REG - Celsius Resources Ld - MCB defines maiden JORC Ore Reserve Estimate
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RNS Number : 2361L Celsius Resources Limited 12 December 2025
ASX/AIM RELEASE
12 December 2025
MCB defines maiden JORC
Ore Reserve Estimate
HIGHLIGHTS:
· Maiden Under Ground Gross Total Ore Reserves: 130.2 Mt @ 0.66% Cu and
0.21 g/t Au, for 856 kt contained copper and 891 koz contained gold at a 0.84%
CuEq grade.
· The Ore Reserve forms the basis of the current updated Feasibility
Study mine plan and supports ongoing project financing discussions with
prospective partners and institutions.
· Metallurgical test work confirms the production of a clean,
high-quality copper-gold concentrate, with strong flotation recoveries and no
expected penalty elements.
_______________________________________________________________________________
Celsius Resources Limited ("Celsius" or the "Company") (ASX,AIM:CLA) is
pleased to announce a Maiden JORC compliant Ore Reserve Estimate ("ORE") for
the Maalinao-Caigutan-Biyog Copper-Gold Project ("Project" or "MCB"), held
under its Philippine Affiliate Company, Makilala Mining Co., Inc. ("MMCI").
The Maiden Ore Reserve Estimate has been derived from the recently reported
Mineral Resource Estimate 1 and reflects the technical and economic
parameters developed to date through previous studies along with the ongoing
JORC-compliant updated Feasibility Study and the front-end engineering
("FEED") program. In accordance with the JORC Code, the Maiden Ore Reserve
Estimate has been prepared and signed off by DMT Consulting Limited, a
suitably qualified and independent Competent Person, who has no commercial
interest in Celsius or MCB. The planned underground operation will utilise
sub-level open stoping with paste backfill and dry-stack tailings, supported
by a conventional concentrator process plant design. The Ore Reserve table
follows.
Table 1. MCB Project Ore Reserve Estimates.
Gross Net Attributable
Tonnes (Mt) Copper Grade (%) Gold Grade (g/t) Copper Equivalent Grade (%) Contained Cu (Mt) Contained Au (oz) Tonnes (Mt) Copper Metal Gold
(Mt) Metal (oz)
Proven 22,074,084 0.90 0.34 1.19 197,563 244,136 8,829,634 79,025 97,654
Probable 108,198,583 0.61 0.19 0.77 658,929 647,031 43,279,433 263,572 258,812
Total 130,272,667 0.66 0.21 0.84 856,492 891,167 52,109,067 342,597 356,467
The MCB Project is owned and operated by MMCI an affiliate company of Celsius.
Celsius has a 40% working interest in MCB. As announced on 20 March 2023 Celsius conditionally agreed to transfer a 60% working interest in the MCB Project to Sodor, Inc, subject to certain conditions, which remain outstanding.
MMCI Technical Director Peter Hume said:
"The Maiden JORC Ore Reserve Estimate for the MCB Copper-Gold Project is a
major milestone that confirms the strength and long-term potential of the
deposit, reinforcing our confidence in the Project's capacity to deliver
sustained value for shareholders and stakeholders.
We extend our sincere appreciation to the Balatoc community whose partnership
and support-especially during the recent drilling and field activities-were
vital in completing the technical work that underpins this Reserve Estimate.
Their cooperation continues to guide our commitment to responsible project
development.
We also acknowledge the dedication of MMCI staff and our young professional
engineers, whose hard work and technical discipline have been instrumental in
achieving this outcome. Their contribution reflects the growing capability of
the next generation of Filipino mining professionals.
This Ore Reserve Estimate is a testament to the collective effort and
professionalism of everyone involved. We look forward to advancing the MCB
Project in a way that brings enduring benefits to our shareholders, our host
communities, and the country."
MCB COPPER-GOLD PROJECT LOCATION
The MCB Copper-Gold Project (MCB) covers an area of 2500 Ha is in the
Cordillera Administrative Region in the Philippines, approximately 320km north
of Manila. The MCB Project is located in Barangay Balatoc, Municipality of
Pasil, Province of Kalinga. At the Project area settlements are generally
small, compact and occupy a limited area within the main Barangay of Balatoc.
The closest major centre is the city of Tabuk which is approximately a 3-hour
drive from the Project location. (Figure 1).
The Exploration Tenement (EP-003-2006-CAR) was originally approved in 2006 and
had its 3rd renewal approved by the Mines and Geosciences Bureau ("MGB") on 26
November 2020. The Exploration Permit was extended on 31 March 2022 until May
2023 and was further automatically extended pending the completion of the
Declaration of Mining Project Feasibility ("DMPF") approval and the processing
of the Mineral Production Sharing Agreement ("MPSA") application. The MGB
issued the MPSA (MPSA-356-2024-CAR) to MMCI on 15 March 2024.
Figure 1. Location of MCB Exploration Tenement area and associated drilling
related to the reported MRE.
Study Status
The MCB Ore Reserve Estimate has been informed by a series of comprehensive technical studies undertaken since 2006, including the results of a Scoping Study announced on 1 December 2021. Subsequently, the Company delivered a Feasibility Study to the MGB, including an Ore Reserve Estimate that was prepared in accordance with the Philippine Mineral Reporting Code for Reporting of Exploration Results, Mineral Resources, and Mineral Reserves ("PMR") Code 2 . This Feasibility Study was accepted and approved through the issuance of a DMPF 3 , after which the Project received its MPSA 4 .
As the PMR Code is not recognised by the ASX or AIM reporting regimes, the previously submitted Ore Reserve could not be disclosed to ASX or AIM. To support public reporting under JORC, the Company is now in the final stages of completing an updated Feasibility Study and FEED program in line with JORC standards and forming the basis of the Ore Reserve Estimate.
Geology and Mineral Resource Estimate ("MRE")
The geological interpretations and technical information announced as part of
the updated MRE on 24 November 2025, are based largely on surface mapping and
analysis of 60 diamond drill holes (31,616.20 m) completed by MMCI from 2006
to 2025.
Drilling at MCB has broadly defined a large-scale copper mineralisation
interpreted to be a typical porphyry copper style of mineralisation, common
throughout the Philippine archipelago.
The mineralisation and associated alteration exist across the contact between
a genetically related intrusive body (tonalite) and the surrounding host rock
material. In most cases the surrounding host rock is an older mafic volcanic
rock (see Figures 2 to 4).
Figure 2. MCB Project drill hole locations and interpreted surface geological
plan view diagram
The location and trend of the copper-gold mineralisation is influenced by two
dominant structural trends that exist at MCB. The broad fabric and trend of
the intrusive bodies and associated alteration extends in a north-east
direction, or at approximately 050 degrees with a near to vertical dip. This
orientation is also parallel to some major faulting.
The broad copper-gold domains as defined by the MCB MRE were defined based on
the continuous zones of copper and gold mineralisation which coincides with
the controlling geological host rocks, structures, and alteration features.
Figure 3. Section 1 with the interpreted host rock geology relative to the
defined copper mineralised domains. Drill holes completed after the 2022
Mineral Resource Estimate on this cross section are identified (holes MCB-042,
MCB-043, MTPH-001, and MCB-UG-002). View looking Northeast 5 .
Figure 4. Section 2 with the interpreted host rock geology relative to the
defined copper mineralised domains. Drill hole completed after the 2022
Mineral Resource Estimate on this cross section is identified (MCB-UG-001).
View looking Northeast 6 .
There is also evidence at MCB for epithermal vein deposit types that exist
within close proximity to the large-scale porphyry copper-gold mineralisation.
At this stage the only deposit type that is defined in the MRE for MCB is a
porphyry copper-gold style.
Drilling Techniques
The MRE was defined using diamond drill holes, which was the preferred
drilling method in MCB. Drilling was completed over two broad stages. The
first stage was managed by the previous owner of MMCI, Freeport McMoRan, with
a total of 25,481 metres from 46 drill holes completed within December 2006 to
July 2013. The second drilling program was implemented by MMCI, with a total
of 6,135.2 meters from 14 drill holes completed from 2021 to 2025. All diamond
drilling utilised a triple tube core barrel for the entire length to ensure
maximum sample recovery.
Sampling and Sub-sampling Techniques
Half core samples were collected from diamond holes drilled from the surface.
All drill cores were generally sampled at 2m intervals. In cases where
geological and mineralogical characteristics change, the sample length is
reduced to best fit the geological contact. The minimum observed sample size
is one metre. Sampling typically commenced after the overburden horizon.
The following sub sampling and sample preparations were observed for all the
diamond drilling at MCB.
A. Drying and Weighing: Samples were weighed, dried in an oven at 105
Celsius for 6 to 8 hours. For samples with high clay content, drying time is
extended up to 16 hours. After drying, samples were weighed again to calculate
the moisture content.
B. Crushing: Samples were then primary crushed to a size of <4mm. Using a
Boyd crusher, secondary crushing produces <2mm product size. The 1kg
crushed material is retained for final preparation.
C. Pulverising: The 1kg split is pulverised to -200 mesh with a grinding
time of 4 to 6 minutes for 1kg ground samples.
D. Splitting: 1kg sample is split successively to obtain four samples of 250
grams each. Out of the four pulp samples, one sample is being dispatched to
the laboratory for analysis while the pulp samples are retained to be used
later for duplicate assays and inter-laboratory checks.
Sample Analysis Method
All drill samples were prepared and sent to Intertek in Manila, an
internationally recognised and ISO-accredited independent laboratory. Gold was
analysed using fire-assay methods, while copper and other elements were tested
using industry-standard multi-element analytical techniques.
Assay procedures have evolved across the two drilling programs (2007-2013 and
2021-2025), with more recent drilling using updated multi-element, four-acid
digestion methods to ensure accurate copper results. Higher-precision
analytical methods were used whenever copper values exceeded standard
detection limits to ensure the most reliable grades were reported.
Quality control procedures were rigorously followed, with standards and blanks
included in nearly 10% of all samples. Independent checks of the laboratory
data confirmed no material issues, ensuring the assay results used in the MCB
MRE are accurate and reliable.
Geology Estimation Methodology
Based on the general dimensions of the interpreted ore domains, and the likely
mining method, a parent cell block size of 10m x 10m x 10m was chosen for the
MRE.
Basic statistical information and variogram analysis was reviewed for both
copper and gold within the various defined high grade and low-grade domains.
The interpreted domains of Type 1HGH, Type 1HGV and Type 3LG were the only 3
domains that were considered to have sufficient data distributed to provide a
basis for the use of a more sophisticated interpolation method such as
Ordinary Kriging. The parameters for the Ordinary Kriging were based on an
analysis of the variograms for each domain. The variograms (defined within the
Leapfrog Edge software package) were located along the plane of the
interpreted controlling geological trend which is striking at 050 degrees at a
near vertical dip.
A broad review of the statistics for each domain did not identify significant
high value outliers that are considered likely to result in an overestimated
either locally or globally to the grade distribution within the block model.
Therefore, no top cut was applied to the MRE.
Resource Classification Criteria
The Measured Mineral Resource was defined using additional drilling completed
between 2022 and 2025, with blocks estimated in the first-pass search using
variogram sill distances for each domain. Measured classification required
8-18 samples from at least two drill holes using 2 m composites.
Indicated Mineral Resources were assigned using a second-pass search at ~1.5
times the sill distance, with 4-20 composite samples per block.
Inferred Mineral Resources were estimated using a search distance twice that
used for Indicated classification, requiring 2-10 samples per block. No
drill-hole count restrictions were applied for Indicated and Inferred
classifications.
Resource Cut-off Grade
A preferred lower cut-off grade of 0.2% copper has been used in the reported
MRE. This is considered appropriate based on the geological continuity
associated with copper mineralisation above 0.2% copper in addition to a broad
economic cut-off point based on a US$5.00/lb copper price.
Dimensions
The copper-gold mineralisation at MCB is classified as a porphyry copper-gold
deposit which at deeper levels (below 400m depth) has a broad geometry of up
to 1km along strike towards the north-east and true widths of up to 280m. At
shallower levels, the copper mineralisation is broken up into multiple domains
which are individually up to 600m along strike and with true widths of up to
150m.
Resource Table of Results
Table 2 below identifies the results from the block model at cut-off grades up
to 0.2% copper.
Table 2. Summary results for the updated MRE at MCB at a cut-off grade of
0.20% copper.
Gross Net Attributable
Classification Domain Tonnes Copper Grade Gold Grade Copper Metal Gold Metal Tonnes Copper Metal Gold Metal
(Mt) (%) (g/t) (kt) (koz) (Mt) (kt) (koz)
Measured Type 1HGV 13 1.15 0.50 145 202 5 58 81
Type 1HGH 4 0.72 0.10 32 14 2 13 6
Type 3LG 32 0.37 0.08 119 84 13 48 34
Totals 49 0.60 0.19 296 300 20 118 120
Indicated Type 1HGV 48 0.66 0.28 316 433 19 126 173
Type 1HGH 11 0.79 0.12 83 41 4 33 16
Type 3LG 190 0.35 0.07 674 438 76 270 175
Totals 248 0.43 0.11 1,072 913 99 429 365
Inferred Type 1HGV 19 0.50 0.12 94 72 8 38 29
Type 1HGH 0.1 0.80 0.14 0.5 0.3 0 0 0
Type 3LG 26 0.49 0.08 129 71 10 52 28
Totals 45 0.49 0.10 224 143 18 90 57
Total Type 1HGV 79 0.70 0.28 554 708 32 222 283
Type 1HGH 15 0.77 0.11 115 55 6 46 22
Type 3LG 248 0.37 0.07 922 593 99 369 237
Totals 343 0.46 0.12 1,592 1,356 137 637 542
Note for table of results: Estimates have been rounded to the nearest Mt of
ore, two significant figures for Cu and Au grade and to the nearest kt of Cu
metal and koz of Au metal. Some apparent errors may occur due to rounding.
The MCB Project is an affiliate company of Celsius and MMCI will be the
operator of the MCB Project.
Mining and Reserve Estimate
The mine design, schedules, and plans are based on a comprehensive development
program spanning the full mine life.
The mining program supports both development ore and production ore, with
lateral advances comprising ore drives, slot drives, and drain hole cuddies.
Paste-fill is incorporated into the stope sequence to provide ground support,
maintain stope stability, and enable safe extraction of ore while minimising
dilution.
Capital works-including ramps, footwall drives, return air raises, sumps, pump
stations, substations, stockpiles, and truck loading bays-are advanced in
parallel with production development to ensure operational continuity and
efficient access to ore zones throughout the mine life.
Estimation Methodology Mining
The basis for the mine planning was in the updated Mineral Resource Estimate
announced on 24 November 2025. Mine planning and stope optimisation were
carried out using industry-standard software, including Deswik.CAD, Deswik.SO,
and Deswik.Sched, to ensure technical accuracy and economic viability. These
tools supported the development of stope shapes, mine sequencing, and scenario
analysis in accordance with the defined Modifying Factors and operational
constraints. The mine planning approach includes applying blending strategies
for harder ores in later years to achieve target throughputs.
Stope optimisation was performed using a combination of geometric and economic
parameters, including cut-off grade, minimum mining width, dilution
assumptions, and recovery factors. The optimisation process considered the
defined stope dimensions of 20m width × 20m length × 30m height, and
incorporated retreat mining sequences toward capital infrastructure.
To further refine the mine plan, a Revenue Factor Ranking approach was
employed. This involved applying varying revenue factors to simulate different
metal price scenarios and assess the sensitivity of stope viability. Stopes
that remained economically feasible at lower revenue factors ("RF"),
therefore, (RF < 0.7) were prioritised, indicating high-margin zones with
strong resilience to market fluctuations. Conversely, stopes that only became
viable at higher revenue factors (e.g., RF ≥ 0.7) were considered marginal
and scheduled later in the mine life.
Mining Cut Off inputs
The cut-off grade for the MCB Project Ore Reserve has been determined in
accordance with JORC (2012) and AIM reporting requirements, using
project-specific average metallurgical recoveries, the planned underground
mining method, and long-term commodity price assumptions. The inputs in table
3 reflect the current economic parameters appropriate for this stage of the
Project. The key parameters indicated below were used to establish a cut-off
grade of 0.46% CuEq.
Table 3. Economic input parameters
Parameters Details
Process Plant Parameters
Average Copper Recovery 95.0%
Average Gold Recovery 77.0%
Mine Parameters
Cutoff Grade 0.46% Copper Equivalent
Mine Dilution 10%
Mine Recovery 95%
Economics
Copper Price 4.5 US$/lb
Gold Price 3,200 US$/oz
Payability 96.65%
Mining Cost 18.79 US$/ton
Milling Cost 14.89 US$/ton
General Admin Cost 2.88 US$/ton
The cut-off grade is considered appropriate for the planned underground mining operation and provides a reasonable basis for reporting the Ore Reserve.
Metallurgical Inputs
Metallurgical test work undertaken by MMCI on multiple defined ore types and
representative grade ranges has confirmed the findings of the 2021
metallurgical test program. The latest results reaffirm the potential for
strong metallurgical performance at the MCB deposit, demonstrating
consistently high recoveries of both copper and gold into a saleable
copper-gold concentrate. Average recoveries remained in line with previous
outcomes, at approximately 95% for copper and 77% for gold 7 .
Cost Inputs
Mining costs were derived from quotations from suppliers and contractors
currently operating in similar mines in the Philippines and internationally
using similar equipment under the same conditions.
Mining Method and Mine Design
Transverse Sublevel Open Stoping ("SLOS") is the selected and confirmed mining method. The method was previously evaluated and justified in earlier technical studies, and the current study reconfirms its suitability based on updated geotechnical assessments, orebody geometry, operational requirements, and life-of-mine production objectives. The method is fully aligned with the geotechnical recommendations provided by AMH Philippines Inc., and supports safe, productive, and economically viable extraction of the deposit.
Figure 5. Image of stoping and decline development
Underground Geotechnical
Comprehensive geotechnical investigations have been completed for the Project,
with earlier studies enhanced through additional drilling and analysis
conducted during the recent work program. Mine design and geotechnical
evaluation have been closely aligned, with coordination between the DMT
Consulting Limited ("DMT") 8 mine planner and AMH Philippines Inc. ("AMH") to
ensure that geotechnical considerations are fully incorporated into the
underground design.
The assessment establishes the geological and geotechnical context for
modelling, outlining both the regional setting and the detailed investigation
program. Based on this work, AMH provided recommendations on excavation
strategies and ground support requirements.
A high-resolution 3D geological model Refer (Figures 6 and 7) was developed
through spatial and statistical integration of geotechnical data, exploration
logs, and field observations. From this, a Rock Mass Rating ("RMR") model was
constructed following Bieniawski (1989). The underground infrastructure
predominantly intersects Rock Class III (Fair) ground conditions (78.13%),
followed by Rock Class IV (Poor) at 16.75%, with only 4.99% in Rock Class V
(Very Poor) and 0.13% in Rock Class II (Good). A uni-axial compressive
strength geotechnical model ("UCS") model was also generated, constrained by
lithological domains to ensure realistic representation of rock strength and
mechanical properties.
Figure 6. AMH Interpolated 3D RMR Block Figure 7. AMH Interpolated 3D RMR Block
Processing and Flowsheet
The process plant design basis defines the methodology, limits and operating
parameters applied in the design of the MCB processing plant, to treat
Run-of-mine ore from the underground mine for the life of mine operation.
The MCB Copper-Gold Project is designed to process copper sulphide ore at a
rate of 2.28 Mt/y during Years 1-2. The throughput will increase to 2.6 Mt/y
from Year 3 onward. Variability test work and geometallurgical assessments
indicate the potential for harder basalt ore in the mine plan. Additional
capital and appropriate blending strategies may be required to achieve the
target throughput.
The process facility will receive ore from an underground mine utilising the
SLOS mining method. The process plant consists of a SSAG circuit followed by
rougher flotation, regrind, cleaner flotation and dewatering of concentrate
and tailings. Tailings are either mixed with binder and returned underground
or transported to a dry stack location for permanent storage.
Figure 8. Process Flow Block Model
Non- Process Infrastructure
The non-process infrastructure ("NPI") required for the MCB Copper-Gold
Project has been defined to ensure safe, reliable, and efficient operations.
NPI includes all supporting facilities, utilities, and services necessary for
mine and plant operations but not directly involved in ore processing.
Key infrastructure components include a consolidated site layout,
administration buildings, accommodation facilities, workshops, warehousing,
laboratories, mine surface installations, and essential utilities such as
power distribution, water supply, wastewater treatment, fuel storage, and
communications. The infrastructure includes a HV transmission line to connect
to the Luzon Grid, and a new access road to site. These are designed to meet
operational safety, and regulatory requirements.
Remote infrastructure to support logistics and concentrate export-such as
transport corridors and off-site handling facilities-is incorporated into the
Project's execution plan to ensure dependable year-round product shipment.
The design-basis population for both construction and steady-state operations
underpins the sizing of all NPI elements, including accommodation,
administration areas, maintenance facilities, medical services, utilities, and
emergency-response capabilities. These assumptions ensure the infrastructure
is appropriately scaled to support the full workforce over the life of the
Project.
Environmental and Regulatory Summary
The MCB Copper-Gold Project is being advanced in full compliance with
Philippine mining laws, environmental regulations, and applicable
international standards. MMCI holds a valid MPSA granting exclusive rights to
explore, develop, and operate within the tenement 9 .
The Project has secured its Free, Prior and Informed Consent- Certification
Pre-condition ("FPIC / CP") 10 , completed its Environmental Impact Statement
("EIS"), and obtained an Environmental Compliance Certificate ("ECC") under
the Philippine EIS System 11 . These approvals are supported by extensive
environmental and social baseline studies.
MMCI has established a comprehensive environmental and social management
framework designed to ensure responsible development and long-term stewardship
of the MCB Project. Proactive engagement with regulators, local government
units, and community stakeholders-particularly Indigenous Peoples-remains
foundational to Project delivery.
With the MPSA, FPIC, EIS and ECC in place, the Project is well positioned to
transition from FEED to development and to operate sustainably throughout its
mine life.
Financial and Cost Assumptions
Revenue
Revenue assumptions for the Ore Reserve estimation reflect contributions from
the payable metals contained within each ore type. Metal price inputs and
exchange rates were based on a combination of independent consensus forecasts
and prevailing market conditions at the time of assessment. These revenue
parameters, together with estimates of mining, processing, and site operating
costs, informed the economic evaluation used to determine cut-off grades and
underpin the declaration of the Ore Reserve.
Capital and Operating Costs
Ausenco(( 12 )) prepared capital and operating costs for the process plant
facility and on-site infrastructure with a target estimate accuracy of ±15%
for the initial throughput case of 2.28 Mt/y. Geometallurgical interpretation
of recent test work is in progress to validate the design throughput.
Additional costs may be required for the milling and tailings filtration areas
subject to the assessment which is in progress.
DMT provided the mining related costs. Additional scope items such as the
access road, power transmission, substation, and Owner's costs were provided
by MMCI. MMCI have advised that the power transmission infrastructure will be
constructed by the power provider as an inclusion in the power supply rate.
Ausenco's capital estimate was developed from material take-offs, and budget
quotations (approximately 63% of the estimate), supported by appropriate
growth and contingency provisions. VAT and customs duties are excluded,
consistent with MMCI's Board of Investments ("BOI") application for VAT
exemption. The delivery strategy supported by an Owner's team for construction
and commissioning while the company is still evaluating an EPC delivery model.
Process plant operating costs were developed by Ausenco. Mining operating
costs were developed by DMT. MMCI provided inputs for G&A, reagents,
fuel, and power. Reagent and consumable costs reflect laboratory test work and
benchmark pricing, with paste binder pricing based on cement and fly-ash
pending completion of ongoing test work. Dry-stack tailings costs were derived
from first principles using fleet selection, contractor rates, and fuel
consumption. Process plant operating cost accuracy is estimated at ±15%.
Escalation is excluded from both capital and operating estimates.
The model includes all applicable royalties and statutory obligations under
the Philippine Mining Act of 1995 (RA 7942) 13 and its Implementing Rules and
Regulations (IRR).
Economic Evaluation
Financial evaluation of the MCB Ore Reserve was undertaken using a detailed
spreadsheet-based financial model, incorporating all cost, revenue, and
physical inputs as outlined in the relevant sections of this announcement. The
model has been constructed in real terms, with operating and capital costs
assumed to remain constant over the evaluation period and no escalation
applied.
The analysis indicates that the MCB Project delivers robust economic returns
based on the planned mine schedule, associated waste and ore movements, and
the applied cost and revenue assumptions. Sensitivity analyses were completed
across a range of metal price scenarios-from independent long-term consensus
forecasts to prevailing spot prices and corresponding exchange rates-and
confirm the Project's resilience under varying market conditions.
Ore Reserve Summary and Classification
The MCB Ore Reserve comprises 22.1 Mt of Proven Ore Reserves and 108.2 Mt of
Probable Ore Reserves, for a total of 130.3 Mt at average grades of 0.66% Cu
and 0.21 g/t Au, containing approximately 0.86 Mt of copper and 0.89 Moz of
gold. The Proven category reflects areas supported by Measured Mineral
Resources, while the Probable category is derived predominantly from Indicated
Mineral Resources.
Inferred material and internal waste captured within the final stope and mine
designs are treated as planned dilution and have not been classified as Ore
Reserves. The classification is consistent with the level of geological
confidence, data quality, and the application of all relevant Modifying
Factors evaluated as part of the study.
Ore Reserve Confidence and Accuracy
The Competent/Qualified Person has a high level of confidence in the technical
and economic viability of the MCB Ore Reserve, which is underpinned by
Measured and Indicated Mineral Resources and supported by extensive studies
undertaken over several years. The geological model, mining designs,
metallurgical performance, and permitting framework all provide strong
assurance that the Ore Reserve is robust and economically extractable in
accordance with the JORC Code (2012). Inferred material has been excluded from
the Reserve and is treated only as planned dilution, ensuring appropriate
classification. While normal study-level uncertainties remain, none are
considered material. Overall, the Ore Reserve has been determined with a high
degree of confidence consistent with Proven and Probable classifications.
This announcement has been authorised by the Board of Directors of Celsius
Resources Limited.
Compliance Statements
The Company confirms that it is not aware of any new information or data that
relates to previously reported Exploration Results and Mineral Resources at
the MCB Project. In respect of previously reported Mineral Resource Estimates,
apart from additional data that has been used in the 24 November 2025 MRE
update, all originally reported material assumptions and technical parameters
underpinning the estimates continue to apply and have not been materially
changed or qualified. The form and context in which the relevant Competent
Person's findings are presented have not been materially modified from the
original document.
Competent Person Statement
Information in this report relating to the Ore Reserve Estimate is based on information compiled, reviewed and assessed by the following Competent Persons: Mr. Steven Olsen (Geology) from Global Geologica, Mr. John Burgess (Metallurgy) from BMECS Pty Ltd, Mr. Florian Beier (Mining) From DMT, and Mr. Matt Pyle (Process Plant and on-site infrastructure capital and operating costs) from Ausenco Australia, who are all Members of the Australasian Institute of Mining and Metallurgy. Each is a consultant through their relevant companies to Makilala Mining Company, Inc., an affiliate of Celsius Resources Limited, and has sufficient experience relevant to the style of mineralisation, the type of deposit, and mining project under consideration, the activities undertaken to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and to be considered as a Qualified Person for the purposes of the AIM Rules.
Definitions
Cut-off Grade The minimum grade of a mineralised material considered economically viable to process. For this announcement, a preferred lower cut-off grade of 0.2% copper has been applied, consistent with industry practice and economic assumptions.
Dry-stack Tailings Dry-stack tailings is a storage method where tailings are mechanically dewatered to form a low-moisture, semi-solid cake that is transported, placed, and compacted into a stable, stackable landform instead of being stored as a slurry in a conventional
tailings dam.
Epithermal vein deposit An epithermal vein deposit is a shallow, low-temperature mineral system formed when hot, metal-rich fluids circulate near the Earth's surface and precipitate gold, silver, and other metals within fractures and veins.
Feasibility Study A comprehensive technical and economic assessment conducted to determine the viability of a proposed mining project. The feasibility study evaluates all key aspects of the project, including geology, mineral resources, mining methods, processing,
infrastructure, environmental and social impacts, capital and operating costs, and financial returns. Its purpose is to provide sufficient detail and confidence to support a final investment decision and project financing. The outcomes of a feasibility
study typically include detailed engineering designs, cost estimates, implementation schedules, and risk assessments.
Front-End Engineering Design (FEED) A detailed engineering phase undertaken prior to the commencement of project construction, during which the technical requirements, design specifications, cost estimates, and project execution plans are developed. In mining, FEED typically includes studies
of process flows, plant layout, equipment selection, infrastructure, and environmental considerations. The FEED process provides the basis for final investment decisions and forms the foundation for subsequent detailed engineering, procurement, and
construction activities
Indicated Mineral Resource The part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are sufficiently well established to allow for a reasonable level of confidence in the estimate, but not as high as for Measured Resources.
Inferred Mineral Resource The part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling, resulting in a lower level of confidence.
Measured Mineral Resource The part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow for detailed mine planning.
Mine Recovery The proportion of ore successfully extracted during mining compared to the in-situ resource, accounting for losses due to dilution, geotechnical constraints, and mining method.
Mineral Resource Estimate/MRE The estimate of mineral resources as calculated and presented in accordance with a minerals code or standard
Mineral Resource A concentration or occurrence of solid material of economic interest in or on the earth's crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade (or quality),
continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling. Mineral Resources are sub-divided, in order of increasing geological confidence,
into Inferred, Indicated and Measured categories
Ordinary Kriging A geostatistical estimation technique that predicts block grades by weighting nearby sample data, assuming a constant but unknown local mean.
Ore Reserve The economically mineable portion of a Mineral Resource, defined by detailed mine planning, applying modifying factors that demonstrate technical, economic, and regulatory viability.
Porphyry Copper Deposit A large, disseminated copper system associated with porphyritic intrusive rocks, characterised by broad alteration zones and low-grade but bulk-mineable mineralisation.
Proven Reserves The highest confidence category of Ore Reserves, based on detailed and reliable information, where geological continuity and modifying factors are well established.
Probable Reserves The Ore Reserve category with lower confidence than Proven, derived from Indicated Resources where geological and economic factors are reasonably assumed but not fully confirmed.
Sublevel Open Stoping/SLOS An underground mining method where ore is extracted in large, vertical or inclined stopes, accessed from multiple sublevels, typically requiring drill-and-blast and remote mucking.
Tonalite A coarse-grained intrusive igneous rock composed mainly of plagioclase feldspar with lesser quartz and amphibole, typically associated with calc-alkaline magmatic arcs.
Type 1HGV Vertically oriented high-grade copper mineralisation, following geological contacts
Type 1HGH Shallow, flat-lying high-grade copper mineralisation, near-surface
Type 3LG Broad zones of mineralisation with copper grades generally below high-grade thresholds, modelled for continuity and tonnage estimation
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. As at the date of this announcement there are studies ongoing to
update the Feasibility Study for the MCB Project which are scheduled for
completion by December 2025.
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.
Celsius Resources Contact Information
Level 5, 191 St. Georges Terrace
Perth WA 6000
PO Box 7059
Cloisters Square PO
Perth WA 6850
P: +61 8 9324 4516
E: info@celsiusresources.com.au (mailto:info@celsiusresources.com.au)
W: www.celsiusresources.com (http://www.celsiusresources.com)
Celsius Resources Limited
Neil Grimes P: +61 419 922 478
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)
Zeus Capital Limited
(Nominated Adviser)
James Joyce/ P: +44 (0) 20 3 829 5000
James Bavister
(Broking)
Harry Ansell
Zeus Capital Limited ("Zeus") is the Company's Nominated Adviser and is
authorised and
regulated by FCA. Zeus'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. Zeus is not acting for and will not be responsible
to any
persons for providing protections afforded to customers of Zeus nor for
advising them in
relation to the proposed arrangements described in this announcement or any
matter referred to in it.
Appendix 1: The following tables are provided to ensure compliance with the
JORC Code (2012) requirements for the reporting of Exploration Results for the
MCB Project.
SECTION 1:
Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code Explanation Commentary
Sampling techniques · Nature and quality of sampling (e.g. cut channels, random chips, or · Samples were collected from diamond core drilled from the surface. All
specific specialised industry standard measurement tools appropriate to the drill core was generally sampled on 2-meter intervals. In cases where
minerals under investigation, such as down whole gamma sondes, or handheld XRF geological and mineralogical characteristics change, sample length was not
instruments, etc). These examples should not be taken as limiting the broad less than 1 meter.
meaning of sampling.
· Core samples cut into half using diamond core saw following the cutting
· Include reference to measures taken to ensure sample representivity and lines marked by the Geologist. Split cores returned to its respective core
the appropriate calibration of any measurement tools or systems used. tray.
· Aspects of the determination of mineralisation that are Material to the · Samples were shipped by company vehicle to Intertek Testing Services
Public Report. In cases where 'industry standard' work has been done this which is an external laboratory located in Manila, Philippines.
would be relatively simple (e.g. 'reverse circulation drilling was used to
obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for · Crushed samples were fire assayed for gold (Au) using a 30-gram charge,
fire assay'). In other cases, more explanation may be required, such as where with a detection limit of 0.005 ppm. Gold values greater than 50 ppm were
there is coarse gold that has inherent sampling problems. Unusual commodities determined by gravimetric fire assay.
or mineralisation types (e.g. submarine nodules) may warrant disclosure of
detailed information. · Copper (Cu) values were assayed using Four acid digestion. Elements
determined by AAS finish with final reporting for a total of 36 elements.
Drilling techniques · Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air · Previous exploration and drilling were conducted between December 2006
blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or and July 2013 by Freeport-McMoRan, completing a total of 46 drill holes with
standard tube, depth of diamond tails, face-sampling bit or other type, an aggregate meterage of 25,480.55 meters.
whether core is oriented and if so, by what method, etc).
· An exploration program managed by MMCI commenced in February 2021up to
early 2022 with a total of 9 drill holes added to the updated MRE, with a
cumulative depth of 4641.7 meters.
· Five additional drillholes were drilled in the late 2022 and in 2025 with
a total meterage of 1,427.3 meters.
· The core drilling utilised a triple-tube core barrel from collar to
end-of-hole to ensure optimum core recovery, with the deepest downhole depth
being 893.8 meters (MCB-029).
· Diamond drilling was used to capture the rock samples for the new drill
hole intercepts, with the following drill core size summarised as follows:
· PQ sized drill core with a core diameter of 81.1 mm was used from surface
to more competent lithology. Core samples of this size are estimated to
comprise about 43%of the total length of the recently drilled holes.
· HQ sized drill core, with a core diameter of 61.1mm, was then substituted
at greater depths to accommodate variations of subsurface conditions. Core
samples of this size is estimated to comprise about 57% of the total length of
the recently drilled holes.
Drill sample recovery · Method of recording and assessing core and chip sample recoveries and · Core recovery has been recorded for every interval as part of the routine
results assessed. geomechanical logging.
· Measures taken to maximise sample recovery and ensure representative · Recovered core lengths on average were measured to be over 98% for the
nature of the samples. total length of the drill hole, indicating a high recovery and minimal lost
core.
· Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of · All drilling activities were supervised by company Geologists. Trained
fine/coarse material. Core house Technician were responsible for the core recovery determination.
· Core was arranged to fit the breakages before the actual core length from
the start to the end of the drill run was measured. Percent recovery was
calculated from dividing the measured core length over the total drill run
multiplied by 100.
Logging · Whether core and chip samples have been geologically and geotechnically · Geologists were tasked to oversee the daily quick log report down to
logged to a level of detail to support appropriate Mineral Resource sampling. Daily quick log form was completed to identify the geological
estimation, mining studies and metallurgical studies. details such as lithology, alteration and mineralisation with corresponding
percentage estimate of Cu minerals and Cu grade, using an established
· Whether logging is qualitative or quantitative in nature. Core (or geological code.
costean, channel, etc) photography.
· Detailed logging proceeds describing geological characteristics present
· The total length and percentage of the relevant intersections logged. in the core, i.e. lithology, alteration, mineralogy, structures, etc.
· Core photography was undertaken after completing the geomechanical
logging.
Sub-sampling techniques and sample preparation · If core, whether cut or sawn and whether quarter, half or all core taken. · Samples were routinely taken over a 2m interval, and cut in half, with
half of the drill core sent for analysis and half of the drill core retained
· If non-core, whether riffled, tube sampled, rotary split, etc and whether for future reference.
sampled wet or dry.
· Samples were cut on site using a hand core saw. Samples were then
· For all sample types, the nature, quality and appropriateness of the selected and bagged on site prior to delivery to the laboratory (Intertek) in
sample preparation technique. Manila for sample preparation.
· Quality control procedures adopted for all sub-sampling stages to · The sample size is considered appropriate for type of material being
maximise representivity of samples. samples.
· Measures taken to ensure that the sampling is representative of the
in-situ material collected, including for instance results for field
duplicate/second-half sampling.
· Whether sample sizes are appropriate to the grain size of the material
being sampled.
Quality of assay data and laboratory tests · The nature, quality and appropriateness of the assaying and laboratory · Samples were fire assayed for gold (Au) using a 30-gram charge, with a
procedures used and whether the technique is considered partial or total. detection limit of 0.005 ppm. Gold values greater than 50 ppm were determined
by gravimetric fire assay. Copper (Cu) values were assayed using four acid
· For geophysical tools, spectrometers, handheld XRF instruments, etc, the digestion. Elements determined by AAS finish
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc. · The procedures for the submission of samples to the laboratory also
include the regular insertion of QA/QC samples in every transmittal form or
· Nature of quality control procedures adopted (e.g. standards, blanks, batch, which was typically delivered to the laboratory in batches of 50
duplicates, external laboratory checks) and whether acceptable levels of numbered samples. For each batch of 50 samples a total of 43 came from core
accuracy (i.e. lack of bias) and precision have been established. samples and an additional 7 samples were included for QA/QC checks, which were
as follows:
o Four referenced standards
o One referenced Blank
o One coarse (unrecognisable) blank
o One field duplicate taken from the quartered core
· After sample preparation, all samples were sent for final analysis to
Intertek at their laboratory in Manila. Intertek is an internationally
recognised and ISO/IEC 17025:2005 & ISO/IEC 17020:2004 certified
independent laboratory.
Verification of sampling and assaying · The verification of significant intersections by either independent or · Analytical procedures provided by an internationally certified laboratory
alternative company personnel. is considered in line with industry standard for the type of deposit and
mineralisation identified at the Property.
· The use of twinned holes.
· Apart from the verification of the procedures and results as described
· Documentation of primary data, data entry procedures, data verification, above, no further verification of the sampling and assaying have been
data storage (physical and electronic) protocols. undertaken.
· Discuss any adjustment to assay data. · None of the diamond drill holes in this report are twinned.
Location of data points · Accuracy and quality of surveys used to locate drill holes (collar and · All data reference points and maps for the Makilala database, including
down-hole surveys), trenches, mine workings and other locations used in drill hole collar co-ordinates are recorded in WGS 84/UTM Zone 51N.
Mineral Resource estimation.
· Compass measurements taken by Geologists were used to establish the dip
· Specification of the grid system used. and azimuth of the collar hole as part of their initial collar surveys. Drill
collar locations were positioned using a handheld Garmin GPS unit, set to UTM
· Quality and adequacy of topographic control. WGS 84 Zone 51N coordinate reference system, with an accuracy expected to be
within 2 metres. Downhole surveys were also completed using a Keeper Gyro at
50m intervals.
· Drill collar locations were recently re-surveyed by Datum Engineering and
Surveying Consultancy including elevation checks against an updated
drone-based Lidar survey which has a reported "x-y-z" accuracy of 10 cm.
· Collar surveys were then logged into the master MS Access database after
validation checks were completed against the updated Lidar survey.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · The broad drilling pattern is at 100m spacing for a series of diamond
drill holes which are oriented in a north-west direction and dipping at
· Whether the data spacing and distribution is sufficient to establish the predominantly at 60 degrees. These drill holes are augmented by some drill
degree of geological and grade continuity appropriate for the Mineral Resource holes which have a west-north-west orientation or a north-east orientation or
and Ore Reserve estimation procedure(s) and classifications applied. are vertical. (see figure 2 for Drill Hole Locations).
· Whether sample compositing has been applied. · Drill holes at the MCB deposit are distributed broadly on eight grid
lines, giving coverage of 1,000 metres from east to west.
· The drill hole spacing where significant copper-gold mineralisation has
been identified is sufficient to determine the geology and grade continuity of
the area, as well as the ore body and mineralisation extents.
· In the MRE, drill hole assays were composited to 2 metres which matches
closely with the sample length down hole for all drill hole sampling completed
at MCB.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · In the resource estimation, drill hole assays were composited to 2 metres
possible structures and the extent to which this is known, considering the downhole intervals.
deposit type.
· The dominant trend of the tonalite intrusion, which is directly related
· If the relationship between the drilling orientation and the orientation to the broader lower grade copper-gold mineralisation has an overall strike of
of key mineralised structures is considered to have introduced a sampling 50 degrees and a sub-vertical dip. Drill hole directions vary relative to
bias, this should be assessed and reported if material. this dominant orientation, with some more optimal drill holes dipping at 60
degrees towards 320 degrees. There are a number of vertical drill holes which
are not optimal for assessing the geological contacts or grade distribution,
however, in most cases these drill holes are also close to other drill holes
which are dipping across the mineralised domains, typically at 60 degrees.
· There is also a defined horizontal control to the copper-gold
mineralisation which appears to extend away from the source feeder structures
which are vertical in orientation. Some shallow drilling was completed to fill
in gaps in the drill hole data existed where possible, often at
50-to-60-degree angles which are considered still reasonable for testing the
horizontal orientations identified as part of the copper-gold distribution at
MCB.
Sample security · The measures taken to ensure sample security. · The following standard procedures were enforced for the drilling of new
intercepts:
o Sample bags are arranged in sequence according to its sample number. These
are then weighed and jotted down to a sample dispatch note which details the
sample numbers, sample type and laboratory processing required. Geologists
ensures that the transmittal form is correct for encoding and submission. The
bags of samples are sent directly to the Intertek Laboratory in Manila by
company vehicle. No unsupervised third parties were given access prior to the
chain of custody procedure.
o Samples were delivered to Intertek Testing Services along with two copies of
the sample dispatch form. One copy for the laboratory to accept custody of the
sample, and the signed/received copy return to database custodian at the Core
House facility in Tabuk, Kalinga.
Audits or reviews · The results of any audits or reviews of sampling techniques and data. · No other specific audit or review was conducted other than the validation
checks by the author documented earlier with regard to the sample preparation,
analysis or security for the information in the new drillholes.
SECTION 2:
Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code Explanation Commentary
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including agreements · The Maalinao-Caigutan-Biyog (MCB) Copper-Gold project is situated in
or material issues with third parties such as joint ventures, partnerships, Luzon Central Cordillera in the Barangay of Balatoc, Municipality of Pasil,
overriding royalties, native title interests, historical sites, wilderness or Province of Kalinga.
national park and environmental settings.
· The Project is covered by MPSA-356-2024-CAR, which encompasses
· The security of the tenure held at the time of reporting along with any approximately 2,501 hectares and was granted on 14 March 2024.
known impediments to obtaining a licence to operate in the area.
· The tenement is held by Makilala Mining Company Inc. (MMCI), a
Philippines registered corporation that is 100% owned by Makilala Holdings
Ltd,
· The Project site is located within the Ancestral Domain of Balatoc, and
Free and Prior Informed Consent (FPIC) has been secured from the Balatoc tribe
for development and operation of the mine within the designated tenement
area.
· The MPSA grants exclusive rights for exploration, development, and
commercial production of copper and associated minerals for 25 years,
renewable for another 25 years, providing secure tenure for the Project.
· The MCB Project has obtained all National Government statutory permits to
commence development and mining operations,
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · Exploration work and drilling was completed by Makilala Mining Company
Inc. from year 2006 to 2025, the details of which have been documented in CLA
announcements.
· The relative quality and detail associated with the drilling information
is considered to be of a high standard. This has enabled the author to
establish a high level of confidence associated with the historical drilling
information.
Geology · Deposit type, geological setting and style of mineralisation. · The geological setting for the MCB copper-gold mineralisation is typical
of a porphyry copper + gold + moly deposit as commonly defined in many
academic papers (Hedenquist and Lowernstern, 1994; Sillitoe, R. H., 2010.
Corbett and Leach, 1997). The mineralisation and associated alteration exist
across the contact between the genetically related intrusive body (tonalite)
and the surrounding host rock material. In most cases the surrounding host
rock is a mafic volcanic, however, in some instances the older (not
genetically related to copper-gold mineralisation) intrusive bodies also exist
in contact with the younger intrusive resulting in broad sections of
mineralisation and alteration within a series of intrusive bodies.
· There is also evidence at MCB for epithermal vein deposit types which
exist within close proximity to the large-scale porphyry copper-gold
mineralisation. At this stage, only the deposit type that is identified from
the drilling information for MCB is a porphyry copper-gold style.
· Basalt lava flows make up the majority of the host rocks in the tenement
area, which is part of the oldest exposed unit, Basement Complex. This
Cretaceous-Paleogene Metavolcanics has been intruded by quartz diorite
complex, which in Kalinga, ranges in composition from gabbro to tonalite.
· A later stage Tonalite intrusion exists throughout the project area and
is interpreted to be genetically related to the copper-gold mineralisation at
MCB deposit.
· A dacite flow and dacitic pyroclastic blankets the older basalt host rock
and tonalitic intrusive rocks.
· There are four types of ore mineralisation that were emphasised in the
project:
o Type 1 - Early high-grade porphyry Cu-Au mineralisation, hosted both in
tonalite and basalt.
o Type 2 - Mix of high-grade porphyry Cu-Au (Type 1) and high-sulphidation
mineralisation (Type 4). Hosted in basalt and tonalites, but with strong Type
1 mineralisation that was partially overprinted by ore Type 4.
o Type 3 - Medium grade porphyry-copper
o Type 4 - High-sulphidation epithermal mineralisation
(See Figure and Figure for a representative Cross Section of the Geology
and its relationship to the copper-gold mineralisation at the MCB Deposit).
Drill hole Information · A summary of all information material to the understanding of the · See Section 1 (Sampling Techniques and Data) for all details regarding
exploration results including a tabulation of the following information for the drill hole information for the MCB Property in addition to a full list of
all Material drill holes: all significant drill intersections which have been reported.
· easting and northing of the drill hole collar · In addition to the drilling information that has been reported from
previous MRE, 5 new drill holes were completed by MMCI and included as part of
· elevation or RL (Reduced Level - elevation above sea level in metres) of this updated Mineral Resource estimate for MCB.
the drill hole collar
· In summary the drill hole database used for the updated MCB MRE consists
· dip and azimuth of the hole of 64 diamond drill holes with an accumulated meterage of 31,616.20.
· down hole length and interception depth · No drill hole information has been excluded.
· hole length.
· If the exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain why
this is the case.
Data aggregation methods · In reporting Exploration Results, weighting averaging techniques, maximum · No exploration results are reported in this release.
and/or minimum grade truncations (eg cutting of high grades) and cut-off
grades are usually Material and should be stated. · Only individual weighted average assay results have been reported and no
metal equivalent values have been reported.
· Where aggregate intercepts incorporate short lengths of high-grade
results and longer lengths of low-grade results, the procedure used for such
aggregation should be stated and some typical examples of such aggregations
should be shown in detail.
· The assumptions used for any reporting of metal equivalent values should
be clearly stated.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · There are several drilling orientations, but generally drill holes were
Exploration Results. designed in a rough grid pattern on lines oriented N30W-S30E spaced at 100 to
200 meters apart, with an inclination of -60 degrees. For the drilling which
· If the geometry of the mineralisation with respect to the drill hole is at an angle of -60 degrees, there is a relative angle against the contact
angle is known, its nature should be reported. of the near to vertical intrusive Tonalite and associated copper-gold
mineralisation of approximately 30 degrees. In this case, the estimated true
· If it is not known and only the down hole lengths are reported, there widths of the copper-gold mineralisation is approximately half of the reported
should be a clear statement to this effect (eg 'down hole length, true width down hole length.
not known').
· In some instances, there are vertical drill holes which are still useful
in defining the extent of the copper-gold mineralisation, but at a relatively
poor angle to define the distribution of the copper-gold mineralisation due to
being sub-parallel to the mineralisation direction.
· Recent drilling completed by MMCI has improved the distribution of assay
information over the central portion of the defined copper mineralisation to
improve confidence in the continuity and for the purpose of increasing the
category from Indicated to Measured at some important locations.
Diagrams · Appropriate maps and sections (with scales) and tabulations of intercepts · See figure 3 and figure 4 for representative Cross Section of the
should be included for any significant discovery being reported These should Geology and its relationship to the copper-gold mineralisation at MCB.
include but not be limited to a plan view of drill hole collar locations and
appropriate sectional views.
Balanced reporting · Where comprehensive reporting of all Exploration Results is not · All data for the project has been collected, validated and reported and
practicable, representative reporting of both low and high grades and/or is considered to be a fair representation of the MRE from MCB which is the
widths should be practiced to avoid misleading reporting of Exploration subject of this which is the subject of this release.
Results.
Other substantive exploration data · Other exploration data, if meaningful and material, should be reported · Historical exploration since the date of the original grant of
including (but not limited to): geological observations; geophysical survey EP-003-2006-CAR in 2006 was undertaken under the ownership and management of
results; geochemical survey results; bulk samples - size and method of Makilala Mining Company Inc. Exploration work conducted by Makilala Mining
treatment; metallurgical test results; bulk density, groundwater, geotechnical Company Inc include surface mapping and sampling (2007), ground magnetic
and rock characteristics; potential deleterious or contaminating substances. survey (2007), induced polarisation (IP) geophysical surveys (2010), and an
extended period of diamond drilling from 2006 through to 2025 for a total of
46 diamond drill holes.
Further work · The nature and scale of planned further work (eg tests for lateral · There are a few locations where the potential extension to the current
extensions or depth extensions or large-scale step-out drilling). Minerals Resource could be tested. These locations are initially defined at
depth plunging steeply to the west underneath the high-grade copper-gold
· Diagrams clearly highlighting the areas of possible extensions, including mineralisation, and also to the west of the Maalinao-Panyaw fault. The
the main geological interpretations and future drilling areas, provided this location for the possible high-grade copper-gold to the west include at depth,
information is not commercially sensitive. due to the interpretation that the fault has downthrown the geology on its
western side, or toward the north-west, as a possible trend exists to the
mineralisation in this direction which has not been tested.
· Apart from the direct extensions to the currently defined copper-gold
mineralisation, there is considerable scope for further discoveries of two
defined deposit types at the MCB Tenement.
Porphyry copper-gold deposit types
o There are extensive intrusions in the area that are directly related to the
copper-gold mineralisation, and which could at multiple locations formed
significant high-grade copper-gold deposits.
Epithermal vein hosted deposit types
o It is considered likely that there could be a combination of narrow high
grade, and/or more broad large scale and lower grade epithermal deposit types
that are closely related to the porphyry copper-gold deposits at MCB.
SECTION 3:
Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to
this section.)
Criteria JORC Code Explanation Commentary
Database integrity · Measures taken to ensure that data has not been corrupted by, for · The original assay sheets and drill logs were checked against the drill
example, transcription or keying errors, between its initial collection and hole database by the author and no systematic or random errors were identified
its use for Mineral Resource estimation purposes. Data validation procedures as part of this validation check of the database.
used.
· In addition, the original laboratory reports were checked against the
drill hole database. This data review did not identify any systematic or
isolated errors in the drill hole database.
· Outliers in the specific gravity measurements were excluded from the
dataset.
· Drill core observations and validation steps were completed in August
2020 which included a review of all the defined Ore Domains and broad contact
positions between the high grade and low-grade domains in addition to the
low-grade ore to waste domain boundaries.
· All drill core from the MCB Project which were used to define the 2025
Mineral Resources have been preserved and were available for the author to
visually check against the drill logs and recorded assay results.
· Geological observations that are recorded in the drill logs leading to
the definition of the mineralised domains at MCB appear consistent and
reflective of what could be observed from the drill core by the Author. In
addition, copper sulphides and recently weathered copper-sulphides (due to
exposure of the drill core at the surface) are observable in the drill core
where high grade copper mineralisation has been reported. The relative
presence of copper sulphides and oxidised copper minerals appear reasonably
reflective of the assay results reported in the database based on the
observations made by the author of the drill core.
Site visits · Comment on any site visits undertaken by the Competent Person and the · The Author has completed site inspections of the property including
outcome of those visits. detailed review of the drill core which relate to the Mineral Resource
Estimate. The field inspections included validation of the drill collar
· If no site visits have been undertaken indicate why this is the case. locations for drill holes (using a handheld GPS) which contained significant
copper mineralisation that are included in the Mineral Resource estimate.
Geological interpretation · Confidence in (or conversely, the uncertainty of) the geological · The geological interpretation associated with the MCB Mineral Resource
interpretation of the mineral deposit. estimate is considered by the author to have a high level of confidence, with
limited variability considered likely due to a difference in the geological
· Nature of the data used and of any assumptions made. interpretation.
· The effect, if any, of alternative interpretations on Mineral Resource · The interpretation and Mineral Resource estimate have been compared
estimation. directly with the previous Mineral Resource estimate in 2022. The copper and
gold mineralisation defined in the Mineral Resource estimate has a high level
· The use of geology in guiding and controlling Mineral Resource of consistency relative to the geological interpretation completed by
estimation. Freeport-McMoRan.
· The factors affecting continuity both of grade and geology. · The geological controls on the copper-gold mineralisation at the MCB
copper-gold mineralisation is typical of a porphyry copper + gold + moly
deposit as commonly defined in many academic papers (Hedenquist and
Lowernstern, 1994; Sillitoe, R. H., 2010. Corbett and Leach, 1997).
Dimensions · The extent and variability of the Mineral Resource expressed as length · The copper-gold mineralisation at MCB is typical for a porphyry
(along strike or otherwise), plan width, and depth below surface to the upper copper-gold deposit with the geometry of a very thick body, up to 100m in true
and lower limits of the Mineral Resource. width for the high-grade core and surrounded by over 400m in true width of
additional lower grade copper mineralisation, as a relatively elongate body
which stretches out parallel to the contact between the intrusive tonalite and
the host rock basaltic rocks.
· Away from the central core, the high-grade copper-gold mineralisation
extends further as a narrow structurally controlled sheet, interpreted again
to be mostly parallel to the tonalite - basalt contact, with some possible
extensions extending along interpreted structures which exist in a
north-north-west orientation. Both structural sets are close to vertical,
and their intersection points also are very steeply dipping
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied and · The MCB geological models, ore domain models and associated interpolation
key assumptions, including treatment of extreme grade values, domaining, were all completed in the 3D software modelling package Leapfrog Geo and
interpolation parameters and maximum distance of extrapolation from data Leapfrog Edge (Version 2025.1.1).
points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used.
· The availability of check estimates, previous estimates and/or mine Ore Domains
production records and whether the Mineral Resource estimate takes appropriate
account of such data. o A combination of features was utilised to review and subsequently domain the
copper mineralisation to an appropriate level for the purpose of estimating
· The assumptions made regarding recovery of by-products. the copper and gold contents.
· Estimation of deleterious elements or other non-grade variables of High Grade Copper Domain (s)
economic significance (eg sulphur for acid mine drainage characterisation).
o A high-grade ore type called "Ore Type 1" was based on alteration features,
· In the case of block model interpolation, the block size in relation to magnetic susceptibility readings and copper grades.
the average sample spacing and the search employed.
o In addition, the spatial location of this ore type was predominantly
· Any assumptions behind modelling of selective mining units. situated across a tonalite and mafic volcanic contact position.
· Any assumptions about correlation between variables. o For the purpose of defining an ore domain that obeyed the observed trends
and geological controls on the mineralisation, the Type 1 ore positions were
· Description of how the geological interpretation was used to control the reviewed relative to the potential continuity of this ore type.
resource estimates.
o In locations where this ore type was very narrow, or patchy and no
· Discussion of basis for using or not using grade cutting or capping. observable continuity, this ore type was not defined as a Type 1HG domain.
· The process of validation, the checking process used, the comparison of o In positions where the larger and more continuous Type 1 sections were
model data to drill hole data, and use of reconciliation data if available. observed, the ore domain was further reviewed for possible continuity along
the trend of the tonalite/mafic volcanic contact position. In some cases,
the Type 1HG domain was extended into a larger body, where there appeared to
be additional high-grade copper mineralisation that extended as part of this
mineralised domain in 3D space along the tonalite/mafic contact position.
o The original Type 1HG high-grade domain has been divided into two separate
domains. The Type 1HG domain was segregated into a shallow horizontal
high-grade domain (Type 1 HGH) representing shallow and relatively flat-lying
higher grade copper mineralisation, and the remaining vertically oriented
high-grade material which forms the Type 1 HGV (High Grade Vertical) domain.
Both domains are predominantly characterised by Type 1 style mineralisation.
Low Grade Copper Domain
o Further grade continuity models were created surrounding the high-grade
material, with observable boundaries which are parallel to the older volcanics
and diorite intrusions position.
o There appear to be a natural geological boundary at close to 0.2% copper,
which has been used as the basis for developing a surrounding low-grade domain
which is substantially mineralised. The position for copper mineralisation
is not necessarily at exactly 0.2% copper, however, it is observable that
there are distinct trends with grade distributions roughly above and then
below into waste domains across this position. For example, there is a
distinct low-grade trend in the middle of the tonalite body which is parallel
to the dip and strike of the main structural trend. This observation and
apparent close link to the grade trends with the geological contacts and
alteration was the basis for creating a low-grade domain which ensured that
the data from the waste material was not mixed with the broader lower grade
trends as part of the Mineral Resource estimate
o Therefore, a low-grade domain boundary was created which obeyed the general
trend of the contact position between assay results which were above and below
0.2% copper and for which this contact position was distinctly parallel to the
dominant geological trends.
BLOCK SIZE
o A parent cell size of 10m x 10m x 10m was used as the final model block size
which appear to appropriately fill the model with cells and is considered
appropriate for any potential economic evaluation of the Mineral Resource,
which is most likely considered to be via the block caving method, or
large-scale open stoping mining with back fill.
ORE CONTINUITY AND STATISTICAL ANALYSIS
o After applying the constraints on the ore domains for the high-grade and
low-grade domain boundaries, each dataset was reviewed in terms of their basic
statistics and also a review of their potential continuity based on their
variograms.
STATISTICS AND TOP CUT
o The summary basic statistical information for copper, gold and specific
gravity associated with each domain, based on the 2-meters composited datasets
from within each domain are summarised in the following tables.
o A review of the statistics for each domain did not identify significant high
value outliers that are considered likely to result in an overestimated either
locally or globally to the grade distribution within the block model.
Therefore, no top cut was applied to the Mineral Resource estimate.
Count 625 625
Length 1272 1272
Mean 0.79 0.12
Standard Deviation 0.61 0.20
Coefficient of Variation 0.77 1.61
Variance 0.38 0.04
Minimum 0.05 0.01
Lower Quartile (Q1) 0.43 0.04
Second Quartile (Q2) 0.65 0.07
Upper Quartile (Q3) 0.97 0.15
Maximum 6.91 3.99
Count 1913 1913
Length 3859 3859
Mean 1.03 0.45
Standard Deviation 0.81 0.62
Coefficient of Variation 0.78 1.36
Variance 0.66 0.38
Minimum 0.01 0.01
Lower Quartile (Q1) 0.45 0.06
Second Quartile (Q2) 0.74 0.16
Upper Quartile (Q3) 1.45 0.63
Maximum 6.52 6.11
Count 4752 4752
Length 9559 9559
Mean 0.35 0.07
Standard Deviation 0.28 0.11
Coefficient of Variation 0.81 1.57
Variance 0.08 0.01
Minimum 0.0001 0.003
Lower Quartile (Q1) 0.19 0.02
Second Quartile (Q2) 0.29 0.04
Upper Quartile (Q3) 0.43 0.08
Maximum 6.43 2.71
VARIOGRAM ANALYSIS
o Variograms were completed for all of the reported mineralised domains. The
results were generally in line with the geological interpretations with a high
level of confidence up to in initial structure or inflection point in the
variogram between 50m and 70m for all three mineralised domains. This distance
when supported by multiple drill holes is considered to have a high degree of
confidence with regards to the copper and gold grade estimates based on the
observations of the copper grade information in 3D space relative to the host
rock geology and influencing or cross cutting major faults.
o The Sill for the variograms for each mineralised domains extended further,
but at a lower level of confidence than the initial structure defined within
each variogram. Details for each mineralised domain are summarised below.
· Type 1HGV Domain: This ore domain occurs as a vertical high-grade copper
mineralisation situated across a tonalite and mafic volcanic contact
position. The major axis has a strike of 050 degrees which is very close to
the observable trend of the geology and interpreted boundaries to the copper
mineralisation.
· Type 1HGH Domain: This ore domain occurs as a shallow and relatively flat
lying higher grade copper mineralisation. The variogram analysis has strong
support for over 60m, up to an inflection point where the sill in modelled.
· Type 3LG Domain: A distinct low-grade trend in the middle of the
tonalite body and surrounding the higher-grade mineralisation domains within
the host rock mafic rocks which is parallel to the dip and strike of the main
structural trend.
INTERPOLATION METHOD
o After definition of the ore domains and subsequent statistical and variogram
analysis were completed for each ore domain, Ordinary Kriging (OK) was used as
a standard estimator for both copper and gold values.
Moisture · Whether the tonnages are estimated on a dry basis or with natural · The tonnes estimated for the MCB deposit block models were calculated on
moisture, and the method of determination of the moisture content. a dry basis.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters applied. · The MCB deposit has been limited to a defined body of copper and gold
mineralisation which are predominantly above 0.2% copper on average.
· The 0.2% lower limit is also broadly in line with the expected lower
economic limits of the likely mining and processing options considered for
MCB.
· Therefore, a preferred lower cut-off grade of 0.2% copper was applied to
the reporting of the Mineral Resource estimate which is based on the
information provided in this report.
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · Benchmark mining costs of US$16/ t and processing costs of US$10/t
dimensions and internal (or, if applicable, external) mining dilution. It is respectively for a medium sized (2.25Mt per annum) underground block caving
always necessary as part of the process of determining reasonable prospects mining method and processing using floatation to produce a copper-gold
for eventual economic extraction to consider potential mining methods, but the concentrate have been assumed where applicable for the Mineral Resource
assumptions made regarding mining methods and parameters when estimating estimate.
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions · A lower cut-off grade of between 0.2% and .25copper has been used as the
made. preferred lower cut-off grade for the reported Mineral Resource estimate,
which is considered appropriate based on the geological continuity associated
with copper mineralisation above 0.2% copper in addition to a broad economic
cut-off point based on a US$5/lb copper price.
· A preliminary economic assessment ( Study - see CLA announcement on 1
December 2021) was completed for the MCB deposit which identified that an
initial mining method of sub-level open stoping with back-fill would be the
preferred mining method. The closest approximation with regards to a lower
cut-off grade for this type of mining method is close to 0.5% copper, similar
to the defined boundaries of the high-grade mineralised domains.
· A review is also ongoing with regards to some surface at stabilisation
work and block caving mining methods, both of which are considered to
identified mining options which would have economic cut-off closer to the
reported Mineral Resource of 0.2% copper.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · Test work for the multiple mineralisation types over various grade ranges
amenability. It is always necessary as part of the process of determining have been completed at both ALS laboratory in Perth and Brisbane Met Labs.
reasonable prospects for eventual economic extraction to consider potential The results from this test work identified that high copper and gold
metallurgical methods, but the assumptions regarding metallurgical treatment recoveries (95% and 77% respectively) are possible from the MCB copper
processes and parameters made when reporting Mineral Resources may not always mineralisation using conventional floatation technology to recover a saleable
be rigorous. Where this is the case, this should be reported with an copper-gold concentrate (See CLA announcement dated 11 November 2025).
explanation of the basis of the metallurgical assumptions made.
Environmental factors or assumptions · Assumptions made regarding possible waste and process residue disposal · The MCB deposit exists within a relatively high mountain range with local
options. It is always necessary as part of the process of determining regions containing high topographic relief, ranging from 800m in the valleys
reasonable prospects for eventual economic extraction to consider the to over 1,300m at the surrounding mountain peaks.
potential environmental impacts of the mining and processing operation. While
at this stage the determination of potential environmental impacts, · Work completed as part of the study announced by CLA on 1 December 2021
particularly for a greenfields project, may not always be well advanced, the identified a number of mining options which are considered viable options for
status of early consideration of these potential environmental impacts should the mining of the MCB deposit which take into account the environmentally
be reported. Where these aspects have not been considered this should be sensitive nature of the high mountain range and local environment at MCB.
reported with an explanation of the environmental assumptions made.
· It is assumed at this stage that there are no additional impediments or
environmental controls which would prevent the proposed mining operation from
proceeding outside of the assumptions made in this release.
Bulk Density · Whether assumed or determined. If assumed, the basis for the assumptions. · Bulk density measurements were routinely taken throughout the drilling
If determined, the method used, whether wet or dry, the frequency of the campaign and are available for all the defined ore domains. The method used
measurements, the nature, size and representativeness of the samples. to collect the specific gravity information for each drill hole is summarised
in the sampling and core management procedures report by by the company. These
· The bulk density for bulk material must have been measured by methods procedures are summarised as follows:
that adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit. o Specific gravity is determined by weighing a dry core sample in air and as
submerge in water.
· Discuss assumptions for bulk density estimates used in the evaluation
process of the different materials. o Two 10 to 15 cm long split core samples are collected from each sampling
interval, one near the start and the other near the end of the interval.
o Samples were weighed in air, weighed suspended in water, and weighed in air
again to determine its saturated weight.
· A review of the bulk density measurements identified that there is
minimal variability in the bulk density measurements, apart from some
generally lower values that exist closer to the surface, or within the top
100m from surface.
· Given that the basic statistics for specific gravity in each domain
showed very low standard deviation for both uncomposited and 2m composited
drill hole data, the mean specific gravity value for each domain was applied
as the default throughout the respective block model domains. These default
values were derived from the basic statistics of the drill hole data for each
ore domain.
Classification · The basis for the classification of the Mineral Resources into varying Measured Mineral Resource Classification
confidence categories.
o The updated Mineral Resource for MCB increased the confidence on the
· Whether appropriate account has been taken of all relevant factors (i.e., Measured component of the 2025 Mineral Resource Estimate. The criteria for the
relative confidence in tonnage/grade estimations, reliability of input data, Measured Mineral Resource for each domain was based on search ellipse
confidence in continuity of geology and metal values, quality, quantity and parameters with a maximum direction length of 60m which was less than 60% of
distribution of the data). the defined Sill distance for all the mineralised domains and corresponded to
an inflection point in the variogram within which the confidence level for the
· Whether the result appropriately reflects the Competent Person's view of continuity of the copper distribution is higher. Minimum selection criteria
the deposit. for the Measured criteria also included a minimum of 8 samples from at least 2
drill holes and a maximum total of 18 samples derived from the 2m composited
data.
Indicated Mineral Resource Classification
o The Indicated Resource for the MCB model was based on the second pass which
was defined by a search distance which is approximately the ~1.5x the Sill
distance based off the Variogram analysis for each domain. The additional
selection criteria for the Indicated category included minimum number of
samples of 4 and a maximum of 20 samples derived from the 2m composited data.
Inferred Mineral Resource Classification
o The Inferred Mineral Resource was extended for twice the distances applied
to the Indicated Mineral Resource using a minimum of 2 samples and maximum of
10 samples defined for each block. Samples derived from only 1 drill hole
were required to fill the blocks for the Inferred category.
Audits or reviews · The results of any audits or reviews of Mineral Resource estimates. · No independent audit or review has been undertaken on the updated Mineral
Resource estimate for the MCB Project which is the subject of this JORC
Report.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · The relative quality and detail associated with the drilling information
level in the Mineral Resource estimate using an approach or procedure deemed which underpins the Mineral Resource estimate for MCB is considered to be of
appropriate by the Competent Person. For example, the application of high standard. This has enabled the author to establish a high level of
statistical or geostatistical procedures to quantify the relative accuracy of confidence associated with the geological interpretations and definition of
the resource within stated confidence limits, or, if such an approach is not the various ore domains.
deemed appropriate, a qualitative discussion of the factors that could affect
the relative accuracy and confidence of the estimate. · The analysis of the drill hole data statistics within each respective ore
domain has identified a relatively good correlation and consistency of assay
· The statement should specify whether it relates to global or local data for hundreds of meters, with some local variations being consistent with
estimates, and, if local, state the relevant tonnages, which should be what would be expected within a relatively large porphyry copper style of
relevant to technical and economic evaluation. Documentation should include mineral deposit.
assumptions made and the procedures used.
· The current level of Measured, Inferred and Indicated Mineral Resource
· These statements of relative accuracy and confidence of the estimate estimates are considered appropriate relative to the data distribution and
should be compared with production data, where available. confidence in the distribution of the copper and gold mineralisation.
Count 1913 1913
Length 3859 3859
Mean 1.03 0.45
Standard Deviation 0.81 0.62
Coefficient of Variation 0.78 1.36
Variance 0.66 0.38
Minimum 0.01 0.01
Lower Quartile (Q1) 0.45 0.06
Second Quartile (Q2) 0.74 0.16
Upper Quartile (Q3) 1.45 0.63
Maximum 6.52 6.11
Count 4752 4752
Length 9559 9559
Mean 0.35 0.07
Standard Deviation 0.28 0.11
Coefficient of Variation 0.81 1.57
Variance 0.08 0.01
Minimum 0.0001 0.003
Lower Quartile (Q1) 0.19 0.02
Second Quartile (Q2) 0.29 0.04
Upper Quartile (Q3) 0.43 0.08
Maximum 6.43 2.71
VARIOGRAM ANALYSIS
o Variograms were completed for all of the reported mineralised domains. The
results were generally in line with the geological interpretations with a high
level of confidence up to in initial structure or inflection point in the
variogram between 50m and 70m for all three mineralised domains. This distance
when supported by multiple drill holes is considered to have a high degree of
confidence with regards to the copper and gold grade estimates based on the
observations of the copper grade information in 3D space relative to the host
rock geology and influencing or cross cutting major faults.
o The Sill for the variograms for each mineralised domains extended further,
but at a lower level of confidence than the initial structure defined within
each variogram. Details for each mineralised domain are summarised below.
· Type 1HGV Domain: This ore domain occurs as a vertical high-grade copper
mineralisation situated across a tonalite and mafic volcanic contact
position. The major axis has a strike of 050 degrees which is very close to
the observable trend of the geology and interpreted boundaries to the copper
mineralisation.
· Type 1HGH Domain: This ore domain occurs as a shallow and relatively flat
lying higher grade copper mineralisation. The variogram analysis has strong
support for over 60m, up to an inflection point where the sill in modelled.
· Type 3LG Domain: A distinct low-grade trend in the middle of the
tonalite body and surrounding the higher-grade mineralisation domains within
the host rock mafic rocks which is parallel to the dip and strike of the main
structural trend.
INTERPOLATION METHOD
o After definition of the ore domains and subsequent statistical and variogram
analysis were completed for each ore domain, Ordinary Kriging (OK) was used as
a standard estimator for both copper and gold values.
Moisture
· Whether the tonnages are estimated on a dry basis or with natural
moisture, and the method of determination of the moisture content.
· The tonnes estimated for the MCB deposit block models were calculated on
a dry basis.
Cut-off parameters
· The basis of the adopted cut-off grade(s) or quality parameters applied.
· The MCB deposit has been limited to a defined body of copper and gold
mineralisation which are predominantly above 0.2% copper on average.
· The 0.2% lower limit is also broadly in line with the expected lower
economic limits of the likely mining and processing options considered for
MCB.
· Therefore, a preferred lower cut-off grade of 0.2% copper was applied to
the reporting of the Mineral Resource estimate which is based on the
information provided in this report.
Mining factors or assumptions
· Assumptions made regarding possible mining methods, minimum mining
dimensions and internal (or, if applicable, external) mining dilution. It is
always necessary as part of the process of determining reasonable prospects
for eventual economic extraction to consider potential mining methods, but the
assumptions made regarding mining methods and parameters when estimating
Mineral Resources may not always be rigorous. Where this is the case, this
should be reported with an explanation of the basis of the mining assumptions
made.
· Benchmark mining costs of US$16/ t and processing costs of US$10/t
respectively for a medium sized (2.25Mt per annum) underground block caving
mining method and processing using floatation to produce a copper-gold
concentrate have been assumed where applicable for the Mineral Resource
estimate.
· A lower cut-off grade of between 0.2% and .25copper has been used as the
preferred lower cut-off grade for the reported Mineral Resource estimate,
which is considered appropriate based on the geological continuity associated
with copper mineralisation above 0.2% copper in addition to a broad economic
cut-off point based on a US$5/lb copper price.
· A preliminary economic assessment ( Study - see CLA announcement on 1
December 2021) was completed for the MCB deposit which identified that an
initial mining method of sub-level open stoping with back-fill would be the
preferred mining method. The closest approximation with regards to a lower
cut-off grade for this type of mining method is close to 0.5% copper, similar
to the defined boundaries of the high-grade mineralised domains.
· A review is also ongoing with regards to some surface at stabilisation
work and block caving mining methods, both of which are considered to
identified mining options which would have economic cut-off closer to the
reported Mineral Resource of 0.2% copper.
Metallurgical factors or assumptions
· The basis for assumptions or predictions regarding metallurgical
amenability. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral Resources may not always
be rigorous. Where this is the case, this should be reported with an
explanation of the basis of the metallurgical assumptions made.
· Test work for the multiple mineralisation types over various grade ranges
have been completed at both ALS laboratory in Perth and Brisbane Met Labs.
The results from this test work identified that high copper and gold
recoveries (95% and 77% respectively) are possible from the MCB copper
mineralisation using conventional floatation technology to recover a saleable
copper-gold concentrate (See CLA announcement dated 11 November 2025).
Environmental factors or assumptions
· Assumptions made regarding possible waste and process residue disposal
options. It is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider the
potential environmental impacts of the mining and processing operation. While
at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts should
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
· The MCB deposit exists within a relatively high mountain range with local
regions containing high topographic relief, ranging from 800m in the valleys
to over 1,300m at the surrounding mountain peaks.
· Work completed as part of the study announced by CLA on 1 December 2021
identified a number of mining options which are considered viable options for
the mining of the MCB deposit which take into account the environmentally
sensitive nature of the high mountain range and local environment at MCB.
· It is assumed at this stage that there are no additional impediments or
environmental controls which would prevent the proposed mining operation from
proceeding outside of the assumptions made in this release.
Bulk Density
· Whether assumed or determined. If assumed, the basis for the assumptions.
If determined, the method used, whether wet or dry, the frequency of the
measurements, the nature, size and representativeness of the samples.
· The bulk density for bulk material must have been measured by methods
that adequately account for void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones within the deposit.
· Discuss assumptions for bulk density estimates used in the evaluation
process of the different materials.
· Bulk density measurements were routinely taken throughout the drilling
campaign and are available for all the defined ore domains. The method used
to collect the specific gravity information for each drill hole is summarised
in the sampling and core management procedures report by by the company. These
procedures are summarised as follows:
o Specific gravity is determined by weighing a dry core sample in air and as
submerge in water.
o Two 10 to 15 cm long split core samples are collected from each sampling
interval, one near the start and the other near the end of the interval.
o Samples were weighed in air, weighed suspended in water, and weighed in air
again to determine its saturated weight.
· A review of the bulk density measurements identified that there is
minimal variability in the bulk density measurements, apart from some
generally lower values that exist closer to the surface, or within the top
100m from surface.
· Given that the basic statistics for specific gravity in each domain
showed very low standard deviation for both uncomposited and 2m composited
drill hole data, the mean specific gravity value for each domain was applied
as the default throughout the respective block model domains. These default
values were derived from the basic statistics of the drill hole data for each
ore domain.
Classification
· The basis for the classification of the Mineral Resources into varying
confidence categories.
· Whether appropriate account has been taken of all relevant factors (i.e.,
relative confidence in tonnage/grade estimations, reliability of input data,
confidence in continuity of geology and metal values, quality, quantity and
distribution of the data).
· Whether the result appropriately reflects the Competent Person's view of
the deposit.
Measured Mineral Resource Classification
o The updated Mineral Resource for MCB increased the confidence on the
Measured component of the 2025 Mineral Resource Estimate. The criteria for the
Measured Mineral Resource for each domain was based on search ellipse
parameters with a maximum direction length of 60m which was less than 60% of
the defined Sill distance for all the mineralised domains and corresponded to
an inflection point in the variogram within which the confidence level for the
continuity of the copper distribution is higher. Minimum selection criteria
for the Measured criteria also included a minimum of 8 samples from at least 2
drill holes and a maximum total of 18 samples derived from the 2m composited
data.
Indicated Mineral Resource Classification
o The Indicated Resource for the MCB model was based on the second pass which
was defined by a search distance which is approximately the ~1.5x the Sill
distance based off the Variogram analysis for each domain. The additional
selection criteria for the Indicated category included minimum number of
samples of 4 and a maximum of 20 samples derived from the 2m composited data.
Inferred Mineral Resource Classification
o The Inferred Mineral Resource was extended for twice the distances applied
to the Indicated Mineral Resource using a minimum of 2 samples and maximum of
10 samples defined for each block. Samples derived from only 1 drill hole
were required to fill the blocks for the Inferred category.
Audits or reviews
· The results of any audits or reviews of Mineral Resource estimates.
· No independent audit or review has been undertaken on the updated Mineral
Resource estimate for the MCB Project which is the subject of this JORC
Report.
Discussion of relative accuracy/ confidence
· Where appropriate a statement of the relative accuracy and confidence
level in the Mineral Resource estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative accuracy of
the resource within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors that could affect
the relative accuracy and confidence of the estimate.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used.
· These statements of relative accuracy and confidence of the estimate
should be compared with production data, where available.
· The relative quality and detail associated with the drilling information
which underpins the Mineral Resource estimate for MCB is considered to be of
high standard. This has enabled the author to establish a high level of
confidence associated with the geological interpretations and definition of
the various ore domains.
· The analysis of the drill hole data statistics within each respective ore
domain has identified a relatively good correlation and consistency of assay
data for hundreds of meters, with some local variations being consistent with
what would be expected within a relatively large porphyry copper style of
mineral deposit.
· The current level of Measured, Inferred and Indicated Mineral Resource
estimates are considered appropriate relative to the data distribution and
confidence in the distribution of the copper and gold mineralisation.
SECTION 4:
Estimation and Reporting of Ore Reserves
(Criteria listed in Section 1 and where relevant in Sections 2 and 3, also
apply to this section.)
Criteria JORC Code Explanation Commentary
Mineral Resource estimate for conversion to Ore Reserves · Description of the Mineral Resource estimate used as a basis for the · An updated MRE was published in November 2025
conversion to an Ore Reserve.
· The MI&I Mineral Resource is based on 343Mt @ 0.46% Copper and
· Clear statement as to whether the Mineral Resources are reported 0.12g/t gold (@0.2% Cu cut-off);
additional to, or inclusive of, the Ore Reserves.
· The MI part of the resource has 297 mt @ 0.2% Cu cut off
· The mineral resource is inclusive of the ore reserves
Site Visits · Comment on any site visits undertaken by the Competent Person and the · The Project area was not visited by the DMT Competent Persons Florian
outcome of those visits. Beier. For this statement, the CPs relied on project reports and discussions
with other DMT experts/CPs who visited the site 05(th) 07(th) and 08(th)
· If no site visits have been undertaken indicate why this is the case. July 2025
Study status · The type and level of study undertaken to enable Mineral Resources to be · The MCB Ore Reserve has been informed by a series of comprehensive
converted to Ore Reserves. technical studies undertaken since 2006. In 2021, the Company completed its
first full technical assessment, which-while announced on the ASX as a Scoping
· The Code requires that a study to at least Pre-Feasibility Study level Study due to contractual obligations-was prepared to a Pre-Feasibility Study
has been undertaken to convert Mineral Resources to Ore Reserves. Such studies level of confidence. Subsequently, the Company delivered a Feasibility Study
will have been carried out and will have determined a mine plan that is to the Mines and Geosciences Bureau (MGB), including an Ore Reserve prepared
technically achievable and economically viable, and that material Modifying in accordance with the Philippine Mineral Reporting (PMR) Code. This study was
Factors have been considered. accepted and approved through the issuance of a DMPF, after which the Project
received its MPSA.
· As the PMR standard is not recognised by the ASX or AIM reporting
regimes, the previously submitted Ore Reserve could not be disclosed to the
market. To support public reporting under JORC, the Company is now in the
final stages of completing an updated Feasibility Study and FEED program to
JORC-compliant standards, with both currently in the final stages of
completion and forming the basis of the Ore Reserve presented herein.
Cut-off parameters · The basis of the cut-off grade(s) or quality parameters applied. · As part of the company's ESG program, specific design decisions were made
to minimise environmental and social impacts. The use of backfilling in
primary-secondary stoping sequences was incorporated to reduce surface
tailings and limit land disturbance.
· No mining activities will be conducted beneath the Maalinao community,
located southeast of the deposit, in order to preserve the integrity of the
local dwellings and uphold community trust. Additionally, mining methods that
could result in surface subsidence were deliberately excluded to prevent any
potential disturbance to the Pasil River, a major waterway that serves the
surrounding community.
Details
Mine Parameters
Mine Dilution 10%
Mine Recovery 95%
Process Plant Parameters
Average Copper Recovery 95 %
Average Gold Recovery 77%
Economics $ = USD
Copper Price 4.5 $/lb
Gold Price 3,200 $/oz
Payability 96.50%
Mining Cost 21.00 US$/ton
Milling Cost 7.46 US$/ton
Admin Cost 2.00 $/ton
· Using the economic parameters outlined above, the copper equivalent grade
contribution from gold credits was calculated to be approximately 0.85. The
copper equivalent grade (Cu_Eq) was determined using the following formula:
Where:
· Cu_Eq = Copper Equivalent Grade (%),
· Cu = Copper Grade (%), and
· Au = Gold Grade (g/t).
· This conversion factor reflects the relative economic value of gold
compared to copper, based on prevailing metal prices, recovery rates, and
payability.
· Furthermore, based on these same parameters, a cut-off grade of 0.46%
CuEq was established as economically viable for the project. This threshold
supports the delineation of ore reserves that can be mined profitably under
current cost and market conditions.
· Mine planning and stope optimisation were conducted using
industry-standard software, primarily Deswik.CAD, Deswik.SO, and Deswik.Sched,
to ensure technical accuracy and economic viability. These tools facilitated
the design of stope shapes, sequencing, and scenario analysis based on defined
modifying factors and operational constraints.
· Stope optimisation was performed using a combination of geometric and
economic parameters, including cut-off grade, minimum mining width, dilution
assumptions, and recovery factors. The optimisation process considered the
defined stope dimensions of 20 m width × 20 m length × 30 m height, and
incorporated retreat mining sequences toward capital infrastructure.
· To further refine the mine plan, a Revenue Factor Ranking approach was
employed. This involved applying varying revenue factors to simulate different
metal price scenarios and assess the sensitivity of stope viability. Stopes
that remained economically feasible at lower revenue factors (RF < 0.7)
were prioritised, indicating high-margin zones with strong resilience to
market fluctuations. Conversely, stopes that only became viable at higher
revenue factors (e.g., RF ≥ 0.7) were considered marginal and scheduled
later in the mine life.
· The optimisation process was conducted within the framework of several
key constraints:
· Geotechnical Constraints: Minimum stope dimensions and level
spacing were based on ground stability assessments and support requirements.
· ESG Constraints: No mining was permitted beneath the Biyog
community, and mining methods that could cause surface subsidence were
excluded to protect the Pasil River, a major waterway for the local community.
· Economic Constraints: A cut-off grade of 0.46% CuEq was applied,
derived from current metal prices, recovery rates, and operating costs.
· Operational Constraints: Primary-secondary stoping sequences were
enforced to facilitate backfilling and maintain stope integrity.
· Production Constraint: The mine plan was optimised to support a
sustained production rate of 2.6 million tonnes per annum (MTPA) commencing in
year three, ensuring alignment with processing capacity and strategic output
targets.
Reporting
Tonnes Cu (%) Au (g/t) Cu_eq(%) Contained Cu (Mt) Contained Au (oz)
Proven 22,074,100 0.90 0.34 1.19 197,563 244,136
Probable 108,198,600 0.61 0.19 0.77 658,929 647,031
Total 130,272,700 0.66 0.21 0.84 856,492 891,167
Mining factors or assumptions · The method and assumptions used as reported in the Pre-Feasibility or Modifying Factors Details
Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. Mine Design
either by application of appropriate factors by optimisation or by preliminary Mining Method Sublevel Open Stoping with paste backfill
or detailed design). Mining Sequence Overhand mining applied every 3-4 levels, with 30-meter vertical spacing per
level. Retreat mining is oriented toward capital infrastructure, using a
· The choice, nature and appropriateness of the selected mining method(s) primary-secondary sequence to facilitate backfilling.
and other mining Stope Size 20 m width x 20 m length x 30 m Height
Mine Parameters
· parameters including associated design issues such as pre-strip, access, Cutoff Grade 0.46 Copper Equivalent
etc. Mine Dilution 10%
Mine Recovery 95%
· The assumptions made regarding geotechnical parameters (e.g. pit slopes, Process Plant Parameters
stope sizes, etc), grade control and pre-production drilling. Average Copper Recovery 95 %
Average Gold Recovery 77 %
· The major assumptions made and Mineral Resource model used for pit and Processing Method Conventional Flotation
stope optimisation (if appropriate). Economics $ = USD
Copper Price 4.5 $/lb
· The mining dilution factors used. Gold Price 3,200 $/oz
Payability 96.65%
· The mining recovery factors used. Mining Cost 18.79 $/ton
Milling Cost 14.89 $/ton
· Any minimum mining widths used. General Admin Cost 2.88 $/ton
· The manner in which Inferred Mineral Resources are utilised in mining
studies and the sensitivity of the outcome to their inclusion.
· The infrastructure requirements of the selected mining methods.
Metallurgical factors or assumptions · The metallurgical process proposed and the appropriateness of that · The MCB Copper-Gold Project is designed to process copper sulphide ore at
process to the style of mineralisation. a rate of 2.28 Mt/y during Years 1-2. The throughput will increase to 2.6 Mt/y
from Year 3 onward. Variability test work and geometallurgical assessments
· Whether the metallurgical process is well-tested technology or novel in indicate the potential for harder basalt ore in the mine plan. Additional
nature. capital and appropriate blending strategies may be required to achieve the
target throughput.
· The nature, amount and representativeness of metallurgical test work
undertaken, the nature of the metallurgical domaining applied and the · The processing route for the copper sulphide or body assumes standard
corresponding metallurgical recovery factors applied. crush, single stage SAG grind and a three stage Jameson flotation circuit to
produce a copper- gold concentrate for sale.
· Any assumptions or allowances made for deleterious elements.
· The essential elements of the process plant design utilised conventional
· The existence of any bulk sample or pilot scale test work and the degree flotation technology to produce a copper-gold concentrate.
to which such samples are considered representative of the orebody as a whole.
· The process plant comprises the following major processing circuits:
· For minerals that are defined by a specification, has the ore reserve
estimation been based on the appropriate mineralogy to meet the o Ore preparation - crushing, stockpile and reclaim
specifications?
o SSSAG grinding
o Flotation
o Thickening
o Filtration (both concentrate & tailings)
o Paste fill (preparation) & dry stacking of tails
· The process plant is designed to produce a nominal 22,789 tpa of copper
metal and 30,644 oz pa gold in a copper concentrate, over the first 10 years
of operation.
· Makilala has shown through metallurgical test work that deleterious
elements are unlikely to exist in any quantities that could affect concentrate
payment terms.
· Makilala and its previous consultants have carried out a significant
amount of metallurgical test work in 2021 representing ore types from year 6
to 11 of operations. The FS test work program was designed to represent ore
from year 1 to year 5 and provide Ausenco with data to finalise the process
plant design including:
· Bulk test work to produce a sample of product for Makilala to potential
buyers, is on-going.
· Variability test work to test conditions outside the nominal design
parameters based.
· Confirmatory test work to address uncertainties identified from review of
previous test work results and analysis.
· Dilution testing for Jameson cells.
· Locked cycle testing (LCT) is ongoing.
· Bulk samples for ore handling, thickening, filtration and backfill
operations have been tested.
· The Makilala orebody testwork forms the basis for the first 10 years of
mining and processing operations and, as such, testwork for the FS has
concentrated on the assessment of the metallurgical and geo-metallurgical
characteristics for this orebody. Based on an independent Geo-metallurgy
Report.
· The geo-metallurgical evaluation of orebody reveals a complex yet well
zoned porphyry copper gold system exhibiting significant vertical and lateral
heterogeneity in lithology, alteration, ore type distribution, and
metallurgical behaviour. The deposit is mainly hosted in Tonalite in the east
and centre during early to mid-mine life transitioning to Basalt in the west
an at depth in later stages.
· Metallurgical test-work has been undertaken on drill core samples from
ore sources included in the Ore Reserve estimate and appropriate recoveries
and concentrate grades applied. This testwork enabled the development of a
regression model to determine expected copper and gold recovery from a given
feed grade. This model is then used predict future expected plant
performance including for project financial modelling.
Environmental · The status of studies of potential environmental impacts of the mining · The MCB Project has secured all major environmental approvals required
and processing operation. Details of waste rock characterisation and the for development, including its Environmental Impact Statement (EIS) and
consideration of potential sites, status of design options considered and, Environmental Compliance Certificate (ECC). In accordance with Philippine
where applicable, the status of approvals for process residue storage and regulations, the Multi-Partite Monitoring Team and the Mine Rehabilitation
waste dumps should be reported. Fund Committee (MRFC) have been formally established to oversee environmental
compliance and performance throughout the Project.
· The Project's approved Environmental Protection and Enhancement Program
(EPEP) and Final Mine Rehabilitation and Decommissioning Plan (FMRDP) provide
comprehensive frameworks covering all aspects of mining, processing, tailings
management, water and waste management, and long-term rehabilitation. These
approvals and management plans ensure that environmental safeguards,
monitoring systems, and closure planning are fully integrated into the
Project's design and operational approach.
Infrastructure · The existence of appropriate infrastructure: availability of land for · The Project is located at Barangay Balatoc, Municipality of Pasil,
plant development, power, water, transportation (particularly for bulk Province of Kalinga, Philippines. An existing road to site supports early
commodities), labour, accommodation; or the ease with which the infrastructure construction development only, being approximately 24km of rough dirt road
can be provided, or accessed. with narrow tunnels and passing through villages.
· A new access road is required to be constructed for the project,
including approximately 30km of new road and 6km of road upgrades. These roads
will connect to an existing national highway, distance from site to the
Salomague Port is 118km to which is the nominated port for concentrate export.
The new road will also support construction of the process plant.
· There is currently no infrastructure at MCB Project Site. There is
adequate land available to construct all infrastructure to support the mining
operation and processing facilities,
· The terrain is steep and mountainous therefore of earthworks cut is
required to create internal connecting roads and level pads for the
infrastructure. The available surface Geotech has confirmed the viability of
the civil foundations, being predominately in rippable material with cut
batter stabilisation required during construction.
· A site access bridge over the Pasil River will connect early works and
camp facilities to the mining portal and process plant.
· Water management: there is sufficient raw water available from Karatangus
creek (within 2km of the process plant) to support site water demand.
· Power to site: 80km of new 69kV transmission line will connect the Luzon
Power Grid to MCB Project Site, including a 69kV/13.8kV substation on site.
· Power reticulation at site: 13.8kV powerlines with emergency power
generation
· Site accommodation: Permanent capacity of 272 bed camp with additional
200 beds provided by the mining contractor
· Non-process buildings: administration, crib room, plant maintenance
workshop, process plant stores, ablutions/toilet block, security hut,
laboratory, weighbridge and mining infrastructure (covered above under mining
assumptions).
· Labour required for both construction and operations will be locally
employed with the Balatoc community having priority for employment, with the
remainder of the employees and contractors coming from within the Philippines
with additional with specific technical expertise coming from overseas.
· Salomague Port is the nominated port for concentrate export. The port may
require 1-2m of dredging to facilitate concentrate exports to support larger
vessels.
· MMCI intends to lease 10,000m2 of land near the port for concentrate
container laydown.
Costs · The derivation of, or assumptions made, regarding projected capital costs · The capital cost estimate was compiled by Ausenco Services Pty Ltd
in the study. (Ausenco) on behalf of MMCI and includes cost elements provided by DMT, which
include Capex/Opex for mining development and production, and by MMCI, which
· The methodology used to estimate operating costs. include the main access road, power transmission, sub-station and Owners costs
· Allowances made for the content of deleterious elements. · The capital cost estimate is presented in USD and 62% of the estimate was
sourced in USD, 19% in PHP, and 16% in AUD, with the remainder in EUR and CAD.
· The source of exchange rates used in the study.
· The exchange rates in the estimates are AUD/USD=0.64, PHP/USD=0.0174
· Derivation of transportation charges.
· The base date of the estimate is Q4 2025.
· The basis for forecasting or source of treatment and refining charges,
penalties for failure to meet specification, etc. · Additional process plant costs may be required for the milling and
tailings areas subject to a geometallurgical assessment of harder basalt
· The allowances made for royalties payable, both Government and private. material which is in progress.
· The capital cost estimate for Ausenco's scope was developed in accordance
with the preliminary design drawings and material take-offs based on drawings,
aligned with the work breakdown structure (WBS) by plant areas and disciplines
and applied to budget quotes and in-house pricing. About 63% of the capital
cost is from budget quotes.
· A growth provision was allocated to each element of the costs to reflect
the level of definition in pricing strategy and design maturity relating to
that element.
· A contingency provision has been allowed for with combined direct and
indirect costs included.
· VAT is excluded from the estimate on the assumption that MMCI will obtain
VAT exemption for the project which has already been applied for with
favourable response from the Philippine Board of Investments (BOI)
· Customs duties are excluded from the estimate
· The estimate has an accuracy target range of ±15%for the costs estimated
by Ausenco.
· The project delivery cost was estimated based on an Engineering and
Procurement (EP) delivery strategy with an Owners team to manage construction
and commissioning, with EP Contractor support.
· The process plant operating cost estimate was compiled by Ausenco on
behalf of MMCI and includes cost elements provided by DMT for mining and MMCI
for Owners General and Administration (G&A) costs, reagent prices, power
price, fuel price.
· The operating estimate is considered to have an accuracy of ±15%
· Mining costs were completed by DMT and were derived from first principles
with contractor pricing.
· The cost of reagents and consumables were derived from first principles
using the consumption rates indicated by laboratory test work with benchmark
prices.
· The cost for paste plant binder was derived from prices quoted for cement
and fly-ash, and benchmark consumption rates as backfill testwork are ongoing
· The dry stacking operating costs were derived from first principles with
mobile equipment fleet selection, contractor rates and fuel consumption with
fuel cost
· The dry stacking sustaining capital costs were derived from first
principles with material costs and contractor supplied rates
· MMCI have advised that the power transmission infrastructure will be
constructed by the power provider as an inclusion in the power supply rate.
· Escalation is excluded from the capital cost estimate and the operating
estimate
· Royalties and allowances were included under the Philippine Mining of Act
of 1995 and implementing rules and regulations (IRR) of RA 7942;
Revenue factors · The derivation of, or assumptions made regarding revenue factors · Revenue assumptions for the Ore Reserve estimation reflect contributions
including head grade, metal or commodity price(s) exchange rates, from the payable metals contained within each ore type. Metal price inputs and
transportation and treatment charges, penalties, net smelter returns, etc. exchange rates were based on a combination of independent consensus forecasts
and prevailing market conditions at the time of assessment. These revenue
· The derivation of assumptions made of metal or commodity price(s), for parameters, together with estimates of mining, processing, and site operating
the principal metals, minerals and co-products. costs, informed the economic evaluation used to determine cut-off grades and
underpin the declaration of the Ore Reserve.
Market assessment · The demand, supply and stock situation for the particular commodity, · A market assessment has been undertaken for the MCB Project's copper-gold
consumption trends and factors likely to affect supply and demand into the concentrate, considering global demand, supply, and stock conditions together
future. with long-term consumption trends. The analysis highlights a tightening copper
supply environment driven by declining global ore grades, limited new project
· A customer and competitor analysis along with the identification of development, and increasing ESG and permitting constraints. At the same time,
likely market windows for the product. demand continues to grow, underpinned by electrification, renewable energy
systems, and the rapid expansion of AI and high-performance data centres,
· Price and volume forecasts and the basis for these forecasts. which require significant electrical infrastructure and energy capacity. Gold
demand remains robust due to its dual industrial and financial roles.
· For industrial minerals the customer specification, testing and
acceptance requirements prior to a supply contract. · A review of potential customers and competitors confirms a strong and
diversified market for clean copper-gold concentrates, with established
smelters and traders across Asia-particularly China, Japan, and South
Korea-representing the most likely market windows. The anticipated
high-quality, low-impurity profile of the MCB concentrate aligns with smelter
requirements for clean feedstock amid tightening environmental and operating
standards.
· Price and volume forecasts used in the financial assessment are based on
independent long-term consensus pricing and prevailing market conditions and
are supported by the fact that the Company has received multiple term sheet
offers from reputable concentrate traders, offtakers, and interested parties.
These offers provide direct evidence of market demand and confirm the
acceptability of the MCB concentrate.
· As the product is not an industrial mineral, no specialised downstream
qualification testing is required beyond standard concentrate
characterisation. Metallurgical testwork confirms that the concentrate meets
typical smelter specifications for copper, gold, and deleterious elements,
supporting broad market acceptance and strong offtake optionality.
Economic · The inputs to the economic analysis to produce the net present value · Financial evaluation of the MCB Ore Reserve was undertaken using a
(NPV) in the study, the source and confidence of these economic inputs detailed spreadsheet-based financial model, incorporating all cost, revenue,
including estimated inflation, discount rate, etc. and physical inputs as outlined in the relevant sections of this announcement.
The model has been constructed in real terms, with operating and capital costs
· NPV ranges and sensitivity to variations in the significant assumptions assumed to remain constant over the evaluation period and no escalation
and inputs. applied.
· The analysis indicates that the MCB Project delivers robust economic
returns based on the planned mine schedule, associated waste and ore
movements, and the applied cost and revenue assumptions. Sensitivity analyses
were completed across a range of metal price scenarios-from independent
long-term consensus forecasts to prevailing spot prices and corresponding
exchange rates-and confirm the Project's resilience under varying market
conditions.
Social · The status of agreements with key stakeholders and matters leading to · The MCB Project has established strong social acceptability, underpinned
social licence to operate. by a Memorandum of Agreement (MOA) entered into with the Balatoc Indigenous
Cultural Community as part of the FPIC process, and the issuance of a
Certification Precondition (CP) in accordance with the IPRA Law. The Project
has also received formal resolutions of support from the relevant local
government units, which are a prerequisite for the issuance of the DMPF under
the Philippine Mining Act. These agreements and endorsements collectively
provide a solid foundation for the Project's ongoing social licence to
operate.
Other · To the extent relevant, the impact of the following on the project and/or · The MCB Project has secured all key regulatory and social approvals
on the estimation and classification of the Ore Reserves: required to advance toward construction, including the Environmental
Compliance Certificate (ECC), DMPF, and a Certification Precondition issued
· Any identified material naturally occurring risks. following completion of the FPIC process with the Indigenous Cultural
Community. The Project is covered by a valid MPSA, and no material legal,
· The status of material legal agreements and marketing arrangements. environmental, or naturally occurring risks have been identified that would
prevent development.
· The status of governmental agreements and approvals critical to the
viability of the project, such as mineral tenement status, and government and · The Maharlika Investment Corporation (MIC) has invested in the Project,
statutory approvals. There must be reasonable grounds to expect that all demonstrating confidence in its technical and commercial viability. Additional
necessary Government approvals will be received within the timeframes funding will, however, be required to support full development. While the
anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss Company has received several funding offers, there is no guarantee that the
the materiality of any unresolved matter that is dependent on a third party on remaining debt and equity requirements will be secured on the terms or within
which extraction of the reserve is contingent. the timeframes assumed.
· Construction planning is well advanced, and no resettlement of host
communities is required under the current mine plan and site layout. No
unresolved third-party matters have been identified that would materially
impact the Company's ability to progress the Project toward development.
Classification · The basis for the classification of the Ore Reserves into varying · The Proven category reflects areas supported by Measured Mineral
confidence categories. Resources, while the Probable category is derived predominantly from Indicated
Mineral Resources.
· Whether the result appropriately reflects the Competent Person's view of
the deposit. · Inferred material and internal waste captured within the final stope and
mine designs are treated as planned dilution and have not been classified as
· The proportion of Probable Ore Reserves that have been derived from Ore Reserves. The classification is consistent with the level of geological
Measured Mineral Resources (if any). confidence, data quality, and the application of all relevant Modifying
Factors evaluated as part of the study.
Audits or reviews · The results of any audits or reviews of Ore Reserve estimates. · An internal independent Peer audit was conducted on the mine engineering
aspects of the Ore Reserve Estimate.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · The Competent Person has a high level of confidence in the technical and
level in the Ore Reserve estimate using an approach or procedure deemed economic viability of the reported Ore Reserve. The Reserve is derived from
appropriate by the Competent Person. For example, the application of Measured and Indicated Mineral Resources and is supported by studies-both
statistical or geostatistical procedures to quantify the relative accuracy of current and previous-that incorporate detailed geological, geotechnical,
the reserve within stated confidence limits, or, if such an approach is not mining, metallurgical, environmental, and economic assessments. The Ore
deemed appropriate, a qualitative discussion of the factors which could affect Reserve is considered robust within the limits of the current geological,
the relative accuracy and confidence of the estimate. geotechnical, and economic information.
· The statement should specify whether it relates to global or local · Confidence in the estimate is reinforced by:
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include · A well-defined geological model supported by extensive drilling,
assumptions made and the procedures used. geostatistical analysis, and independent technical reviews completed as part
of these studies.
· Accuracy and confidence discussions should extend to specific discussions
of any applied Modifying Factors that may have a material impact on Ore · Conservative treatment of Inferred material, which is excluded
Reserve viability, or for which there are remaining areas of uncertainty at from the Ore Reserve and treated only as planned dilution where captured in
the current study stage. mine designs, ensuring appropriate classification under the JORC Code.
· It is recognised that this may not be possible or appropriate in all · Strong metallurgical performance, with testwork demonstrating
circumstances. These statements of relative accuracy and confidence of the consistent recoveries and confirming that MCB will produce a clean,
estimate should be compared with production data, where available. high-quality copper-gold concentrate suitable for conventional flotation
processing.
· An integrated mine plan and infrastructure configuration
developed through current and previous study phases, with mine design,
production scheduling, operating parameters, and cost estimates aligned with
industry benchmarks.
· A comprehensive permitting and social licence framework,
including the ECC, FPIC Certification Precondition, and approval of the mining
studies, demonstrating regulatory and community support for project
development.
· While minor uncertainties typical of study-level evaluations
remain-such as commodity price variability, operating cost movements, and the
future conversion potential of adjacent mineralisation-these do not materially
affect the reasonableness or reliability of the reported Ore Reserve.
· Overall, the Ore Reserve represents an assessment of economic
extractability at a confidence level consistent with Proven and Probable
classifications under the JORC Code (2012).
· Using the economic parameters outlined above, the copper equivalent grade
contribution from gold credits was calculated to be approximately 0.85. The
copper equivalent grade (Cu_Eq) was determined using the following formula:
Where:
· Cu_Eq = Copper Equivalent Grade (%),
· Cu = Copper Grade (%), and
· Au = Gold Grade (g/t).
· This conversion factor reflects the relative economic value of gold
compared to copper, based on prevailing metal prices, recovery rates, and
payability.
· Furthermore, based on these same parameters, a cut-off grade of 0.46%
CuEq was established as economically viable for the project. This threshold
supports the delineation of ore reserves that can be mined profitably under
current cost and market conditions.
· Mine planning and stope optimisation were conducted using
industry-standard software, primarily Deswik.CAD, Deswik.SO, and Deswik.Sched,
to ensure technical accuracy and economic viability. These tools facilitated
the design of stope shapes, sequencing, and scenario analysis based on defined
modifying factors and operational constraints.
· Stope optimisation was performed using a combination of geometric and
economic parameters, including cut-off grade, minimum mining width, dilution
assumptions, and recovery factors. The optimisation process considered the
defined stope dimensions of 20 m width × 20 m length × 30 m height, and
incorporated retreat mining sequences toward capital infrastructure.
· To further refine the mine plan, a Revenue Factor Ranking approach was
employed. This involved applying varying revenue factors to simulate different
metal price scenarios and assess the sensitivity of stope viability. Stopes
that remained economically feasible at lower revenue factors (RF < 0.7)
were prioritised, indicating high-margin zones with strong resilience to
market fluctuations. Conversely, stopes that only became viable at higher
revenue factors (e.g., RF ≥ 0.7) were considered marginal and scheduled
later in the mine life.
· The optimisation process was conducted within the framework of several
key constraints:
· Geotechnical Constraints: Minimum stope dimensions and level
spacing were based on ground stability assessments and support requirements.
· ESG Constraints: No mining was permitted beneath the Biyog
community, and mining methods that could cause surface subsidence were
excluded to protect the Pasil River, a major waterway for the local community.
· Economic Constraints: A cut-off grade of 0.46% CuEq was applied,
derived from current metal prices, recovery rates, and operating costs.
· Operational Constraints: Primary-secondary stoping sequences were
enforced to facilitate backfilling and maintain stope integrity.
· Production Constraint: The mine plan was optimised to support a
sustained production rate of 2.6 million tonnes per annum (MTPA) commencing in
year three, ensuring alignment with processing capacity and strategic output
targets.
Reporting
Tonnes Cu (%) Au (g/t) Cu_eq(%) Contained Cu (Mt) Contained Au (oz)
Proven 22,074,100 0.90 0.34 1.19 197,563 244,136
Probable 108,198,600 0.61 0.19 0.77 658,929 647,031
Total 130,272,700 0.66 0.21 0.84 856,492 891,167
Mining factors or assumptions
· The method and assumptions used as reported in the Pre-Feasibility or
Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e.
either by application of appropriate factors by optimisation or by preliminary
or detailed design).
· The choice, nature and appropriateness of the selected mining method(s)
and other mining
· parameters including associated design issues such as pre-strip, access,
etc.
· The assumptions made regarding geotechnical parameters (e.g. pit slopes,
stope sizes, etc), grade control and pre-production drilling.
· The major assumptions made and Mineral Resource model used for pit and
stope optimisation (if appropriate).
· The mining dilution factors used.
· The mining recovery factors used.
· Any minimum mining widths used.
· The manner in which Inferred Mineral Resources are utilised in mining
studies and the sensitivity of the outcome to their inclusion.
· The infrastructure requirements of the selected mining methods.
Modifying Factors Details
Mine Design
Mining Method Sublevel Open Stoping with paste backfill
Mining Sequence Overhand mining applied every 3-4 levels, with 30-meter vertical spacing per
level. Retreat mining is oriented toward capital infrastructure, using a
primary-secondary sequence to facilitate backfilling.
Stope Size 20 m width x 20 m length x 30 m Height
Mine Parameters
Cutoff Grade 0.46 Copper Equivalent
Mine Dilution 10%
Mine Recovery 95%
Process Plant Parameters
Average Copper Recovery 95 %
Average Gold Recovery 77 %
Processing Method Conventional Flotation
Economics $ = USD
Copper Price 4.5 $/lb
Gold Price 3,200 $/oz
Payability 96.65%
Mining Cost 18.79 $/ton
Milling Cost 14.89 $/ton
General Admin Cost 2.88 $/ton
Metallurgical factors or assumptions
· The metallurgical process proposed and the appropriateness of that
process to the style of mineralisation.
· Whether the metallurgical process is well-tested technology or novel in
nature.
· The nature, amount and representativeness of metallurgical test work
undertaken, the nature of the metallurgical domaining applied and the
corresponding metallurgical recovery factors applied.
· Any assumptions or allowances made for deleterious elements.
· The existence of any bulk sample or pilot scale test work and the degree
to which such samples are considered representative of the orebody as a whole.
· For minerals that are defined by a specification, has the ore reserve
estimation been based on the appropriate mineralogy to meet the
specifications?
· The MCB Copper-Gold Project is designed to process copper sulphide ore at
a rate of 2.28 Mt/y during Years 1-2. The throughput will increase to 2.6 Mt/y
from Year 3 onward. Variability test work and geometallurgical assessments
indicate the potential for harder basalt ore in the mine plan. Additional
capital and appropriate blending strategies may be required to achieve the
target throughput.
· The processing route for the copper sulphide or body assumes standard
crush, single stage SAG grind and a three stage Jameson flotation circuit to
produce a copper- gold concentrate for sale.
· The essential elements of the process plant design utilised conventional
flotation technology to produce a copper-gold concentrate.
· The process plant comprises the following major processing circuits:
o Ore preparation - crushing, stockpile and reclaim
o SSSAG grinding
o Flotation
o Thickening
o Filtration (both concentrate & tailings)
o Paste fill (preparation) & dry stacking of tails
· The process plant is designed to produce a nominal 22,789 tpa of copper
metal and 30,644 oz pa gold in a copper concentrate, over the first 10 years
of operation.
· Makilala has shown through metallurgical test work that deleterious
elements are unlikely to exist in any quantities that could affect concentrate
payment terms.
· Makilala and its previous consultants have carried out a significant
amount of metallurgical test work in 2021 representing ore types from year 6
to 11 of operations. The FS test work program was designed to represent ore
from year 1 to year 5 and provide Ausenco with data to finalise the process
plant design including:
· Bulk test work to produce a sample of product for Makilala to potential
buyers, is on-going.
· Variability test work to test conditions outside the nominal design
parameters based.
· Confirmatory test work to address uncertainties identified from review of
previous test work results and analysis.
· Dilution testing for Jameson cells.
· Locked cycle testing (LCT) is ongoing.
· Bulk samples for ore handling, thickening, filtration and backfill
operations have been tested.
· The Makilala orebody testwork forms the basis for the first 10 years of
mining and processing operations and, as such, testwork for the FS has
concentrated on the assessment of the metallurgical and geo-metallurgical
characteristics for this orebody. Based on an independent Geo-metallurgy
Report.
· The geo-metallurgical evaluation of orebody reveals a complex yet well
zoned porphyry copper gold system exhibiting significant vertical and lateral
heterogeneity in lithology, alteration, ore type distribution, and
metallurgical behaviour. The deposit is mainly hosted in Tonalite in the east
and centre during early to mid-mine life transitioning to Basalt in the west
an at depth in later stages.
· Metallurgical test-work has been undertaken on drill core samples from
ore sources included in the Ore Reserve estimate and appropriate recoveries
and concentrate grades applied. This testwork enabled the development of a
regression model to determine expected copper and gold recovery from a given
feed grade. This model is then used predict future expected plant
performance including for project financial modelling.
Environmental
· The status of studies of potential environmental impacts of the mining
and processing operation. Details of waste rock characterisation and the
consideration of potential sites, status of design options considered and,
where applicable, the status of approvals for process residue storage and
waste dumps should be reported.
· The MCB Project has secured all major environmental approvals required
for development, including its Environmental Impact Statement (EIS) and
Environmental Compliance Certificate (ECC). In accordance with Philippine
regulations, the Multi-Partite Monitoring Team and the Mine Rehabilitation
Fund Committee (MRFC) have been formally established to oversee environmental
compliance and performance throughout the Project.
· The Project's approved Environmental Protection and Enhancement Program
(EPEP) and Final Mine Rehabilitation and Decommissioning Plan (FMRDP) provide
comprehensive frameworks covering all aspects of mining, processing, tailings
management, water and waste management, and long-term rehabilitation. These
approvals and management plans ensure that environmental safeguards,
monitoring systems, and closure planning are fully integrated into the
Project's design and operational approach.
Infrastructure
· The existence of appropriate infrastructure: availability of land for
plant development, power, water, transportation (particularly for bulk
commodities), labour, accommodation; or the ease with which the infrastructure
can be provided, or accessed.
· The Project is located at Barangay Balatoc, Municipality of Pasil,
Province of Kalinga, Philippines. An existing road to site supports early
construction development only, being approximately 24km of rough dirt road
with narrow tunnels and passing through villages.
· A new access road is required to be constructed for the project,
including approximately 30km of new road and 6km of road upgrades. These roads
will connect to an existing national highway, distance from site to the
Salomague Port is 118km to which is the nominated port for concentrate export.
The new road will also support construction of the process plant.
· There is currently no infrastructure at MCB Project Site. There is
adequate land available to construct all infrastructure to support the mining
operation and processing facilities,
· The terrain is steep and mountainous therefore of earthworks cut is
required to create internal connecting roads and level pads for the
infrastructure. The available surface Geotech has confirmed the viability of
the civil foundations, being predominately in rippable material with cut
batter stabilisation required during construction.
· A site access bridge over the Pasil River will connect early works and
camp facilities to the mining portal and process plant.
· Water management: there is sufficient raw water available from Karatangus
creek (within 2km of the process plant) to support site water demand.
· Power to site: 80km of new 69kV transmission line will connect the Luzon
Power Grid to MCB Project Site, including a 69kV/13.8kV substation on site.
· Power reticulation at site: 13.8kV powerlines with emergency power
generation
· Site accommodation: Permanent capacity of 272 bed camp with additional
200 beds provided by the mining contractor
· Non-process buildings: administration, crib room, plant maintenance
workshop, process plant stores, ablutions/toilet block, security hut,
laboratory, weighbridge and mining infrastructure (covered above under mining
assumptions).
· Labour required for both construction and operations will be locally
employed with the Balatoc community having priority for employment, with the
remainder of the employees and contractors coming from within the Philippines
with additional with specific technical expertise coming from overseas.
· Salomague Port is the nominated port for concentrate export. The port may
require 1-2m of dredging to facilitate concentrate exports to support larger
vessels.
· MMCI intends to lease 10,000m2 of land near the port for concentrate
container laydown.
Costs
· The derivation of, or assumptions made, regarding projected capital costs
in the study.
· The methodology used to estimate operating costs.
· Allowances made for the content of deleterious elements.
· The source of exchange rates used in the study.
· Derivation of transportation charges.
· The basis for forecasting or source of treatment and refining charges,
penalties for failure to meet specification, etc.
· The allowances made for royalties payable, both Government and private.
· The capital cost estimate was compiled by Ausenco Services Pty Ltd
(Ausenco) on behalf of MMCI and includes cost elements provided by DMT, which
include Capex/Opex for mining development and production, and by MMCI, which
include the main access road, power transmission, sub-station and Owners costs
· The capital cost estimate is presented in USD and 62% of the estimate was
sourced in USD, 19% in PHP, and 16% in AUD, with the remainder in EUR and CAD.
· The exchange rates in the estimates are AUD/USD=0.64, PHP/USD=0.0174
· The base date of the estimate is Q4 2025.
· Additional process plant costs may be required for the milling and
tailings areas subject to a geometallurgical assessment of harder basalt
material which is in progress.
· The capital cost estimate for Ausenco's scope was developed in accordance
with the preliminary design drawings and material take-offs based on drawings,
aligned with the work breakdown structure (WBS) by plant areas and disciplines
and applied to budget quotes and in-house pricing. About 63% of the capital
cost is from budget quotes.
· A growth provision was allocated to each element of the costs to reflect
the level of definition in pricing strategy and design maturity relating to
that element.
· A contingency provision has been allowed for with combined direct and
indirect costs included.
· VAT is excluded from the estimate on the assumption that MMCI will obtain
VAT exemption for the project which has already been applied for with
favourable response from the Philippine Board of Investments (BOI)
· Customs duties are excluded from the estimate
· The estimate has an accuracy target range of ±15%for the costs estimated
by Ausenco.
· The project delivery cost was estimated based on an Engineering and
Procurement (EP) delivery strategy with an Owners team to manage construction
and commissioning, with EP Contractor support.
· The process plant operating cost estimate was compiled by Ausenco on
behalf of MMCI and includes cost elements provided by DMT for mining and MMCI
for Owners General and Administration (G&A) costs, reagent prices, power
price, fuel price.
· The operating estimate is considered to have an accuracy of ±15%
· Mining costs were completed by DMT and were derived from first principles
with contractor pricing.
· The cost of reagents and consumables were derived from first principles
using the consumption rates indicated by laboratory test work with benchmark
prices.
· The cost for paste plant binder was derived from prices quoted for cement
and fly-ash, and benchmark consumption rates as backfill testwork are ongoing
· The dry stacking operating costs were derived from first principles with
mobile equipment fleet selection, contractor rates and fuel consumption with
fuel cost
· The dry stacking sustaining capital costs were derived from first
principles with material costs and contractor supplied rates
· MMCI have advised that the power transmission infrastructure will be
constructed by the power provider as an inclusion in the power supply rate.
· Escalation is excluded from the capital cost estimate and the operating
estimate
· Royalties and allowances were included under the Philippine Mining of Act
of 1995 and implementing rules and regulations (IRR) of RA 7942;
Revenue factors
· The derivation of, or assumptions made regarding revenue factors
including head grade, metal or commodity price(s) exchange rates,
transportation and treatment charges, penalties, net smelter returns, etc.
· The derivation of assumptions made of metal or commodity price(s), for
the principal metals, minerals and co-products.
· Revenue assumptions for the Ore Reserve estimation reflect contributions
from the payable metals contained within each ore type. Metal price inputs and
exchange rates were based on a combination of independent consensus forecasts
and prevailing market conditions at the time of assessment. These revenue
parameters, together with estimates of mining, processing, and site operating
costs, informed the economic evaluation used to determine cut-off grades and
underpin the declaration of the Ore Reserve.
Market assessment
· The demand, supply and stock situation for the particular commodity,
consumption trends and factors likely to affect supply and demand into the
future.
· A customer and competitor analysis along with the identification of
likely market windows for the product.
· Price and volume forecasts and the basis for these forecasts.
· For industrial minerals the customer specification, testing and
acceptance requirements prior to a supply contract.
· A market assessment has been undertaken for the MCB Project's copper-gold
concentrate, considering global demand, supply, and stock conditions together
with long-term consumption trends. The analysis highlights a tightening copper
supply environment driven by declining global ore grades, limited new project
development, and increasing ESG and permitting constraints. At the same time,
demand continues to grow, underpinned by electrification, renewable energy
systems, and the rapid expansion of AI and high-performance data centres,
which require significant electrical infrastructure and energy capacity. Gold
demand remains robust due to its dual industrial and financial roles.
· A review of potential customers and competitors confirms a strong and
diversified market for clean copper-gold concentrates, with established
smelters and traders across Asia-particularly China, Japan, and South
Korea-representing the most likely market windows. The anticipated
high-quality, low-impurity profile of the MCB concentrate aligns with smelter
requirements for clean feedstock amid tightening environmental and operating
standards.
· Price and volume forecasts used in the financial assessment are based on
independent long-term consensus pricing and prevailing market conditions and
are supported by the fact that the Company has received multiple term sheet
offers from reputable concentrate traders, offtakers, and interested parties.
These offers provide direct evidence of market demand and confirm the
acceptability of the MCB concentrate.
· As the product is not an industrial mineral, no specialised downstream
qualification testing is required beyond standard concentrate
characterisation. Metallurgical testwork confirms that the concentrate meets
typical smelter specifications for copper, gold, and deleterious elements,
supporting broad market acceptance and strong offtake optionality.
Economic
· The inputs to the economic analysis to produce the net present value
(NPV) in the study, the source and confidence of these economic inputs
including estimated inflation, discount rate, etc.
· NPV ranges and sensitivity to variations in the significant assumptions
and inputs.
· Financial evaluation of the MCB Ore Reserve was undertaken using a
detailed spreadsheet-based financial model, incorporating all cost, revenue,
and physical inputs as outlined in the relevant sections of this announcement.
The model has been constructed in real terms, with operating and capital costs
assumed to remain constant over the evaluation period and no escalation
applied.
· The analysis indicates that the MCB Project delivers robust economic
returns based on the planned mine schedule, associated waste and ore
movements, and the applied cost and revenue assumptions. Sensitivity analyses
were completed across a range of metal price scenarios-from independent
long-term consensus forecasts to prevailing spot prices and corresponding
exchange rates-and confirm the Project's resilience under varying market
conditions.
Social
· The status of agreements with key stakeholders and matters leading to
social licence to operate.
· The MCB Project has established strong social acceptability, underpinned
by a Memorandum of Agreement (MOA) entered into with the Balatoc Indigenous
Cultural Community as part of the FPIC process, and the issuance of a
Certification Precondition (CP) in accordance with the IPRA Law. The Project
has also received formal resolutions of support from the relevant local
government units, which are a prerequisite for the issuance of the DMPF under
the Philippine Mining Act. These agreements and endorsements collectively
provide a solid foundation for the Project's ongoing social licence to
operate.
Other
· To the extent relevant, the impact of the following on the project and/or
on the estimation and classification of the Ore Reserves:
· Any identified material naturally occurring risks.
· The status of material legal agreements and marketing arrangements.
· The status of governmental agreements and approvals critical to the
viability of the project, such as mineral tenement status, and government and
statutory approvals. There must be reasonable grounds to expect that all
necessary Government approvals will be received within the timeframes
anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss
the materiality of any unresolved matter that is dependent on a third party on
which extraction of the reserve is contingent.
· The MCB Project has secured all key regulatory and social approvals
required to advance toward construction, including the Environmental
Compliance Certificate (ECC), DMPF, and a Certification Precondition issued
following completion of the FPIC process with the Indigenous Cultural
Community. The Project is covered by a valid MPSA, and no material legal,
environmental, or naturally occurring risks have been identified that would
prevent development.
· The Maharlika Investment Corporation (MIC) has invested in the Project,
demonstrating confidence in its technical and commercial viability. Additional
funding will, however, be required to support full development. While the
Company has received several funding offers, there is no guarantee that the
remaining debt and equity requirements will be secured on the terms or within
the timeframes assumed.
· Construction planning is well advanced, and no resettlement of host
communities is required under the current mine plan and site layout. No
unresolved third-party matters have been identified that would materially
impact the Company's ability to progress the Project toward development.
Classification
· The basis for the classification of the Ore Reserves into varying
confidence categories.
· Whether the result appropriately reflects the Competent Person's view of
the deposit.
· The proportion of Probable Ore Reserves that have been derived from
Measured Mineral Resources (if any).
· The Proven category reflects areas supported by Measured Mineral
Resources, while the Probable category is derived predominantly from Indicated
Mineral Resources.
· Inferred material and internal waste captured within the final stope and
mine designs are treated as planned dilution and have not been classified as
Ore Reserves. The classification is consistent with the level of geological
confidence, data quality, and the application of all relevant Modifying
Factors evaluated as part of the study.
Audits or reviews
· The results of any audits or reviews of Ore Reserve estimates.
· An internal independent Peer audit was conducted on the mine engineering
aspects of the Ore Reserve Estimate.
Discussion of relative accuracy/ confidence
· Where appropriate a statement of the relative accuracy and confidence
level in the Ore Reserve estimate using an approach or procedure deemed
appropriate by the Competent Person. For example, the application of
statistical or geostatistical procedures to quantify the relative accuracy of
the reserve within stated confidence limits, or, if such an approach is not
deemed appropriate, a qualitative discussion of the factors which could affect
the relative accuracy and confidence of the estimate.
· The statement should specify whether it relates to global or local
estimates, and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should include
assumptions made and the procedures used.
· Accuracy and confidence discussions should extend to specific discussions
of any applied Modifying Factors that may have a material impact on Ore
Reserve viability, or for which there are remaining areas of uncertainty at
the current study stage.
· It is recognised that this may not be possible or appropriate in all
circumstances. These statements of relative accuracy and confidence of the
estimate should be compared with production data, where available.
· The Competent Person has a high level of confidence in the technical and
economic viability of the reported Ore Reserve. The Reserve is derived from
Measured and Indicated Mineral Resources and is supported by studies-both
current and previous-that incorporate detailed geological, geotechnical,
mining, metallurgical, environmental, and economic assessments. The Ore
Reserve is considered robust within the limits of the current geological,
geotechnical, and economic information.
· Confidence in the estimate is reinforced by:
· A well-defined geological model supported by extensive drilling,
geostatistical analysis, and independent technical reviews completed as part
of these studies.
· Conservative treatment of Inferred material, which is excluded
from the Ore Reserve and treated only as planned dilution where captured in
mine designs, ensuring appropriate classification under the JORC Code.
· Strong metallurgical performance, with testwork demonstrating
consistent recoveries and confirming that MCB will produce a clean,
high-quality copper-gold concentrate suitable for conventional flotation
processing.
· An integrated mine plan and infrastructure configuration
developed through current and previous study phases, with mine design,
production scheduling, operating parameters, and cost estimates aligned with
industry benchmarks.
· A comprehensive permitting and social licence framework,
including the ECC, FPIC Certification Precondition, and approval of the mining
studies, demonstrating regulatory and community support for project
development.
· While minor uncertainties typical of study-level evaluations
remain-such as commodity price variability, operating cost movements, and the
future conversion potential of adjacent mineralisation-these do not materially
affect the reasonableness or reliability of the reported Ore Reserve.
· Overall, the Ore Reserve represents an assessment of economic
extractability at a confidence level consistent with Proven and Probable
classifications under the JORC Code (2012).
1 ASX/AIM announcement 24 November 2025
2 https://geolsocphil.com/materials/1hJPE22uN9e39c0ssWR0Loq5VV4BMJKu.pdf
3 ASX/AIM announcement 28 September 2023
4 ASX/AIM announcement 18 March 2024
5 ASX/AIM announcements 15 September 2025, 6 October 2025 and 28 February
2023
6 ASX announcement 16 September 2020 (MCB-003, MCB-008 and MCB-019, ASX
announcement 19 October 2022 (MCB-041), ASX announcement 4 October 2022
(MCB-040), ASX announcement 3 August 2022 (MCB-039), ASX announcement 4 July
2022 (MCB-038), ASX announcement 23 May 2022 (MCB-037), ASX announcement 13
December 2021 (MCB-036).
7 ASX/AIM Announcement 11 November 2025
8 ASX/AIM announcement 18 June 2025
9 ASX/AIM Announcement 18 March 2024
10 ASX/AIM Announcement 4 September 2024
11 ASX/AIM Announcement 31 May 2023
12 ASX/AIM announcement 19 May 2025
13 https://lawphil.net/statutes/repacts/ra1995/ra_7942_1995.html
(https://lawphil.net/statutes/repacts/ra1995/ra_7942_1995.html)
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