CELSIUS ADVANCES LARGE HIGH-GRADE MCB COPPER GOLD PROJECT
HIGHLIGHTS
- Mining Plus (part of the Byrnecut Group) has been contracted to complete conceptual mine planning and financial model as key inputs into the ongoing Scoping Study for the MCB Copper Gold Project.
- Contract finalisation is currently ongoing with Metso Outotec to develop a concept for utilising the maximum portion of the plant tailings for mine backfill to support the underground mining design and production planning.
- Drilling of hole MCB-033 nearing completion, with core samples being delivered for assay on an ongoing basis.
- 24-hour drilling to be introduced during April 2021, pending COVID-19 restrictions being relaxed.
- The Scoping Study remains on track for completion in 2021.
Celsius Resources Limited (“Celsius” or the Company”) (ASX: CLA) is pleased to announce its Philippine Subsidiary Makilala Mining has appointed Mining Plus, part of the Byrnecut Group, as its contractor to complete conceptual mine planning and financial modelling, which are key elements of the Scoping Study for the Company’s large high-grade Maalinao-Caigutan-Biyog (“MCB”) copper-gold project in the Philippines (“MCB Project”).
Located in the Cordillera Administrative Region in the Philippines, approximately 320 kilometres north of Manila, the project holds a large, high-grade copper gold porphyry deposit.
A maiden JORC compliant Mineral Resource was declared for the Project in January 2021, comprising 313.8 million tonnes @ 0.48% copper and 0.15 g/t gold, for 1.5 million tonnes of contained copper and 1.47 million ounces of gold. The resource comprises 290.3 million tonnes @ 0.48% copper and 0.15 g/t gold in the Indicated category and 23.5 million tonnes @ 0.48% copper and 0.10 g/t gold in the Inferred category.
A high-grade core of 93.7 million tonnes @ 0.80% copper and 0.28 g/t gold will be the focus for the Company’s initial Scoping Study (refer ASX announcement of 12 January 2021). The high grade core comprises 79.8 million tonnes @ 0.83% copper and 0.30 g/t gold in the Indicated category and 13.9 million tonnes @ 0.59% copper and 0.11 g/t gold in the Inferred category.
Mine Design Contractor Engaged
Mining Plus has been contracted to consider and undertake mine planning and develop concepts for establishing an underground mine at the MCB copper-gold project, as part of the Scoping Study currently being prepared.
Their work will consider several mining methods, including but not limited to Block Caving and Sub-Level Caving, in order to select the most appropriate method applicable to the orebody conditions. A detailed financial model and mine plan will be generated as part of the above work.
Mining Plus has had recent experience in developing mine plans for Philippine mining projects, which made them a preferred consultant for the MCB Project. In addition, Mining Plus has a global presence across multiple mining disciplines, with a large team of 150+ full time experts.
Furthermore, Mining Plus is part of the Byrnecut Group and is a leading mining technical services provider, consisting of professionals specialising in geology, mining engineering (surface and underground), geotechnical engineering, mine ventilation, and operational management.
Other Scoping Study Appointments
Contractual arrangements are also in place with ALS Testing laboratories in Perth, which will undertake the metallurgical and flotation test work program. Vacuum sealed core samples will be dispatched to ALS following evaluation of the samples by Intertek Philippines in Muntinlupa for multi-element assaying.
John Burgers has been engaged as an independent contractor to provide technical support during the metallurgical test work period, liaising with ALS and providing an interpretation report based on the results, which will include among others, Preliminary Plant Design, Water Balance, Process Plant Capex, and Processing Opex.
PSM Brisbane has been engaged to develop a conceptual Hydrological Model based on information generated from the Vibrating Wire Piezometers, which will be fitted in the four main drill holes located in the main ore body.
Given the terrain and the limited accessible infrastructure locations, contract finalisation is currently ongoing with Metso Outotec to develop a concept for utilising the maximum portion of the plant tailings for mine backfill to support the underground mining design and production planning. Part of their scope is the development of tailings strategies to cater for periods where tailings cannot be placed underground, to minimise the tailings dam footprint.
Drilling Update
Drilling at MCB-033 is ongoing with a depth as of April 11 at 458.9 meters with an average core recovery of 99.3%. The target drill depth is 600 meters, however this may be extended depending on core sampling. Drilling has been relatively slow due to loss of water circulation in the fractured ground and high bit wear. Changing shoe bits frequently was overcome with the replacement of Boart Longyear drill bits by the drilling contractor.
Three batches of drill cores have been delivered to the Makilala Mining Company Inc. Balong core house as of April 7th consisting of 391.22 meters with core logging and sampling ongoing. The first batch of assay samples will be delivered to Intertek during the week commencing April 12th.
It is expected that MCB-033 will be completed by the third week of April while preparation of MCB-034 is now complete. Relocation of the drill rig is expected to take place towards the end of April. Drilling will move to two shifts during April subject to labour being available due to the ongoing COVID quarantine restrictions.
Metallurgical samples (for comminution, crushing and floatation test work) will be collected, vacuum sealed and stored, awaiting confirmation from partial copper-gold assay results from Intertek. It is expected that all Metallurgical samples will be shipped to Perth, Australia after all the samples are collected, and confirmed, tentatively early to mid-May 2021.
In parallel with the ongoing drilling program, the Company continues to implement environmental development work programs consistent with the conditions of the MCB exploration permit which aims to ensure that the drilling program is carried-out responsibly.
Community Engagement
The Philippine in-country team undertakes regular community engagements not only to address issues/concern about the MCB Project but also to foster sustainable relationships based on mutual understanding and to facilitate sharing of responsibilities.
Consistent with MCB’s permit condition, a consultation cum Participatory Rapid Appraisal was held involving the Balatoc Tribe Council of Elders and Balatoc Barangay Council in mid-March, to provide a venue for the identification of priority programs, projects and activities (P/P/As) that will be funded under MCB’s mandatory Two-Year Community Development Program (“CDP”).
The CDP covers 6 key program components consistent with the Credited Projects and Expenditures for the development of host communities in accordance with the National Government guidelines as follows:
a. Human Resource Development and Institution Building;
b. Enterprise Development and Networking;
c. Assistance to Infrastructure Development and Support Services;
d. Access to Education and Educational Support Program;
e. Access to Health Services, Health Facilities and Health Professionals; and
f. Protection and Respect for Socio-Cultural Values.
The CDP will be implemented in collaboration with the concerned local government units to complement local development goals and in partnership with relevant government agencies, private institutions and nongovernment organisations to optimise available resources and achieve better outcomes.
This announcement has been authorised by the Board of Directors of Celsius Resource Limited
Celsius Resources Contact Information
Level 2, 22 Mount Street
Perth WA 6000
PO Box 7054
Cloisters Square Perth WA 6850
P: +61 8 6188 8181
F: +61 8 6188 8182
E: info@celsiusresources.com.au
www.celsiusresources.com.au
Media contact
David Tasker / Colin Jacoby
Chapter One Advisors
M: +61 433 112 936 / +61 439 980 359
E: dtasker@chapteroneadvisors.com.au / cjacoby@chapteroneadvisors.com.au
The Company confirms that it is not aware of any new information or data that materially affects the Mineral Resource for the MCB Project. The Company also confirms that all material assumptions and parameters underpinning the Mineral Resource estimate continue to apply and have not materially changed. Please refer to the ASX Announcement of 12 January 2021.