Celsius Resources Ltd (ASX:CLA, AIM:CLA) is closing in on a mineral production sharing agreement (MPSA) with the Philippine Government after receiving approval for a feasibility study for its flagship Maalinao-Caigutan-Biyog (MCB) Project in northern Luzon.
Philippine subsidiary Makilala Mining Company, Inc. (MMCI) gained the approval from the Philippine Mines and Geoscience Bureau, which deemed the study as technically and economically feasible based on environmental, social and fiscal provisions of the Philippine Mining Act of 1995.
With the approval, Celsius expects the project’s Declaration of Mining Project Feasibility (DMPF) to be issued in the coming weeks and thereafter, the MPSA.
Respect for the environment
“We are thankful to the Marcos Jr.’s administration, through the leadership of secretary Maria Antonia Yulo-Loyzaga of the Department of Environment and Natural Resources and the Mines and Geosciences Bureau, in creating a supportive and favourable climate for the mining companies in the Philippines while ensuring that we adhere to the national standards on responsible mining,” Celsius chairman Julito Sarmiento said.
“Rest assured that we remain committed as responsible stewards of our natural resources in our quest to provide value not only to our shareholders and stakeholders but to our country and host communities as well.”
About the project
The MCB Copper-Gold Project, 320 kilometres north of Manila in the Cordillera Administrative Region, is the flagship project within Celsius’ Makilala portfolio.
The company released a maiden mineral resource estimate of 313.8 million tonnes, containing 1.5 million tonnes of copper and 1.47 million ounces of gold for the project in January 2021.
An updated estimate in December 2022 indicated 338 million tonnes of ore with 1.6 million tonnes of copper and 1.3 million ounces of gold.
A study conducted in December 2021 highlighted the project's potential as a copper-gold operation with a 25-year mine life and reported a post-tax NPV of US$464 million and an IRR of 31%.
MMCI aims to develop a 2.28 million tonnes per annum processing plant at the MCB Project, treating ore with an average grade of 1.14% copper and 0.54 g/t gold during the first decade of production.