REG - Celsius Resources Ld - Quarterly Activities - period to 31 March 2023

Celsius ResourcesAnnouncement

28/04/2023 07:30

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RNS Number : 8527X  Celsius Resources Limited  28 April 2023

28 APRIL 2023

celsius resources limited

QUARTERLY ACTIVITIES REPORT - PERIOD ENDED 31 mARCH 2023

 

mcb project awaiting permit approval from the Philippine National Government

HIGHLIGHTS

· Substantial progress on key activities to develop the MCB Copper-Gold
project including:

o  Undertaking various studies in preparation for hydrogeological and
geotechnical drilling that would feed into a more detailed mine plan

o  Receiving further shallow high-grade copper-gold assay results

o  Securing initial binding deed and agreement with local partners

· Additional desktop studies to update the geologic and mineralisation models
for the Sagay Copper-Gold Project

· Closing cash as of 31 March 2023 of $3.139 million

Celsius Resources Limited ("Celsius" or the "Company") (ASX: CLA) is pleased to provide the following summary of the Company's activities for the quarter ended 31 March 2023.

 

Projects

Maalinao-Caigutan-Biyog Copper-Gold Project ("MCB Project"),

Philippines (100%)

Makilala Mining Company Inc., Celsius' Philippine subsidiary, continues to
advance its exploration and feasibility work program for the MCB Project
located in the Cordillera Administrative region, approximately 320km north of
Manila.

 

Drilling

 

Preparations are well-underway for the upcoming hydrogeological and
geotechnical drilling for additional ground stability and underground mining
studies. Detailed mapping on the geology, alteration, and mineralisation of
exposed rocks with extensive porphyry-related mineralisation was also
conducted to delineate a near surface mineralisation at the eastern segment of
the MCB ore body.

 

Further shallow high-grade copper-gold results were confirmed from three
additional drill hole assay results which include:

§ 51.3m @ 0.93% copper and 0.06g/t gold from 7.7m in drill hole MCB-042

§ 101.5m @ 0.90% copper and 0.18g/t gold from 9m in drill hole MCB-043

§ 131.1m @ 0.93% copper and 0.23g/t gold from 11m in drill hole MCB-044

 

The results continue to identify new positions of shallow mineralisation in
line with previous drilling results from holes completed at MCB over the last
two years, and historical drilling information completed earlier by
Freeport-McMoRan. These extensions are anticipated to form part of the shallow
underground mining options.

 

Future testing will be carried out on possible extensions to these
higher-grade copper zones which will presumably continue to improve the
proposed production schedule, specifically during the early years as part of
the Feasibility Study work program.

 

The full impact of the additional drill hole information will be assessed
during the optimisation of the MCB mine plan. (See CLA Announcement dated 28
February 2023)

 

 

Figure 1. Location of MCB-042 to MCB-044 drill holes relative to recent and
historical drilling at MCB

 

 

Table 1. Significant intersections from drill holes MCB-042 to MCB-044

 

 

 

Figure 2. Cross section 1 (see location at Figure 1) of drill hole MCB-042 to
MCB-044 and significant assay results (looking northeast).

 

Environmental Program

 

More than 600 seedlings of endemic species (bamboo, pine tree, and mahogany)
were planted during the period as part of the company's rehabilitation efforts
in the project site in addition to contributing to the Philippine National
Government's reforestation and climate change programs. Progressive
rehabilitation of completed drill sites was also undertaken to revegetate and
reinstate the impacted areas to their pre-disturbed condition. Agreements with
landowners were also secured for the identified hydrogeological and
geotechnical drilling sites.

 

Community Development

 

Community development activities continued to be supported whilst concluding
related commitments under the existing exploration permit.  Interventions to
build and strengthen the capacity of tribal leaders have been instrumental
during planning and decision-making for the community. Likewise, the
construction of infrastructure projects has provided the community with
much-needed access to basic social and economic facilities and services.

 

Social, Environmental Licenses and Government Approvals

 

Technical requirements to obtain the required environmental and mining permits
have been submitted and are awaiting government approval. Once approved, the
Company will lodge its application for a Mineral Production Sharing Agreement
(MPSA) to commence the pathway for the development of the MCB Project.

 

MMCI also entered into an initial binding deed and agreement with local
companies to fund approximately US$43 million for a 30% economic interest in
the MCB Project, while meeting the 60% Filipino legal ownership as a
pre-requisite to an MPSA application.

 

Opuwo Cobalt Project, Namibia (95%)

 

The Opuwo Cobalt Project is one of the largest undeveloped Cobalt projects
outside of the Democratic Republic of Congo. It has a JORC Mineral Resource of
225.5 million tonnes at a grade of 0.12% cobalt, 0.43% copper, and 0.54% zinc.

 

The tenement permit EL4346 expired during March 2023, as such the Company has
lodged the necessary documentation to have the permits renewed with favourable
feedback from the Ministry of Mines.

 

The tenement remains active until such time that it is renewed by the Ministry
of Mines.

 

It is the Company's view that all permit obligations have been met during the
existing permit tenure, and therefore the permit renewal is expected for a
period of 2 years.

 

Metallurgical Test Work

 

Metallurgical test work is ongoing to further refine the cobalt and copper
recoveries, with the end view to improve overall metal recoveries.

 

Maelgawyn Laboratories in South Africa was engaged to test various collectors
on floatation tests and a total of 5 tests were undertaken.  Results of these
are expected to be reported in the next quarter.

 

Mintek completed 5 sets of roasting and subsequent leaching test during the
quarter.  The objectives of these were to optimise retention times, operating
temperatures and reagent consumptions.  Results for these tests are expected
to be reported during May 2023.

 

The above metallurgical test results will be utilised as input criteria to
develop a processing flowsheet, which will be the basis of an Economic Scoping
Study planned later during 2023.

 

The Company has received strong interest from parties interested in partnering
on the Opuwo Project; a data room has been established with a number of
non-disclosure agreements being signed.

 

SAGAY Copper-Gold Project, Philippines (100%)

 

Celsius Resources' Philippine subsidiary, Tambuli Mining Company, Inc., on the
island of Negros, continues to focus on carrying out additional desk stop
studies of all drilling results and exploration data to update the geologic
and mineralisation models in support of the initial mineral resource estimate.
These are conducted in parallel with the preparation of a final exploration
report to support its application for a Declaration of Mining Project
Feasibility.

 

Groundwater monitoring of completed drill holes is ongoing for the formulation
of hydro-geotechnical models.

 

Cullarin West Project, NSW (100%)

The Company will now assess the viability of the opportunity and gauge
interest from other possible partners. No development activities were
conducted during the quarter.

 

Corporate and Expenditure

On 30 January 2023, the Company listed on the London Stock Exchange, and as
part of the listing the Company raised GBP 2.4 million.

 

USD 1.2 Million was utilised to pay the third payment to the prior holders of
the Philippine tenements which were purchased as part of the share sale
agreement back in 2021 which was approved by Celsius shareholders. A further
amount of approximately AUD 910k was utilised to settle AIM listing invoices
that had accumulated given that the process had been ongoing for approximately
18 months.

 

At the end of the quarter, the Company held approximately $3.139 million in
cash reserves. Approximately $315,000 was spent on exploration expenditure
primarily relating to the development of the MCB project, together with
ongoing metallurgical test work at the Opuwo Cobalt Project.

 

$45k in payments were made to related parties of the Company and their
associates during the quarter, for Director and consultancy fees.

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.

 
For further information contact:
 Celsius Resources Limited
 Peter Hume                                      P: +61 8 9482 0500

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

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

 Multiplier Media
 Jon Cuthbert                                    M: +61 402 075 707

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

 Beaumont Cornish Limited

 (Nominated Adviser)

 Roland Cornish/Andrew Price                     +44 (0) 207 628 3396

 SP Angel Corporate Finance LLP (Broker)
 Ewan Leggat                                     +44(0) 203 470 0470

 

 

Tenement Table: ASX Listing Rule 5.3.3 Mining tenement interests held at the
end of the quarter and their location

 

 Western Australia
 Cullarin West            EL 8996           Cullarin Metals Pty Ltd       Granted                                         17/08/2026  100%
 Namibia
                          EL 4346*          Gecko Cobalt Holdings         Permit application, pending approval            TBA         95%
 Philippines
 Maalinao-Caigutan-Biyog  EP 003-2006-CAR   Makilala Mining Company Inc.  Granted                                         25/05/2023  100%
 Colayo                   EXPA-073-CAR      Makilala Mining Company Inc.  Permit application, pending approval            TBA         100%
 Panaon                   EXPA-000127-VIII  PDEP, Inc.                    Complying with further permitting requirements  TBA         100%
 Sagay                    EP-000003-VI      Tambuli Mining Company Inc.   Granted                                         10/02/2024  100%

 

*Tenement expired on 7 March 2023 and a permit application is pending
approval.

The mining tenement interests expired during the quarter:

Tenement EL 4540 in Namibia was relinquished on 9 February 2023 to meet
Ministry of Mines requirements. The relinquishment of EL 4540 has no impact on
the Opuwo mineral resource estimate.

 

The mining tenement interests acquired during the quarter and their location:

Nil.

 

Beneficial percentage interests held in farm-in or farm-out agreements at the
end of the quarter:

Not applicable.

 

Beneficial percentage interests in farm-in or farm-out agreements acquired or
disposed of during the quarter:

Nil.

 

Competent Persons Statement

Information in this report relating to Exploration Results and Mineral
Resources for the MCB Project 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 a consultant to Celsius Resources 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.

 

The information in this Report that relates to the estimate of Mineral
Resources for the Opuwo Project is based upon, and fairly represents,
information and supporting documentation compiled by Mr Kerry Griffin, a
Competent Person, who is a Member of the Australian Institute of Geoscientists
(AIG). Mr Griffin is a Principal Geology Consultant at Mining Plus Pty Ltd and
an independent consultant engaged by Celsius Resources Pty Ltd for this work
and has sufficient experience that is relevant to the style of mineralisation
and type of deposit under consideration and to the activity being undertaken
to qualify as a Competent Person as defined in the 2012 edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" (the JORC Code). Mr Griffin consents to the inclusion in this
announcement of matters based on his information in the form and context in
which it appears.

 

The Company confirms that it is not aware of any new information or data that
materially affects the Mineral Resource for the MCB Project or the Opuwo
Project. The Company also confirms that all material assumptions and
parameters underpinning the Mineral Resource estimate continue to apply and
have not materially changed. Please refer to the ASX Announcement of 28
February 2023.

 

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