TIDMCLA
RNS Number : 5476H
Celsius Resources Limited
28 July 2023
28 july 2023
QUARTERLY ACTIVITIES REPORT FOR THE PERIODED 30 JUNE 2023
mcb project advances permitting requirements
HIGHLIGHTS
-- Substantial progress on key activities to develop the MCB
Copper-Gold project including:
o Undertaking hydrogeological and geotechnical studies that
would feed into a more detailed mine plan.
o Completion of Environmental and Community Development Program
commitments.
o Securing government approvals on environmental and mine
closure plans and programs.
-- Closing cash as of 30 June 2023 of A$5.5 million
Celsius Resources Limited (" Celsius " or the " Company ") (ASX:
CLA) is pleased to provide the following summary of the Company's
activities for the quarter ended 30 June 2023.
Projects
Maalinao-Caigutan-Biyog Copper-Gold Project ("MCB Project"),
Philippines (40%)
Makilala Mining Company Inc. (MMCI), Celsius' Philippine
subsidiary, completed the remaining commitments under its
Environmental and Community Development Programs while progressing
its permitting requirements and preparing for the pre-development
phase of the MCB Project in the Cordillera Administrative region,
approximately 320km north of Manila.
Forward Work
Hydrogeological and Geotechnical studies are underway to support
and firm up the mine design and surface infrastructure. These
include:
1) Collection and monitoring of data from vibrating wire
piezometer and water levels from holes drilled in 2021 to 2022;
and
2) Procedural testing and calibration of equipment in
preparation for the upcoming hydrogeological and geotechnical
drilling for additional ground stability.
Additional detailed mapping was also conducted on the geology,
alteration, and mineralisation of the recently exposed rocks with
extensive porphyry-related mineralisation to come up with an
updated surface geologic map and reports. This resulted in an
extension of the mapped surface exposure of the intrusive tonalite
in the southern portion of the MCB ore body. Data will be used to
further support and correlate the recent drilling results which was
able to delineate a near surface mineralisation at the eastern
segment of the MCB ore body. Previous cross-sections of drilling
results were also being re-interpreted in conjunction with the new
surface data.
Data retrieval from vibrating wire piezometers (left) and water
level reading of completed drill holes (right)
Surface mapping of outcrops near proposed drill sites (left) and
Pasil River and Mt. Mines (right)
The Company has issued to the contracting market an Engineering,
Procurement, and Construction (EPC) scope required for advancing
the MCB Mining Project into operations. This is being undertaken in
anticipation of the early works, which is currently scheduled to
commence towards the end of 2023.
Environmental Program
Rehabilitation and revegetation of drill sites were completed
not only to restore but also improve the land to its pre-drilling
conditions. Tree planting activities were also implemented along
access trails to fulfill the commitments under the National
Greening Program and Mining Forest Program.
MMCI employees and locals participate
in the tree planting activity in support
to the National Greening Program
at MCB in Pasil, Kalinga in May 2023
Community Development
Physical and financial commitments under the approved Community
Development Program have been completed for the period. These have
been achieved in partnership with the Balatoc host community
through the leadership and guidance of the Tribal Council of Elders
and the Barangay, Municipal, and Provincial Government leaders.
Social, economic, cultural, and institutional capacity building
interventions will continue as we transition to the implementation
of the Social Development and Management Plan once the Mineral
Production and Sharing Agreement (MPSA) for the MCB Mining Project
is issued.
Social, Environmental Licenses and Government Approvals
Government approvals have been secured on mandatory documents
and/or certifications to progress permitting requirements to
develop and operate the MCB Project. These include the issuance of
an Environmental Compliance Certificate (ECC), and Certificate of
Approval for the Environmental Protection and Enhancement Program
(EPEP) and Final Mine Rehabilitation and/or Decommissioning Plan
(FMRDP).
The issuance of an ECC signifies that MMCI has satisfactorily
passed the national government's scrutiny over the Environmental
Impact Statement (EIS) for the MCB Project. It also certifies the
Company's commitment to implementing a national government-approved
environmental management plan aimed to protect and mitigate the
anticipated social, cultural, and environmental impacts in all
phases and aspects of the MCB Project (see CLA ASX Announcement
dated 31 May 2023).
The Certificate of Approval for the EPEP and FMRDP indicates
that the Company has instituted the necessary environmental and
socio-economic sustainability measures prior to the commencement of
construction and mining operations for the life of the mine. Among
the terms and conditions of the said certificate, is the
establishment of a financial fund to ensure satisfactory compliance
with the commitments and performance of the activities stipulated
in the EPEP-FMRDP (see CLA ASX Announcement dated 18 July
2023).
The approval of these key requirements is another step closer in
the permitting process of achieving the MPSA mining permit which
the Company envisages to receive by the end of August 2023.
Opuwo Cobalt Project, Namibia (95%)
The Opuwo Cobalt Project is one of the largest undeveloped
Cobalt projects outside of the Democratic Republic of Congo. It has
a JORC Mineral Resource of 225.5 million tonnes at a grade of 0.12%
cobalt, 0.43% copper, and 0.54% zinc (See CLA ASX Announcement
dated 1 July 2021).
The tenement permit EL4346 expired during March 2023, as such
the Company has lodged the necessary documentation to have the
permits renewed with favourable feedback from the Ministry of
Mines. The tenement remains active until such time that it is
renewed by the Ministry of Mines.
It is the Company's view that all permit obligations have been
met during the existing permit tenure, and therefore the permit
renewal is expected for a period of 2 years.
Metallurgical Test Work
Metallurgical test work is ongoing to further refine the cobalt
and copper recoveries, with the end view to improve overall metal
recoveries.
Maelgawyn Laboratories in South Africa was engaged to test
various collectors on floatation tests and a total of 7 tests were
undertaken. Results of these are expected to be reported in the
next quarter.
Mintek completed 5 sets of roasting and 10 subsequent leaching
tests during the quarter. The objectives of these were to optimise
retention times, operating temperatures, and reagent consumptions.
Results for these tests are expected to be reported during next
quarter.
The above metallurgical test results will be utilised as input
criteria to develop a processing flowsheet, which will be the basis
of an Economic Scoping Study planned later during 2023.
The Company has received strong interest from parties interested
in partnering on the Opuwo Project; a data room has been
established with a number of non-disclosure agreements being
signed.
SAGAY Copper-Gold Project, Philippines (100%)
Celsius Resources' Philippine subsidiary, Tambuli Mining
Company, Inc., on the island of Negros, continues to focus on
carrying out additional desktop studies of all drilling results and
exploration data. Results of the desktop studies and the resource
estimation suggested the necessity to shift its focus on the
shallow high-grade supergene chalcocite zone. With this, a test
pitting activity was conducted to collect representative samples
for metallurgical test work. The test results are intended to
provide a thorough process flow for the extraction of copper in
pregnant solution as the eventual production of copper precipitate
(Cu hydroxide), which will also serve as one of the empirical bases
for the mine plan, process flow sheet, and financial studies which
are critical components of the project's economic viability.
Implementation of activities under the Environmental and
Community Development Program have also ramped up, in partnership
with key stakeholders.
The Company has initiated the studies to assess the technical
and financial viability of the Sagay Project for a Phased Approach
development, where Phase 1 will develop the shallow chalcocite zone
(900SG) with a low CAPEX model, small scale operation, and Phase 2
will develop the large-scale copper mineralisation at deeper levels
using the cashflow from Phase 1.
The preliminary metallurgical test work commenced in June 2023
using the fresh samples collected from the chalcocite zone. The
test work aims to determine the amenability of copper
mineralisation to VAT leaching. A positive result will trigger
additional shallow resource drilling to support the mining study,
mineral resource conversion to reserve, and metallurgical test work
optimisation.
Upon positive results of the planned development approach, the
Company will proceed with preparing the mandatory requirements for
a Declaration of Mining Project Feasibility (DMPF) application
which is anticipated to be submitted by December 2023.
Cullarin West Project, NSW (100%)
The Company will now assess the viability of the opportunity and
gauge interest from other possible partners. No development
activities were conducted during the quarter.
Corporate and Expenditure
On 5 May 2023, the Company issued Lind a notice of its intention
to repay 100% of the Advance Payment Credit outstanding in cash and
has subsequently repaid A$882,500 which satisfies the Company's
obligations under the Agreement in full ("Repayment"). Upon
Repayment, the Agreement was terminated. No further funds will be
advanced, no additional shares will be issued and Celsius no longer
has to issue 38,235,294 options (previously approved by Celsius
shareholders for the purposes of Listing Rule 7.1 at the Company's
general meeting held on 5 April 2023) (See CLA ASX Announcement
dated 12 May 2023).
The Company signed a non-binding agreement with Silvercorp
Metals on 15 May 2023. Pursuant to the Subscription Agreement,
Silvercorp agreed to subscribe for 333,333,333 new Celsius shares
(Subscription Shares) at a subscription price of A$0.015
(GBP0.0081) per Subscription Share to raise A$5,000,000 (before
costs) (See CLA ASX Announcement dated 15 May 2023).
In addition to the subscription and as part of the non-binding
agreement, Silvercorp intends to acquire Celsius in a 90% scrip and
10% cash transaction that will be implemented by an Australian
scheme of arrangement under the Corporations Act 2001 (Cth)
("Scheme").
The parties have been working towards the execution of a binding
scheme implementation agreement to implement the Scheme
("Definitive Agreement").
Simultaneous to the completion of the Scheme, should it proceed,
Celsius intends to spin out its Sagay Project (100% Celsius) and
Opuwo Cobalt Project (95% Celsius) ("Spin-Out Projects") into a new
ASX or AIM listed SpinCo via a demerger, subject to Celsius
obtaining the necessary shareholder, ASX/AIM and regulatory
approvals ("Demerger").
Under the Scheme and Demerger (together, the "Proposed
Transaction"), if implemented, it is anticipated that each Celsius
share will be exchanged for such fractional Silvercorp shares
equivalent to A$0.027 plus A$0.003 in cash, with such fractional
Silvercorp share having a fair market value determined based on the
volume weighted average trading price of the Silvercorp shares on
the TSX/NYSE for the 20 business days ending on (and including) the
scheme of record date (the "SVM Exchange Ratio"), and 1/10th of a
SpinCo share (the "SpinCo Exchange Ratio").
Silvercorp has agreed, under the non-binding term sheet, to
invest A$4 million in SpinCo, valued at a post-financed market
capitalisation of A$30 million. Implementation of the Proposed
Transaction will be contingent on the completion of successful due
diligence by each party (such as Silvercorp demonstrating its
financial capacity to the satisfaction of Celsius and Silvercorp
being satisfied with the legal titles of Celsius' assets in the
Philippines), other documentation and regulatory and shareholder
approvals. The Celsius Board believes the Proposed Transaction, if
implemented, could provide significant benefits to Celsius'
shareholders.
At the end of the quarter, the Company held approximately
A$5.538 million in cash reserves. Approximately A$1.177 million was
spent on exploration expenditure, with $877k primarily relating to
the development of the MCB project.
A$93k in payments were made to related parties of the Company
and their associates during the quarter, for Director and
consultancy fees.
This announcement has been authorised by the Board of Directors
of Celsius Resources Limited.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018.
For further information contact:
Celsius Resources Limited
Peter Hume P: +61 8 9482 0500
E: info@celsiusresources.com.au
W: www.celsiusresources.com
Multiplier Media
(Australian Media Contact)
Jon Cuthbert M: +61 402 075 707
E: jon.cuthbert@multiplier.com.au
Tavistock Communications
(UK Media and Investor Relations) +44 (0) 207 628 3396
Charles Vivian M: 0044 7977297903
E: charles.vivian@tavistock.co.uk
Tara Vivian-Neal M: 0044 7394408654
E: tara.vivian-neal@tavistock.co.uk
Beaumont Cornish Limited
(Nominated Adviser)
Roland Cornish/Andrew Price +44 (0) 207 628 3396
SP Angel Corporate Finance
LLP (Broker)
Ewan Leggat +44(0) 203 470 0470
Tenement Table: ASX Listing Rule 5.3.3 Mining tenement interests
held at the end of the quarter and their location
PERMIT PERMIT REGISTERED PERMIT STATUS PERMIT INTEREST
NAME NUMBER HOLDER / EXPIRY / CONTRACTUAL
APPLICANT RIGHT
Western Australia
Cullarin
Cullarin Metals Pty
West EL 8996 Ltd Granted 17/08/2026 100%
------------------ ----------------- ------------------- -------------- ---------------
Namibia
Permit
Gecko Cobalt application,
EL 4346* Holdings pending approval TBA 95%
------------------ ----------------- ------------------- ---------------------------------------- ---------------
Philippines
Extended
until the
Makilala issuance
Mining Company of a mining
Maalinao-Caigutan-Biyog EP-003-2006-CAR Inc. Granted permit 40%
------------------ ----------------- ------------------- -------------- ---------------
Permit
application,
approved
in principle
Makilala awaiting
Mining Company formal
Colayo EXPA-073-CAR Inc. documentation TBA 40%
------------------ ----------------- ------------------- -------------- ---------------
Complying
with further
permitting
Panaon EXPA-000127-VIII PDEP, Inc. requirements TBA 100%
------------------ ----------------- ------------------- -------------- ---------------
Tambuli Mining
Sagay EP-000003-VI Company Inc. Granted 10/02/2024 100%
------------------ ----------------- ------------------- -------------- ---------------
*Tenement expired on 7 March 2023 and a permit application is
pending approval. The tenement remains active until such time that
it is renewed by the Ministry of Mines.
It is the Company's view that all permit obligations have been
met during the existing permit tenure, and therefore the permit
renewal is expected for a period of 2 years.
The Maalinao-Caigutan-Biyog (MCB) project has gained an
automatic extension as all documentation has been submitted to the
Philippine National Government for the awarding of a MPSA Mining
permit.
The mining tenement interests acquired during the quarter and
their location:
Nil.
Beneficial percentage interests held in farm-in or farm-out
agreements at the end of the quarter:
Not applicable.
Beneficial percentage interests in farm-in or farm-out
agreements acquired or disposed of during the quarter:
Nil.
Competent Persons Statement
Information in this report relating to Exploration Results and
Mineral Resources for the MCB Project is based on information
compiled, reviewed and assessed by Mr. Steven Olsen, who is a
Member of the Australasian Institute of Mining and Metallurgy and
the Australian Institute of Geoscientists. Mr. Olsen is a
consultant to Celsius Resources and has sufficient experience which
is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined by the 2012 Edition of the
Australasian Code for reporting of Exploration Results, Mineral
Resources and Ore Reserves. Mr. Olsen consents to the inclusion of
the data in the form and context in which it appears.
The information in this Report that relates to the estimate of
Mineral Resources for the Opuwo Project is based upon, and fairly
represents, information and supporting documentation compiled by Mr
Kerry Griffin, a Competent Person, who is a Member of the
Australian Institute of Geoscientists (AIG). Mr Griffin is a
Principal Geology Consultant at Mining Plus Pty Ltd and an
independent consultant engaged by Celsius Resources Pty Ltd for
this work and has sufficient experience that is relevant to the
style of mineralisation and type of deposit under consideration and
to the activity being undertaken to qualify as a Competent Person
as defined in the 2012 edition of the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves" (the JORC Code). Mr Griffin consents to the inclusion in
this announcement of matters based on his information in the form
and context in which it appears .
The Company confirms that it is not aware of any new information
or data that materially affects the Mineral Resource for the MCB
Project or the Opuwo Project. The Company also confirms that all
material assumptions and parameters underpinning the Mineral
Resource estimate continue to apply and have not materially
changed. Please refer to the ASX Announcement of 28 February
2023.
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