MCB Project Faces Critical Phase: Can Engineering and Financing Align for Success?
Celsius Resources' Philippine affiliate has engaged Ausenco for a critical engineering design update, backed by a $10 million loan to push the Maalinao-Caigutan-Biyog Copper-Gold Project closer to construction.
- Ausenco awarded $1.9 million FEED and feasibility study update contract
- Maharlika Investment Corporation provides $10 million bridge loan
- FEED work to optimize design, cost, and procurement for MCB Project
- MCB Project holds over 1.6 million tonnes of contained copper and 1.3 million ounces of gold
- Updated feasibility study expected within six months to support construction readiness
Engineering Expertise Engaged
Celsius Resources Limited has taken a significant step forward in advancing its flagship Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project in the Philippines by awarding a $1.9 million contract to Ausenco. The global engineering firm will lead the Front-End Engineering Design (FEED) and update the project's Feasibility Study, laying the groundwork for detailed designs and tender packages essential for early works and main construction phases.
Ausenco’s extensive experience in complex mining projects across the Asia-Pacific region and globally, including notable copper-gold developments in the Philippines and Peru, positions it well to navigate the logistical and regulatory challenges unique to the MCB Project. Their role as Owner’s Engineer is pivotal in refining project execution strategies to enhance cost control and operational readiness.
Financing and Project Development
This engineering engagement is underpinned by a recently signed bridge loan agreement with Maharlika Investment Corporation, providing up to $10 million in funding. This financial backing enables Makilala Mining Company, Celsius’ Philippine affiliate, to progress the FEED and feasibility update over an anticipated six-month period. The updated study aims to incorporate current market pricing and optimize the design of a 2.4 million tonnes per annum processing plant and associated infrastructure.
Complementing Ausenco’s work, MMCI plans to engage additional specialists, including drilling contractors, geotechnical experts, and mine planners, to support detailed engineering and operational tendering. This integrated approach is expected to yield an updated feasibility report that could improve capital and operational cost outcomes, enhancing the project’s overall viability.
Project Potential and Strategic Outlook
The MCB Project boasts a substantial mineral resource, with the latest JORC-compliant estimate reporting 338 million tonnes at 0.47% copper and 0.12 grams per tonne gold, translating to approximately 1.6 million tonnes of contained copper and 1.3 million ounces of gold. Previous studies have highlighted a promising economic profile, including a post-tax net present value of $464 million and an internal rate of return of 31%, assuming conservative metal price assumptions.
Celsius’ Director Peter Hume emphasized the strategic importance of Ausenco’s involvement and Maharlika’s financial support, noting their confidence in delivering cost-effective and locally attuned solutions. Ausenco’s Vice President Chris Pitman echoed this optimism, highlighting the collaboration as a key milestone in the project’s journey toward construction.
Looking Ahead
As the MCB Project moves into this critical phase of engineering and design refinement, the outcomes of the FEED and updated feasibility study will be closely watched by investors and stakeholders. These deliverables will not only inform final investment decisions but also set the stage for procurement and construction activities that could unlock the project’s significant copper-gold potential.
Bottom Line?
The next six months will be crucial as Celsius leverages engineering expertise and financing to transform MCB from concept to construction-ready reality.
Questions in the middle?
- How will updated cost estimates from the FEED impact the overall project economics?
- What are the key risks identified in the updated feasibility study that could affect timelines?
- How will local regulatory and logistical challenges be managed during the construction phase?
