REG - Celsius Resources Ld - Quarterly Activities Report and Appendix 5B

Celsius ResourcesAnnouncement

31/10/2023 07:15

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RNS Number : 7852R  Celsius Resources Limited  31 October 2023

31 OCTOber 2023

CELSIUS RESOURCES LIMITED

QUARTERLY ACTIVITIES REPORT FOR QUARTER ENDED 30 SEPTEMBER 2023

 

mcb project obtains dmpf approval

HIGHLIGHTS

· Approval of MCB Project's Declaration of Mining Project Feasibility

· Issuance of Exploration Permit for the Botilao Copper-Gold Prospect

· Closing cash as at 30 September 2023 of A$3.7 million

Celsius Resources Limited ("Celsius" or the "Company") (ASX, AIM: CLA) is
pleased to provide the following summary of the Company's activities for the
quarter ended 30 September 2023.

 

 

Projects

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

Philippines (40%)

Makilala Mining Company Inc. ("MMCI"), Celsius' Philippine subsidiary, has
progressed its permitting requirements and is preparing for the
pre-development phase of the MCB Project in the Cordillera Administrative
region, approximately 320km north of Manila.

 

The MCB Project's Declaration of Mining Project Feasibility (DMPF) was
approved on 28 September 2023 1  (#_ftn1) . This enabled the Company to move
forward with obtaining a Mineral Production Sharing Agreement (MPSA) prior to
the end of the year with the Philippine National Government, that would allow
the development and operation of the MCB Project.

 

Pertinent requirements have been submitted to the Philippine Mines and
Geosciences Bureau for evaluation and approval, including a Three-Year
Development/Utilisation Work Program which details the phased approach for the
development, construction and operation of the project.

 

BOTILAO COPPER-GOLD PROSPECT (40%)

Another tenement was recently awarded under the MMCI portfolio of assets, the
Botilao Copper-Gold Prospect, was issued an exploration permit on 7 August
2023 2  (#_ftn2) . The tenement is located in the Cordillera Administrative
Region, southwest of the MCB Project.

 

Results of the historical exploration work in the area conducted by Lepanto
Consolidated Mining, Inc. in the '70s along with the current geological
understanding of the MCB Deposit will provide the initial working model for
the Botilao Prospect work program.

 

Exploration works for the initial two-year permit aims to define the extent
and distribution of the observed mineralisation along Botilao Creek, which
will consist of regional to semi-detailed geochemical sampling and mapping to
generate future targets for possible geophysical surveys and eventual diamond
drilling activities.

 

Along with geochemical sampling, mapping of different rock types or
lithologies in the area will be conducted to characterise and delineate
mineralised or altered zones. Detailed mapping will focus on identified
mineralised outcrops to ensure proper understanding of the classification and
controls of mineralisation.

 

The Exploration Work Program will be complemented by an Environmental Work
Program which outlines the protection and enhancement activities during the
exploration period, as well as a Community Development Program consisting of
socio-economic projects which will be identified in consultation with the host
community.

 

The Botilao prospect is envisaged to bring additional value to Celsius'
portfolio and complement the MCB Project once developed.

 

Opuwo Cobalt Project, Namibia (95%)

During the quarter, metallurgical test work continued to optimise floatation,
roasting and leaching conditions for the Opuwo project.  Final results and
reports are expected in the next quarter, these results along with additional
mine planning work that is being conducted in the Philippines will be used as
a basis to evaluate the viability of the project and what additional studies
may required with the objective to produce a revised Scoping Study for the
Opuwo project during 2024.

 

The Company continued to engage with the Government of Namibia to advance the
renewal of its mineral rights (EPL 4346) which covers the full extent of the
Opuwo project. From recent engagement with the Ministry of Mines and Energy,
it became evident that all technical assessments for the renewal have been
completed and finalisation of renewal of EPL 4346 is a now an act of
formalisation, which is anticipated to be completed in the next quarter.

 

SAGAY Copper-Gold Project, Philippines (100%)

Celsius Resources' Philippine subsidiary, Tambuli Mining Company, Inc., on the
island of Negros, has ramped up activities to complete the remaining
commitments under its Exploration, Environmental, and Community Development
Programs.

 

Activities conducted from July to September 2023 focused on the shallow
high-grade copper, or the Secondary Supergene Chalcocite Enrichment zone
(900SG Domain). This is a logical approach based on the results of the desktop
studies and the Maiden Mineral Resource Estimate 3  (#_ftn3) .

 

A drilling program was concluded to supplement the data gaps and to increase
the resource estimation confidence of the shallow high-grade zone. Eleven
diamond drill holes were completed with a total of 824.70 meterage drilled
while one (1) hole was abandoned due to the intersection of the shallow water
table.

 

Table 1. Drilling Summary

 Hole ID  Date Started  Date Finished  Coordinates                                Elevation (m)  Azimuth  Dip     Depth (m)  Core Sizes

                                                                                                 ((o))    ((o))
          PQ                           HQ                                                        NQ

          (m)                          (m)                                                       (m)
 SGY-039  08/07/2023    08/09/2023                     542853mE,                  123            135      -60     60         0.00 to 60.00 (EOH)  -     -

                                       1195396mN
 SGY-040  08/10/2023    08/13/2023                     542736mE,                  118            135      -60     80         0.00 to 80.00 (EOH)  -     -

                                                       1195313mN
 SGY-041  08/14/2023    08/14/2023                     542845mE,                  117            135      -60     14.2       0.00 to 14.20 (EOH)  -     -

                        (abandoned)                    1195305mN
 SGY-042  08/15/2023    08/15/2023                     542722mE,                  115            135      -60     60         0.00 to 60.00 (EOH)  -     -

                                                       1195396mN
 SGY-043  08/15/2023    08/18/2023                     542836mE,                  129            135      -60     80         0.00 to 80.00 (EOH)  -     -

                                                       1195244mN
 SGY-044  08/19/2023    08/21/2023                     542664mE,                  124            135      -60     80         0.00 to 80.00 (EOH)  -     -

                                                       1195363mN
 SGY-045  08/19/2023    08/22/2023                     542682mE,                  150            135      -60     80         0.00 to 80.00 (EOH)  -     -

                                                       1195242mN
 SGY-046  08/23/2023    08/25/2023                     542610mE,                  137            135      -60     80         0.00 to 80.00 (EOH)  -     -

                                                       1195259mN
 SGY-047  08/23/2023    08/26/2023                     542603mE,                  126            135      -60     60         0.00 to 60.00 (EOH)  -     -

                                                       1195193mN
 SGY-048  08/26/2023    08/28/2023                     542628mE,                  131            135      -60     60         0.00 to 60.00 (EOH)  -     -

                                                       1195117mN
 SGY-049  08/27/2023    08/29/2023                     542665mE,                  134            135      -60     90.5       0.00 to 90.50 (EOH)  -     -

                                                       1195305mN
 SGY-050  08/30/2023    08/31/2023                     542771mE,                  139            135      -60     80         0.00 to 80.00 (EOH)  -     -

                                                       1195206mN

 

All drill cores were geotechnically and geologically logged. Geochemical core
sampling have also been completed and submitted to a laboratory for analysis.
Assay results of the shallow drill holes are intended to upgrade the resource
estimation of the shallow copper zone. Collection of samples for further
metallurgical test works which is ongoing. This is aimed at providing a
thorough process flow for the extraction of copper/copper mineral concentrate
by means of gravity separation. Results of the analysis will be the basis for
the mine plan, process flow sheet, and financial studies which are critical
components of the project's viability.

 

Environmental and Social Studies have been completed that would serve as
baseline data for the Environmental Impact Statement for the project which is
underway.

 

In parallel, the Company is also preparing the mandatory requirements for the
application of Declaration of Mining Project Feasibility (DMPF) to be
submitted within the term of the exploration permit.

 

Cullarin West Project, NSW (100%)

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

 

Corporate and Expenditure

 

As announced to ASX on 15th May 2023, Celsius and Silvercorp Metals Inc.
("Silvercorp") entered into a term sheet which outlined the nonbinding key
terms upon which, amongst other things, Silvercorp would acquire 100% of the
issued capital of Celsius pursuant to a scheme of arrangement ("Scheme"). The
term sheet also contemplated an inter-conditional spin-out of the combined
Sagay (Philippines) and Opuwo Cobalt (Namibia) projects ("Demerger"). The
parties had substantially completed the negotiations with regards to the
legally binding agreements for the Scheme and Demerger as contemplated.

 

However, following initial feedback received by Celsius from its shareholders,
the Company had sought to advance discussions with Silvercorp regarding a
number of key commercial aspects of the transaction.

 

The Company announced on 2nd August 2023 that the exclusivity under the term
sheet had expired, and at that time Celsius remained committed to advancing
the discussions with Silvercorp with a view to executing binding agreements
considering the best interests of Celsius shareholders. Since then,
discussions with Silvercorp have not eventuated.

 

Cash Position

 

At the end of the quarter, the Company held approximately A$3.7 million in
cash reserves.

 

ASX ADDITIONAL INFORMATION

 

The Company provides the following information pursuant to ASX Listing Rule
requirements:

 

·    ASX Listing Rule 5.3.1:

Approximately A$572k was spent on exploration expenditure, with $318k
primarily relating to the development of the MCB project.

·    ASX Listing Rule 5.3.2:

The Company confirms that there was no mine production and development
activities for the quarter.

·    ASX Listing Rule 5.3.5:

The Company advises that there were A$380k in payments made to related parties
of the Company and their associates during the quarter, for Director and
consultancy fees 4  (#_ftn4) .

 

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

 

 PERMIT                   PERMIT            REGISTERED HOLDER / APPLICANT  PERMIT STATUS                                   PERMIT EXPIRY                                     INTEREST / CONTRACTUAL RIGHT

NAME
NUMBER
 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                                         Waiting for the MPSA Mining permit to be issued.  40%
 Colayo                   EXPA-073-CAR      Makilala Mining Company Inc.   Granted                                         29/09/2025                                        40%
 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 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.

 

The Maalinao-Caigutan-Biyog (MCB) project has gained an automatic extension as
all documentation has been submitted to the Philippine National Government for
the awarding of a MPSA Mining permit.

 

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.

 

 

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

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

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

 Tavistock Communications                             P: +44 (0) 207 628 3396

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

                                                      E: charles.vivian@tavistock.co.uk
 Tara Vivian-Neal                                     M: 0044 7394408654

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

 Beaumont Cornish Limited

 (Nominated Adviser)                                  P: +44 (0) 207 628 3396

 Roland Cornish/Andrew Price                          E: corpfin@b-cornish.co.uk

 SP Angel Corporate Finance LLP (Broker)              P: +44(0) 203 470 0470
 John Meyer/Ewan Leggat/Harry Davies-Ball             E: contact@spangel.co.uk

 

Competent Persons Statement

 

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

 

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 5  (#_ftn5) Project, the
Sagay 6  (#_ftn6) Project or the Opuwo 7  (#_ftn7) Project. The Company also
confirms that all material assumptions and parameters underpinning the Mineral
Resource estimate continue to apply and have not materially changed.

 

Forward Looking Statements

 

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

 

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

 

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

Appendix 5B
Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

http://www.rns-pdf.londonstockexchange.com/rns/7852R_1-2023-10-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7852R_1-2023-10-30.pdf)

 1  (#_ftnref1) Refer to ASX announcement dated 28 September 2023

 2  (#_ftnref2) Refer to ASX announcement dated 7 August 2023

 3  (#_ftnref3) Refer to ASX announcement dated 7 November 2022

 4  (#_ftnref4) The average foreign exchange rates for the quarter ended 30
September 2023 to convert the relevant Philippine Peso (1AUD:36.64PHP) and
Namibian Dollar (1AUD:12.22NAD) amounts to Australian Dollars are sourced from
https://exchangerates.org.uk/ (https://exchangerates.org.uk/)

 5  (#_ftnref5) Refer to ASX announcement dated 12 December 2022 for an
updated JORC compliant Mineral Resource Estimate.

 6  (#_ftnref6) Refer to ASX announcement dated 7 November 2022 for the Maiden
Mineral Resource for Celsius' Sagay Cu-Au Project

 7  (#_ftnref7) Refer to ASX announcement dated 1 July 2021 for the updated
Mineral Resource Estimate for the Opuwo Project.

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