A prefeasibility assessment has calculated the Minim Martap project has a post-tax net present value of $290 million and an internal rate of return of 37%.

The consistent high quality of the Minim Martap bauxite mined offsets the cost of rail haulage, supports efficient refining by the end user and sets the platform for further upside potential in resource expansion and product development, Canyon said.

The ASX company further said product comparisons using Wood Mackenzie data sets suggest the Minim Martap bauxite could be one of the highest quality products in the world, including in West Africa where Guinea dominates the high quality bauxite seaborne market.

Regarding offtake and potential funding, Canyon said particular interest in the project has been expressed from new refinery builders, including those from European Middle East and SE Asian countries whose governments have mandated aluminium supply chain security.

Canyon will need to add to its dwindling cash position in the near term to carry out feasibility work.

Shares in Canyon were down 12% to A15c in late trade, capitalising the company at $75 million.

It last raised cash late last year when new shares were issued at 16c each.