REG - Celsius Resources Ld - MCB Project receives FPIC certification

Celsius ResourcesAnnouncement

04/09/2024 08:00

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RNS Number : 8587C  Celsius Resources Limited  04 September 2024

 

ASX/AIM RELEASE

4 SEPTEMBER 2024

MCB Project receives Certification
for compliance with FPIC Process
HIGHLIGHTS

· The Philippine National Commission on Indigenous Peoples has issued a
Certification Precondition confirming that Free, Prior, and Informed Consent
was obtained from the Balatoc Indigenous Cultural Community for the MCB
Project.

· It is the first Certification Precondition for a Copper Gold project to be
issued in the Philippines in the last 5 years.

_______________________________________________________________________________

 

Celsius Resources Limited ("CLA" or "Celsius") (ASX, AIM: CLA) is pleased to
announce that its Philippine affiliate, Makilala Mining Company, Inc. ("MMCI
or the "Company"), has been issued a Certification Precondition ("CP") from
the Philippine National Commission on Indigenous Peoples ("NCIP") for its
flagship Maalinao-Caigutan-Biyog Copper-Gold Project ("MCB" or the "Project").

 

As the government agency mandated to protect the rights of indigenous peoples,
the NCIP ascertains that the collective decision of the Balatoc Indigenous
Cultural Community ("ICC") has been obtained with respect to their right to
self-determination over their ancestral lands. The NCIP En Banc also reviewed
and evaluated the Free, Prior and Informed Consent ("FPIC") process to ensure
that it was observed in accordance with Republic Act No. 8371, or the
Indigenous Peoples' Rights Act ("IPRA") of 1997 1  (#_ftn1) .

 

The Certification Precondition (CP-CAR-2024-504, issued on 4 September 2024),
is the culmination of a ~3-year process which entailed extensive stakeholder
engagement resulting in a Memorandum of Agreement signed by and between MMCI,
the Balatoc ICC, and NCIP stipulating  the benefits, commitments, and
obligations of all parties during the life of the MCB mine. 2  (#_ftn2)

 

 

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

 

"This is arguably one of the most stringent approval milestones for a new
project to achieve. It has always been the Company's commitment to observance
and respect for the customary laws and practices of the Balatoc ICC throughout
the FPIC process as an integral part of obtaining and strengthening our social
license. We are grateful that the NCIP En Banc recognised the value and
contribution of the MCB Project to improve the lives of the Balatoc ICC. The
issuance of the Certification Precondition is not only an achievement for the
Company, it is also a milestone for the Balatoc ICC as our partner in the
development and operation of the MCB Project."

Next Steps

The Certification Precondition is one of the compliance requirements under the
Mineral Production Sharing Agreement with the Philippine Government as
prescribed under Republic Act 7942, or the Philippine Mining Act of 1995 3 
(#_ftn3) and one of the outstanding commitments under the MPSA 4  (#_ftn4) .

With the issuance of the Certificate Precondition, the only remaining
requirement is to submit additional proof of financial capability to carry out
the necessary work programs. The CP now allows management to finalise
arrangements with interested Philippine and international investors for
funding the MCB Project. These discussions had been delayed, awaiting the
issuance of the Certification Precondition.

 

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 5  (#_ftn5) 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 5.19 and 5.23 Disclosure

 

The Mineral Resource Estimate for the MCB Project was disclosed in the
Company's ASX announcement dated 12 December 2022 titled "Updated Mineral
Resource for Celsius' MCB Copper-Gold Project". The Company confirms that it
is not aware of any new information or data that relates to Exploration
Results and Mineral Resources at the MCB Project and that all material
assumptions and technical parameters underpinning the Mineral Resource
continue to apply.

 

Forward Looking Statements

 

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

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

 

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

 

Celsius Resources Contact Information

Level 5, 191 St. Georges Terrace

Perth WA 6000

 

PO Box 7059

Cloisters Square PO

Perth WA 6850

 

P: +61 8 9324 4516

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

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

 

 Celsius Resources Limited
 Mark van Kerkwijk                                                   P: +61 419 273 456

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

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

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

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

 Beaumont Cornish Limited

 (Nominated Adviser)

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

 Zeus Capital

 (Broker)

 Harry Ansell/James Joyce/Isaac Hooper                               P:+44 (0) 20 7220 1666

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

 1  (#_ftnref1)
https://www.officialgazette.gov.ph/1997/10/29/republic-act-no-8371/
(https://www.officialgazette.gov.ph/1997/10/29/republic-act-no-8371/)

 2  (#_ftnref2) ASX/AIM Announcement 15 November 2022

 3  (#_ftnref3) https://lawphil.net/statutes/repacts/ra1995/ra_7942_1995.html
(https://lawphil.net/statutes/repacts/ra1995/ra_7942_1995.html)

 4  (#_ftnref4) ASX/AIM Announcement 18 March 2024

 5  (#_ftnref5) C1 costs include all direct costs in mining, processing,
general and administration, and selling (including freight).

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