Celsius Resources Limited says the Maalinao-Caigutan-Biyog Copper-Gold Project is technically robust and financially compelling
Celsius Resources Limited has announced the results of a Definitive Feasibility Study (DFS) for its Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project in the Philippines, confirming what the company described as a technically and economically robust development with strong long-term fundamentals.
The DFS outlines pre-tax net present value (NPV) at an 8 percent discount rate of US$1.3 billion, with an internal rate of return (IRR) of 31 percent. On a post-tax basis, the study reports an NPV of US$771 million and an IRR of 24 percent, based on long-range copper and gold price assumptions of US$4.30 per pound of copper and US$3,000 per ounce of gold for the first nine years, increasing to US$7.00 per pound of copper and US$4,500 per ounce of gold in subsequent years.
At current spot prices of approximately US$6.00 per pound of copper and US$4,500 per ounce of gold, the economics improve further, with pre-tax NPV rising to US$1.9 billion and IRR to 42 percent, while post-tax NPV increases to US$1.2 billion with an IRR of 34 percent.
The DFS confirms a large-scale, long-life underground operation supported by a JORC (2012) compliant Mineral Resource of 343 million metric tons and a maiden Ore Reserve of 130.2 million metric tons. The Ore Reserve underpins a mine life of more than 35 years and includes 22.1 million metric tons of Proven Reserves and 108.2 million metric tons of Probable Reserves.
Celsius Executive Director Neil Grimes said the study represents a major step forward for the project.
“The MCB Definitive Feasibility Study marks a significant milestone, positioning the MCB Project as a leading near-term copper-gold development opportunity in the Philippines,” Grimes said. “The Study demonstrates a technically robust and economically enhanced project, with competitive capital intensity and operating costs. The Company is progressing funding and offtake discussions to advance the Project toward a Final Investment Decision and construction.”
According to the DFS, early production will focus on a high-grade core during the first 10 years of operation, delivering strong early cash flow. Average C1 cash costs during this period are estimated at US$0.41 per pound of copper, net of by-product credits, with life-of-mine average C1 costs of US$1.73 per pound.
Initial capital expenditure is estimated at US$276 million, including contingency and growth allowances, with a projected payback period of 4.7 years from the start of production.
Mining is planned using sublevel open stoping with paste backfill, supported by decline access transitioning to a shaft and hoisting system. Ore will be processed through a conventional crushing, grinding and flotation concentrator to produce a high-quality copper-gold concentrate.
The DFS was prepared following a scoping study released in December 2021 and involved Ausenco as lead engineer for the process plant and surface infrastructure, DMT Consulting Limited for mining, Makilala Mining Company Inc. (MMCI), and other contractors and consultants.
MMCI Chief Operations Officer Patrique Jane Duran said the completion of the DFS confirms the project’s readiness to advance.
“The completion of the DFS represents a major milestone and value inflection point for the MCB Copper-Gold Project, confirming it as a long-life, technically robust and finance-ready underground operation with strong economics and a clear development plan,” Duran said.
“Importantly, the DFS demonstrates a competitive cost structure, strong margins, and early cash flow, from the substantial Ore Reserve and a disciplined, risk-managed development strategy,” she added.
The MCB Project is held under Celsius’ Philippine affiliate MMCI and is located in Barangay Balatoc, Municipality of Pasil, Kalinga Province, approximately 320 kilometers north of Manila. The project covers about 2,500 hectares in the Cordillera Administrative Region.
The Mines and Geosciences Bureau issued Mineral Production Sharing Agreement MPSA-356-2024-CAR to MMCI on March 15, 2024. The permit provides for an initial 25-year mine life, with the option to renew for a further 25 years.
Celsius said that, with the DFS now complete, the company is focused on advancing funding discussions, finalizing execution planning and moving toward a Final Investment Decision, positioning the MCB Project to become a significant new copper-gold producer in the Philippines.
