REG - Celsius Resources Ld - MCB Project receives DMPF approval

Celsius ResourcesAnnouncement

28/09/2023 07:00

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RNS Number : 8615N  Celsius Resources Limited  28 September 2023

 

ASX/AIM RELEASE

28 SEPTEMBER 2023

 

MCB Project receives DMPF approval
HIGHLIGHTS

· Philippine Mines and Geosciences Bureau has issued the approval of the
Declaration of Mining Project Feasibility as the last step in the permitting
process towards the achievement of the MCB Project's mining permit

_______________________________________________________________________________

Celsius Resources Limited ("CLA" or "Celsius") (ASX, AIM: CLA) is pleased to
announce that its Philippine subsidiary, Makilala Mining Company, Inc. ("MMCI
or the "Company"), has received approval of the Declaration of Mining Project
Feasibility ("DMPF") for its flagship Maalinao-Caigutan-Biyog Copper-Gold
Project ("MCB" or the "Project").

 

The DMPF is the written notice submitted by MMCI to the Philippine Mines and
Geosciences Bureau proclaiming the feasibility of commercial utilisation of
the minerals in the tenement area by internationally accepted sound mining
practices, socially acceptable, environmentally safe, and economically sound
methods as specified in the Mining Project Feasibility Study and supported by
other requirements as prescribed in the Implementing Rules and Regulations of
the Philippine Mining Act 1 .

 

In support of the DMPF application, Celsius has amongst other requirements,
received the approval of the MCB Project's Mining Project Feasibility Study,
Environmental Compliance Certificate, Environmental Protection and Enhancement
Program, Final Mine Rehabilitation Plan, Social Development and Management
Program, and Care and Maintenance Program. (See CLA Announcements dated 3
January, 31 May, 18 July, and 15 August 2023).

 

The issuance of the DMPF enables the Company to move forward with obtaining a
Mineral Production Sharing Agreement ("MPSA") with the Philippine Government
which would allow the Company to develop and operate the MCB Project. The MPSA
application has been submitted and the Company envisages receiving the MPSA
within the coming weeks.

 

 

 

 

Celsius Executive Chairman Atty. Julito R. Sarmiento, said:

 

"This is one of the key final milestones in the MCB Project permitting
process. Following the approval, we are anticipating the mining permit to be
delivered within a short period of time. With investors now showing genuine
interest, we are hopeful to move the MCB Project forward to development and
operations so that we can create value for shareholders and provide positive
impacts for our project stakeholders."

 

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 a total of 1.6 million tonnes of contained copper and 1.3
million ounces of gold, of which 249 million tonnes @ 0.44% copper and 0.11
g/t gold is classified as Indicated, 42 million tonnes @ 0.52% copper and 0.11
g/t gold is classified as Inferred, and 47 million tonnes @ 0.59% copper and
0.19 g/t gold is classified as Measured.

 

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

 

Highlights from the Study include a Post tax NPV (8%) of US$464m and IRR of
31%, assuming a copper price of US$4.00/lb and gold price of US$1,695/oz.
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 2  cash costs at just US$0.73/lb copper, net of gold credits.

 

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

 

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

 

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

 

Listing Rule 5.23 Disclosure

 

The Company confirms that it is not aware of any new information or data that
relates to Exploration Results and Mineral Resources at the MCB Project and
that all material assumptions and technical parameters underpinning the
Mineral Resource continue to apply. The Company notes that, as disclosed in
this announcement and in previous announcements, a drilling program is
currently underway at the MCB Project the results of which will be
incorporated into an updated Mineral Resource in the future and that the
current Scoping Study may provide new assumptions and parameters for use in
that Mineral Resource.

 

Forward Looking Statements

 

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

 

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

 

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

 

Celsius Resources Contact Information

Level 5, 191 St. Georges Terrace

Perth WA 6000

 

PO Box 7059

Cloisters Square PO

Perth WA 6850

 

P: +61 2 8072 1400

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

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

 

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

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

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

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

                                                                                           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

 (Nominated Adviser)

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

 SPAngel (Broker)

 John Meyer/Ewan Leggat/Harry Davies-Ball

                                                     P: +44 20 3470 0470

 

 1  See Section 30 of the Consolidated Department of Environment and Natural
Resources Administrative Order No. 2021-10, or the Revised Implementing Rules
and Regulations or RA 7942, otherwise known as the Philippine Mining Act of
1995.

 

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

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