Ann: Canyon commences drilling at Minim Martap, page-36

Paul

I have not suggested that the major hurdle of the project is the rail connection to Kribi. My issues relate to the capacity of the existing line from Ngaoudere to Yaounde. Everyone seems to assume that it will support production of 10Mtpa + but I've seen nothing to justify this assumption. I don't understand why you ask such a question rather than address the statements I make.

I also have issues with operating costs. There's no doubt that the bauxite is good but is it good enough to support mining, transport to the rail head, stockpiling and blending, a long rail haul, stockpiling, ship loading and a long sea journey? This is a remote and extensive bauxite deposit. Transport to the rail head will not be cheap, in one of capital or operating costs. The high grade zone that has been promoted recently is only 4% higher than the average and is somewhat higher in silica. It is 40-50km from the railway. The transport costs will probably negate the benefit of the extra grade.

I don't subscribe to the view that operating costs will be significantly lower because it's Cameroon. Labour (~30% of Australian costs) will be cheaper but also less efficient.

I'm interested in the potential to selectively mine the deposit and bring forward grade. We know little about the grade distribution within each plateau and whether selective mining may be possible.

Bauxite prices may be on the rise and the need for bauxite with low reactive silica may also be on the rise. Who knows where prices may be in 5-10 years? It may be that Minim Martap product becomes the most desirable on the planet. Who knows?