Celsius Resources Commences Drilling Program for MCB Copper-Gold Project
Why we think this is good
The RNS announcement indicates that Celsius Resources' Philippine subsidiary, Makilala Mining Company, Inc. (MMCI), has engaged a reputable drilling contractor, DrillCorp, to undertake a geotechnical and hydrogeological drilling program for the company's flagship MCB Copper-Gold Project. This suggests a positive step forward in the project's development, as the drilling program is designed to gather critical data to optimize the underground mine plan, process plant layout, and surface infrastructure, which will inform the updating of the Feasibility Study and the Front-End Engineering and Design (FEED) phase. The company's commitment to advancing the project and the involvement of an experienced drilling contractor are viewed positively.
Key Points
- Celsius Resources' Philippine subsidiary, Makilala Mining Company, Inc. (MMCI), has engaged DrillCorp Mining Resources to undertake a geotechnical and hydrogeological drilling program for the Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project.
- The drilling program will cover approximately 2,300 meters at an estimated cost of PHP 33 million (around AUD 925k).
- The program is designed to generate detailed subsurface models and data to further optimize the underground mine plan, process plant layout, and surface infrastructure design, which will inform the updating of the Feasibility Study and the Front-End Engineering and Design (FEED) phase.
- DrillCorp is a leading drilling contractor in Asia with a strong track record and experience in the region.
Summary
Celsius Resources Limited (ASX, AIM: CLA) has announced that its Philippine subsidiary, Makilala Mining Company, Inc. (MMCI), has engaged DrillCorp Mining Resources to undertake a geotechnical and hydrogeological drilling program for the company's flagship Maalinao-Caigutan-Biyog Copper-Gold Project (MCB) in the Philippines.
The drilling program, which will commence in mid-June, will cover approximately 2,300 meters at an estimated cost of PHP 33 million (around AUD 925k). The program is designed to generate detailed subsurface models and data to further optimize the underground mine plan, process plant layout, and surface infrastructure design, which will directly inform the updating of the Feasibility Study and the Front-End Engineering and Design (FEED) phase.
DrillCorp is a leading drilling contractor in Asia with a strong track record and experience in the region, which should provide confidence in the execution of the program. The MCB Project has a substantial JORC-compliant Mineral Resource Estimate of 338 million tonnes at 0.47% copper and 0.12 g/t gold, with a significant portion classified as Indicated and Measured. A previous study on the MCB Project identified the potential for a 25-year underground mining operation with attractive economics, including a post-tax NPV of US$464 million and an IRR of 31%.