Celsius Resources Ltd (ASX:CLA) shares rose 5% higher intra-day to 2.1 cents after receiving further positive assays from the ongoing drilling program at its flagship MCB Copper-Gold Project in the Philippines.
Multiple sections of high-grade copper have been confirmed in drill hole MCB-037, including:
- 15.5m @ 1.02% copper and 0.07g/t gold from 19.5m
- 41.9m @ 0.87% copper and 0.05g/t gold from 93m
- 150.1m @ 0.86% copper and 0.47g/t gold from 359.9m
Drill hole MCB-037 was drilled to confirm the interpretation that further shallow high-grade positions exist as a relatively flat body extending into the surrounding host rocks and away from a genetically related Tonalite Intrusive rock.
The geological observations in the drill core in addition to the assay results received have confirmed that there exists a number of shallow higher grade positions as predicted, in addition to further very shallow copper-gold mineralisation near the surface and a developing thicker high-grade position at depth with higher gold values.
Location of MCB-037 drill hole relative to recent and historical drilling at MCB.
The results have confirmed and expanded a number of high-grade intercepts which are an important part of the early mine plan at MCB as defined in the recently completed scoping study.
Importantly, the confirmed presence of multiple high-grade zones appear to extend further than previously defined, and is an important outcome from what has now been discovered in both drill holes MCB-036 and MCB-037.
Celsius will now modify the next set of drill holes to focus on the additional shallow high-grade copper-gold mineralisation as it will have a positive impact on potential future production options in the mine schedule.
Cross section of drill hole MCB-037 relative to the interpreted geology and significant assay results.
MCB–038 is currently underway and is at a depth of 579 metres.
This hole is designed to cut across the high-grade zones to confirm the geological resource model and at the same time collect geotechnical samples for ongoing studies.
Location of the MCB Project in the province of Kalinga, Northern Luzon, Philippines.
The MCB Copper-Gold Project is in the Cordillera Administrative Region in the Philippines, about 320 kilometres north of Manila.
MCB 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 in 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.
Positive scoping study
A scoping study for the MCB Project has identified the potential for the development of a copper-gold operation with a 25-year mine life.
The 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$464 million and IRR of 35%, assuming a copper price of US$4.00/lb and gold price of US$1,695/oz.
Sagay drilling program
Celsius’ short drilling program at its Sagay Copper Porphyry Project on the island of Negros is now complete.
The program was designed to confirm the general interpretation of the copper mineralisation.
Whilst the confirmation of the broad dip and strike of the mineralisation at depth was achieved, the discovery of new shallower mineralisation remains open.
Celsius is still awaiting assays of the shallow holes before evaluating further work programs.