Celsius Resources Limited (ASX: CLA) has released a scoping study for its MCB Copper-Gold Project located in the Philippines which confirms the potential for a 25 year mine life underground mining operation.
The scoping study completed by subsidiary Makilala Mining Company, Inc. (MMCI) has highlighted the opportunity for the company to develop the Maalinao-Caigutan-Biyog Copper-Gold Project (MCB Project) as a long life, technically robust underground mining operation producing high quality copper concentrate.
The Study and resulting optimised underground mine planning and scheduling utilised only the Indicated portion of the high-grade mineralised core within the JORC compliant Mineral Resource Estimate (MRE) as announced in January 2021.
The proposed mining plan is based on mining of 48.8mt @ 0.85% Cu & 0.41g/t Au from this high-grade core, which represents less than 28% of the total contained Cu in the MRE.
The studies identified sublevel open stoping (SLOS) as the most efficient mining method taking into account the wide zone of sub vertical mineralisation and local geotechnical considerations.
Technical and economic highlights include:
Mining contemplates a nominal mining rate of 190kt per month (2.28Mtpa) via single decline mining to a maximum depth of 600m below the portal at RL 975. The processing will then be undertaken using an industry standard process flow sheet comprising milling, rougher flotation, regrind milling and cleaner flotation to produce an average concentrate grade of 25.8% Cu and 6.5g/t Au.
Preliminary test work to date has shown average expected recoveries of 94% of Cu and 79% for Au across a range of feed grades and has also indicated the concentrate is likely to be free of any deleterious elements.
The MCB Project will require re-establishment of a section of the electricity grid to provide power to the plant and amenities plus upgrading of a portion of the local road network to provide for concentrate transport to the nearest port, being Port Samalogue, located approximately 180 km to the northwest.
Significant potential remains to increase the MRE both along strike and down dip from the current limits of drilling, further exploration is planned to prioritise exploration for expansion of the high-grade portion of the resource.
The Scoping Study was managed by MMCI in the Philippines, with key technical and financial contributions conducted by the following highly experienced independent consultants.
Next Steps
Based on the robust financial and technical outcomes of the Study, the Board of Celsius has elected to immediately embark on the necessary work streams to convert the current EP to a Mining Title. This work will include the submission of requirements for the Declaration of Mining Project Feasibility (DMPF) in line with the relevant Philippine national government guidelines.
Furthermore, the company will immediately commence optimisation and trade off studies to augment some of the core elements of the project, with a particular focus on mining and processing. It is also planned to undertake additional infill drilling programmes for the purpose of Mineral Resource definition.
This drilling will also provide additional samples for ongoing metallurgical test work.
MMCI wishes to extend its sincerest gratitude to the Balatoc community, Local Government of Pasil and the Barangay Council of Balatoc for your invaluable support through these years leading up to this critical milestone,” Philippine Country Operations Director, Peter Hume, said.
“The Scoping Study results identified a potentially large and long mine life which has the potential to provide significant benefits to the Company’s shareholders, the host communities and the Philippine economy in general.
“The high-quality detailed study confirmed that the ore body can be mined via a standard underground mining method. Studies on mineral processing, tailings management, infrastructure, permitting and approvals including environment and social impacts indicated no significant impediments to developing the MCB Project.
“Marketing feedback from commodity traders and smelters indicated that the lack of impurities makes the potential MCB copper/gold concentrate highly marketable.”