MCB Project Secures USD640K Contracts to Optimize Mine Plan and Infrastructure

• Engagement of DMT and RDCL for mine plan optimisation and geotechnical studies
• Contracts valued at USD640,000 to support Front-End Engineering Design and Feasibility Study update
• Focus on underground mining efficiency, hydrogeological modelling, and surface infrastructure stability
• Collaboration with Ausenco to integrate technical inputs into project development
• MCB Project holds 338 million tonnes of copper-gold resources with a 25-year mine life potential

Strategic Consultant Appointments

Makilala Mining Company, the Philippine affiliate of Celsius Resources, has taken a significant step forward in advancing its flagship Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project. The company has engaged two specialist consulting firms; DMT Consulting Limited and Resource Development Consultants Ltd (RDCL); to update and optimise the mine plan and conduct detailed geotechnical and hydrogeological studies. These efforts are critical to refining the project’s Front-End Engineering Design (FEED) and updating the Feasibility Study, which underpin the project’s development strategy.

Scope and Objectives of the Studies

DMT, contracted for USD575,000, is tasked with optimising underground mine designs, including mine layout, stope dimensions, and infrastructure to boost operational efficiency and reduce costs. Their work also includes evaluating advanced mining technologies such as vertical ore conveyance systems, which could lower environmental and social impacts compared to traditional trucking methods. Additionally, DMT will update mine production schedules and cost estimates, aiming to improve the project’s financial outlook.

Meanwhile, RDCL, engaged for USD65,000, will focus on surface infrastructure geotechnical studies. Their remit covers stability assessments and design inputs for key infrastructure elements such as process plant pads, ventilation systems, dams, bridges, and slope stabilisation. This work ensures the long-term safety and reliability of surface facilities essential for the project’s success.

Collaborative Engineering Effort

Both consultants will work closely with Ausenco, the engineering firm responsible for the FEED and feasibility updates. This collaboration is designed to integrate geological, hydrogeological, and geotechnical insights seamlessly into engineering designs, supporting robust decision-making and tender documentation for mining contractors.

Project Context and Potential

The MCB Project, located in the Cordillera Administrative Region of the Philippines, boasts a substantial mineral resource base with 338 million tonnes grading 0.47% copper and 0.12 grams per tonne gold. Previous studies have outlined a 25-year underground mining operation with a processing plant capacity of 2.28 million tonnes per annum. The project’s economics are promising, with a post-tax net present value of US$464 million and an internal rate of return of 31%, based on conservative metal price assumptions that are currently below market levels.

By updating the mine plan and infrastructure designs, Makilala Mining aims to enhance operational efficiencies, reduce costs, and minimise environmental impacts, thereby strengthening the project’s overall viability and attractiveness to investors and stakeholders.

Looking Ahead

With drilling rigs mobilised and engineering work underway, the outputs from these consulting engagements will feed directly into the updated Feasibility Study and FEED. These developments mark a pivotal phase in advancing the MCB Project towards construction and eventual production.

Bottom Line?

The integration of advanced technical studies signals a maturing MCB Project poised for optimized development and improved financial returns.

Questions in the middle?

• How will the updated mine plan impact the project’s capital expenditure and operating costs?
• What specific advanced mining technologies might be adopted to reduce environmental and social impacts?
• When can investors expect the updated Feasibility Study and what changes might it reveal?