Celsius Resources Ltd. marked a dual progress in its Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project in Kalinga province, following new drilling results and the grant of a conditional water permit, according to Philippine Resources Journal.
In a September 15 disclosure to the Australian Securities Exchange (ASX) and London’s Alternative Investment Market (AIM), the company announced an intercept of 113.1-meters averaging 1.32% copper and 0.41 grams per ton (g/t) gold from 8.1 meters. This included a 54.6-meter section with higher grades of 1.84% copper and 0.74 g/t gold from 60.4 meters.
“With these new higher-grade intercepts, we have further confidence that our mine plan, development and operating strategy will deliver the best value for the Project, our investors, shareholders and the community,” Hume added.
Celsius said the drilling, which started in June, was carried out for geotechnical and hydrogeological assessment and to gather samples for metallurgical testing.
“This recent drill hole was completed to provide Ausenco and its mineral processing team with sufficient high-quality material from the MCB deposit so that further testwork can be completed to reaffirm the process plant design,” said Peter Hume, Celsius’ country technical director.
In addition, the company said a definitive feasibility study and Front-End Engineering and Design (FEED) study are on track for completion in December. An interim report from Ausenco has already outlined improvements in mine design, site layout, processing plant design, and materials handling, which are expected to lower operating costs and enhance project economics.
On financing, Celsius confirmed that discussions are ongoing with potential partners, including the Maharlika Investment Corporation and Kiri Industries. The company said the Maharlika fund has already extended an initial bridging loan, but cautioned there is no guarantee that talks will lead to a definitive agreement.
The project currently holds a JORC-compliant mineral resource estimate of 338 million tonnes at 0.47% copper and 0.12 g/t gold, containing an estimated 1.6 million tonnes of copper and 1.3 million ounces of gold.
A 2021 scoping study outlined a potential 25-year mine life, with an initial investment of USD 253 million and projected average annual production of 16,000 tonnes of copper and 19,000 ounces of gold. Under assumed prices of USD 4 per pound copper and USD 1,695 per ounce gold, the study estimated a post-tax net present value (NPV) of USD 464 million with an internal rate of return of 31%.
The National Water Resources Board (NWRB) granted Celsius’ subsidiary, Makilala Mining Company Inc. (MMCI), a conditional one-year permit to use water for project activities under the MCB Project.The permit, issued under the Water Code of the Philippines, requires MMCI to install measuring devices and submit quarterly utilization reports to ensure withdrawals are sustainable and do not compromise existing water rights. It will be made permanent once compliance conditions are met.
The grant requires MMCI to install monitoring devices and submit quarterly reports on water usage to ensure withdrawals remain within allowable limits. The permit will be made permanent once compliance conditions are met.
Celsius said it “remains committed to working diligently to meeting all regulatory requirements while safeguarding local water resources to secure full permit conversion.”
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