Celsius Resources Advances MCB Copper-Gold Project with FEED Study and Funding Progress
Engineering Activities Begin at Flagship Philippine Copper-Gold Project
Celsius Resources Limited (ASX, AIM: CLA) has launched critical on-site engineering activities at its flagship Maalinao-Caigutan-Biyog Copper-Gold Project (MCB) in the Philippines, marking a pivotal advancement in the project's development timeline.
Following the first drawdown of funds from the Maharlika Investment Corporation (MIC) under the previously announced First Omnibus Loan and Security Agreement (OLSA), the company is now progressing toward completing the Front-End Engineering Design (FEED) and updating the feasibility study by November 2025.
Executive Chairman Atty. Julito Sarmiento highlighted the significance of this milestone:
"We are pleased to confirm that the MCB Project's developments are continuing at pace. We are grateful for the support of our shareholders and financial partners MIC and SODOR, as we look forward to collaboratively concluding equity financing for the MCB Project in the coming months."
Financial Management Strategy Ensures Project Continuity
The company has implemented a strategic approach to financial management, with funding for MCB Project operations being carefully allocated to extend working capital through at least the remainder of 2025. The OLSA facility is currently covering all MCB Project costs, while Celsius continues to fund some MMCI corporate expenses, including administration and significantly reduced programs at the Sagay and Botilao projects.
In a key development, Celsius has secured a formal extension of the share return period with SODOR, Inc. through an executed Undertaking and Indemnity Agreement. This extension provides an additional nine months from the May 16, 2025 OLSA signing date, extending to February 16, 2026.
MCB Project: A World-Class Copper-Gold Resource
The MCB Project, located approximately 320km north of Manila in the Cordillera Administrative Region, represents one of the Philippines' most promising copper-gold developments. Similar to how Hammer Metals unveiled major gold-copper discoveries in North Queensland, the MCB project boasts impressive resource statistics:
| Resource Category | Tonnage | Copper Grade | Gold Grade | Contained Copper | Contained Gold |
|---|---|---|---|---|---|
| Measured | 47 million tonnes | 0.59% | 0.19 g/t | – | – |
| Indicated | 249 million tonnes | 0.44% | 0.11 g/t | – | – |
| Inferred | 42 million tonnes | 0.52% | 0.11 g/t | – | – |
| Total Resource | 338 million tonnes | 0.47% | 0.12 g/t | 1.6 million tonnes | 1.3 million ounces |
Economic Potential Demonstrated in Previous Study
A December 2021 study revealed the MCB Project's substantial economic potential, showcasing a 25-year mine life based on an underground mining operation with a processing facility producing saleable copper-gold concentrate.
Key economic highlights from the study include:
- Post-tax NPV (8%): US$464 million
- Internal Rate of Return: 31%
- Initial capital expenditure: US$253 million
- Payback period: Approximately 2.7 years
- Production capacity: 2.28 million tonnes per annum
- Average grade (first 10 years): 1.14% copper and 0.54 g/t gold
- C1 cash costs: Just US$0.73/lb copper (net of gold credits)
These figures were calculated using a copper price of US$4.00/lb and gold price of US$1,695/oz, both significantly below current market prices, suggesting potentially enhanced returns in today's commodity environment. This resource improvement mirrors the success of Metal Bank's gold resource increase at their Livingstone project.
Understanding FEED: Why It Matters to Investors
Front-End Engineering Design (FEED) represents a critical phase in resource project development that bridges the gap between preliminary studies and full-scale construction. For investors, understanding FEED's significance provides important context for Celsius Resources' recent progress.
What is Front-End Engineering Design?
Front-End Engineering Design (FEED) is a detailed engineering phase that follows conceptual and pre-feasibility studies but precedes detailed engineering and construction. During this phase, project teams refine technical requirements, optimise designs, and establish more precise cost estimates.
For the MCB Project, the FEED study will:
- Refine capital and operating cost estimates – Typically reducing contingency factors from 20-30% to 10-15%
- Optimise project configuration – Including mining methods, processing flow sheets, and infrastructure requirements
- Identify and mitigate technical risks – Before major capital commitments
- Produce bankable documentation – Required by potential financing partners
- Establish clear execution plans – Including detailed timelines for construction and commissioning
The initiation of FEED activities at MCB signals Celsius Resources' confidence in moving the project toward production and represents a de-risking milestone that experienced resource investors recognise as a critical value inflection point.
Future Milestones and Development Timeline
With engineering activities now underway, Celsius Resources has established a clear path forward for the MCB Project:
- Completion of Front-End Engineering Design and feasibility study update expected by November 2025
- Ongoing discussions with potential equity funding partners for full project financing
- Maintaining capital discipline while advancing toward development decision
- Working within the extended SODOR share return timeframe (until February 2026)
The company has emphasised its commitment to "completing the equity financing for the MCB Project" in the coming months, suggesting potential partnership announcements may be forthcoming. This strategic approach to project advancement is similar to how Vital Metals secured funding for their Tardiff rare earth project.
Investment Case: Why Celsius Resources Deserves Attention
Celsius Resources presents a compelling investment proposition based on several key factors:
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World-Class Resource Base: The 338-million-tonne resource containing 1.6 million tonnes of copper and 1.3 million ounces of gold provides substantial development optionality.
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Strong Economics: With a projected 31% IRR and sub-three-year payback period (using conservative metal prices), the project demonstrates robust financial fundamentals.
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Low-Cost Production Profile: The projected C1 cash cost of US$0.73/lb (net of gold credits) would position MCB in the lower quartile of global copper producers.
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Strategic Jurisdiction: The Philippines government has demonstrated support through the MIC funding facility, reducing permitting and political risks.
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Advancing Development Status: The commencement of Front-End Engineering Design activities represents a significant de-risking milestone that typically precedes value re-rating in resource developers.
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Commodity Exposure: Copper's essential role in global electrification and renewable energy transition provides strong long-term demand fundamentals.
Why Investors Should Track Celsius Resources
As the global economy accelerates its transition toward electrification and renewable energy, copper demand is projected to significantly outpace supply in the coming decades. Projects like MCB, with its combination of scale, grade, and advanced development status, are increasingly rare and strategically valuable.
Celsius Resources has demonstrated methodical progress in advancing MCB through the development pipeline while securing crucial government support. With new gold targets being identified by other companies in the sector, the growing interest in precious metals adds further value to MCB's gold component.
For investors seeking exposure to copper's compelling fundamentals through a developer with an advanced, economically robust project, Celsius Resources warrants close attention as it works to unlock the full potential of its flagship MCB Copper-Gold Project. Furthermore, the company's strategic approach to project development mirrors successful takeover scenarios like Inca Minerals gaining majority control in their recent acquisition.
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