m with a 1m downhole sample interval.
The estimation was constrained within four estimation domains,
which grouped the 15 bauxite-hosting wireframes. Domain 1 is
the high grade bauxite plateaus in the NW of the Minim Martap
licence, Domain 2 is the lower grade plateaus on the east side of
the Minim Martap licence, Domain 3 is the plateaus in the
Ngaoundal licence, and Domain 4 is the single plateau on the
Makan licence.
Top cutting was carried out on the silica population to
reduce the influence of any values that were outside of
(above) the general population. Top cutting was based upon
statistical plots discussed in the Competent Person’s Report
and assessed by individual domain.
The drill hole file was coded by wireframe (WF) and domain
(DOMAIN) for statistical review and use in variography.
OK estimation was run in a three pass estimation plan, the first
search using quarter the variogram range, followed by a half
range and a full range search. Each search enabled the
estimation of blocks un-estimated on previous passes. Sample
weighting during grade estimation was determined by variogram
model parameters for the OK method. Block discretisation was
set at 2 x 2 x 2 to estimate block grades. Grade estimation was
carried out in individual domains with hard boundaries, and
individual search ellipses. A minimum & maximum number of
samples was used in each domain, with octant control.
A previous resource estimate had been performed in 2009
by SRK, but focused on fewer, more sparsely drilled
plateaux.
There is an increase of nearly double the 2009 resource tonnage
in the 2019 estimate. This is based on a significant increase in the
drilling, and an improved estimation method. The increase in
tonnage is in line with what might be expected based on the
additional data. Improved geological understanding of the
deposit and a robust variography have led to a greater amount of
Indicated material classified in the estimation.
The Minim Martap Project is a bauxite deposit. All exploration
work and estimates have focused on bauxite and no emphasis
has been placed on the presence of any other economic element.
Estimates of Fe2O3and SiO2content have been carried out
during the 2019 mineral resource estimation.
No modellingof SMUs has beenperformed

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No correlations between variables have been assumed, or
applied to any aspect of the resource estimation procedure
Following grade estimation a visual and statistical assessment of
the block model was undertaken for validation. Visual
comparison of composite sample grade and block grade was
conducted in cross section and in plan. Visually the model was
considered to spatially reflect the composite grades. Statistical
analysis of the block model was carried out for comparison
against the composited drill hole data. The mean block model
grade for each domain and its corresponding mean composite
grade compared well as did global averages. Different estimation
methods were compared to
the OK estimation, and closely reflected the tonnage and grade for
each domain. Swath plots were analysed across and along strike of
the deposit, and vertically. These show both a good global and local
reproduction of grade. This is true in horizontal and vertical
orientations, and the grade reproduction is closest where there is
more data to support the estimate.
Moisture Whether
the
tonnages
are
estimated on a dry basis or with
natural
moisture,
and
the
method of determination of the
moisture content.		 The tonnages are estimated as dry tonnes based on density test
work completed on diamond drill core collected in 2009. The dry
density value used is a conservative figure based on the averages of
the results from the diamond drilling test work. Moisture contents
have also been estimated, though the presence of high humidity
and wet/dry seasons during samples ensures the values are
estimates and not absolute.
Relative moisture content (RMC) samples as part of the in-field
physical properties programme were collected at 0.5 to 0.9 cm
interval along the channels of the shafts and immediately placed in
labelled bags, sealed to prevent drying prior to their transportation
to base camp. Upon arrival in the base camp, samples were
weighed (mwet), logged, and then air-dried for 1 week. After air-
drying, the samples were then reweighed (mdry). An 8kg capacity
electronic balance with a readability of 0.1g was used for weighing
the samples. Finally, the RMC was calculated with respect to the dry
mass of the sample.
Cut-off parameters The basis of the adopted cut-off
grade(s) or quality parameters
applied.		 The cut-off grades applied is related to the definition of the total
bauxite resource (>35% Al2O3), and the definition of a high grade
portion of the resource which could be considered consistent and
accessible within each of the plateau that contained a significant
highgrade component to the ores(>45% Al2O3)
Mining
factors
or
assumptions		 Assumptions made regarding
possible
mining
methods,
minimum mining dimensions
and internal (or, if applicable,
external) mining dilution. It is
always necessary as part of the
process
of
determining
reasonable
prospects
for
eventual economic extraction to
consider
potential
mining
methods, but the assumptions
made
regarding
mining
methods and parameters when
estimating Mineral Resources
may not always be rigorous.		 The expected mining methods for a bauxite mine is shallow open
cut, with the mining technique yet to be defined. The estimation
method of ordinary kriging applied to the resource estimate
averages the data to a greater degree than more simplified
methods of nearest neighbour or inverse distance squared,
providing the estimate with a greater degree of robustness in
regard to overall grade definition and large scale mining methods.

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Where this is the case, this
should be reported with an
explanation of the basis of the
mining assumptions made.
Metallurgical factors
or assumptions		 The basis for assumptions or
predictions
regarding
metallurgical amenability. It is
always necessary as part of the
process
of
determining
reasonable
prospects
for
eventual economic extraction to
consider potential metallurgical
methods, but the assumptions
regarding
metallurgical
treatment
processes
and
parameters
made
when
reporting
Mineral
Resources
may not always be rigorous.
Where this is the case, this
should be reported with an
explanation of the basis of the
metallurgical
assumptions
made.		 Bauxite is processed through the Bayer digestion process to form
alumina. This digestion process demands that the bauxite used
contains an ore which is significantly enriched in Gibbsite and
Boehmite (though minimal Boehmite if the digestion is carried out
at lower temperatures), as well as containing minimal Reactive
Silica (i.e. silica that is not unreactive quartz). Test work completed
on the Cameroon Bauxite ores showed a high level of Gibbsite
present, ensuring high recoveries of alumina in digestion
simulations (both high and low temperature settings), as well as
low levels of reactive silica which ensures the value of the bauxite
as a feedstock.
Low temperature digestion tests completed in 2009 and confirmed
in 2019 showed total Alumina converting at an average of 90% -
95% and Silica at an average of 60% - 80%. Further test work will
identify the optimal refinery conditions for digestion which should
result in improved recoveries.
Environmental
factors
or
assumptions		 Assumptions made regarding
possible waste and process
residue disposal options. It is
always necessary as part of
the process of determining
reasonable prospects for
eventual economic extraction
to consider the potential
environmental impacts of the
mining and processing
operation. While at this
stage the determination of
potential
environmental
impacts,
particularly
for
a
Greenfields project, may not
always be well advanced, the
status of early consideration of
these potential environmental
impacts should be reported.
Where these aspects have not
been considered this should be
reported with an explanation of
the environmental assumptions
made.		 The mining of bauxite is typically a total profile mined as a product
for transportation and sale. The development of waste dumps and
large stockpiles is limited if not absent due to the characteristics of
the mining process and the economics of mining the ore. At this
early stage of development there are
limited environmental factors or assumptions that would impact in
such a wayso as to reduce or hinder the development of the
bauxite exploitation.
Bulk density Whether
assumed
or
determined. If assumed, the
basis for the assumptions. If
determined, the method used,
whether
wet
or
dry,
the
frequency of the measurements,
the
nature,
size
and
representativeness
of
the
samples.
The
bulk
density
for
bulk
material
must
have
been		 The bulk dry density of the ores was initially determined within
the Cameroon Bauxite Project by sampling from the diamond
core drilled solid core, measuring its length and width, weighing
the dried sample prior to calculating the density value. This
method is good at providing an approximation of the density
values. A total of 167 density samples were reported within the
resource report. A total of 8 Plateaux were tested, with the total
samples from each ranging between 14 and 31, and often
recovered from 3 individual drill holes. Most of the samples were
taken from the upper 5m of the drill string, but there were some
samples that were taken for >10m depth(though rare). The

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measured by methods that
adequately account for void
spaces (vugs, porosity, etc),
moisture
and
differences
between rock and alteration
zones within the deposit.
Discuss assumptions for bulk
density estimates used in the
evaluation
process
of
the
different materials.		 average dry density from all 167 samples was 1.88t/m3and
when you used samples that were >42%Al2O3the average
density remained at 1.88t/m3for the 137 samples that formed
the subset. The value of 1.8t/m3is considered a conservative
value for the estimation of the bauxite present within the
resource area.
The bulk samples programmes conducted as part of the in-field
physical properties programme and the handleability testing
completed at Tunra suggest the density to be slightly higher than
reported which will be advantageous to the project. These will be
reflected in a mineral resource estimate update planned when
sufficient additional data has been prepared.
There are no various materials that require bulk density
determinations outside of the existing bauxite which is a
continuous surficial layer that forms under near identical settings
across all regions.
Classification The basis for the classification of
the Mineral Resources into
varying confidence categories.
Whether appropriate account
has been taken of all relevant
factors (i.e. relative confidence
in tonnage/grade estimations,
reliability
of
input
data,
confidence
in
continuity
of
geology
and
metal
values,
quality,
quantity
and
distribution of the data).
Whether
the
result
appropriately
reflects
the
Competent Person’s view of the
deposit.		 The resource classification at the Minim Martap Project was
reviewed using the following criteria;
• Search volume
• Internal structure of the mineralised zone (whether visible)
• Distance to samples (proxy for drill hole spacing)
• Number of samples
• Extrapolation of mineralisation
Mining Plus assessed and decided to apply the resource
classification based on the search volume.
Measured Mineral Resource: The Minim Martap Project has no
areas suitable for classification as Measured resources, mainly
based on the lack of understanding/ quantification of the Modifying
Factors required for progress to reserve conversion.
Indicated Mineral Resource: The areas of the mineralised domains
contained in search volume 1 or 2, and the drill hole spacing is a
maximum of 250 – 500m. The zone is contained between drill holes,
and not extrapolated out away from drill hole data.
Inferred Mineral Resource: Defined by a drill spacing >500m and
contained with search pass 3. All extrapolated or marginal
extensions of mineralisation are classified as Inferred Resources.
Audits or reviews The results of any audits or
reviews of Mineral Resource
estimates.		 No audits have been conducted on Minim Martap, during
ownership by Canyon Resources. A review of the September 2009
Cameroon Alumina Ltd Ore Resource Statement Minim Martap-
Ngaoundal Bauxite Deposit and upgrading to JORC (2012)
compliance was conducted by SRK Consulting (Australasia) Pty Ltd
in September 2018 and announced by Canyon Resources on 20
September 2018.
Discussion of relative
accuracy/ confidence		 Where appropriate a
statement of the relative
accuracy and confidence level
in the Mineral Resource
estimate using an approach or
procedure deemed appropriate
by the Competent Person. For
example, the application of
statistical orgeostatistical		 Validation (visual and statistical) and checking of the estimation
process confirm the resource estimation to be appropriate to the
style of mineralisation at Minim Martap, and that the estimated
bauxite contents are as expectedboth locally and globally.
The classifications applied by the Competent Person are rigorous
and satisfy all of the JORC 2012 criteria. A drill spacing of 100m x
100m to 250m x 250m is appropriate for Indicated Resource
classification.

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procedures to quantify the
relative accuracy of the
resource within stated
confidence limits, or, if such an
approach is not deemed
appropriate, a qualitative
discussion of the factors that
could affect the relative
accuracy and confidence of the
estimate.
The statement should specify
whether it relates to global or
local estimates, and, if local,
state the relevant tonnages,
which should be relevant to
technical and economic
evaluation. Documentation
should include assumptions
made and the procedures
used.
These statements of relative
accuracy and confidence of the
estimate should be compared
with production data, where
available.		 Where Modifying Factors material to the economic extraction of
the orebody have been assumed, these are stated in the
Competent Person’s Report.
Confidence in the physical properties of the bauxite ore/product is
commensurate to a pre-feasibility study.

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JORC Code 2012 - Table 1, Section 4

Estimation and Reporting of Ore Reserves.

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC
Code
explanation		 Commentary
Mineral
Resource
estimate
for
conversion to
Ore Reserves		 Description
of
the
Mineral
Resource
estimate used as a basis
for the conversion to an
Ore Reserve.
Clear statements as to
whether
the
Mineral
Resources are reported
additional to, or inclusive
of, the Ore Reserves.		 The Indicated Mineral Resources for the Minim-Martap deposit, as previously
reported by Canyon on 27thSeptember 2019, were used as the basis for Ore
Reserves.
The Ore Reserves are included within the previously declared Mineral
Resources.
Comment on any site
visits undertaken by the
Competent Person and
the outcome of those
visits.		 A site visit to the Minim-Martap Project was undertaken in July March 2019 by
John Battista, Principal Mining Consultant with Mining Plus and Competent
Person (CP) for Mining and Ore Reserves. All relevant areas of the Project site
were visited.
A site visit was undertaken by the CP for the completion of the Minim Martap
Project Resource report in July 2019. A full review of all of the regional bauxite
occurrences was completed, a review of site and staff protocols associated with
sample collection and collation was completed as well as geological discussions
associated with logging and bauxite interpretation. All regions tested had
significant bauxite occurrences and the samples stored all showed the presence
of high-quality gibbsite dominant bauxite. The geological staff all were
competent and provided a lot of confidence through their knowledge and
presentations of their work programs and outcomes. A site visit was also carried
out to the sample preparation facilities and the standard in sample prep was
high and met the standards expected to be able to classify the resource as JORC
compliant.
A site visit to the Minim-Martap plateaux Project including the access road, the
proposed rail loading area near to existing Makor rail station, the ports of
Douala and Kribi was undertaken in February / March 2020 by Paulo Cardoso de
Campos, Transportation and logistics study manager with Ausenco. and by
Karen Potgieter, Environmental and Social Specialist from ESS. Also on this site
visit on this site visit were consultants and sub consultants of the study and ESIA
teams.
Additional socio-environmental site visits have been conducted in 2018, 2019
and 2020 to support the ESIA.
If no site visits have been
undertaken indicate why
this is the case.		 See above.
Study Status The type and level of
study
undertaken
to
enable Mineral Resources
to be converted to Ore
Reserves.		 The Ore Reserves estimate results from a Pre-Feasibility Study that was
completed by Canyon Resources, with contributions from a team of experienced
and reputable consultants. The PFS was announcement to the ASX on 01 July
2020.

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The code requires that a
study to at least Pre-
Feasibility Study level has
been
undertaken
to
convert Mineral Resource
to Ore Reserves. Such
studies will have been
carried out and will have
determined a mine plan
that
is
technically
achievable
and
economically viable, and
that material modifying
factors
have
been
considered.		 The study on the Minim-Martap Project is considered to be at a minimum Pre-
Feasibility Study standard in all aspects.
A mine plan that is technically achievable and economically viable was
identified, covering a nominal initial production period of approximately 20
years at a production rate of 5 Mtpa of shipped bauxite product, ramping up
from 4 Mtpa after 2 years of operations.
All material modifying factors are considered by the CP to have been accounted
for in this Ore Reserves estimate.
Cut-off
parameters		 The basis of the cut-off
grade(s)
or
quality
parameters applied.		 The cut-offs used for reporting Ore Reserves are as follows:
1. All material above 50% Total Al2O3grade is considered as ore,
regardless of Total SiO2grade.
2. All material where Total Al2O3grade is above 44% and below 50%, and
Total SiO2is below a maximum of 2.5%, is also considered as ore.
3. All other material is considered waste.
These cut-off grades are considered by the CP to be appropriate for the bauxite
product to be sold, considering the nature of the bauxite deposits, their
proximity to the seaborne direct-shipped bauxite market and the associated
Project economics.
The reference point at which Ore Reserves are reported is at the existing port of
Douala,Cameroon.
Mining factors
or
assumptions		 The
method
and
assumptions
used
as
reported
in
the
Pre-
Feasibility or Feasibility
Study to convert the
Mineral Resource to an
Ore Reserve (i.e. either by
application
of
appropriate factors by
optimisation
or
by
preliminary or detailed
design).		 The Mineral Resources models which formed the basis for estimation of the Ore
Reserves were used in a high-level strategic scheduling optimisation process
using scheduling optimisation software, in order to assess the best order of
mining for the various resource plateaux. Mining and logistics costs input to the
optimisation were built up using commercial quotations received from
experienced contractors.
The plateau areas that were identified as being optimal for first mining were
then were then used as a basis for detailed pit and stage designs during the PFS
to produce a life-of-mine plan for 20 years of modelled bauxite production at a
rate of 5 Mtpa, ramping up from 4 Mtpa after 2 years of operations. The 5 Mtpa
rate was chosen because it is the expected capacity available using the existing
railway to the port of Douala, and the expected capacity of the port of Douala
itself. The ramp up period from 4Mtpa to 5Mtpa results from the increase in
axle load planned on the rail network and anticipated in 2026. The 20 year
truncation was based on commodity forecast periods and represents mining in
parts of 3 separate plateaux.
The Ore Reserve estimate is based on the production target and forecast
financial information derived from a detailed mining schedule modelled at a
production rate of 5 Mtpa, ramping up from 4 Mtpa after 2 years of operations,
in line with rail line upgrades as disclosed in the PFS announcement. This mining
schedule was completed after the PFS, which presented the production target
and forecast financial information based on a 4 million tonnes per annum
mining schedule which was scaled and extrapolated to represent the ramp up to
5 million tonnes per annum in year 2026. Differences, which the both the
Company and the CP for Ore Reserves consider immaterial, between the
material assumptions for the Ore Reserve estimate and the production target
and financial forecast from the PFS are attributable to adjustments in the mine
scheduling.
The Ore Reserves are the Indicated resources that meet the nominated cut-off
gradeparameters and are within the PFSpit design limits.

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The choice, nature and
appropriateness of the
selected mining method
(s) and other mining
parameters
including
associated design issues
such as pre-strip, access,
etc.		 The mining method selected is open cut using surface miners to cut the bauxite,
and commonly used front-end-loader and truck fleets. Bauxite will be hauled in
mining trucks to a ROM pad located at each of the mining plateaux, from where
it will be blended and rehandled into road trains and then hauled to a rail
loading facility at Makor, a distance of some 30-50km. From there the bauxite
will be transferred to trains for transport on an existing railway to the port at
Douala. Subsequent loading onto barges for deep-sea trans-shipment into
ocean-going vessels will then be employed to ship the product to customers.
The open pit mine will initially be developed in three plateau areas, and will
employ a strip-mining style operation, with waste material being backfilled into
mined-out plateau areas. Mine layouts, production schedules and cost
estimates have been completed to a Pre-Feasibility study standard.
The CP considers the proposed mining method to be appropriate, given the
nature of the deposit’s mineralisation, the physical properties of the mined
material and the scale of theproposed operations.
The assumptions made
regarding
geotechnical
parameters
(e.g.
pit
slopes, stope sizes, etc.),
grade control and pre-
production
drilling
The major assumptions
made, and the Mineral
Resource model used for
pit
and
stope
optimisation
(if
_appropriate). _		 Mining will be at the tops of bauxite plateaux, therefore no significant pit walls
will be developed.
Ultimate compressive strength (UCS) of the deposits, to determine expected
surface miner productivity, has been assessed to PFS standard by conducting a
program of Point-Load Testing (PLT) of rock samples obtained from the three
initial mining areas. The results indicate a maximum in-situ rock Ultimate
Compressive Strength of approximately 40Mpa, which is well within the
capability of surface miners and is similar to that of other similar West African
bauxite operations, principally in Guinea, that use surface miners extensively.
Short-term grade control will be based on progressive additional close-spaced
drilling and pit mapping and grade control is allowed for in the mine operating
costs and financial modelling.
The
mining
dilution
factors
used
The
mining
recovery
factors
used
Any mining widths used.		 The geological block model used as a basis for Ore Reserves is an Ordinary
Kriged resource model (refer Geology CP report). This was complemented by a
multi element analysis using Nearest Neighbour statistical methods to complete
the elemental spectrum of the product. The minimum block size used in the
block model is 12.5 metres in the east-west (along strike) direction, by 12.5
metres north-south (across strike), by 2.5 metres in the Z (vertical) direction.
This results in a minimum Selective Mining Unit (SMU) size of approximately
390m3, or approximately 700 tonnes at the average bauxite dry density
(1.8t/m3).
The orebody is structurally well-defined, the bauxite occurs at or very near to
surface and there is a noticeable clay layer at the base of the orebody, so
identification of the bottom of the bauxite zone is expected to be relatively easy
via grade-control drilling ahead of mining. Appropriate grade control and ore
mark-out and excavation control procedures will be used and have been
allowed for in the Project mining costs.
Given the above and having regard to the type and size of mining equipment
envisaged, the CP considers that the minimum block size of 12.5m x 12.5m x
2.5m inherently incorporates ample allowance for mining dilution and recovery
factors. A much higher degree of selectivity than currently in the block models
should be achievable in practice, particularly in the Z-direction, given the ability
of surface miners to selectively cut very thin layers. Maximum surface miner cut
depth is expected to be in the order of 0.3-0.45 metres.
A minimum mining strip width of approximately 75 metres was used for the pit
layouts.
The manner in which
Inferred
Mineral
Resources are utilised in
mining studies and the
sensitivity of the outcome
to their inclusion.		 Inferred Resources comprise only 0.2% of the total Mineral Resources contained
within the final pit designs and above the Ore Reserve cut-off.
Inferred Resources are excluded from Ore Reserves estimates.
The Project does not rely on Inferred resources to produce a positive economic
outcome.

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The
infrastructure
requirements
of
the
selected mining methods.		 The proposed minesite infrastructure will include waste rock dumps (mostly
backfilled into mined-out areas, but with some small external dumps for waste
from initial mining on each plateau area), ROM pads, surface haul roads to the
rail head, water management/pumping infrastructure, workshops and fuel
storage/supply facilities, technical and administration facilities, power station,
mine accommodation campfacilityand associated mine infrastructure.
Metallurgical
factors
or
assumptions		 The metallurgical process
proposed
and
the
appropriateness of that
process to the style of the
mineralisation.		 After cutting with the surface miners, the bauxite will be loaded into mine
trucks using front-end-loaders and hauled to the ROM stockpile areas (one ROM
per plateau). No crushing or screening will be required. Bauxite will rehandled
into high-capacity road trains and hauled from the mine areas to the rail-head at
Makor, where the bauxite will be transferred onto into containerized vessels,
which will be loaded onto flat-bed rail cars for transport to the port of Douala, a
distance of some 840km. At the port, the bauxite will be stockpiled before being
loaded onto barges and trans-shipped into ocean-going vessels for delivery to
the customers – principally, alumina refineries in Europe, Middle East and Asia.
The bauxite product is suitable for direct feed into alumina refineries using the
low-temperature Bayer process to convert bauxite to pure alumina, and it is
expected that a premium price can be obtained due to the relatively high Al2O3
grade and low SiO2grade of the product, compared to similar product available
on the seaborne bauxite market.
Low temperature digestion tests completed in 2009 and confirmed in 2019
showed total Alumina converting at and average of 90% - 95% and Silica at an
average of 60% - 80%. Further test work will identify the optimal refinery
conditions for digestion which should result in improved recoveries.
Whether
the
metallurgical process is
well-tested technology or
novel in nature.		 Processing consists of a simple bauxite handling facility and standard truck, rail
and shipping logistics chain, which is commonly used and is typical of direct-
shipped bauxite operations.
Bauxite refineries, who are off-takers to the project, are anticipated to use the
commonly applied Bayer process to digest the bauxite and produce Alumina as a
product. Metallurgical test work to date confirms the suitability of the bauxite
ore for this process and refiners have receive product samples for their own
testing. Further testing will be completed to identify the optimal refining
conditions for the Minim Martap bauxite to support product off-take.
The nature, amount and
representativeness
of
metallurgical test work
undertaken, the nature of
the
metallurgical
domaining applied and
the
corresponding
metallurgical
recovery
factors applied.		 In 2019, Canyon submitted bauxite samples to TUNRA for comminution test
work on the bauxite. Additionally, an in-field physical properties testing
programme was conducted to bolster rock strength, density and moisture data.
Metallurgical recovery factors are not required for this simple direct-ship ore
methodology and have therefore not been applied.
Metallurgical testing has been completed and has been used to support the
product price assumptions. Metallurgical testing was conducted and included in
the September 2019 resource report and more recently at SGS laboratories. The
testing suggests total Alumina can be recovered at between 90 and 95% and
total silica reacts at rates of 60-80% of the total silica. This metallurgical
performance is used to provide price ranges as inputs into the economic model
where the pricing modelling, commensurate to Wood Mackenzie pricing
models, applies premiums to Alumina grades above , and premiums to Silica
grades under,standard bauxite referencegrades.
Any
assumptions
or
allowances
made
for
deleterious elements.		 The main deleterious elements considered for Minim-Martap are Silica (SiO2) and
Iron Oxide (Fe2O3). Additional grades have also been estimated but these
estimations are preliminary in nature and at this point in time are not reported in
the Ore Reserves. Based on preliminary estimates, these additional grades are all
generally below levels that would incur penalties in a marketable direct-ship
bauxite product. Appropriate allowance is made for expected deleterious
elements in the product.

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The existence of any bulk
sample or pilot scale test
work and the degree to
which such samples are
considered
representative
of
the
orebody as a whole.		 Some bulk sampling occurred at the Minim-Martap deposit in the early 1970s;
however, no reliable details of sampling or results of tests on bauxite produced
are available. Basic metallurgical test work was included within the September
2019 mineral resource estimate and additional metallurgical test work has been
completed by Canyon on composite ore samples that were prepared from air core
drilling samples at one of the priority plateaux; these are considered
representative of the orebody as a whole. Further test work is planned prior to
commencement of mining.
For minerals that are
defined
by
the
specification, has the ore
reserve estimation been
based on the appropriate
mineralogy to meet the
specifications?		 The Ore Reserve estimate is based entirely on plateau-hosted bauxite
mineralisation, with appropriate product specification assumptions having been
applied.
Environmenta
l		 The status of studies of
potential environmental
impacts of the mining
and
processing
operation.
Details
of
waste
rock
characterisation and the
consideration
of
potential sites, status of
design
options
considered and, where
applicable, the status of
approvals
for
process
residue
storage
and
waste dumps should be
reported.		 In 2010 an Environmental and Social Impact Assessment (ESIA) was submitted by
the previous project owners and on a different project development approach.
While this ESIA is no longer valid due to the time passed since completion and
changed project footprint, some elements of the baseline data and impact
assessment remain representative.
In 2019 a Summary ESIA for Exploration was completed and submitted to
MINEPDED (Ministry for Environment, Protection of Nature and Sustainable
Development, Cameroon) in January 2020 .
A “Detailed ESIA” is currently underway that will draw from the 2010 ESIA and
undertake updated baseline studies and impact assessments based on the
proposed Project configuration. The Detailed ESIA will correspond to
Cameroonian legislative requirements and be aligned with international
standards, frameworks and guidelines (including the IFC Performance Standards).
A Terms Of Reference for the Detailed ESIA has been submitted to MINEPDED and
provides an overview of the planned ESIA process.
The Detailed ESIA will:
•
Further define baseline conditions;
•
Assess all feasible design options;
•
Describe the preferred Project design;
•
Identify and evaluate, by qualitative and quantitative means, all the
potential impacts (positive and negative; period, duration, frequency
and probability of occurrence; direct and indirect; reversible and
irreversible) of the proposed Project;
•
Identify measures to avoid, or where avoidance is not possible,
minimise, and, where residual impacts remain, offset or compensate
adverse environmental and social impacts.
•
Identify opportunities to enhance the benefits arising from the
proposed Project development; and
•
Prepare an Environmental and Social Management Plan
Waste characterisation has been completed on representative samples and is
shown to be benign in nature.
Infrastructure The
existence
of
appropriate
infrastructure:
availability of land for
plant
development,
power,
water,
transportation
(particularly
for
bulk
commodities),
labour,
accommodation; or the
ease with which the		 The proposed infrastructure to be built includes low-grade and waste rock
dumps, ROM pads, surface haul roads to rail head, pumping infrastructure,
workshops and fuel storage/supply facilities, technical and administration
facilities, diesel-fired power station, rail-head storage and loading facilities, mine
accommodation camp facility, Douala port bauxite handling facilities and
associated mine infrastructure.
The proposed ore haulage route to Makor, approximately 50km from the mine
site areas, is partly along an existing unsealed road and partly along a new
route. The entire haul route will require significant upgrading prior to
commencement of operations and appropriate allowance for this has been
made in the Project establishment costs.

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infrastructure
can
be
provided or accessed.		 The in-mine haulage fleet will consist of 60t articulated dump trucks. High-
capacity road trains will be used for transport of product to the train loading
facility at Makor, and it is proposed to establish an appropriate maintenance
facility for trucks at the minesite area prior to commencement of operations.
The workforce will be made up of mainly local residents, with some expat
employees, contractors and management staff commuting on a FIFO
arrangement to site. An appropriate camp facility will be constructed on site to
provide accommodation, meals and recreation facilities for FIFO workers and a
portion of the Cameroonian workers. Flights to nearby Ngaoundere, from
Yaounde, are expected to be scheduled commercial flights, additionally a
passenger train service is available between the Cameroon capital, Yaoundé and
Makor.		 The in-mine haulage fleet will consist of 60t articulated dump trucks. High-
capacity road trains will be used for transport of product to the train loading
facility at Makor, and it is proposed to establish an appropriate maintenance
facility for trucks at the minesite area prior to commencement of operations.
The workforce will be made up of mainly local residents, with some expat
employees, contractors and management staff commuting on a FIFO
arrangement to site. An appropriate camp facility will be constructed on site to
provide accommodation, meals and recreation facilities for FIFO workers and a
portion of the Cameroonian workers. Flights to nearby Ngaoundere, from
Yaounde, are expected to be scheduled commercial flights, additionally a
passenger train service is available between the Cameroon capital, Yaoundé and
Makor.
Costs The derivation of, or
assumptions
made,
regarding
projected
capital costs in the study.		 Capital costs are supported by inputs from consultants Ausenco (infrastructure,
rail and transhipment), and Mining Plus (mining). Capital costs have been based
on equivalent Project costs, benchmarked data, industry knowledge, first
principle estimates and extrapolation where required.
Project capital costs represent the capital required for the mine, haulage, train
load out, port and transhipment and are as follows:
The capital cost of upgrading the existing public road has been derived from first
principles and is assumed to be funded by the government.
Project contingency was added to the overall capital cost estimate to account for
variances between the specific items contained in the estimate and the final
actual Project cost. The contingency covers additional costs that will be incurred
as a result of unforeseen items such as; error/omissions, design unknowns,
abnormal weather conditions, abnormal currency fluctuations, a major
equipment transport event or significant damage during construction.
The contingency costs on the Minim Martap Project were estimated as a
proportion of EPCM costs. The EPCM costs were allocated depending on effort
required to managed scopes of Engineered and Non-Engineered (turnkey)
packages. A percentage was applied to the total direct EPCM costs including
associated costs for growth to estimate the contingency. This varied from 12% for
scopes requiring management, design and procurement efforts versus 5% for
turnkey packages that are less complicated or requiring less management efforts.
Mining set-up and equipment contingency has been applied as a 5% growth
allowance and a 10% contingency on the pre-growth cost.
Subsequent to the release of the PFS (ASX Announcement 01 July 2020) the
mining schedule has been refined which has resulted in changes to the financial
forecasts presented in the PFS and which both the Company and the CP for Ore
Reserves consider immaterial. The capital cost has changed from US$119.6m to
US$118.8m. Further information is presented in the section titled_: Mining_
method selected and other mining assumptions, and also presented within this
table (Appendix 1, Table 1, Section 4.)
Cost estimates are made inQ2 2020 US Dollars(USD).
WBS
Cost Element
Capital incl. Growth
(USD 000)
Split (%)
2000
Mine and mine-site infrastructure
31,900
26.9%
3000-5000
Road Haulage
12,800
10.8%
6000-8000
Inland Rail Facility
15,400
13.0%
7000-8000
Douala Port
20,600
17.3%
10000
Project Delivery
4,400
3.7%
11000
Owners Costs
26,600
22.4%
12000
Contingency
7,100
6.0%
Total
118,800
100.0%
Capital costs are supported by inputs from consultants Ausenco (infrastructure,
rail and transhipment), and Mining Plus (mining). Capital costs have been based
on equivalent Project costs, benchmarked data, industry knowledge, first
principle estimates and extrapolation where required.
Project capital costs represent the capital required for the mine, haulage, train
load out, port and transhipment and are as follows:
WBS
Cost Element
Capital incl. Growth
(USD 000)
Split (%)
2000
Mine and mine-site infrastructure
31,900
26.9%
3000-5000
Road Haulage
12,800
10.8%
6000-8000
Inland Rail Facility
15,400
13.0%
7000-8000
Douala Port
20,600
17.3%
10000
Project Delivery
4,400
3.7%
11000
Owners Costs
26,600
22.4%
12000
Contingency
7,100
6.0%
Total
118,800
100.0%
The capital cost of upgrading the existing public road has been derived from first
principles and is assumed to be funded by the government.
Project contingency was added to the overall capital cost estimate to account for
variances between the specific items contained in the estimate and the final
actual Project cost. The contingency covers additional costs that will be incurred
as a result of unforeseen items such as; error/omissions, design unknowns,
abnormal weather conditions, abnormal currency fluctuations, a major
equipment transport event or significant damage during construction.
The contingency costs on the Minim Martap Project were estimated as a
proportion of EPCM costs. The EPCM costs were allocated depending on effort
required to managed scopes of Engineered and Non-Engineered (turnkey)
packages. A percentage was applied to the total direct EPCM costs including
associated costs for growth to estimate the contingency. This varied from 12% for
scopes requiring management, design and procurement efforts versus 5% for
turnkey packages that are less complicated or requiring less management efforts.
Mining set-up and equipment contingency has been applied as a 5% growth
allowance and a 10% contingency on the pre-growth cost.
Subsequent to the release of the PFS (ASX Announcement 01 July 2020) the
mining schedule has been refined which has resulted in changes to the financial
forecasts presented in the PFS and which both the Company and the CP for Ore
Reserves consider immaterial. The capital cost has changed from US$119.6m to
US$118.8m. Further information is presented in the section titled_: Mining_
method selected and other mining assumptions, and also presented within this
table (Appendix 1, Table 1, Section 4.)
Cost estimates are made inQ2 2020 US Dollars(USD).

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The methodology used to Operating costs are supported by inputs from consultants Ausenco estimate operating costs. (infrastructure, rail and transhipment) and Mining Plus (mining). Operating costs have been based on equivalent Project costs, database pricing, industry knowledge, first principle estimates and extrapolation where required.

WBS Cost Element Opex
(USD/t Product)
2000 Mine and mine-site infrastructure 2.7
3000-5000 Road Haulage 2.5
6000 Rail to Douala Port 16.5
7000 Douala Port 5.8
8000 Transhipment 5.0
11000 Owners Costs 2.7
Total 35.2

Rail operating margins have been applied at rates consistent with industry benchmarked data and consider first principle operating costs, capital repayment and operating profit and are modelled to provide industry acceptable rates of return. The Cameroon government retains a 5% royalty tax, a 1% community development fund and 30% corporate tax. A 5-year tax and royalty holiday has been assumed consistent with industry norms from equivalent projects in Cameroon. Subsequent to the release of the PFS (ASX Announcement 01 July 2020) the mining schedule has been refined which has resulted in changes to the financial forecasts presented in the PFS and which both the Company and the CP for Ore Reserves consider immaterial. The average operating costs have changed from US$35.1/t to US$35.2/t. Further information is presented in the section titled : Mining method selected and other mining assumptions , and also presented within this table ( Appendix 1, Table 1, Section 4 .) Cost estimates are made in Q2 2020 US Dollars (USD). Allowances made for the The main deleterious elements to be considered for product from the Minim- content of deleterious Martap Project are Silica and Iron Oxide (SiO2 and Fe2O3). The grade of these elements. elements in the bauxite product are considered to be very low when benchmarked across the bauxite quality spectrum and contribute to the price premium expected for the product. The source of exchange A US$:A$ exchange rate of 0.62 has been derived from corporate guidance and rates used in the study. independent advice from reputable financial institutions. Derivation of transport Ore haulage costs from the mine plateaux to the new Inland Rail Facility near to charges. Makor were defined based on the cost of acquisition and operation of the truck fleet including costs of equipment, operating costs (labour, maintenance and fuel). The Company has assumed that the required rail rolling stock and public access rail infrastructure will be acquired, owned and operated separately to the Project. The Company has modelled from first principles the capital and operating costs of the rail and rolling stock requirements and has included payment of a capital return and operating margin to the owner-operator. The margins to the owner-operator have been modelled and the rate of return benchmarked to similar operational arrangements. Canyon has commenced discussions with appropriate companies, including specialist African rolling stock providers and logistics operators who have expressed a high degree of interest in participating in the purchase, funding and operation of the rolling stock and associated infrastructure. Rail Rolling Stock and Public Access Rail Infrastructure Cost (US$)

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Transhipment costs were based on a contractor price providing the services from
the berth to the transhipment operation. This includes barges, tugs and
transhipment equipment and compromises fuel, labour and equipment and
maintenance.
Subsequent to the release of the PFS (ASX Announcement 01 July 2020) the
mining schedule has been refined which has resulted in changes to the financial
forecasts presented in the PFS and which both the Company and the CP for Ore
Reserves consider immaterial. Further information is presented in the section
titled_: Mining method selected and other mining assumptions_, and also
presented within this table (Appendix 1, Table 1, Section 4).
WBS
Cost Element
Capital incl. Growth
(USD 000)
Split (%)
6000
Locomotives
54,600
44.9%
6000
Flatbed wagons
49,000
40.3%
3000
Rail Access Infrastructure
10,600
8.7%
10000
EPCM - Non Engineering
900
0.7%
12000
Contingency
6,500
5.3%
Total
121,600
100.0%
The basis for forecasting
or source of treatment
and
refining
charges,
penalties for failure to
meet specification, etc.		 The bauxite price ranges used as inputs into the economic model are consistent
to Wood Mackenzie pricing models and include recognition of credits and
penalties for grade and deleterious elements. This applies premiums and
penalties to Alumina grades and Silica grades respectively. Pricing formulae are
considered commercial in confidence however have been benchmarked to
publicly available information and specific market intelligence.
The allowances made for
royalties payable, both
Government andprivate.		 See above
Revenue
Factors		 The derivation of, or
assumptions
made
regarding
revenue
factors including head
grade,
metal
or
commodity
price(s)
exchange
rates,
transportation
and
treatment
charges,
penalties, net smelter
returns etc.		 Product pricing is based on Canyon’s estimates and forecasts for the Minim
Martap Project within the modelling capabilities of the 1Q2020 Wood
Mackenzie’s Bauxite Price Forecast Model for the period 2019-2040. Forecasts
have been determined from using Minim Martap product grades and
metallurgical factors and include consideration for current supply and anticipated
future supply, grade degradation forecasts for existing suppliers and future
refinery input costs including, freight, fuel and caustic soda. The Cameroon FOB
price has been derived from a value in use-adjusted marginal tonne supply curve
on a delivered basis to the end use market.
The value-in-use (VIU) adjustment recognises product grades which have been
determined by assuming available Alumina is 90% of the total and reactive Silica
is 70% of the total Silica. VIU pricing includes recognition of the grade and the
average moisture content. It should be noted that Low temperature digestion
tests completed in 2009 and confirmed in 2019 showed total Alumina converting
at an average of 90%-95% and Silica at an average of 60% - 80% indicating
metallurgical assumptions for the purposes of bauxite pricing are average to
conservative.
Modelled pricing is forecast as commencing at US$44/t FOB and increasing up to
the longterm,average of US$51/t FOB.
The
derivation
of
assumptions
made
of
metal
or
commodity
price(s), for the principal
metals, minerals and co-
products.		 See above.

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Market
Assessment		 The demand, supply and
stock situation for the
particular
commodity,
consumption trends and
factors likely to affect
supply and demand into
the future.		 Wood Mackenzie and Canyon’s Chief Development Officer, Rick Smith, have
contributed to the PFS in market analysis, future demand and product pricing.
The market is forecast to be in oversupply for the short to medium term before
returning to a more balanced and rational market before 2030. The PFS
recognises suppressed prices, at the bottom of the cost cycle, between 2020
and 2025, with a price growth up curve following in the economic analysis.
Aluminium fundamentals support strong demand for bauxite to support the
growing aluminium industry being largely balanced by new and expanding
projects with premiums attached to higher grade bauxite products. The largest
and growing end use market is China.
China currently imports two thirds of the total global seaborne bauxite supply
(150 million tonnes) importing 100 million tonnes per annum, 50% of which is
from Guinea. The proportion of Guinean imports to China is growing and the
need for source diversification is an industry priority. Bauxite demand into China
is forecast to continue togrow rapidlyfor another decade at least.
A
customer
and
competitor
analysis
along
with
the
identification
of
likely
market windows for the
product.		 Future customers of the Minim Martap bauxite Project can be broadly placed
into 3, overlapping, categories: (1) a company looking for higher quality grade
bauxite, including to blend with lower quality bauxite that has been mined in
China, India and/or Guinea. (2) a company building new refineries who demand
higher grade bauxite, which provides reduced capital infrastructure
requirements and future operational savings and efficiencies from reduced
caustic soda and reduced energy prices ; and (3) aluminium producers or
affiliates seeking a geographical and geopolitical diversification from Guinea
which has a history of, and continued potential for, supply disruption.
Bauxite prices are currently lower due to the Covid-19 pandemic, however with
global stimulus packages promoted by many countries, history suggests that
prices will rally, and quickly, once upward momentum is established. Canyon
believes that for Q4 2020 through Q2 2021 and beyond, bauxite demand
remains positive, with global stimulus focused on aluminium end-use key
sectors – automobiles, and packaging construction. The market has not yet
priced in an expected recovery in demand. It is likely that demand will recover
strongly as the world returns to some form of normality in late 2020, with some
manufacturing units in China, USA, Europe, Middle East and SE Asia already
given the go-ahead to restart operations in Q2 2020.
The global aluminium market was placed at US$160 billion in 2018 and is
expected to grow, through and post Covid-19 period, to +US$250 billion by
2026, recording a compound annual growth rate (CAGR) of 6.5% from 2019 to
2026 (Global Market Insights Inc. 7 April 2020). Is expected that China will
account for greater than 70% of the anticipated global growth by 2026, driven
by vehicle production, components, and packaging consumer goods sectors.
The longer term demand fundamentals remain, and will continue to remain,
strong with Aluminium a critical metal of the future.
Price
and
volume
forecasts and the basis
for these forecasts.		 Seaborne bauxite product pricing forecasts by Wood Mackenzie have been used
as a basis for Project marketing and pricing analysis. The forecast bauxite
benchmark pricing for FOB bauxite by Wood Mackenzie, is driven by the quality
and location of the Project and the assessment of supply relative to demand
where the quality cost adjusted marginal tonne sets the benchmark FOB bauxite
price at any given location with the assumption that the marginal producer
operates with zero profit margin. Whilst a good guide to price forecasting there
are limitations to the methodology and the market remains fragmented and
opaque with vertically integrated supply lines and confidential offtake contracts.
Production volume forecasts have been derived by optimizing to the current
supply chain constraint. This has resulted in export volume forecasts of 4mtpa.
This product enters a seaborne market of approximately 150 million tonnes per
year to an industry in growth and whilst supply is entering into the market,
demand is growing, particularly from China.

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For industrial minerals
the
customer
specification, testing and
acceptance requirements
prior to a supply contract.		 Not applicable.
Economic The
inputs
to
the
economic
analysis
to
produce the net present
value (NPV), the source
and confidence of these
economic
inputs
estimated
inflation,
discount rate, etc.		 The initial Ore Reserve estimate is based on a PFS level of accuracy with inputs
for mining costs, logistics costs, sustaining capital and contingencies scheduled
and costed to generate the initial Ore Reserve cost model.
A discount rate of 10% was used for NPV calculation in the economic modelling.
Subsequent to the release of the PFS (ASX Announcement 01 July 2020) the
mining schedule has been refined which has resulted in changes to the financial
forecasts presented in the PFS and which both the Company and the CP for Ore
Reserves consider immaterial. Further information is presented in the section
titled_: Mining method selected and other mining assumptions_, and also
presented within this table(Appendix 1, Table 1, Section 4).
NPV
ranges
and
sensitivity to variations in
the
significant
assumptions and inputs.		 The financial model for the Project was initially prepared by Mazars and has been
refined by the Company.
The PFS has been completed on a 100% Project ownership basis for the financial
assessment. Funding of the Project is modelled as 100% equity funded for the
purposes of the PFS.
An after-tax discount rate of 10% has been used for the Project financial analysis.
All costs and prices are stated in real terms as at Q2 2020. The modelling period
is 20 years.
The economic outcomes are shown below:
Minim Martap Project
Units
Stage 1
Nominal Annual Production Rate
Mtpa
5.0
Project Development Capital
US$M
119
Average Operating Cost C1
US$/t
35.2
Project NPV10
US$M
291
Project IRR
%
37
Capital Intensity
US$/t
24
Sensitivity of the Project to changes in the key drivers of sale price, operating cost
and capex was carried out and showed the Project NPV and IRR to be most
sensitive to changes in product pricing and least sensitive to changes in capex.
Project NPV sensitivity post-tax (US$)
Project IRR sensitivity post-tax
Project funding is modelled as 100% equity funded for the purposes of the PFS.
Given the market capitalisation of Canyon (c. AUD$60-90m as at July 2020) this
is thought to be an appropriate and achievable funding path. The Company
recognises the benefit of alternate solutions and intends to explore different
financing structures, during subsequent study phases, including a potential
combination of debt and equity.
Subsequent to the release of the PFS (ASX Announcement 01 July 2020) the
mining schedule has been refined which has resulted in changes to the financial
forecasts presented in the PFS and which both the Company and the CP for Ore
Reserves consider immaterial. The post-tax NPV10has changed from
USD$290.7m to USD$291.2m and the post-tax IRR has remained at 37%. Further
information is presented in the section titled_: Mining method selected and other_
mining assumptions,and alsopresented within this table(Appendix 1, Table 1,
-
$100M
$200M
$300M
$400M
$500M
$600M
Capex
Opex
Price
-15%
15%
10%
20%
30%
40%
50%
60%
Capex
Opex
Price
-15%
15%

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Section 4).
Social The status of agreements
with key stakeholders
and matters leading to
social licence to operate.		 Stakeholder engagement is regularly, and continuously, conducted in Cameroon
with all local communities and all relevant national and regional government
departments and representatives including in alignment with the Summary ESIA
for Exploration.
Stakeholders consulted formally to-date include 35 hamlets and villages as well
as relevant national and regional government departments and representatives.
As part of the Detailed ESIA process that is currently underway, a detailed
stakeholder engagement process is planned and a list of Project stakeholders
has been identified. At all times, stakeholder engagement will follow Cameroon
regulations and international best practice (i.e. aligned with the IFC
Performance Standards) with regard to public and stakeholder consultation.
Beyond the above, a preliminary Stakeholder Engagement Plan (SEP) has been
developed that will be further refined as part of the Detailed ESIA. The SEP is a
stand-alone document outlining the approach to ongoing stakeholder
consultation and engagement for the Projectgoingforward.
Other To the extent relevant,
the
impacts
of
the
following on the project
and/or on the estimation
and classification of the
Ore reserves:
Any identified material
naturally occurring risks.		 The area is subject to a significant wet season. Appropriate measures to manage
stormwater during and immediately after these events are planned to be in
place prior to commencement of mining operations. Bauxite stockpiles and
transport have been designed with consideration for weather.
Cameroon currently has no commercial-scale mining industry however the
government is socially and politically committed to expedite the growth of the
industry and is willing, as demonstrated by Canyon’s mining peer group in
Cameroon, to offer significant concessions to incentivise the industry.
Cameroon is a democratic country with regular elections and is a member of the
Central African Economic and Monetary Union and the Commonwealth of
Nations. Its economy is currently driven by agricultural production, oil, gas and
potentially mineral resources. It is regarded as having a diversified economy
compared to other African oil-exporting countries.
Cameroon has subscribed to the Extractive Industries Transparency Initiative
(EITI) and ensures compliance with the anti-bribery and corruption conditions as
stated in the code. Canyon abides by the Anti-Bribery and Corruption Code of
Conduct adopted by the Board of Directors. The Company abides by all
Cameroon, Australian and international laws in its dealings with the
Government at all levels.
Cameroon is located on the west coast of Central Africa and shares borders with
Nigeria, Equatorial Guinea, Gabon, Republic of Congo, Central African Republic
and Chad. Whilst there are the usual issues at cross and near border locations,
there have not been any abnormal security issues that would affect the
operation of the Project.
Key security risks in Cameroon are the escalation of insecurity in the far north of
the country and increasing tensions in the northwest and southwest regions
between the English-speaking minority and the predominantly French-speaking
population and Government.
A key financial risk to the country is the national accounts dependence on
hydrocarbons This has driven a focus of the development of on-shore mining
opportunities.
The status of material
legal agreements and
marketing
arrangements.		 No material contracts for sale of product are in place at this point in time
However, bulk samples have been requested by, and are being shipped to,
potential offtake and strategic partners and a number more have access to
Canyon’s data room.

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The
status
of
governmental
agreements
and
approvals critical to the
viability of the project,
such as mineral tenement
status, and government
and statutory approvals.
There
must
be
reasonable grounds to
expect that all necessary
government regulations
will be received within
the
timeframe
anticipated in the Pre-
feasibility or Feasibility
study.
Highlight
and
discuss the materiality of
any unresolved matter
that is dependent on a
third party on which
extraction of the reserve
is contingent.		 Canyon holds 3 current Exploration Licences over the area, within which the Ore
Reserve is calculated. These exploration licenses are required to convert to
mining licenses by mid-2021 following the completion of feasibility studies and
the ESIA. Canyon also has interests in the surrounding areas. Access to the site is
not subject to any restrictions.
Project development funding will be required and would occur after completion
of the final bankable Feasibility Study, along with tendering for suitable
contractors to construct the mine and associated infrastructure.
A range of standard governmental agreements and licences are required prior
to the decision to commence construction can be made, in particular the Mining
Agreement and the rail and port access agreements.
There are reasonable grounds to expect that future Government approvals will
be granted and maintained within the necessary time frames for successful
implementation of the Project.
Classification The
basis
for
the
classification of the Ore
Reserves
into
varying
confidence categories.		 It is the opinion of the Competent Persons for Ore Reserves that the results are
an appropriate reflection of the deposit.
There are no Measured Mineral Resources to be converted to Ore Reserves.
Indicated Mineral Resources within the final pit designs (which have been
derived by applying appropriate Modifying Factors as described above) and
which are above the nominated cut-off grade, have been classified as Probable
Ore Reserves.
Whether
the
result
appropriately reflects the
Competent Person's view
of the deposit.
The
proportion
of
Probable Ore Reserves
that have been derived
from Measured Mineral
_Resources(if any). _
Audits
or
reviews		 The results of any audits
or reviews of Ore Reserve
estimates.		 No independent audits or reviews of this Ore Reserves estimate have been
conducted to date.
Discussion of
relative
accuracy
/
confidence		 Where
appropriate
a
statement of the relative
accuracy and confidence
level in the Ore Reserve
estimate
using
and
approach or procedure
deemed appropriate by
the Competent Person.
For
example,
the
application of statistical
or
geostatistical
procedures to quantify
the relative accuracy of
the reserve within stated
confidence limits, or, if
such an approach is not
deemed appropriate, a
qualitative discussion of
thefactors which could		 The Ore Reserve is based on the following key elements:
•
A current Mineral Resource estimate with approximately 99.8% of the
Mineral Resources tonnage inside the final pit design and above Ore
Reserve cut-off grade being in the Indicated category; this is considered
sufficient to support a PFS.
•
There are no known additional modifying factors at the time of this
statement that will have any material impact on the Ore Reserve
estimate.
•
Geotechnical assessment is considered sufficient for a PFS level and
supports this Ore Reserve estimate.
•
The mine planning and scheduling assumptions are consistent with
current industry practice and are considered appropriate for this level
of study.
•
The cost estimates and financial evaluation have been estimated by the
Project team with specialist consultants and team members and are
considered sufficient to support this level of study.
•
Further work, including a Feasibility Study, to finalise mine planning
and formalise, Project construction, mining, ore haulage and port

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affect
the
relative
accuracy and confidence
of the estimate.		 storage/handling/shiploading contracts will be completed before the
commencement of mining.
Further ore test work to gain a better understanding of the physical properties
of the ore as it moves through the supply chain from mine to ship will be
completed as part of a forthcoming Feasibility Study.
There is no production data available for comparison with estimates at this
stage.
The statement should
specify whether it relates
to
global
or
local
estimates, and if local,
state
the
relevant
tonnages, which should
be relevant to technical
and economic evaluation.
Documentation
should
include
assumptions
made and the procedures
used.
Accuracy and confidence
discussions should extend
to specific discussions of
any applied Modifying
factors that may have a
material impact on Ore
Reserve viability, or for
which
there
are
remaining
areas
of
uncertainty at the current
study stage.
It is recognised that this
may not be possible or
appropriate
in
all
circumstances.
These
statements of relative
accuracy and confidence
of the estimate should be
compared
with
production data, where
available.

Page 37 of 37

Canyon Resources Limited

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