Celsius Resources Limited’s (ASX:CLA) Philippine subsidiary, Makilala Mining Company, Inc. (MMCI) has received interim Certificates of Approval from the Philippine Regional Mines and Geosciences Bureau (MGB) for its Five-Year Social Development and Management Programme.
The company has also received approvals for its Care and Maintenance Programme of the Maalinao-Caigutan-Biyog Copper-Gold Project (MCB).
Both are vital programme documents which are part of the company’s application for the Declaration of a Mining Project Feasibility and consequently the issuance of a Mineral Production and Sharing Agreement (MPSA).
While Certificates of Approval have been secured, this was referred to as “interim”, to indicate that the Company is not obliged to action on its commitments under the said programs until after the issuance of the company’s MPSA.
Under the Philippine Mining Act of 1995, all mining permit holders are required to develop and implement a Social Development and Management Program (SDMP) in consultation and partnership with the host and neighbouring communities. The overarching goal of the SDMP is to help create responsible, self-reliant, and resource-based communities capable of developing, implementing, and managing community development programmes, projects and activities in a manner consistent with the principles of sustainable development. Specifically, the SDMP covers the following primary areas of concern:
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 programmes;
e. Access to health services, health facilities and health professionals; and f. Protection and respect of socio-cultural values.
The Care and Management Programme (CMP), on the other hand, is prerequisite document which details the company’s safety and health, social, and environmental commitments as integral components of the MCB Project in cases of operational constraints (i.e. voluntary or involuntary stoppage).
“The approval of the SDMP and CMP is not only an indication of the national government’s firm commitment to the mining industry and the MCB Project as one of its key economic drivers post- pandemic, but also a clear manifestation of CLA’s strong resolve to advance the project and create real, purposeful, and ethical projects creating value for both the shareholders and stakeholders,” Celsius’ Executive Director and MMCI Country Operations Director, Peter Hume, said.
“These programmes will also be among the many avenues where the company will be able to demonstrate its adherence to environmental, social, and governance (ESG) standards in partnership with the Balatoc community as well as the local and national government units.”
MCB Copper-Gold Project
The MCB Copper-Gold Project (MCB) is located in the Cordillera Administrative Region in the Philippines, approximately 320km north of Manila. It is the flagship project within the Makilala portfolio which also contains other key prospects in the pipeline for permit renewal/extension.
A maiden JORC compliant Mineral Resource Estimate was declared for the MCB Project on 12 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, of which 290.3 million tonnes @ 0.48% copper and 0.15 g/t gold is classified as Indicated and 23.5 million tonnes @ 0.48% copper and 0.10 g/t gold is classified as Inferred.
An updated JORC Mineral Resource was announced on 12 December 2022 with a Global Mineral Resource estimate of 338 Mt of 0.47% copper and 0.12g/t gold, for a total of 1.6Mt of contained copper and 1.3Mozs of contained gold reported to a preferred lower cut-off grade of 0.2% copper.
A Scoping Study for the MCB Project was announced by CLA on 1 December 2021, which identified the potential for the development of a copper-gold operation with a 25-year mine life. The Scoping Study was based on an underground mining operation and processing facility to produce a saleable copper-gold concentrate.
Highlights from the Scoping Study include a Post tax NPV (8%) of US$464m and IRR of 31, assuming a copper price of US$4.00/lb and gold price of US$1,695/oz. Initial capital expenditure is estimated to be US$253m with a payback period of approximately 2.7 years. The designed mine production is matched to a 2.28Mtpa processing plant which will treat ore with an estimated average grade of 1.14% copper and 0.54g/t gold for the first 10 years of planned production with a C1 cash costs at just US$0.73/lb copper, net gold credits.
For further information please visit: https://celsiusresources.com/
