REG - Celsius Resources Ld - MCB commences drilling program

Celsius ResourcesAnnouncement

11/06/2025 07:10

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RNS Number : 3641M  Celsius Resources Limited  11 June 2025

 

ASX/AIM RELEASE

11 JUNE 2025

 

MCB Commences Drilling Program
HIGHLIGHTS

·    Celsius Resources Limited Philippines subsidiary company, Makilala
Mining Company, Inc., has engaged DrillCorp Mining Resources to undertake
detailed Geotechnical and Hydrogeological Drilling for the updating of the
Feasibility Study and the Front-End Engineering and Design (FEED).

_______________________________________________________________________________

Celsius Resources Limited ("Celsius" or "CLA") (ASX, AIM: CLA) is pleased to
announce that its Philippine subsidiary, Makilala Mining Company, Inc. ("MMCI"
or the "Company"), following a competitive bidding process, has engaged
DrillCorp Mining Resources and Construction Corp. ("DrillCorp") to undertake
Geotechnical and Hydrogeological Drilling for the company's flagship
Maalinao-Caigutan-Biyog Copper-Gold Project ("MCB" or the "Project").

The geotechnical and hydrogeological drilling program, which will commence in
mid-June, will cover approximately 2,300 meters at an estimated cost of PHP 33
million (~AUD 925k 1 ). The program is designed to generate detailed
subsurface models and data to further optimise the underground mine plan,
process plant layout, and surface infrastructure design. These outcomes will
directly inform the updating of the Feasibility Study and the Front-End
Engineering and Design (FEED) phase. 2 

DrillCorp is a leading drilling contractor in Asia, renowned for delivering
safe, professional, and reliable drilling and mining services. Established in
1993, it was the first professional multipurpose drilling contractor to
operate in the region. 3 

Drillcorp's technical capabilities span diamond drilling, reverse circulation,
geotechnical drilling, grade control drilling, water boring, and tunneling.

Celsius Director Peter Hume, said:

"In preparation for the FEED phase, we are undertaking geotechnical and hydrogeological drilling to gather critical data needed to develop construction-ready plans for both the surface infrastructure and underground mine.
DrillCorp has been a trusted drilling partner of MMCI throughout the exploration phases from 2006 to 2013 and again in 2022. We are pleased to continue this collaboration, as they have consistently demonstrated precision, reliability, and a strong commitment to safety and operational efficiency 4 ."
Scope of Services

The required drilling services include the following:

 

1)   Geotechnical Boreholes: Execution of diamond boreholes, including the
modification of a pre-planned high-grade resource definition borehole
(MCB-038) specifically designed to target data gaps in underground mine
infrastructure and major fault structures.

 

2)   Hydrogeological Boreholes: Confirmation of Hydrological Connectivity
between the Pasil River Fault and the proposed underground mine, addressing
uncertainties around the weathering profile below the Pasil River and
confirming the presence of mapped faults.

 

3)   Historical Borehole Re-Entry Drilling: Utilisation of existing
boreholes for additional hydrogeological testing and televiewer imaging to
minimise new drilling requirements while maximising data collection
efficiency.

 

4)   Standpipe Screen Installation: Deployment of multi-level standpipes in
hydrogeological boreholes along the Pasil River, aimed at further detailed
assessment of the hydrological characteristics of the area.

 

5)   Support to Various Geotechnical and Hydrogeological Tests: Support the
implementation of a detailed comprehensive suite of down-the-hole geotechnical
and hydrogeological tests (Packer testing, Point load testing, Televiewer
Borehole Imaging, Infiltration Testing, Permeability Testing) to assess rock
mass conditions and orientations.

 

6)   Surface Infrastructure Geotechnical: Undertake a targeted geotechnical
drilling program across designated surface infrastructure sites-including the
processing plant area, camp facilities, access roads and underground portal to
characterise subsurface conditions.

 

Further to the announcement dated 17 March 2025 regarding the appointment of
Mr. Neil Grimes as Non-Executive Director, Celsius notes the following update
to the AIM Rule 17 disclosures regarding Neil's previous Directorships: Mr
Neil Grimes served as a director of 3tg Pty. Ltd. from June 2016 to December
2020.

 

MCB COPPER-GOLD PROJECT

 

The MCB Copper-Gold Project (MCB) is located in the Cordillera Administrative
Region in the Philippines, approximately 320km north of Manila (Figure 1). It
is the flagship project within the Makilala portfolio which also contains
other key prospects in the pipeline for permit renewal/extension.

 

An updated JORC compliant Mineral Resource Estimate was announced for the MCB
Project on 12 December 2022, comprising 338 million tonnes @ 0.47% copper and
0.12 g/t gold, for a total of 1.6 million tonnes of contained copper and 1.3
million ounces of gold, of which 249 million tonnes @ 0.44% copper and 0.11
g/t gold is classified as Indicated, 42 million tonnes @ 0.52% copper and 0.11
g/t gold is classified as Inferred, and 47 million tonnes @ 0.59% copper and
0.19 g/t gold is classified as Measured.

 

A Study for the MCB Project was announced by CLA on 1 December 2021, which
identified the potential for the development of a copper-gold operation with a
25-year mine life. The Study was based on an underground mining operation and
processing facility to produce a saleable copper-gold concentrate.

 

Highlights from the Study include a Post tax NPV (8%) of US$464m and IRR of
31%, assuming a copper price of US$4.00/lb and gold price of US$1,695/oz,
which are both currently significantly below currently prevailing market
prices. Initial capital expenditure is estimated to be US$253m with a payback
period of approximately 2.7 years. The designed mine production is matched to
a 2.28Mtpa processing plant which will treat ore with an estimated average
grade of 1.14% copper and 0.54g/t gold for the first 10 years of planned
production with a C1 5  cash costs at just US$0.73/lb copper, net of gold
credits.

 

Figure 1. Location of the MCB Project in the province of Kalinga, Northern
Luzon, Philippines.

This announcement has been authorised by the Board of Directors of Celsius
Resources Limited.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018.

 

Listing Rule 5.23 Disclosure

 

The Company confirms that it is not aware of any new information or data that
relates to Exploration Results and Mineral Resources at the MCB Project and
that all material assumptions and technical parameters underpinning the
Mineral Resource continue to apply.

 

Forward Looking Statements

 

Some of the statements appearing in this announcement may be in the nature of
forward-looking statements. You should be aware that such statements are only
predictions and are subject to inherent risks and uncertainties. Those risks
and uncertainties include factors and risks specific to the industries in
which the Company operates and proposes to operate as well as general economic
conditions, prevailing exchange rates and interest rates and conditions in the
financial markets, among other things. Actual events or results may differ
materially from the events or results expressed or implied in any
forward-looking statement.

 

No forward-looking statement is a guarantee or representation as to future
performance or any other future matters, which will be influenced by a number
of factors and subject to various uncertainties and contingencies, many of
which will be outside the Company's control.

 

The Company does not undertake any obligation to update publicly or release
any revisions to these forward-looking statements to reflect events or
circumstances after today's date or to reflect the occurrence of unanticipated
events. No representation or warranty, express or implied, is made as to the
fairness, accuracy, completeness or correctness of the information, opinions
or conclusions contained in this announcement. To the maximum extent permitted
by law, none of the Company's Directors, employees, advisors, or agents, nor
any other person, accepts any liability for any loss arising from the use of
the information contained in this announcement. You are cautioned not to place
undue reliance on any forward-looking statement. The forward-looking
statements in this announcement reflect views held only as at the date of this
announcement.

 

 

Celsius Resources Contact Information

Level 5, 191 St. Georges Terrace

Perth WA 6000

 

PO Box 7059

Cloisters Square PO

Perth WA 6850

 

P: +61 2 8072 1400

E: info@celsiusresources.com.au (mailto:info@celsiusresources.com.au)

W: www.celsiusresources.com (http://www.celsiusresources.com)

 

 Celsius Resources Limited
 Mark van Kerkwijk                                                   P: +61 8 9324 4516

                                                                     E: info@celsiusresources.com.au (mailto:info@celsiusresources.com.au)

                                                                     W: www.celsiusresources.com (http://www.celsiusresources.com)
 Multiplier Media

 (Australia Media Contact)                                           M: +61 402 075 707

 Jon Cuthbert                                                        E: jon.cuthbert@multiplier.com.au (mailto:jon.cuthbert@multiplier.com.au)

 Beaumont Cornish Limited

 (Nominated Adviser)

 Roland Cornish/Felicity Geidt/Andrew Price                          P: +44 (0) 207 628 3396

 Zeus Capital Limited (Broker)

 Harry Ansell/James Joyce/Isaac Hooper                               P: +44 (0) 20 3 829 5000

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any persons for providing protections afforded to
customers of Beaumont Cornish nor for advising them in relation to the
proposed arrangements described in this announcement or any matter referred to
in it.

 1  FX rate at 10 June 2025 1 PHP:0.027564068 AUD

 2  ASX announcement 19 May 2025

 3  https://www.drillcorp.com/ (https://www.drillcorp.com/)

 4  ASX announcement 28 January 2022

 5  C1 costs include all direct costs in mining, processing, general and
administration, and selling (including freight).

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