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

Celsius ResourcesAnnouncement

30/04/2024 08:15

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RNS Number : 5676M  Celsius Resources Limited  30 April 2024

 

 

30 April 2024

CELSIUS RESOURCES lIMITED

QUARTERLY REPORT

APPENDIX 5B

MCB Mining permit granted

HIGHLIGHTS

    · Issuance of Mining Permit for the MCB Project

· Updated Mineral Resource for the Sagay Project

· Closing cash as of 31 March 2024 of A$769,00

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 31 March 2024.

 

Projects

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

Philippines (40%)

Makilala Mining Company, Inc. ("MMCI"), a Philippine affiliate of Celsius in
the Philippines, has been granted a Mineral Production Sharing Agreement
("MPSA" or "Mining Permit") with the Philippine Government for its flagship
Maalinao-Caigutan-Biyog Copper-Gold Project ("MCB Project") in the Cordillera
Administrative Region 1  (#_ftn1) .

 

The Mining Permit grants the Company exclusive rights to undertake rational
exploration, development, and commercial production of copper and associated
minerals in the Contract Area, covering approximately 2,500 hectares, for 25
years and renewable for another 25 years.

 

With the issuance of the Mining Permit, MMCI will undertake the necessary work
streams to proceed with the MCB mine development.

 

The Company has been interfacing with potential investors who have shown
resounding interest and will now proceed to continue discussion to advance
funding and partnership options to proceed with the development of the MCB
project.

 

BOTILAO COPPER-GOLD PROSPECT (40%)

During the quarter, a comprehensive review of historical data was undertaken
to gain a better understanding of the area's mineral potential. Research and
utilisation of remote sensing techniques were also performed to identify
structural features and select promising exploration targets.

 

Consultations with the Provincial, Municipal, and Barangay Local Government
Units and the host community were also conducted which led to the formulation
of the Community Development Program and is currently under review by the
national Government.

Opuwo Cobalt Project, Namibia (95%)

Celsius Resources' Namibian subsidiary held under Opuwo Cobalt Holdings (Pty)
Ltd. has received renewal of the exclusive prospecting license for the Opuwo
Cobalt Project ("Opuwo") in November 2023, the project lies 730km north-west
of the Namibian capital city, Windhoek 2  (#_ftn2) .

 

The Company is in early-stage discussions regarding a potential transaction
with a strategic partner/s concerning the disposal of the Company's 95%
interest in the Opuwo Project or part off. Any transaction undertaken by the
Company will be subject to the negotiation and execution of a binding
agreement.

 

The Company will make an announcement in accordance with its continuous
disclosure obligations in the event that negotiations complete and a binding
agreement is executed.

SAGAY Copper-Gold Project, Philippines (100%)

During the quarter, Tambuli Mining Company, Inc. ("TMCI"), a wholly owned
Philippine subsidiary of Celsius in the Philippines, issued an updated
JORC-compliant Mineral Resource Estimate ("MRE") 3  (#_ftn3) for the Sagay
Copper-Gold Project ("Sagay Project") in the Negros Islands.

 

The focus of the update was on the shallow supergene copper mineralisation
which now includes Measured and Indicated Mineral Resources. The combined
Measured, Indicated, and Inferred Mineral Resource is now at 312 million
tonnes @ 0.39% copper and 0.11 g/t gold, while the Global Resource remains
largely unchanged with ~1.2 million tonnes of contained copper and ~1 million
ounces of contained gold.

 

The update to the MRE at Sagay is largely based on the results of the 2023
drilling program at a shallow copper position located ~500m to the west of the
main body of mineralisation discovered to date. This shallow copper zone
offers Celsius the opportunity to investigate a low-cost start-up opportunity
which was the basis of the feasibility study that was submitted to the
Philippine Government 4  (#_ftn4) .

 

The study confirmed the presence of minerals in the area which are recoverable
by processing the ore through gravity separation which was determined to be
economically sound while ensuring that environmental protection and
preservation methods would be implemented through advanced mining
technologies.

 

Technical, environmental, and social considerations were incorporated in the
mine design to reduce the mine footprint to approximately 20 hectares.
Tailings would be managed through dry stacking method which eliminates the
need for a tailings dam, thus reducing the possibility of environmental
impacts (tailings spill).

 

The approval of the Declaration of Mining Project Feasibility (DMPF) along
with the issuance of the Environmental Compliance Certificate, which are
currently ongoing government evaluation procedures, triggers the next stage of
the permitting process leading to a mining permit that would enable the
development and operations of the Sagay Project.

 

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

 

During the quarter 325,304,915 listed options exercisable at $0.04 each,
expired on 22 March 2024.

 

Post quarter end, the Company successfully completed and closed a placement on
AIM, a market operated by the London Stock Exchange plc, to raise gross
proceeds of approximately GBP922,000 ("AIM Placement"). The Placing securities
were issued on 18 April 2024(( 5  (#_ftn5) )).

 

On 18 April 2024, the Company signed a Subscription Agreement with substantial
shareholder, Silvercorp Metals, Inc., to raise a further GBP117,317 (before
costs), on the same terms as the AIM Placement(( 6  (#_ftn6) )).

 

Cash Position

 

At the end of the quarter, the Company held approximately A$769,000 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$1 million was spent on exploration expenditure during the
quarter, primarily relating to the development of MCB, Sagay and Opuwo
Projects. An adjustment of approximately $492,000 in relation to these costs
has been made in the quarter, refer to note 8 of the Appendix 5B for further
detail.

·    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 approximately A$138,000 in payments made
to related parties of the Company and their associates during the quarter for
Director fees, consultancy fees and reimbursement costs.

 

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
 Opuwo                    EL 4346            Gecko Cobalt Holdings         Granted                              10/10/2025                                               95%

 Philippines
 Maalinao-Caigutan-Biyog  MPSA-356-2024-CAR  Makilala Mining Company Inc.  Granted                              13/03/2049                                               40%
 Botilao                  EP-011-2023-CAR    Makilala Mining Company Inc.  Granted                              29/09/2025                                               40%
 Panaon                   EXPA-000127-VIII   PDEP, Inc.                    Complying with further requirements  TBA                                                      100%
 Sagay                    EP-000003-VI       Tambuli Mining Company Inc.   Granted                              Automatic extension until the approval of the DMPF/MPSA  100%

 

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.

 

APPENDIX 5B

 

http://www.rns-pdf.londonstockexchange.com/rns/5676M_1-2024-4-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5676M_1-2024-4-30.pdf)

 

 

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)

 Beaumont Cornish Limited

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

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

 

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 7  (#_ftn7) Project, the
Sagay 8  (#_ftn8) Project or the Opuwo 9  (#_ftn9) 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.

 

 

 

 

 

 1  (#_ftnref1) Refer to ASX announcement dated 18 March 2024 "MCB Project
Mining Permit granted by Philippine Government"

 2  (#_ftnref2) Refer to ASX announcement dated 6 November 2023 "CLA receives
renewal of Opuwo Exclusive Prospecting License"

 3  (#_ftnref3) Refer to ASX announcement dated 6 February 2024 "Resource
update for Sagay Mining Project"

 4  (#_ftnref4) Refer to ASX announcement dated 8 January 2024 "Celsius' Sagay
Project applies for DMPF"

 5  (#_ftnref5) Refer to ASX announcement dated 15 April 2024 "Result of UK
Placing"

 6  (#_ftnref6) Refer to ASX announcement dated 18 April 2024 "CLA signed
Subscription Agreement with Silvercorp Metals"

 7  (#_ftnref7) Refer to ASX announcement dated 12 December 2022 for an
updated JORC compliant Mineral Resource Estimate.

 8  (#_ftnref8) Refer to ASX announcement dated 6 February 2024 for the
updated Mineral Resource Estimate for the Sagay Project.

 9  (#_ftnref9) Refer to ASX announcement dated 1 July 2021 for the updated
Mineral Resource Estimate for the Opuwo Project.

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