MCB Definitive Feasibility Study confirms stronger economics

Celsius Resources (ASX,AIM:CLA) is pleased to announce the results of the Definitive Feasibility Study for the MCB Copper-Gold Project which is held under its Philippine affiliate Company, Makilala Mining Company., Inc. (“MMCI”).

Celsius has reported, in accordance with the JORC Code (2012), a JORC-compliant Mineral Resource totalling 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 Project.

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 Ausenco (Lead Engineer, Process plant and surface infrastructure capital and operating costs), DMT Consulting Limited (Mining), MMCI, and their respective contractors and consultants.

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.

Highlights

• The Definitive Feasibility Study (DFS) confirms a technically and economically robust Maalinao-Caigutan-Biyog (MCB Project).

• Pre-tax NPV(8%) of US$1.3 billion (~A$1.98 billion) at an IRR of 31% and Post-tax NPV (8%) of US$ 771 million (≈ AU$1.15 billion) at an IRR of 24% - based on long range conservative copper and gold prices of $4.30/lb Cu and US$3,000/oz Au for first nine years. then $7.0 USD/lb Cu and $4,500 USD/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 (≈ AU$1.8 billion) – IRR 34%.

• Large-scale, high-quality resource base, with a JORC (2012) compliant Mineral Resource of 343 Mt and a Maiden Ore Reserve of 130.2 Mt, underpinning a 35-year mine life.

• Early high-grade production profile, with mining of a high-grade core during the first 10 years and an average C1 cash cost (net of by-product credits) of US$0.41/lb Cu driving strong early cash flow and EBITDA of ~US$230 million per annum in Years 1–10.

• Established and scalable mining strategy, utilising sublevel open stoping (“SLOS”) with paste backfill, decline access transitioning to a shaft and hoisting system, supporting efficient long-term operations and the company’s strong ESG Goals.

• Identified growth optionality, including potential throughput expansion to approx.3.0 Mt/y, staged surface material recovery, and resource upside at depth, which is not yet included in the base-case valuation.

Read the full announcement here