REG - Celsius Resources Ld - Mineral Resource update for Sagay Mining Project
06/02/2024 09:00
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RNS Number : 1731C Celsius Resources Limited 06 February 2024
ASX/AIM RELEASE
6 FEBRUARY 2024
Mineral Resource update for Sagay
Mining Project
HIGHLIGHTS
· Focus of the update related to shallow supergene copper
mineralisation which now includes Measured and Indicated Mineral Resources.
· Combined Measured, Indicated and Inferred Mineral Resource of
312 million tonnes @ 0.39% copper and 0.11g/t gold.
· Global Resource remains largely unchanged with ~1.2 million
tonnes of contained copper and ~1 million ounces of contained gold.
· The copper mineralisation remains open in multiple directions,
with further shallow targets untested.
· Mineralisation exists from near surface down to over 1.2km
depth with strike lengths up to 1km and true widths extending into the 100's
of metres.
______________________________________________________________________________
Celsius Resources Limited ("Celsius" or "the Company") is pleased to announce
an updated JORC compliant Mineral Resource estimate ("MRE") for the Sagay
Copper Project ("Sagay" or "Project"), held under its Philippine Subsidiary,
Tambuli Mining Company, Inc ("TMCI") and located at the Island of Negros in
the Philippines.
The update to the MRE at Sagay is largely based on the results from the 2023
drilling program at a shallow copper position located ~500m to the west of the
main body of mineralisation discovered to date, as announced on 17(th) October
2023. This shallow copper zone offers Celsius the opportunity to investigate a
low cost start up opportunity via a feasibility study which has been submitted
to the Philippine Government.
Celsius Resources Managing Director, Peter Hume said:
"The greater definition of the shallow supergene copper at Sagay has increased
both the Resource category and our own confidence in the ability to look at a
new shallow sustainable friendly development option. The previous Mineral
Resource 1 (#_ftn1) only placed this area in the Inferred Category, and with
this new update to the Mineral Resource, this area is now largely in the
Measured and Indicated category, which allowed us to complete and submit a
feasibility study to the Philippine Government 2 (#_ftn2) .
The Company has taken a sustainable approach to the proposed development of
the Sagay Mineral Resource, similar to its flagship MCB project. Eliminating
the use of a conventional tailings dam and using the tailings for
environmental rehabilitation, along with processing the ore through gravity
separation, therefore eliminates the use of chemicals. We are in the process
of finalising the Project's environmental impact assessment which will clearly
demonstrate the Company's commitment to environmental protection and
preservation through advanced mining technologies."
CLA Chairman, Atty. Julito R. Sarmiento added:
"The development of the Sagay Project can assist with meeting the global
demand for green metals in an effort to transition to clean energy sources and
achieve the global goal of net zero emissions by 2050 to stave off climate
change calamity. CLA constantly takes serious efforts to develop genuinely
responsible projects by tightening up our environmental managements systems
and stepping up our social and environmental performance."
THE SAGAY COPPER-GOLD PROJECT
Location
The Sagay Copper Project is in the north-eastern part of Negros Island, within
the cities of Sagay and Escalante in the Province of Negros Occidental,
Philippines (Figure 1). Negros Island is part of the central group of
Islands in the Philippines commonly referred to as "the Visayas".
Figure 1. Location of the Sagay Copper Project in the Island of Negros, Visayas, Philippines
The MRE for the Sagay Property is located at Purok Tan-ao, Barangay Lopez
Jaena (see Figure 2).
Figure 2. Location of the tenement area of the Sagay Project.
Mineral Resource Estimate
Drilling at Sagay has broadly defined a large-scale copper mineralisation
which is interpreted to be a typical porphyry copper style of mineralisation,
common throughout the Philippine archipelago.
The copper mineralisation for the MRE at Sagay is defined by three defined
mineralised domains, two of which (namely 100LG and 100HG) relate to a main
body of copper mineralisation which exists underneath a local topographic
high.
This topographic high relates to Purok Tan-ao with resistive siliceous rocks
interpreted to be an eroded lithocap associated with the porphyry
mineralisation.
A third mineralised domain (900SG) hosts a shallow flat lying supergene copper
mineralisation towards the west of the main mineralisation underneath Purok
Tan-ao and is possibly related to a satellite porphyry mineralisation. Figures
3 to 7 show a plan view and cross sections of the mineralised domains relative
to the host rock geology.
The copper mineralisation at Purok Tan-ao is broadly constrained by a zone of
mineralisation which exceeds 0.2% copper and is trending parallel to the main
alteration and related intrusive host rocks.
A lower cut-off grade of 0.2% copper was applied in the reported MRE
(summarised in Table 1) which aligns broadly with the expected economic limits
of the likely mining and processing options considered at Purok Tan-ao.
Table 1: Summary results for the Mineral Resource estimate at Purok Tan-ao at
a cut-off grade of 0.20%
copper.
Domain Classification Weathering Tonnes Copper Grade Gold Grade Copper Metal Gold Metal
(Mt)
(%) (g/t) (kt) (kozs)
Note for table of results: Calculations have been rounded to the nearest Mt of
ore (to the nearest 100,000t where <10Mt), two significant figures for Cu
and Au grade and to the nearest kt of Cu metal and kozs of Au metal (to the
nearest 100t where <10kt). Some apparent errors may occur due to rounding.
TR - Transition or partially oxidised Rock, FR - Fresh Rock.
Figure 3. Drill hole locations and interpreted surface geological plan view diagram.
Figure 4. Drill hole locations and interpreted surface geological plan view diagram.
Figure 5. Oblique Cross Section A-A' , showing the location of mineralised
domain 900SG (Supergene mineralisation) and the western section of the 100LG
and 100HG mineralised domains.
Figure 6. Oblique Cross Section B-B' showing the location of the 100LG and 100HG mineralised domains.
Figure 7. Oblique Cross Section C-C' showing the location of the 100LG and 100HG mineralised domains.
Geology and Geological Interpretation
Sagay is located at the northernmost tip of the NNE trending volcanic arc
related to the eastward subduction beneath the Negros Trench in the southwest
offshore of Negros Island. Several porphyry and epithermal mineralisation
targets belong in this underexplored mineralisation trend along the eastern
side of the island.
The major rocks identified at Purok Tan-ao are a series of intermediate
igneous rocks intruding into older host rocks composed of basalts overlain by
metamorphosed sedimentary rocks and felsic volcanics. These rocks are in turn
overlain by Quaternary pyroclastic rocks that consist of tuff and tuff
breccias. The intermediate intrusions include several diorites and andesite
porphyry.
Three distinct Diorite intrusives were identified. Following the local
nomenclature in Sagay Project, these are (from oldest to youngest) the (1)
Equigranular Diorite (MEQ), (2) Medium-grained Porphyritic Diorite (MPOC), and
the (3) Fine-grained Equigranular Diorite (FEQ). These intrusive rocks have
distinct textures and visible cross cutting relationships. Widespread strong
silica - clay and outer chlorite alteration is notable in the deposit. This
8km by 4km alteration zone is indicative of a large magmatic hydrothermal
system.
There are multiple types of porphyry mineralisation observed within the Purok
Tan-ao Deposit. The dominant type is related to early-stage porphyry quartz
stockwork veins with associated potassic alteration and chalcopyrite as the
dominant copper sulphide. A later-stage porphyry Cu-Mo type mineralisation has
been identified and is hosted in silica - sericite - chlorite alteration. In
addition, evidence exists for a later-stage epithermal vein deposit type which
exist within close proximity to the large-scale porphyry copper-gold
mineralisation.
At this stage, only the porphyry copper-gold type of deposit was defined in
the MRE.
Drilling Techniques
All of the drilling data used for the Sagay MRE is based on diamond drilling
information from a total of 45 diamond drill holes-with a cumulative meterage
of 25,782.1m.
Initial diamond drilling was conducted between December 2012 and 2016 by
Freeport-McMoRan, who completed a total of 28 drill holes at Purok Tan-ao,
with an aggregate core depth of 22,516.70 metres.
From November 2021 to April 2022, Celsius has completed a total of 4 drill
holes and 1 offset, for a total to 2,440 metres 3 (#_ftn3) . More recently
in late 2023, Celsius completed a further 12 shallow drill holes which are the
focus for this Mineral Resource update. These shallow drill holes relate to
the 900SG mineralised domain with a total meterage of 824.7m 4 (#_ftn4) .
Sampling and Sub-sampling Techniques
The following sub sampling and sample preparations were followed for all the
diamond drilling at Sagay.
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, with a minimum observed sample
size of one metre. Sampling typically commenced after the overburden horizon
depth was exceeded.
Cut samples were bagged on site prior to delivery to the laboratory (Intertek)
in Manila for sample preparation and analysis.
Sample Analysis Method
All samples were analysed at the Intertek, an internationally recognised and
ISO/IEC 17025:2005 & ISO/IEC 17020:2004 certified independent laboratory
in Manila.
Copper (Cu) values were analysed by means of multi-acid (4-acid) digest.
Elements were determined by ICP-OES/MS with AAS finish. Samples were fire
assayed for gold (Au) using a 50-gram charge, with a detection limit of 0.005
ppm.
Estimation Methodology
A parent cell block size of 10m x 10m x 10m was chosen based on the general
dimensions of the interpreted ore domains, and the likely mining method.
Ordinary Kriging was chosen as the interpolation method for the block model
which defines the MRE.
The parameters for Ordinary Kriging were based on an analysis of the
variograms for each domain in addition to some broad assumptions with regards
to the direction and continuity of the copper and gold mineralisation
associated with each defined mineralised domain. The variograms were located
along the plane of the interpreted controlling geological trend which is
striking at approximately 50 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.
Classification Criteria
The mineralisation is constrained within boundaries which are also considered
to define the limits for each domain as supported by the current drill hole
information. Within these domain constraints, minimum search distances and
composited drill hole information parameters determined which locations were
defined as Measured, Indicated, Inferred or as further Exploration Targets.
A small portion of the 900SG was classified in the Measured category where
there is tighter drill spacing (less than 50m), multiple drill holes which
show continuity of mineralisation and the variogram analysis is also
supporting of the relationship of the assay data between drill holes.
The Indicated category was classified based on maximum distance of 150m to the
major position, 85m to the semi-major axis and 25m in the minor direction for
the limits, with a minimum number of samples at 8 and maximum number of
samples at 16. A minimum of two drill holes was also applied for the
Indicated category.
The Inferred Mineral Resource represents over 90% of the total MRE due to the
thick and broadly spaced copper intersections as deeper levels which contain
the most copper mineralisation identified to date at Purok Tan-ao. This
category was extended for twice the distances applied to the Indicated
Resource pushing the limits search ellipse to 300m x 150m x 50m, with a
minimum of four samples and maximum of 20 samples defined for each block.
No restriction on the number of drill holes was applied for the Inferred
Mineral Resource category.
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$10,000/t copper price.
Dimensions
The mineralisation at Purok Tan-ao 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 (with a main trend of ~45(o)
azimuth) 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.
The 900SG domain is a shallow, flat lying zone of mineralisation which has
formed along the current and ancient water table at a broadly horizontal
orientation. This domain is elongated in the direction of some interpreted
controlling faults and/or source porphyry copper mineralisation. These
trends appear to be both north-east and north-west in orientation.
Metallurgical and Mining Parameters
For the 900SG domain which is the basis of the Feasibility Study, utilised a
potential surface mine approach with an interpreted costs of US$3.30/t for
mining and US$4.8/t for processing.
Possible later mining development costs of US$10/t to US$7/t and processing
costs of US$7/t to US$4/t respectively for a medium sized (5Mt to 10Mt per
annum) underground block caving mining method and processing using floatation
(to produce a copper-gold concentrate) have been assumed where applicable for
the MRE.
This cost range estimate matches closely with a broad geological cut-off grade
of between 0.15% copper and 0.25% copper (at a forward-looking Copper Price of
~US$10,000/t).
Study Results
Based on the resource model, mining parameters, and metallurgical test works,
a Mining Project Feasibility Study was submitted to the Philippine Mines and
Geosciences Bureau on 20 December 2023 confirming the presence of minerals in
the area which are recoverable by processing the ore through gravity
separation which was determined to be economically sound, ensuring
environmental protection and preservation methods would be implemented through
the advanced mining technologies 5 (#_ftn5) .
The study focused on the shallow supergene chalcocite deposit which is
suitable for a medium-scale surface mining operation. The copper concentrate
produced will have no deleterious elements which makes it highly marketable.
Technical, environmental, and social considerations were incorporated in the
mine design to reduce the mine footprint to approximately 20 hectares. The
process plant is engineered to enhance the ore through a gravity concentration
method which is effective in extracting valuable components form the ore, thus
contributing to the overall success of the ore beneficiation process.
Metallurgical test works indicated that the tails produced is non-acid
generating. All tailings will be managed through dry stacking method which
eliminates the need for a tailings dam, thus removing the possibility of
environmental impacts (tailings spill). Other alternative disposal methods are
currently being studied, including the potential use of tailings for hollow
block manufacturing as a community livelihood program, road base, and landfill
among others.
Next Steps
Following the submission of the DMPF, the key technical, environmental, and
social plans and programs are under review by the Philippine Government. Once
approved, the Company will apply for a mineral agreement with the government.
Listing Rule 5.19 and 5.23 Disclosure
The information is this announcement with respect to the MRE for the Sagay
Project was first announced by the Company to ASX on 7 November 2022. Where
reference is made to previous announcements of exploration results in this
announcement, the Company confirms that it is not aware of any new information
or data that materially affects the information and results included in the
original market announcements and that all material assumptions and technical
parameters underpinning the MRE 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
Competent Persons Statement
Information in this report relating to the reporting of Mineral Resource
Estimates and Exploration Results is based on information compiled, reviewed
and assessed by Mr. Steven Olsen, who is a Member of the Australasian
Institute of Mining and Metallurgy and the Australian Institute of
Geoscientists. Mr. Olsen is an Employee of Global Geologica, an independent
consulting Company to Celsius Resources Limited, and has sufficient experience
which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking 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. Mr.
Olsen consents to the inclusion of the data in the form and context in which
it appears.
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.
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
W: www.celsiusresources.com
Celsius Resources Limited
Peter Hume P: +61 2 8072 1400
(Managing Director) E: info@celsiusresources.com.au
W: www.celsiusresources.com
Multiplier Media
Jon Cuthbert M: +61 402 075 707
E: jon.cuthbert@multiplier
Beaumont Cornish Limited
(Nominated Adviser) P: +44 (0) 207 628 3396
Roland Cornish/Felicity Geidt/Andrew Price E: corpfin@b-cornish.com.uk
WH Ireland (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 the 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 other 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.
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. determined by gravimetric fire assay.
· Copper (Cu) values were assayed using four-acid digestion. Elements
determined by ICP-OES/MS with 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 2012
blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or and 2016 by Freeport-McMoRan, completing a total of 28 drill holes for the
standard tube, depth of diamond tails, face-sampling bit or other type, Purok Tan-ao deposit, with an aggregate depth of 22,516.70 meters.
whether core is oriented and if so, by what method, etc).
· A further exploration program had commenced between November 2021 to
April 2022, completing a total of 4 drill holes and 1 offset hole in the
prospect, with a cumulative depth of 2,440.70 meters.
· The most recent drilling program was completed in late 2023 with 12
shallow diamond drill holes for a total length of 824.7m
· There are a total of 45 holes in the database used for the MRE which is
the subject of this release for a cumulative depth of 25,782.1 meters.
· The core drilling utilised a triple-tube core barrel from collar to
end-of-hole to ensure optimum core recovery, with the deepest hole drilled
being 1,400 meters.
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 97% for the
nature of the samples. drill holes with form part of the MRE, 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.
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 Sagay 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.
· Collar surveys were then logged into the master MS Excel spreadsheet as
part of the database.
Data spacing and distribution · Data spacing for reporting of Exploration Results. · 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
· Whether the data spacing, and distribution is sufficient to establish the at Sagay.
degree of geological and grade continuity appropriate for the Mineral Resource
and Ore Reserve estimation procedure(s) and classifications applied. · The drilling completed at Sagay is dominantly towards the north-west or
south-east which is perpendicular to the main trend of the copper
· Whether sample compositing has been applied. mineralisation and host rock geology. The drill spacing for the drill holes in
this orientation is irregular, ranging from just over 150m separation up to
400m separation.
· Drill hole spacing for the 900SG area have been reduced to between 50m
and 100m with the results from the 2023 drilling program.
· Some drilling has been conducted towards the south-west which is
sub-parallel to the main trends of copper mineralisation. These drill holes
have not had a significant influence on the MRE due to their poor orientation
for both the copper boundary definition and for sampling.
· The drill hole spacing has broadly defined the major trends to the
copper-gold mineralisation.
Orientation of data in relation to geological structure · Whether the orientation of sampling achieves unbiased sampling of · The drill hole orientations at Purok Tan-ao are largely towards the
possible structures and the extent to which this is known, considering the south-west or towards the south-east. These orientations were chosen to cut
deposit type. roughly perpendicular to the interpreted dominant structural trend and
possible trend of the mineralised intrusive rocks which are trending towards
· If the relationship between the drilling orientation and the orientation the north-east, and some evidence of a trend to the north-west.
of key mineralised structures is considered to have introduced a sampling
bias, this should be assessed and reported if material. · The dominant trend of the intrusive rocks which are interpreted to be
related to the copper-gold mineralisation has an overall strike of 40 to 60
degrees and a near to vertical dip. The drill holes which are dipping
approximately 60 degrees towards the south-east appear to be at a good angle
to effectively test the copper-gold mineralisation in this trend. The holes
which have been drilled towards the south-east are optimal for some cross
cutting north-west trending structures, but at a poor angle to test the
dominant copper-gold mineralisation which is sub parallel to these drill
holes.
· The 900SG domain is at a horizontal orientation and drilling has largely
been completed at a 60-degree angle which is appropriate for defining both
this flat lying domain in addition to potential vertical feeder structures
related to the primary porphyry copper source of this supergene copper domain.
Sample security · The measures taken to ensure sample security. · The following standard procedures were documented to have been followed
in relation to sample security for all Purok Tan-ao diamond drilling:
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
samples are checked by a Mines and Geological Sciences (MGB) Geologist before
issuance of an Ore Transport Permit (OTP). Upon receipt of the OTP, the sample
bags are sealed in a crate, and sent to Manila via a certified courier
contractor. Upon arrival in Manila, a company vehicle checks the samples
before they're delivered to Intertek Testing Services. No unsupervised third
parties were given access prior to the chain of custody procedure.
o Upon receipt of samples, these were arranged in sequence to review the
numbers, and a sample received report was sent to the Geologists. Samples are
individually weighed again for verification.
· 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 given
access prior to the chain of custody procedure.
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 regarding the sample preparation,
analysis or security for the information for the Sagay drill hole database.
SECTION 2:
Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Mineral tenement and land tenure status · Type, reference name/number, location and ownership including agreements · The Sagay Copper project is at the north-eastern part of Negros Island
or material issues with third parties such as joint ventures, partnerships, within the Cities of Sagay and Escalante Negros Occidental.
overriding royalties, native title interests, historical sites, wilderness or
national park and environmental settings. · The underlying title is in the name of the Philippines registered
corporation Tambuli Mining Company Inc. (TMCI) is currently 100% owned by a
· The security of the tenure held at the time of reporting along with any private Delaware Company who in turn is owned by Celsius Resources Ltd.
known impediments to obtaining a licence to operate in the area.
· Tambuli Mining Company, Inc. (TMCI) was first granted a single
· Exploration Permit denominated as EP-000003VI on 6 May 2008 under Phelps Dodge
Exploration Corporation - Philippine Branch (PDEC), which was later acquired
by Freeport-McMoRan Exploration Corporation - Philippine Branch (FMEC) in
2007. The permit area covers a total of 4,594.23 hectares, which has recently
been reduced to 1,791.3736 hectares where the Deposit is situated.
· On August 11, 2021, TMCI, now a subsidiary of CLA, was granted a fourth
exploration permit renewal (extension) which is valid until February 10, 2024.
The current two-year renewal period allowed the resumption of ore definition
drilling activities aimed to define the deep ore zone (two drill holes), its
shallow/near surface extensions (three drill holes), and test possible near
surface chalcocite ore zones (three drill holes).
· TMCI has recently submitted an application for a Declaration of Mining
Project Feasibility (DMPF), which is the first step towards a further
application of a mining permit which will allow for the further exploration
and development of the Sagay Project once granted.
Exploration done by other parties · Acknowledgment and appraisal of exploration by other parties. · Exploration work and drilling was completed by Tambuli Mining Company
Inc. which was a subsidiary of Freeport-McMoRan Exploration
Corporation-Philippine Branch from year 2008 to 2016.
· The exploration activities were generally completed over two stages. From
2008 up to 2009, the work was focused on project assessment which included
surface sampling and mapping, in addition to a number of ground geophysical
surveys, most particularly a ground magnetic survey and a series of 2D Induced
Polarisation surveys.
· From 2012 through to 2016 the exploration activities were focused on
diamond drilling to test the targets identified from the work completed over
2008 and 2009.
· A further exploration under Celsius Resources commenced between November
2021 to April 2022, completing a total of 4 drill holes and 1 offset hole in
the prospect, with a cumulative depth of 2,440.70 meters.
· The most recent drilling program was completed in late 2023 with 12
shallow diamond drill holes for a total length of 824.7m
· The drilling activities were predominately at the Purok Tan-ao with all
drilling results reported in this release.
Geology · Deposit type, geological setting and style of mineralisation. · The geological setting for the Purok Tan-ao 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
predominantly within a series of large intrusive bodies that have intruded the
host country rocks.
· The Sagay Project host rocks are part of the Negros Occidental Island,
which is situated in western Visayas, Central Philippines. The eastern part of
the island comprises a NNE trending volcanic arc related to the eastward
subduction beneath the Negros Trench in the southwest off-shore of Negros
Island.
· The major rocks identified are a series of intrusions which exist within
an older host rock setting of basalt rocks that are overlain by felsic tuffs
and metamorphosed sedimentary rocks. These rocks are in turn overlain by
Quaternary pyroclastic rocks that consist of tuff and tuff breccias.
Intrusions include diorite and andesite porphyry. Post-mineral Pliocene to
Pleistocene andesitic to dacitic volcanics cover the northern part of the
area.
· Three distinct diorite intrusives were identified, following the local
nomenclature in the Project, these are (from oldest to youngest) the: (1)
Equigranular Diorite (MEQ), (2) Medium-grained Porphyritic Diorite (MPOC), and
the (3) Fine-grained Equigranular Diorite (FEQ). These intrusive rocks have
distinct textures and visible cross cutting relationships.
· Widespread strong silica clay and outer chlorite alteration is notable in
the deposit. This 8km by 4km alteration zone is indicative of a large magmatic
hydrothermal system. the surface alteration is approximately 1.7km by 1.7km,
which tends to extend southwest along possible controlling structures.
· The following are the established ore types in the deposit:
o Ore Type 1 - Early porphyry to late porphyry mineralisation
o Ore Type 2 - Mixed zone of late porphyry mineralisation and epithermal
mineralisation.
· Ore Type 3 - possible mixed zone of supergene enrichment and high
sulfidation to intermediate sulfidation epithermal mineralisation. Divided
into OT3A and OT3B based on the associated mineral assemblages.
Drill hole Information · A summary of all information material to the understanding of the · In summary, the drill hole in the database for the Property which relate
exploration results including a tabulation of the following information for specifically to the Purok Tan-ao area consists of 45 diamond core drilled
all Material drill holes: holes with an accumulative meterage of 25,782.1m after the inclusion of the
drill holes which are the subject of this release.
· easting and northing of the drill hole collar
· No drill hole information has been excluded.
· elevation or RL (Reduced Level - elevation above sea level in metres) of
the drill hole collar
· dip and azimuth of the hole
· down hole length and interception depth
· 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 · Significant intersections for the purpose of representing the defined
and/or minimum grade truncations (eg cutting of high grades) and cut-off mineralisation in the MRE which is the subject of this report are shown in
grades are usually Material and should be stated. figures 5 to 7. The intersections reported are aggregated relative to broad
mineralised interval which correspond with a definable and continuous zone of
· Where aggregate intercepts incorporate short lengths of high-grade copper-gold mineralisation, nominally above a grade of 0.2% copper. The
results and longer lengths of low-grade results, the procedure used for such intervals have been reported as weighted average totals. Internal to the
aggregation should be stated and some typical examples of such aggregations broader mineralisation that has been reported, there are some internal
should be shown in detail. higher-grade copper-gold assay results reported (nominally above 0.5% copper)
which are interpreted to exist as a continuous domain of higher-grade
· The assumptions used for any reporting of metal equivalent values should copper-gold mineralisation. These sections have also been reported as
be clearly stated. weighted average totals.
· Only individual weighted average assay results have been reported and no
metal equivalent values have been reported.
Relationship between mineralisation widths and intercept lengths · These relationships are particularly important in the reporting of · There are a number of drilling orientations, but generally drill holes
Exploration Results. were designed on lines oriented towards 130 degrees to the south-east or
towards 220 degrees to the south-west and spacing at just over 200m between
· If the geometry of the mineralisation with respect to the drill hole holes. Where the mineralisation is interpreted to strike roughly
angle is known, its nature should be reported. perpendicular to the orientation of the drill holes, the angle between the
drill hole (typically at a 60-degree dip) and the vertical mineralisation
· If it is not known and only the down hole lengths are reported, there implies true width ranges of between 70-90% of the downhole width.
should be a clear statement to this effect (e.g. 'down hole length, true width
not known').
Diagrams · Appropriate maps and sections (with scales) and tabulations of intercepts · See figures 3 to 7 for a representative plan and cross sections of the
should be included for any significant discovery being reported These should Geology and its relationship to the copper-gold mineralisation at Purok
include, but not be limited to a plan view of drill hole collar locations and Tan-ao.
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 the Sagay Project
widths should be practiced to avoid misleading reporting of Exploration 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 EXP000003VI in 2008 was undertaken under the ownership and management of
results; geochemical survey results; bulk samples - size and method of Tambuli Mining Company Inc.
treatment; metallurgical test results; bulk density, groundwater, geotechnical
and rock characteristics; potential deleterious or contaminating substances. · On June 2008, first stage of geological work was established by
geological mapping, gridlines preparations, soil and rock sampling, as well as
geophysical surveys that consisted of induced polarisation, resistivity and
ground magnetic. These activities were completed by 20th of December on the
same year.
· This was followed by a period of diamond drilling from 2012 through to
2016 for a total of 31 diamond drill holes, 28 of which were drilled at Purok
Tan-ao.
· Further diamond drilling commenced between November 2021 to April 2022,
completing a total of 4 drill holes and 1 offset hole in the prospect, with a
cumulative depth of 2,440.70 meters.
· The most recent drilling program was completed in late 2023 with 12
shallow diamond drill holes for a total length of 824.7m
Further work · The nature and scale of planned further work (eg tests for lateral · There are a few locations where the potential extensions to the current
extensions or depth extensions or large-scale step-out drilling). defined large-scale copper-gold mineralisation could be tested. These
locations are largely based on an interpreted north-east strike and near
vertical dip to the copper-gold mineralisation.
· Diagrams clearly highlighting the areas of possible extensions, including · The location for the possible shallow higher-grade copper-gold at Purok
the main geological interpretations and future drilling areas, provided this Tan-ao is also yet to be defined. Further drilling along possible north-east
information is not commercially sensitive. or northwest orientations to the previous shallow copper-gold intersections is
warranted to test the extent of this mineralisation.
· Apart from the direct extensions to the currently defined copper-gold
mineralisation, there is considerable scope for further discoveries of two
defined deposit types within the Sagay Tenement as follows:
· 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.
o Existing geophysical datasets have already identified a number of large
untested features that are worthy of drill testing for the potential to
discover further large-scale copper-gold mineralisation
· Epithermal vein hosted deposit types
· 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
at Purok Tan-ao. There are a number of apparent large-scale structures which
exist adjacent to Tan-ao which are worthy of follow up drill testing for this
style of deposit. There may be some merit in further surface sampling with a
greater emphasis on epithermal gold deposit types. However, the relatively
extensive geophysical surveys are already indicating a number or drill ready
target positions that are worthy of follow up.
Section 3
Estimation and Reporting of Mineral Resources
(Criteria listed in section 1, and where relevant in section 2, also apply to
this section.)
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. as part of this validation check of the database.
Data validation procedures 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.
· Drill core observations and validation steps were completed in September
2022 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 Purok Tan-ao drilling which were used to define
the 2024 MRE 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 ore domains at Purok Tan-ao 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 for approximately 30% of
· If no site visits have been undertaken indicate why this is the the drill collar locations for the drill holes which are included in the
case. Mineral Resource estimate using a handheld GPS.
· The review of drill core and field inspections were conducted from
September 28 to September 30, 2021.
Geological interpretation · Confidence in (or conversely, the uncertainty of) the geological · The geological interpretation associated with the Purok Tan-ao Mineral
interpretation of the mineral deposit. Resource estimate is considered by the author to have a high level of
confidence, with limited variability considered likely due to a difference in
· Nature of the data used and of any assumptions made. the geological interpretation.
· The effect, if any, of alternative interpretations on Mineral · The interpretation and Mineral Resource estimate have been compared
Resource estimation. directly with previous interpretations made by the geological staff at
Freeport-McMoRan, which completed early stage previous exploration activities
· The use of geology in guiding and controlling Mineral Resource at Purok Tan-ao. The copper and gold mineralisation defined in the Mineral
estimation. Resource estimate has a high level of consistency relative to the geological
interpretation completed by Freeport-McMoRan.
· The factors affecting continuity both of grade and geology.
· The geological controls on the copper-gold mineralisation at the Purok
Tan-ao 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 · The copper-gold mineralisation at Purok Tan-ao classified as a porphyry
length (along strike or otherwise), plan width, and depth below surface to the copper-gold deposit at deeper levels (below 400m depth) has a broad geometry
upper and lower limits of the Mineral Resource. of up to 1km along strike towards the north-east (main trend ~45°) 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.
Estimation and modelling techniques · The nature and appropriateness of the estimation technique(s) applied The Purok Tan-ao geological models, ore domain models and associated
and key assumptions, including treatment of extreme grade values, domaining, interpolation were all completed in the 3D software modelling package Leapfrog
interpolation parameters and maximum distance of extrapolation from data Geo and Leapfrog Edge (Version 2023.1).
points. If a computer assisted estimation method was chosen include a
description of computer software and parameters used. ORE DOMAINS
· The availability of check estimates, previous estimates and/or mine A combination of features was utilised to review and subsequently domain the
production records and whether the Mineral Resource estimate takes appropriate copper mineralisation to an appropriate level for the purpose of estimating
account of such data. the copper and gold contents.
· The assumptions made regarding recovery of by-products. High Grade Copper Domain
· Estimation of deleterious elements or other non-grade variables of High-grade porphyry Cu-Au mineralisation is hosted in older volcanics and in
economic significance (eg sulphur for acid mine drainage characterisation). the series of diorite intrusions, but widely situated in Medium Porphyritic
Diorite (MPOC). This ore type was defined based on a combination of its
· In the case of block model interpolation, the block size in relation alteration mineralogy, high-grade copper (mostly above 0.5% copper) and broad
to the average sample spacing and the search employed. extensions to this mineralisation parallel to the dominant geological trend.
· Any assumptions behind modelling of selective mining units. The classified distinct ore types established in 2016 was used as a
preliminary basis to construct the ore domains specified in this Technical
· Any assumptions about correlation between variables. Report.
· Description of how the geological interpretation was used to control Ore Type 2 (as discussed in Section 13.1) positions were reviewed relative to
the resource estimates. the potential continuity of this ore type and to see the relationship between
its copper-gold mineralisation.
· Discussion of basis for using or not using grade cutting or capping.
In locations where this ore type was very narrow, or patchy and no observable
· The process of validation, the checking process used, the comparison continuity, this ore type was not defined as a 100HG domain.
of model data to drill hole data, and use of reconciliation data if available.
Low Grade Copper Domain
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.
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.
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
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 for later
development.
ORE CONTINUITY AND STATISTICAL ANALYSIS
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
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.
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 1907.0 1907.0 1406.0
Length 3803.9 3803.9 163.5
Mean 0.31 0.09 2.51
Standard Deviation 0.17 0.07 0.17
Co. of Variation 0.54 0.82 0.07
Variance 0.03 0.005 0.03
Minimum 0.01 0.004 2.02
Lower Quartile (Q1) 0.19 0.04 2.39
Second Quartile (Q2) 0.28 0.07 2.57
Upper Quartile (Q3) 0.39 0.11 2.64
Maximum 1.55 1.31 2.95
Copper (%) Gold (g/t) Specific Gravity
331.0 332.0 93.0
659.9 660.9 9.5
0.48 0.03 2.13
0.38 0.04 0.23
0.78 1.54 0.11
0.14 0.002 0.05
0.06 0.003 1.63
0.22 0.01 1.92
0.34 0.02 2.10
0.65 0.03 2.33
2.60 0.37 2.58
648.0 650.0 507.0
1296.0 1302.1 58.5
0.57 0.15 2.43
0.27 0.12 0.16
0.49 0.82 0.07
0.08 0.015 0.03
0.04 0.018 2.02
0.39 0.09 2.29
0.55 0.13 2.46
0.68 0.18 2.56
3.70 1.95 2.98
VARIOGRAM ANALYSIS
Variogram analysis was competed for the 3 mineralised domains, the results of
which are indicated below.
100LG Domain: The major axis has a strike of 45 degrees which is very close
to the observable trend of the geology and interpreted boundaries to the
copper mineralisation. The variograms are based on very sparse data.
However, it is observed that there is a possible Sill developing for the major
direction at over 100m in length, which would possibly be better supported
with some closer spaced drill hole information. The semi-major direction has a
reasonably good variogram with a Sill at approximately 70m, and the minor axis
produces a variogram with a Sill at 20m.
100HG Domain: The higher-grade domain appears to occur as an internal zone
with a shallow dip within the 100LG domain. The orientation of this
mineralisation is broadly perpendicular to the major trends that are defined
in the 100LG domain which is also reflected in the variogram results. The
major direction is outlined in a fairly good variogram with a Sill at over
135m in length. The semi-major direction is delineated with a Sill at about
45m, and the minor axis yields a variogram with a Sill at about 25m.
900SG Domain: This patchy near surface supergene chalcocite enrichment zone is
constrained to an area which is located to the west of the larger 100 domain.
The variograms are based on an evenly scattered drillhole data. The major
direction is defined with a Sill more than 90m in length. The semi-major
direction is delineated with a Sill at about 85m, and the minor axis yields a
variogram with a Sill at about 25m.
INTERPOLATION METHOD
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 Purok Tan-ao deposit block models were calculated
moisture, and the method of determination of the moisture content. on a dry basis.
Cut-off parameters · The basis of the adopted cut-off grade(s) or quality parameters · The Purok Tan-ao deposit has been limited to a defined body of copper and
applied. gold mineralisation which are predominantly above 0.2% copper on average.
· The 0.2% lower limit is also broadly in line with the expected economic
limits of the likely mining and processing options considered for Purok
Tan-ao.
· 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 (Table 1).
Mining factors or assumptions · Assumptions made regarding possible mining methods, minimum mining · It has been assumed that the large bodies of copper-gold mineralisation
dimensions and internal (or, if applicable, external) mining dilution. It is that are considered likely to form a continuous body of mineralisation
always necessary as part of the process of determining reasonable prospects potentially amenable to block cave mining have been included within the
for eventual economic extraction to consider potential mining methods, but the reported Mineral Resource estimate. Isolated or narrow structurally
assumptions made regarding mining methods and parameters when estimating controlled sections of copper-gold mineralisation at this stage at Tan-ao do
Mineral Resources may not always be rigorous. Where this is the case, this not appear to be of a scale to suggest that they have reasonable prospects for
should be reported with an explanation of the basis of the mining assumptions eventual economic extraction and are therefore not included in this Technical
made. Report.
· For the 900SG domain which is the basis of the Feasibility Study,
utilised a potential surface mine approach with an interpreted costs of
US$3.30/t for mining and US$4.8/t for processing.
· Possible later mining costs of US$10/t to US$7/t and processing costs of
US$7/t to US$4/t respectively for a medium sized (5Mt to 10Mt 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.
· This cost range estimate matches closely with a broad geological cut-off
grade of between 0.15% copper and 0.25% copper (at a Copper Price of
~US$10,000/t).
· A lower cut-off grade of 0.2% copper 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 ~US10,000/t copper price.
Metallurgical factors or assumptions · The basis for assumptions or predictions regarding metallurgical · A metallurgical assessment was conducted on the 900SG ore which determined
amenability. It is always necessary as part of the process of determining it gravity separation would deliver economic results. Further testing would be
reasonable prospects for eventual economic extraction to consider potential required on other mineralisation to determine the best processing method.
metallurgical methods, but the assumptions regarding metallurgical treatment
processes and parameters made when reporting Mineral Resources may not always · Apart from the 900 SG ore it can be assumed that Metallurgical
be rigorous. Where this is the case, this should be reported with an characteristics have been assumed to be similar to other porphyry copper
explanation of the basis of the metallurgical assumptions made. deposits throughout the Philippines which have a similar mineralogy, of
predominantly Chalcopyrite and minor amounts of bornite and chalcocite. It
is common for other similar deposits to have copper recoveries in excess of
85%.
Environ-mental factors or assumptions · Assumptions made regarding possible waste and process residue · No limitations or modification were applied to the Mineral Resource
disposal options. It is always necessary as part of the process of determining estimate with regard to the environmental factors or assumptions. It is
reasonable prospects for eventual economic extraction to consider the recognised in general that there is limited space and some environmental
potential environmental impacts of the mining and processing operation. While issues associated with the placement of any waste storage facilities or a
at this stage the determination of potential environmental impacts, tailings storage facility. However, there are also generally considered
particularly for a greenfields project, may not always be well advanced, the multiple options, such as backfill of waste and tailing underground, which
status of early consideration of these potential environmental impacts should will still allow for a potential future mining operation.
be reported. Where these aspects have not been considered this should be
reported with an explanation of the environmental assumptions made.
Bulk Density · Whether assumed or determined. If assumed, the basis for the · Bulk density measurements were routinely taken throughout the drilling
assumptions. If determined, the method used, whether wet or dry, the frequency campaign and are available for all of the defined ore domains.
of the measurements, the nature, size and representativeness of the samples.
· The method used to collect the specific gravity information for each
· The bulk density for bulk material must have been measured by methods drill hole is summarised in the sampling and core management procedures from
that adequately account for void spaces (vugs, porosity, etc), moisture and an internal reports by Freeport-McMoRan. These procedures are summarised as
differences between rock and alteration zones within the deposit. follows:
· Discuss assumptions for bulk density estimates used in the evaluation · Specific gravity is determined by weighing a dry core sample in air and
process of the different materials. as submerge in water.
· 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.
· Samples were weighed in air, weighed suspended in water, and weighed in air
again to determine its saturated weight.
Classification · The basis for the classification of the Mineral Resources into Measured Mineral Resource Classification
varying confidence categories.
· To determine the Measured Mineral Resource, a maximum estimation distance
· Whether appropriate account has been taken of all relevant factors of 50 meters was applied in the major direction, 25 meters in the semi-major
(ie relative confidence in tonnage/grade estimations, reliability of input axis, and 10 meters in the minor direction. This was complemented by a
data, confidence in continuity of geology and metal values, quality, quantity requirement for a minimum of 10 and a maximum of 16 samples. A maximum of 6
and distribution of the data). samples per drill hole was applied with at least 2 drill holes needed to be
within the specified search ellipse for this category.
· Whether the result appropriately reflects the Competent Person's view
of the deposit. · The maximum distances applied to the search ellipse parameters for the
Measured category were based on the extents of the variogram where there
appears to be robust trend, in addition to being approximately 60% of the Sill
distance.
Indicated Mineral Resource Classification
· The grade distribution within the Purok Tan-ao block model was classified
as Indicated where the geology and associated copper-gold mineralisation,
within a constrained high grade (100HG), low grade (100LG) and supergene
enrichment (900SG) domains could be confidently extrapolated based on the
understanding of the mineralisation deposit type, the current distribution of
the drilling information and the information obtained from the variogram
analysis.
· Based on the combination of the changes to geology and the statistics, it
was considered appropriate to apply a maximum distance of 150m to the major
position, 85m to the semi-major axis and 25m in the minor direction for the
limits of the Indicated Mineral Resource, with a minimum number of samples at
8 and maximum number of samples at 16.
Inferred Mineral Resource Classification
· The Inferred Mineral Resource was extended for twice the distances
applied to the Indicated Mineral Resource pushing the limits search ellipse to
300m x 150m x 50m, with a minimum of 4 sample and maximum of 20 samples
defined for each block. This was considered appropriate for this level of
confidence based on the broad dimensions of the copper-gold mineralisation
defined to date at Purok Tan-ao.
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 Sagay Property which is the subject of this JORC
Report.
Discussion of relative accuracy/ confidence · Where appropriate a statement of the relative accuracy and confidence · All the available drill hole information relating to the Purok Tan-ao
level in the Mineral Resource estimate using an approach or procedure deemed Mineral Resource estimate have been appropriately documented within this
appropriate by the Competent Person. For example, the application of Technical Report. The author is not aware of any omission or bias that
statistical or geostatistical procedures to quantify the relative accuracy of relates to the information as it has been presented in this report which
the resource within stated confidence limits, or, if such an approach is not relates specifically to the Mineral Resource estimate for Purok Tan-ao.
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 Inferred, Indicated and Measured 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.
· There only issue that has prevented larger portion of the Mineral Resource
estimate from having a higher level of confidence is due to the drill hole
data not being located over an even spacing and distribution. There are
distances of over 200m in some locations between drill hole data points which,
with infill drilling would be expected to be converted to a higher level of
Resource category.
648.0 650.0 507.0
1296.0 1302.1 58.5
0.57 0.15 2.43
0.27 0.12 0.16
0.49 0.82 0.07
0.08 0.015 0.03
0.04 0.018 2.02
0.39 0.09 2.29
0.55 0.13 2.46
0.68 0.18 2.56
3.70 1.95 2.98
VARIOGRAM ANALYSIS
Variogram analysis was competed for the 3 mineralised domains, the results of
which are indicated below.
100LG Domain: The major axis has a strike of 45 degrees which is very close
to the observable trend of the geology and interpreted boundaries to the
copper mineralisation. The variograms are based on very sparse data.
However, it is observed that there is a possible Sill developing for the major
direction at over 100m in length, which would possibly be better supported
with some closer spaced drill hole information. The semi-major direction has a
reasonably good variogram with a Sill at approximately 70m, and the minor axis
produces a variogram with a Sill at 20m.
100HG Domain: The higher-grade domain appears to occur as an internal zone
with a shallow dip within the 100LG domain. The orientation of this
mineralisation is broadly perpendicular to the major trends that are defined
in the 100LG domain which is also reflected in the variogram results. The
major direction is outlined in a fairly good variogram with a Sill at over
135m in length. The semi-major direction is delineated with a Sill at about
45m, and the minor axis yields a variogram with a Sill at about 25m.
900SG Domain: This patchy near surface supergene chalcocite enrichment zone is
constrained to an area which is located to the west of the larger 100 domain.
The variograms are based on an evenly scattered drillhole data. The major
direction is defined with a Sill more than 90m in length. The semi-major
direction is delineated with a Sill at about 85m, and the minor axis yields a
variogram with a Sill at about 25m.
INTERPOLATION METHOD
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 Purok Tan-ao 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 Purok Tan-ao 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 economic
limits of the likely mining and processing options considered for Purok
Tan-ao.
· 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 (Table 1).
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.
· It has been assumed that the large bodies of copper-gold mineralisation
that are considered likely to form a continuous body of mineralisation
potentially amenable to block cave mining have been included within the
reported Mineral Resource estimate. Isolated or narrow structurally
controlled sections of copper-gold mineralisation at this stage at Tan-ao do
not appear to be of a scale to suggest that they have reasonable prospects for
eventual economic extraction and are therefore not included in this Technical
Report.
· For the 900SG domain which is the basis of the Feasibility Study,
utilised a potential surface mine approach with an interpreted costs of
US$3.30/t for mining and US$4.8/t for processing.
· Possible later mining costs of US$10/t to US$7/t and processing costs of
US$7/t to US$4/t respectively for a medium sized (5Mt to 10Mt 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.
· This cost range estimate matches closely with a broad geological cut-off
grade of between 0.15% copper and 0.25% copper (at a Copper Price of
~US$10,000/t).
· A lower cut-off grade of 0.2% copper 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 ~US10,000/t copper price.
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.
· A metallurgical assessment was conducted on the 900SG ore which determined
it gravity separation would deliver economic results. Further testing would be
required on other mineralisation to determine the best processing method.
· Apart from the 900 SG ore it can be assumed that Metallurgical
characteristics have been assumed to be similar to other porphyry copper
deposits throughout the Philippines which have a similar mineralogy, of
predominantly Chalcopyrite and minor amounts of bornite and chalcocite. It
is common for other similar deposits to have copper recoveries in excess of
85%.
Environ-mental 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.
· No limitations or modification were applied to the Mineral Resource
estimate with regard to the environmental factors or assumptions. It is
recognised in general that there is limited space and some environmental
issues associated with the placement of any waste storage facilities or a
tailings storage facility. However, there are also generally considered
multiple options, such as backfill of waste and tailing underground, which
will still allow for a potential future mining operation.
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 of 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 from
an internal reports by Freeport-McMoRan. These procedures are summarised as
follows:
· Specific gravity is determined by weighing a dry core sample in air and
as submerge in water.
· 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.
· Samples were weighed in air, weighed suspended in water, and weighed in air
again to determine its saturated weight.
Classification
· The basis for the classification of the Mineral Resources into
varying confidence categories.
· Whether appropriate account has been taken of all relevant factors
(ie 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
· To determine the Measured Mineral Resource, a maximum estimation distance
of 50 meters was applied in the major direction, 25 meters in the semi-major
axis, and 10 meters in the minor direction. This was complemented by a
requirement for a minimum of 10 and a maximum of 16 samples. A maximum of 6
samples per drill hole was applied with at least 2 drill holes needed to be
within the specified search ellipse for this category.
· The maximum distances applied to the search ellipse parameters for the
Measured category were based on the extents of the variogram where there
appears to be robust trend, in addition to being approximately 60% of the Sill
distance.
Indicated Mineral Resource Classification
· The grade distribution within the Purok Tan-ao block model was classified
as Indicated where the geology and associated copper-gold mineralisation,
within a constrained high grade (100HG), low grade (100LG) and supergene
enrichment (900SG) domains could be confidently extrapolated based on the
understanding of the mineralisation deposit type, the current distribution of
the drilling information and the information obtained from the variogram
analysis.
· Based on the combination of the changes to geology and the statistics, it
was considered appropriate to apply a maximum distance of 150m to the major
position, 85m to the semi-major axis and 25m in the minor direction for the
limits of the Indicated Mineral Resource, with a minimum number of samples at
8 and maximum number of samples at 16.
Inferred Mineral Resource Classification
· The Inferred Mineral Resource was extended for twice the distances
applied to the Indicated Mineral Resource pushing the limits search ellipse to
300m x 150m x 50m, with a minimum of 4 sample and maximum of 20 samples
defined for each block. This was considered appropriate for this level of
confidence based on the broad dimensions of the copper-gold mineralisation
defined to date at Purok Tan-ao.
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 Sagay Property 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.
· All the available drill hole information relating to the Purok Tan-ao
Mineral Resource estimate have been appropriately documented within this
Technical Report. The author is not aware of any omission or bias that
relates to the information as it has been presented in this report which
relates specifically to the Mineral Resource estimate for Purok Tan-ao.
· 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 Inferred, Indicated and Measured Mineral Resource
estimates are considered appropriate relative to the data distribution and
confidence in the distribution of the copper and gold mineralisation.
· There only issue that has prevented larger portion of the Mineral Resource
estimate from having a higher level of confidence is due to the drill hole
data not being located over an even spacing and distribution. There are
distances of over 200m in some locations between drill hole data points which,
with infill drilling would be expected to be converted to a higher level of
Resource category.
1 (#_ftnref1) Refer to ASX/AIM announcement dated 7 November 2021 "Maiden
Mineral Resource estimate (MRE) for the Sagay Project"
2 (#_ftnref2) Refer to ASX/AIM announcement dated 8 January 2024 "Celsius'
Sagay Project applies for DMPF"
3 (#_ftnref3) Refer to ASX/AIM Announcement dated 23 June 2022 "Celsius
confirms copper near surface at Sagay Project"
4 (#_ftnref4) Refer to ASX/AIM Announcement dated 17 October 2023 "Shallow
Copper Results from Sagay"
5 (#_ftnref5) Refer to ASX/AIM announcement dated 8 January 2024 "Celsius'
Sagay Project applies for DMPF"
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