News & Updates

Celsius Resources Limited (“Celsius” or the” Company”) (ASX, AIM: CLA) is pleased to announce the results of the Definitive Feasibility Study (“DFS”) for the Maalinao-Caigutan-Biyog Copper-Gold Project (“Project” or “MCB”) which is held under its Philippine affiliate Company, Makilala Mining Company., Inc. (“MMCI”). The MCB Project is owned and operated by MMCI and Celsius has 40% working interest in MCB as Celsius conditionally agreed to transfer a 60% working interest in the MCB Project to Sodor, Inc, subject to certain conditions, which remain outstanding, as announced on 20 March 2023. 

Celsius has reported, in accordance with the JORC Code (2012), a JORC-compliant Mineral Resource totaling 343 Mt at 0.46% Cu and 0.12 g/t Au, containing approximately 1.6 Mt of copper and 1.4 Moz of gold, and a Maiden Ore Reserve of 130.2 Mt at 0.66% Cu and 0.21 g/t Au, containing approximately 856 kt of copper and 891 koz of gold. The Ore Reserve comprises 22.1 Mt of Proven Reserves and 108.2 Mt of Probable Reserves and underpins the long-term development plan for the Project1. 

The DFS follows a scoping study announced in December 2021 and has been prepared with a focus on optimising the underground mine plan, advancing the process plant design, refining surface and underground infrastructure layouts, and developing tender-ready early work packages. The selected mining method is sub-level open stoping, reflecting the geometry and continuity of the mineralisation and prevailing geotechnical conditions. Ore will be processed through a conventional crushing, grinding and flotation concentrator, producing a high-quality copper-gold concentrate. 

The DFS also sought to identify cost efficiencies across mining, processing, tailings management, power supply and associated infrastructure. In parallel, additional geotechnical and hydrogeological investigations were undertaken to refine design inputs, reduce technical uncertainty, and support the Project’s development pathway in compliance with the JORC Code (2012). 

This announcement reflects the work undertaken by Ausenco2 (Lead Engineer, Process plant and surface infrastructure capital and operating costs), DMT Consulting Limited (Mining), MMCI, and their respective contractors and consultants, as described and referenced throughout this release. It has been prepared for the information of stakeholders and the broader investment community, both domestic and international, and to support ongoing engagement with existing and prospective investors. 

Celsius Executive Director, Neil Grimes said: 

“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. 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.”

The table below summarises the key physical and financial outcomes of the DFS, which has been completed to a Class 3 level of estimate accuracy (typically up to ±15%), consistent with industry standards and suitable for project financing and execution planning. The outcomes are derived from engineering and cost estimates developed predominantly on a first-principles basis, supported by defined mine plans, process plant design, infrastructure layouts, execution methodology and contractor benchmark inputs. 

The table also highlights the economic significance of mining the high-grade core zone during the initial 10 years of operation, which underpins the Project’s early cash flow profile and overall economic robustness. Key technical and economic highlights are summarised as follows: 

• Pre-tax NPV(8%) of US$1.3 billion (~A$1.98 billion) and an IRR of 31% and Post-tax NPV (8%) of US$ 771 Million (≈ A$1.15 billion) and an IRR of 24%, assuming copper and gold prices of US$4.30/lb Cu and US$3000/oz Au for first nine years then US$7.0 /lb Cu and US$4500/oz Au for the succeeding years. 
• At current spot price of US$6.00/lb Cu and US$4500/oz Au, the Pre-tax NPV(8%) increases to US$1.9 billion (~AU$2.9 billion) – IRR 42% Post-tax NPV(8%) US$1.2 billion (≈ A$1.8 billion) – IRR 34%. 
• C1 Cash Cost during the first 10 years average US$0.41/lb Cu and LOM average of US$1.73/lb Cu, net of credits. 
• CAPEX of US$276 Million which includes US$ 26.5 Million in contingency and US$15.1 Million in growth. This assumes a payback period of 4.7 years from start of production. 

MMCI Chief Operations Officer Patrique Jane Duran said: 

“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. The DFS validates more than a decade of technical work and provides a solid foundation for funding execution, and long-term value creation.

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. Project optimisation prioritises operational efficiency and delivery certainty in the early years, while reducing the overall environmental footprint and preserving flexibility as infrastructure is established and the operation matures, thereby supporting both cost performance and environmental outcomes.

With the DFS now complete, the Company is focused on advancing funding discussions, finalising execution planning and progressing toward a Final Investment Decision. Management believes the MCB Project is well positioned to deliver sustainable shareholder returns and to become a significant new copper-gold producer in the Philippines, aligned with responsible mining and ESG principles.”

Read the full article here.