Celsius Resources Ltd. has reported encouraging new drilling results from its Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project in Benguet, strengthening hopes that the site could become one of the country’s most significant new mines in decades.
The company, listed on both the Australian Securities Exchange (ASX) and the London Stock Exchange’s AIM market, announced on September 15 that the latest drill hole intersected a continuous 113.1 meters averaging 1.32 percent copper and 0.41 grams per ton of gold. Within that, a particularly rich zone returned 54.6 meters at 1.84 percent copper and 0.74 grams per ton of gold, beginning at just 60.4 meters below the surface.
For a mining project, those grades are considered high-quality, especially given the thickness of the mineralized zone and its proximity to the surface. Such results could support lower-cost underground mining while yielding strong recoveries for both copper and gold.
“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.
Regulatory approval to move forward
Beyond the promising drill results, Celsius’ local affiliate Makilala Mining Company Inc. (MMCI) also secured a key permit from the National Water Resources Board (NWRB). The agency has issued a Conditional Water Permit valid for 12 months, allowing water abstraction to begin in preparation for construction.
The permit is subject to strict conditions. MMCI must install water measuring devices and submit quarterly reports to regulators, showing that withdrawals do not undermine local rights or affect community access. A permanent permit will only be issued once the company has proven compliance and sustainability of the water source.
Celsius said it remains “committed to working diligently to meeting all regulatory requirements while safeguarding local water resources to secure full permit conversion.”
Feasibility study gains momentum
At the same time, the company’s Feasibility Study Update and Front-End Engineering and Design (FEED) Program are progressing according to schedule, with completion expected before the end of December.
Engineering firm Ausenco, which is overseeing the study, has already delivered an interim report highlighting improvements in mine design, process plant layout, and materials handling. These changes are expected to lower operating costs and improve the project’s overall financial performance.
Once completed, the updated study will include a fresh mineral resource estimate and mining reserve statement in line with JORC standards, strengthening the case for financing and development.
Funding talks in progress
Celsius and MMCI are also moving ahead with financing discussions. Among the potential backers is the state-owned Maharlika Investment Corp. (MIC), which has already provided a bridging loan under the First OLSA facility and continues to show strong interest.
Talks are also underway with other parties, including Kiri Industries Ltd. Although no binding agreements have been reached, management remains confident that the project’s economics will attract the right partners.
The company emphasized that it is “focused on completion of the updated Feasibility Study and FEED program whilst securing the best possible financing solution for MCB project and the best possible value for Celsius shareholders.”
A project with national significance
Located about 320 kilometers north of Manila in the Cordillera Administrative Region, the MCB Project is Celsius’ flagship asset in the Philippines. It holds an estimated 1.6 million tons of copper and 1.3 million ounces of gold, based on the latest JORC-compliant resource estimate announced in December 2022.
An earlier study in 2021 suggested the project could support a 25-year mine life with an underground mining operation and processing facility producing copper-gold concentrate. At that time, the project was valued at a post-tax net present value of US$464 million with an internal rate of return of 31 percent, based on copper at US$4 per pound and gold at US$1,695 per ounce.
Initial capital spending was pegged at US$253 million, with payback estimated at under three years. Average production for the first 10 years was designed at 2.28 million tons of ore per year, yielding ore grades of 1.14 percent copper and 0.54 grams per ton gold.
These numbers could be revised upwards once the updated study is complete, thanks to higher commodity price forecasts and the stronger-than-expected drill results.
Building trust with communities
Celsius continues to stress the importance of social and environmental stewardship in moving the project forward. The company has been working closely with its host community in Balatoc, which it describes as “highly supportive” of the project.
“We continue to deliver on our commitments to the Philippine Government and our highly supportive Balatoc community, with whom we are confidently advancing the MCB Project,” Celsius said.
For both the company and its stakeholders, the recent high-grade discovery and regulatory milestones offer renewed momentum. If all goes as planned, the MCB Project could become a major source of copper and gold for the Philippines, bringing new jobs, infrastructure, and revenues to the Cordillera region.
