Celsius Resources Ltd. has reported further high-grade copper and gold intercepts from its Maalinao-Caigutan-Biyog (MCB) Project in the Cordillera Administrative Region, even as Philippine regulators granted conditional approval for the use of water resources in preparation for mine development.
In its September 15 disclosure to the Australian Securities Exchange (ASX) and London’s Alternative Investment Market (AIM), Celsius said drilling results confirmed a continuous interval of 113.1 meters grading 1.32 percent copper and 0.41 grams per ton (g/t) gold from 8.1 meters, including 54.6 meters at 1.84 percent copper and 0.74 g/t gold from 60.4 meters.
The drill program, which began in June, focused on geotechnical and hydrogeological drilling, as well as collecting material for metallurgical test work.
“This recent drill hole was completed to provide Ausenco and its mineral processing team with sufficient high-quality material from the MCB deposit so that further testwork can be completed to reaffirm the process plant design,” said Peter Hume, Celsius’ country technical director.
“With these new higher-grade intercepts, we have further confidence that our mine plan, development and operating strategy will deliver the best value for the Project, our investors, shareholders and the community,” Hume added.
Water permit granted
The National Water Resources Board (NWRB) has issued a conditional water permit valid for 12 months, authorizing Celsius’ Philippine subsidiary Makilala Mining Company Inc. (MMCI) to commence water use activities for the MCB Project.
Under the Water Code of the Philippines, MMCI is required to install measuring devices and submit quarterly water utilization reports to ensure withdrawals remain sustainable and do not compromise existing water rights. The permit will be made permanent once compliance conditions are met.
Celsius said it “remains committed to working diligently to meeting all regulatory requirements while safeguarding local water resources to secure full permit conversion.”
Feasibility and financing update
The company also confirmed that its feasibility update study and front-end engineering design (FEED) program remain on track for completion by December.
An interim study report from Ausenco highlighted improvements in mine design, site layout, processing plant design and materials handling, which are expected to lower operating costs and boost project economics.
Ongoing talks are being held with several potential financiers, including the Maharlika Investment Corporation and Kiri Industries Ltd. While the Maharlika fund has already extended an initial bridging loan, Celsius cautioned that “there is no guarantee that discussions will lead to any definitive agreement.”
The MCB Project, located about 320 kilometers north of Manila, has an updated JORC-compliant mineral resource estimate of 338 million tonnes grading 0.47 percent copper and 0.12 g/t gold, equivalent to 1.6 million tonnes of contained copper and 1.3 million ounces of gold.
A 2021 study identified the potential for a 25-year underground mining operation with a post-tax net present value of $464 million and an internal rate of return of 31 percent, based on a copper price of $4 per pound and gold at $1,695 per ounce.
