REG - Celsius Resources Ld - MCB Project Feasibility Study Approval

Celsius ResourcesAnnouncement

15/08/2023 07:15

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RNS Number : 3526J  Celsius Resources Limited  15 August 2023

 

ASX/AIM RELEASE

 15 August 2023

 

MCB Project Feasibility Study Approval
HIGHLIGHTS

· Philippine Mines and Geosciences Bureau approves the MCB Project's Mining
Project Feasibility Study as technically and economically feasible based on
provisions of the Philippine Mining Act of 1995.

· Following this approval is the anticipated issuance of the MCB Project's
Declaration of Mining Project Feasibility and consequently, the Mineral
Production Sharing Agreement.

_______________________________________________________________________________

 

 

Celsius Resources Limited ("Celsius") is pleased to announce the approval of
the Mining Project Feasibility Study ("MPFS") for the Maalinao-Caigutan-Biyog
("MCB") Project in the Cordillera Administrative Region under its Philippine
subsidiary, Makilala Mining Company, Inc. ("MMCI or "the Company").

 

After a thorough evaluation of the Technical Committee, the Philippine Mines
and Geoscience Bureau deemed it technically and economically feasible after
consideration of the environmental, social, and fiscal requirements prescribed
under the Philippine Mining Act of 1995 1  and its revised Implementing Rules
and Regulations 2 .

 

Celsius Chairman Atty. Julito Sarmiento said:

 

"We are thankful to the Marcos, Jr.'s Administration, through the leadership
of Secretary Maria Antonia Yulo-Loyzaga of the Department of Environment and
Natural Resources and the Mines and Geosciences Bureau, in creating a
supportive and favourable climate for the mining companies in the Philippines
while ensuring that we adhere to the national standards on responsible mining.
Rest assured that we remain committed as responsible stewards of our natural
resources in our quest to provide value not only to our shareholders and
stakeholders but to our country and host communities as well."

 

The MPFS was reviewed against the submitted technical, social, and
environmental plans and programs to support the application for the
Declaration of Mining Project Feasibility (DMPF), as follows:

 

 Key Documents                                                      Description                                                                      Date of Approval
 1. Mining Project Feasibility Study Report (MPFS)                  Assesses the technical and financial viability of the MCB Project to advance      August 2023
                                                                    towards project development and operations by tapping into its full potential.
 2. Final Exploration Report (FER)                                  Details the exploration works carried out in the MCB tenement area from          September 2022
                                                                    2006-2013 and CY 2020 to 2021 which led to the discovery of the MCB porphyry
                                                                    copper-gold deposit.
 3. Environmental Impact Assessment (EIA) Report                    Identifies, assesses, and mitigates the likely environmental, social, and        Environmental Compliance Certificate No.  ECC-CO-2212-0041 issued 29 May 2023
                                                                    economic impacts, both beneficial and adverse, of the MCB Project as compared

                                                                    to baseline conditions.                                                          (See CLA Announcement dated 31 May 2023)
 4. Environmental Protection and Enhancement Program (EPEP)         A comprehensive and strategic environmental management plan for the life of      Certificate of Approval No.211-2023-05 issued 12 July 2023
                                                                    the MCB Project. It contains the expected impacts, mitigating measures and

                                                                    commitments, including protection and rehabilitation of the disturbed            (See CLA Announcement dated 18 July 2023)
                                                                    environment. It also serves as an operational link between the environmental
                                                                    management provisions of the Philippine Mining Act's revised Implementing
                                                                    Rules and Regulations 3  and the conditions stated in the Environmental
                                                                    Compliance Certificate issued to the MCB Project.
 5. Final Mine Rehabilitation and/or Decommissioning Plan (FMR/DP)  Considers all mine closure scenarios and cost estimates using risk-based         Certificate of Approval No.211-2023-05 issued 12 July 2023
                                                                    methodologies/ approaches. It covers the full extent of work necessary to

                                                                    achieve the objectives of mine closure such as, but not limited to,              (See CLA Announcement dated 18 July 2023)
                                                                    decommissioning, rehabilitation, maintenance, and monitoring.
 6. Care and Maintenance Program (CMP)                              Details the Company's safety and health, social, and environmental commitments   Certificate of Approval No. 001-2023-CAR issued March 2023
                                                                    as integral components of the MCB Project in cases of operational constraints

                                                                    (i.e., voluntary or involuntary stoppage).                                       (See CLA Announcement dated 3 January 2023)
 7. Social Development and Management Program (SDMP)                A five-year program developed in consultation with the MCB Project's host and    Certificate of Approval No. 031-2023-01-CAR issued 4 May 2023
                                                                    neighboring communities and aligned with local development plans and global

                                                                    sustainable development goals to bring about a sustained improvement in their    (See CLA Announcement dated  January 2023)
                                                                    living standards.

 

Following the approvals of all submitted documents, the issuance of the MCB
Project's DMPF is anticipated in the coming weeks and subsequently, the
approval of the mining permit, the Mineral Production Sharing Agreement
(MPSA).

 

MCB COPPER-GOLD PROJECT

 

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

 

A maiden JORC Compliant Mineral Resource Estimate was declared for the MCB
Project in January 2021, comprising 313.8 million tonnes @ 0.48% copper and
0.15g/t gold, for 1.5 million tonnes of contained copper and 1.47 million
ounces of gold, of which 290.3 million tonnes @ 0.48% copper and 0.15 g/t gold
is classified as Indicated and 23.5 million tonnes @ 0.48% copper and 0.10 g/t
gold is classified as Inferred.

 

An updated JORC compliant Mineral Resource Estimate was announced for the MCB
Project on 12 December 2022, comprising 338 million tonnes @ 0.47% copper and
0.12 g/t gold, for total of 1.6 million tonnes of contained copper and 1.3
million ounces of gold, reported to a preferred lower cut-off grade of 0.2%
copper.

 

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

 

Highlights from the Study include a Post tax NPV (8%) of US$464m and IRR of
31%, assuming a copper price of US$4.00/lb and gold price of US$1,695/oz.
Initial capital expenditure is estimated to be US$253m with a payback period
of approximately 2.7 years. The designed mine production is matched to a
2.28Mtpa processing plant which will treat ore with an estimated average grade
of 1.14% copper and 0.54g/t gold for the first 10 years of planned production
with a C1 4  cash costs at just US$0.73/lb copper, net of gold credits.

 

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

 

 

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

 

ASX Listing Rule 5.19 and 5.23 Disclosure

 

The information is this announcement with respect to the Mineral Resource
Estimate for the MCB Project was first announced by Celsius to ASX on 12
December 2022. Celsius confirms that it is not aware of any new information or
data that materially affects the information included in the announcement
dated 12 December 2022 and that all material assumptions and technical
parameters underpinning the Mineral Resource Estimate continue to apply and
have not materially changed.

 

The information in this announcement with respect to the outcomes of the
Scoping Study for the MCB Project were first released by Celsius to ASX on 1
December 2021. Celsius confirms that all material assumptions underpinning the
production target and forecast financial information derived from the
production target referred to in the announcement of 1 December 2021 continue
to apply and have not materially changed.

 

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.

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 2 8072 1400

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

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

 

 Celsius Resources Limited
 Peter Hume                                        P: +61 2 8072 1400

 Multiplier Media

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

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

 Tavistock Communications                          +44 (0) 207 628 3396

 (UK Media and Investor Relations)
 Charles Vivian                                    M: 0044 7977297903

                                                   E: charles.vivian@tavistock.co.uk

 Tara Vivian-Neal                                  M: 0044 7394408654

                                                   E: tara.vivian-neal@tavistock.co.uk

 Beaumont Cornish Limited                                                                  +44 (0) 207 628 3396

 (Nominated Adviser)

 Roland Cornish/Felicity Geidt/Andrew Price

 SPAngel

 (Broker)

 John Meyer/Ewan Leggat/Harry Davies-Ball                                                  +44 20 3470 0470

 

 1  Republic Act No. 7942, An Act Instituting a New System of Mineral
Resources Exploration, Development, Utilization, and Conservation.

 2  Department of Environment and Natural Resources Administrative Order No.
9640.

 3  Department of Environment and Natural Resources Administrative Order No.
9640.

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

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