The  Birsok  Bauxite  Project  -­‐  Cameroon  

   

 ASX  Code:  CAY    |    Page  2  

High  Grade  Low  Impurity  Bauxite  

! Drilling  has  returned  high-­‐grade,  low  impurity  bauxite  mineralisa?on.  

! Mul?ple  intersec?ons  of  >50%  Al2O3  with  low  silica.  

! Posi?ve  results  from  metallurgical  tes?ng.  

! High  grade  nature  of  the  mineralisa?on  indicates  DSO  poten?al.  

Follow  Up  ExploraCon  and  Drilling  on  addiConal  Plateaux  

! Landcruiser  mounted  Aircore  drilling  rig  ideally  suited  for  bauxite  drilling  has  been  secured.  

! Geological  teams  working  on  site  since  January  2015.  

! Infill  drilling  and  tes?ng  targeted  new  plateaux  

Expanding  the  Project  Footprint  

! Applica?on  has  been  lodged  for  an  addi?onal  permit  to  the  south  west  of  the  Birsok  Project.  

! Approval  expected  imminently  

! Poten?al  opportunity  to  acquire  exis?ng  resources.  

ExisCng  Infrastructure  

! Exis?ng  rail  line  10km  from  project,  mul?ple  exis?ng  port  op?ons.  

! Posi?ve  rail  study  based  on  technical  data  has  been  completed.  

! MOU  signed  with  rail  and  port  operators  to  speed  up  nego?a?ons  for  rail  and  port  access.  

Strong  Bauxite  Market  

! Large  customers  securing  new  regions  of  bauxite  supply.  

! Upward  price  pressure  on  bauxite,  reports  of  contracts  >$80pt  for  DSO  bauxite  out  of  West  Africa.  www.bauxiteindex.com    

•  Three  bauxite  licenses  (one  in  applica?on)  in  central  Cameroon  covering  1,800km2  

•  Con?guous  to  the  large,  high  grade  Minim  Martap  deposit  

•  Strategically  located  close  (~10km)  to  suitable  opera?ng  rail  line  that  runs  directly  to  exis?ng  port.    

•  MOU  signed  with  rail  and  port  operators  

•  Ini?al  high  grade  results  validate  the  poten?al  for  DSO  opera?on  

•  17  new  priority  plateau  iden?fied  on  Birsok  and  Mandoum  permits,  similar  to  the  high  grade  bauxite  previously  drilled  on  Birsok.  

 ASX  Code:  CAY    |    Page  3  

Birsok  Bauxite  Project  Project  Overview  

RC  Rig  from  the  Phase  1  drilling  program  

Bauxite  Plateau  on  the  Birsok  project  

 ASX  Code:  CAY    |    Page  4  

Birsok  Bauxite  Project  Accessible  Rail  and  Port  Infrastructure    

 ASX  Code:  CAY    |    Page  5  

Birsok  Bauxite  Project  Emerging  Aluminium  Province  

! Black  symbols  showing  the  plateaux  drilled  in  the  Phase  1  drilling  program  

! The  new  Mambal  Permit  under  applica?on  (in  red  outline)  

•  Results  from  drilling  highlight  significant  thick,  high  grade,  bauxite  mineralisa?on  from  surface  

•  Significant  Intersec?ons  include:  –  11m  @  51.9%  Al2O3  and  2.95%  total  SiO2  from  

surface  –  10m  @  54.4%  Al2O3  and  2.6%  total  SiO2  from  surface  –  7m  @  55.5%  Al2O3  and  1.7%  total  SiO2  from  surface  –  6m  @  54%  Al2O3  and  2.62%  total  SiO2  from  surface  –  5m  @  46.5%  Al2O3  and  2.9%  total  SiO2  from  surface  

and  6m  @  55.4%  Al2O3  and  4%  total  SiO2  from  9m  

•  Very  posi?ve  metallurgical  test  results  with  up  to  53.5%  available  alumina  with  <1%  reacCve  silica,  intersec?ons  included;  

–  6m  @  48.8%  AvAl  and  1.8%    Rx.SiO2  –  6m  @  47.1%  AvAl  and  3.8%  Rx.SiO2    

•  Contaminant  levels  are  low  in  high  grade  bauxite  zones  

•  Addi?onal  high  priority  plateaux  iden?fied.    

 ASX  Code:  CAY    |    Page  6  

Targe?ng  DSO  Grade  Resource  

First  hole  drilled  on  the  Birsok  Bauxite  Project,  Cameroon  

Grey-­‐purple  bauxite  from  Plateau  DJ27  

•  6  wheel  drive  Landcruiser  mounted  aircore  drilling  rig  has  been  secured,  will  achieve  significant  savings  from  future  drilling  and  guarantee  on  going  access.  

•  Geological  teams  have  been  on  site  since  Jan  2015.  Mapping,  drilling  hole  iden?fica?on  and  clearing  will  be  completed  during  March  2015  and  ready  for  commencement  of  drilling.  

•   Gran?ng  of  applica?on  permit  expected  imminently  and  explora?on  will  commence  immediately  upon  receiving  that.  

 ASX  Code:  CAY    |    Page  7  

Developing  and  Growing  the  Birsok  Project  

6WD  landcruiser  mounted  aircore  rig  acquired  by  Canyon  

•  Exis?ng   Camrail   rail   line   runs   to   port   within  10km  of  project.  

•  Completed   ini?al   infrastructure   study   shows  the  suitability  of  the  exis?ng  rail  line  and  port  for  a  2-­‐3Mt  pa  DSO  bauxite  project.  

•  MOU  signed  with  the  rail  and  port  operators.  

•  Over   €300M   to   be   invested   in   rai l  infrastructure   from   World   Bank   and  Cameroon  govt  is  underway.    

•  New   Kribi   deep   water   port   in   southern  Cameroon   commenced   opera?ons   in   August  2014  

•  New   rail   spur   planned   for   access   to   the   new  Kribi  deep  water  port

Birsok  Bauxite  Project  Mul<ple  Transport  and  Logis<c  Op<ons  

Ar?sts  impression  of  completed  Kribi  deep  water  port  

Freight  train  on  the  Camrail  network  

 

 

   

   

 ASX  Code:  CAY    |    Page  9  Source:  Bauxite  Long  Term  Market  Outlook,  2013  (CRU)  

Aluminium  Produc?on  Increase  Drives  Demand  for  Bauxite  

11

Growth  markets  for  aluminium  and  alumina  are  in  China…

0

10

20

30

40

50

60

70

2000

20

01

2002

20

03

2004

20

05

2006

20

07

2008

20

09

2010

20

11

2012

20

13

2014

20

15

2016

20

17

2018

Prod

uctio

n of

alu

min

ium

(m to

nnes

)

Africa Asia (excluding China) China

Australasia Central & South America Europe

North America

0

20

40

60

80

100

120

140

160

2000

20

01

2002

20

03

2004

20

05

2006

20

07

2008

20

09

2010

20

11

2012

20

13

2014

20

15

2016

20

17

2018

Prod

uctio

n of

alu

min

a (m

tonn

es)

Africa Asia (excluding China) China

Australasia Central & South America Europe

North America

Aluminium production, 2000-2018 Alumina production, 2000-2018

Source: Bauxite Long Term Market Outlook, 2013 (CRU)

Source: CRU Source: CRU

! 5-­‐6   tonnes   of   bauxite   are   required  to  produce  1  ton  of  aluminium  

! Forecast   aluminium   produc?on   will  require   60Mt   of   NEW   bauxite  produc?on  annually  by  2018.  

! Growing   global   demand   for   high  grade  bauxite  

! Growth  in  aluminum  capacity  in  China,  Russia,  India  and  Middle  East  is  increasing  demand  for  bauxite  

! Smelters  globally  are  securing  long  term  supplies  of  bauxite  and  alumina    

! Upward  price  pressure  on  high  grade  bauxite  supplies  out  of  West  Africa    

 

 

  Secure  value  from  Projects  in  

Burkina  Faso  via  strategic  deals    

! Earn  in  agreement  signed  with  Acacia  Mining  on  the  Pinarello  and  Konkolikan    

•  Derosa  Project  ! JV  with  ASX  listed  Rumble  

Resources  

! Currently  inves?ga?ng  opportuni?es  on  other  projects  

 

     ASX  Code:  CAY    |    Page  10  

Burkina  Faso  Gold  Projects  

Corporate  Overview  

 ASX  Code:  CAY    |    Page  11  

Capital Structure

Ordinary  Shares  on  issue 123m

Listed Options on Issue Exercisable @ 6c Exercisable @ 16c

61m 14m

Unlisted  Op?ons  on  issue   13m  

Market  CapitalisaCon  (undiluted  at  4.1cps) $5m

Cash  (at  31  Dec  2014) $752k

Debt   Nil

Major  Shareholders  (current) %  Interest

HSBC  Custody  Nominees   8.14%  

Asterion  AV  Ltd   6.51%  

Mr  W  H  Hernstadt   1.86%  

•  Tight  capital  structure  and  suppor?ve  shareholders  

•  Introduc?on  of  Altus  Strategies  as  a  major  shareholder  (8m  shares)  

•   Highly  leveraged  to  success  

•  Ac?ve  explora?on  and  drilling  program  planned  along  with  logis?cal  and  development  work  to  advance  the  project  

 

 

 Directors)

Mr  Rhoderick  Grivas  -­‐  Chairman  

Mr  Phillip  Gallagher  –  Managing  Director  

Mr  David  Netherway  –  Non  Exec  Director  

Mr  Mamhew  Shackleton  –  Non  Exec  Director  

•  Focus  on  targe?ng  a  high  grade,  low  CAPEX,  DSO  bauxite  project  in  Cameroon.  

•  High  grade  bauxite  with  low  contaminants.    

•  Poten?al  for  fast  development  and  ini?al  produc?on.  

•  Posi?ve  results  from  ini?al  rail  and  port  studies,  technically  capable  of  bauxite  transport  and  capacity  is  available.  

•  MOU   with   rail   and   port   operators   in   country   to   advance   the   development   of   an    infrastructure  solu?on.  

•  Cameroon  government  suppor?ve  of  developing  the  Birsok  Project.  

•  Canyon  is  one  of  few  junior  resource  companies  providing  exposure  to  bauxite.  

•  Upward   pressure   on   global   bauxite   prices   due   to   increasing   demand,   par?cularly   from  China.  

! Recent  contracts  from  West  Africa  reported  at  >$80  per  tonne  www.bauxiteindex.com  

•  Highly  leveraged  to  explora?on  success,  with  a  suppor?ve  shareholders  and  a  ?ght  capital  structure.  

 

 

Investment  Summary  

   

 ASX  Code:  CAY    |    Page  12  

Company Disclaimer & Competent Person Statement

 Forward Looking Statements Forward-Looking Statements: This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Canyon Resources Ltd’s exploration program and other statements that are not historical facts. When used in this document, the words such as "could," "plan,“ "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are forward-looking statements. Although Canyon Resources Ltd believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.

Competent Person Statement

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Roger Speers, an employee of the Company and a Competent Person who is a Member Australian Institute of Geoscientists. Mr Speers has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity to which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Speers consents to the inclusion of the matters based on his information in the form and context in which it appears.

27 www.altus-strategies.com Q4 2013

Project highlights:

Exploration programme:

Alures: Technical

Birsok Camp construction in progress

Drill pads being prepared

Rig access preparation

Air core drilling planned H2 2013

Work to restart after seasonal rains

Birsok & Mandoum Plateaux covering 158km2 to date

Grades of up to 68.6% Al2O3

Targets covering a further 140km2

Adjacent to Minim-Martap deposit

Preparation for scout drilling ongoing

Cameroon developing hydropower

Existing rail line close to licence area.

Bauxite sample 63.79% Al2O3, Birsok

28 www.altus-strategies.com Q4 2013

Alures: Gallery

Extensive bauxite outcropBirsok licence landscape Bauxite sample 61.09% Al2O3

Proposed Memve’ele hydro station Road access Bauxite sample 61.43% Al2O3

Bauxite  sample  63.79%  AI2O3     Outcropping  bauxite  on  the  project  area  

   

 

 

Contact  Details  

   

   

 ASX  Code:  CAY    |    Page  14  

ASX:CAY www.canyonresources.com.au Phil Gallagher Managing Director Ph: (08) 6143 4256 M: +61 (0)417 980 690 Email: pgallagher@canyonresources.com.au Rhod Grivas Chairman Ph: (08) 6143 4256 Email: rhod@grivas.com.au 353 Rokeby Rd Subiaco, Western Australia 6004