Canyon Resources raising capital for bauxite exploration in Cameroon

Canyon Resources has agreed to raise up to $315,000 by way of a placement of shares to fund exploration at its flagship Birsok bauxite project in Cameroon.

The 7 million new shares will be priced at $0.045, with free attaching options with an exercise price of $0.06 each and expiry date of 31 January 2017.

The strong level of interest from investors for additional investment into Canyon Resources is testament to management credentials and Birsok's fundamental value.

Canyon recently commenced First phase drilling on the 75% owned Birsok project, targeting high grade DSO bauxite mineralisation.

Up to 4,000 metres of drilling is planned to test the width and extent of bauxite mineralisation across priority target areas.

The program will initially target the highest priority prospects of Djombi, Fedal and Baoua. The Beka and Mbon prospects represent follow up targets, with work plans in progress.

Rock chip sampling in April yielded high grade aluminium oxide bauxite.

Around 90% of the 84 rock chip samples returned greater than 50% aluminium oxide, with an average of 2.2% silicon oxide and low levels of other impurities such as iron oxide.

The rock chips at the Djombe prospect supplement a large, high grade database and add further credence to the potential to establish a direct shipping bauxite mining operation.

Djombe is one of several targets within the Birsok Project, located immediately to the north of and adjoining the world-class Minim Martap bauxite deposit owned by Cameroon Alumina.

Detailed mapping of the Djombe prospect has defined an area of over 15 square kilometres of bauxite outcrop, boulder block and float material which will form the main target of upcoming drilling.

In addition, Canyon is drilling at the Karga Prospect on its Taparko North base metals project in Burkina Faso.

This is to follow up coincident multi-element soil and ground Electro Magnetic targets that suggest the potential for Volcanogenic Massive Sulphide style of copper-zinc mineralisation.