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Staff Writer

Celsius Resources Limited’s (ASX: CLA) Philippine subsidiary Makilala Mining has commenced drilling operations at the Maalinao- Caigutan-Biyog (MCB) copper-gold project on the main island of Luzon.

The project is located in the Cordillera Administrative Region in the Philippines, approximately 320 km north of Manila, and 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. 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 studies.

Makilala country operations director, Peter Hume, expressed his sincere appreciation to the project ground team, community leaders, and the local government unit which came at a difficult time when COVID was just starting to manifest its presence within the region.

Makilala Mining formally engaged MEGA Philippines to carry out the drilling programme in December 2020. The difficult terrain and the depth of drilling necessitated the use of a newly designed portable rig (1000BX) which was not readily available in-country, which MEGA sourced from a manufacturer in China,

Mobilisation of the drill rig was delayed due to a series of provincial and community lockdowns as COVID-19 infections started to make its way into Kalinga Province and the neighbouring communities where the MCB Project is located. The difficult terrain in the area and absence of access roads leading to the drill site required the establishment of a tram line which was fabricated and installed to take the disassembled rig across the PaniyaoCreek.

Planning and implementation of the technical work programmes that will contribute to the scoping study is well underway. Contractual arrangements are in place with ALS Testing laboratories in Perth which will undertake the metallurgical and flotation test work programme. Core samples will be sent to Intertek Philippines in Muntinlupa for multi-element assaying.

PSM Brisbane has also been engaged to develop a conceptual Hydrological Model with information taken from the Vibrating Wire Piezometers that will be fitted in the four main drill holes located in the main ore body.

The MCB Project is one of Makilala’s key portfolio projects, along with six other prospects in the pipeline for permit renewal/extension.

Within the first year of the current work programme, six drill holes are planned to be drilled on a single 12- hour shift at an approximate total aggregate meterage of 4000m and will be located in the following areas.

  • Two drill holes. (MCB-033 and MCB-034) will be located in key locations to confirm high grade boundaries and get a better spread of copper assays which will enable conversion of the high-grade core (should be over 30Mt) into the Measured category.
  • Two drill holes. (MCB-035 and MCB-036) will test for possible deeper extensions of the high- grade ore plunging steeply in an east-north-east direction and will be located around 100m apart.
  • Two drill holes. (MCB-031 and MCB-032) will test for high grade extensions on the western side of the Maalinao-Panyaw Fault.

In parallel with the commencement of the MCB’s drilling programme, the company has also begun implementing environmental and community development work programmes, which are mandatory conditions of the MCB exploration permit, with the objective of ensuring that the drilling programme is carried out in a responsible manner and is benefitting the host community.

The company’s drilling work programme during the second year will see up to an additional three holes with a total approximate aggregate meterage of 2000m.

This will be undertaken as part of a sterilisation drilling programme in order for the company to confirm future locations of mine infrastructure.

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