Why Canyon Resources Ltd Jumped Higher Today

What happened to the Canyon Resources Ltd share price?

At the time of writing, shares of Canyon Resources Ltd [ASX:CAY] are up by 36%, to 17 cents per share. Canyon Resources wants to develop a Direct Shipping Ore (DSO) bauxite mining and export operation in Cameroon, Africa.

Why did Canyon Resources Ltd shares do this?

The company announced it was granted the ‘Minim Martap Bauxite Project’ by the Government of Cameroon today. Minim Martap is a large-scale bauxite project, encompassing two deposits ― Ngouandal and Minim Martap ― which are located within 25 kilometres of each other.

What now for Canyon Resources Ltd?

This achievement has been a long, drawn-out process for the company. The government didn’t give away the project lightly. The bauxite is typically high alumina, with low total and reactive silica, high gibbsite, low boehemite and low on other contaminants. Put differently, the bauxite product appears ultra-rich which could attract a significant premium to the market.

Canyon Resources now plans to upgrade the historical resource and develop Minim Martap. Thanks to existing rail and port infrastructure, the company might be able to advance the project timeline and economics more quickly.

The bottom line: Canyon Resources has secured a quality project ― but, this is just the start. There’s a lot of work ahead. That said, if the management team delivers on its timeline targets, there’s significant reward potential for shareholders in the future.

Jason Stevenson,
Resources Analyst, Markets & Money

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Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:

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