Celsius Resources steps up MCB copper-gold project with Ausenco and fresh funding

Celsius Resources Ltd (ASX:CLA, AIM:CLA) is moving closer to construction at its flagship copper-gold project in the Philippines after securing engineering partner Ausenco and finalising a crucial loan agreement with the country’s state-backed investment fund.

The Perth-based company has awarded a US$1.9 million contract to Ausenco to lead front-end engineering design (FEED) for the Maalinao-Caigutan-Biyog (MCB) project.

The work will form the backbone of an updated feasibility study and help lay the groundwork for early-stage construction.

This next phase is being made possible by a $10 million bridge loan facility from Maharlika Investment Corporation, which was first announced earlier this year.

The funds will support a six-month work programme that also includes contractor tendering, long-lead equipment procurement and mine planning.

Detailed planning

FEED is a detailed planning stage in project development. It involves translating the concept of a project into practical engineering designs and costings that are robust enough to support financing, procurement and construction decisions. In short, it is the phase where ambitious resource plans begin to take real shape.

Celsius’s local affiliate, Makilala Mining Company, has chosen Ausenco as its engineer of record. The Australian-headquartered firm has extensive experience delivering large-scale copper projects under difficult logistical and regulatory conditions, including recent work in Peru, Australia and across Southeast Asia.

That includes involvement in major Philippine projects such as OceanaGold’s Didipio mine and the Silangan project owned by Philex Mining.

The scope of Ausenco’s mandate is broad. It will oversee plant design, metallurgy, vendor engagement, logistics and cost modelling.

Technical expertise

The aim is to optimise capital and operational expenditure while ensuring the design meets permitting and regulatory requirements already in place. Celsius also plans to bring in additional specialists in drilling, geotechnical engineering and mine scheduling to support the integrated feasibility update.

Celsius director Peter Hume said: "Ausenco’s technical expertise, innovative solutions, and collaborative approach align with our strategic direction.

"We were particularly impressed with their prior involvement in Philippine copper-gold developments and the success they have achieved in international projects under comparable conditions.

"With their in-country experience in navigating the regulatory framework, logistics, and procurement challenges, we are confident that they can offer practical and localised solutions that would enhance the Project’s viability.”

Big potential

The MCB project lies in northern Luzon and is currently defined by a resource of 1.6 million tonnes of copper and 1.3 million ounces of gold. An earlier study pointed to a potential 25-year mine life, with robust economics including a post-tax net present value of $464 million and a 2.7-year payback period based on commodity assumptions at the time.

For Celsius, the latest moves mark a shift from exploration and permitting into full development mode.