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.
Resources Analyst, Markets & Money
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