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MANILA - Celsius Resources Limited (ASX, AIM:CLA) has announced the engagement of Ausenco for the Front-End Engineering Design (FEED) of its Maalinao-Caigutan-Biyog Copper-Gold Project (MCB), marking a significant step towards construction. The FEED process, a critical phase in project development, will update the company’s Feasibility Study and lay the groundwork for procurement and tendering related to the project’s early works and main construction.
The contract with Ausenco, valued at USD 1.9 million, will focus on updating the Feasibility Study and conducting FEED, including tendering of work packages and long-lead equipment procurement. Ausenco is a global engineering firm with extensive experience in the Asia-Pacific region and has been involved in several prominent mining projects in the Philippines.
Funding for this phase has been secured through a long-form loan agreement with Maharlika Investment Corporation, providing up to USD 10 million for the MCB Project. The loan is instrumental in enabling the commencement of the FEED process and updating of the feasibility study.
Ausenco’s role as the Owner’s Engineer is pivotal for transitioning the MCB Project into the construction phase. Their responsibilities include designing the process plant, integrating metallurgical test work, developing a Project Execution Strategy, and updating the existing mine plan to support tender packages for underground mining contractors. The updated Feasibility Study and reserve will comply with the 2012 JORC Code.
Celsius Resources Limited’s director Peter Hume expressed confidence in Ausenco’s ability to deliver cost-effective design and execution strategies, emphasizing their prior success in similar projects and their expertise in navigating regulatory frameworks and logistical challenges in the Philippines.
The MCB Project, located in the Cordillera Administrative Region, Philippines, has an updated JORC compliant Mineral Resource Estimate as of 12 December 2022, with significant copper and gold resources. A previous study highlighted the project’s potential for a 25-year copper-gold operation with robust financial metrics, including a post-tax NPV (8%) of US$464 million and an IRR of 31%.
This announcement is based on a press release statement from Celsius Resources Limited and contains forward-looking statements subject to risks and uncertainties. The company has confirmed that there is no new information or data that materially affects the information included in the release and that all assumptions and technical parameters underpinning the Mineral Resource continue to apply.
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