ASX/AIM RELEASE
6
FEBRUARY 2024
Mineral Resource update for
Sagay
Mining Project
HIGHLIGHTS
· Focus of the update related to shallow supergene copper
mineralisation which now includes Measured and Indicated Mineral
Resources.
· Combined Measured, Indicated and Inferred Mineral Resource of
312 million tonnes @ 0.39% copper and 0.11g/t gold.
· Global Resource remains largely unchanged with ~1.2 million
tonnes of contained copper and ~1 million ounces of contained
gold.
· The copper mineralisation remains open in multiple directions,
with further shallow targets untested.
· Mineralisation exists from near surface down to over 1.2km
depth with strike lengths up to 1km and true widths extending into
the 100's of metres.
______________________________________________________________________________
Celsius Resources Limited ("Celsius"
or "the Company") is pleased to announce an updated JORC compliant
Mineral Resource estimate ("MRE") for the Sagay Copper Project
("Sagay" or "Project"), held under its Philippine Subsidiary,
Tambuli Mining Company, Inc ("TMCI") and located at the Island of
Negros in the Philippines.
The update to the MRE at Sagay is
largely based on the results from the 2023 drilling program at a
shallow copper position located ~500m to the west of the main body
of mineralisation discovered to date, as announced on
17th October 2023. This shallow copper zone offers
Celsius the opportunity to investigate a low cost start up
opportunity via a feasibility study which has been submitted to the
Philippine Government.
Celsius Resources Managing Director,
Peter Hume said:
"The greater definition of the shallow supergene copper at
Sagay has increased both the Resource category and our own
confidence in the ability to look at a new shallow sustainable
friendly development option. The previous Mineral
Resource[1] only placed this area in the
Inferred Category, and with this new update to the Mineral
Resource, this area is now largely in the Measured and Indicated
category, which allowed us to complete and submit a feasibility
study to the Philippine Government[2].
The Company has taken a sustainable approach to the proposed
development of the Sagay Mineral Resource, similar to its flagship
MCB project. Eliminating the use of a conventional tailings dam and
using the tailings for environmental rehabilitation, along with
processing the ore through gravity separation, therefore eliminates
the use of chemicals. We are in the process of finalising the
Project's environmental impact assessment which will clearly
demonstrate the Company's commitment to environmental protection
and preservation through advanced mining
technologies."
CLA Chairman, Atty. Julito R.
Sarmiento added:
"The development of the Sagay Project can assist with meeting
the global demand for green metals in an effort to transition to
clean energy sources and achieve the global goal of net zero
emissions by 2050 to stave off climate change calamity. CLA
constantly takes serious efforts to develop genuinely responsible
projects by tightening up our environmental managements systems and
stepping up our social and environmental
performance."
THE
SAGAY COPPER-GOLD PROJECT
Location
The
Sagay Copper Project is in the north-eastern part of Negros Island,
within the cities of Sagay and Escalante in the Province of Negros
Occidental, Philippines (Figure 1). Negros Island is part of
the central group of Islands in the Philippines commonly referred
to as "the Visayas".
Figure 1. Location of the Sagay Copper
Project in the Island of Negros, Visayas,
Philippines
The MRE for the Sagay Property is
located at Purok Tan-ao, Barangay Lopez Jaena (see Figure
2).
Figure 2. Location of the tenement
area of the Sagay Project.
Mineral Resource Estimate
Drilling at Sagay has broadly
defined a large-scale copper mineralisation which is interpreted to
be a typical porphyry copper style of mineralisation, common
throughout the Philippine archipelago.
The copper mineralisation for the
MRE at Sagay is defined by three defined mineralised domains, two
of which (namely 100LG and 100HG) relate to a main body of copper
mineralisation which exists underneath a local topographic
high.
This topographic high relates to
Purok Tan-ao with resistive siliceous rocks interpreted to be an
eroded lithocap associated with the porphyry
mineralisation.
A third mineralised domain (900SG)
hosts a shallow flat lying supergene copper mineralisation towards
the west of the main mineralisation underneath Purok Tan-ao and is
possibly related to a satellite porphyry mineralisation. Figures 3
to 7 show a plan view and cross sections of the mineralised domains
relative to the host rock geology.
The copper mineralisation at Purok
Tan-ao is broadly constrained by a zone of mineralisation which
exceeds 0.2% copper and is trending parallel to the main alteration
and related intrusive host rocks.
A lower cut-off grade of 0.2% copper
was applied in the reported MRE (summarised in Table 1) which aligns
broadly with the expected economic limits of the likely mining and
processing options considered at Purok Tan-ao.
Table 1:
Summary results for the Mineral Resource estimate
at Purok Tan-ao at a cut-off grade of 0.20%
copper.
Domain
|
Classification
|
Weathering
|
Tonnes
(Mt)
|
Copper
Grade
(%)
|
Gold
Grade
(g/t)
|
Copper
Metal
(kt)
|
Gold
Metal
(kozs)
|
Note for table of results: Calculations have been rounded to
the nearest Mt of ore (to the nearest 100,000t where <10Mt), two
significant figures for Cu and Au grade and to the nearest kt of Cu
metal and kozs of Au metal (to the nearest 100t where <10kt).
Some apparent errors may occur due to rounding. TR - Transition or
partially oxidised Rock, FR - Fresh Rock.
Figure 3. Drill hole locations and
interpreted surface geological plan view
diagram.
Figure 4. Drill hole locations and
interpreted surface geological plan view
diagram.
Figure 5.
Oblique Cross
Section A-A' , showing the location of mineralised domain 900SG
(Supergene mineralisation) and the western section of the 100LG and
100HG mineralised domains.
Figure 6. Oblique Cross Section
B-B' showing the location of the 100LG and 100HG mineralised
domains.
Figure
7. Oblique Cross Section C-C' showing the location of the 100LG
and 100HG mineralised domains.
Geology and Geological
Interpretation
Sagay is located at the northernmost
tip of the NNE trending volcanic arc related to the eastward
subduction beneath the Negros Trench in the southwest offshore of
Negros Island. Several porphyry and epithermal mineralisation
targets belong in this underexplored mineralisation trend along the
eastern side of the island.
The major rocks identified at Purok
Tan-ao are a series of intermediate igneous rocks intruding into
older host rocks composed of basalts overlain by metamorphosed
sedimentary rocks and felsic volcanics. These rocks are in turn
overlain by Quaternary pyroclastic rocks that consist of tuff and
tuff breccias. The intermediate intrusions include several diorites
and andesite porphyry.
Three distinct Diorite intrusives
were identified. Following the local nomenclature in Sagay Project,
these are (from oldest to youngest) the (1) Equigranular Diorite
(MEQ), (2) Medium-grained Porphyritic Diorite (MPOC), and the (3)
Fine-grained Equigranular Diorite (FEQ). These intrusive rocks have
distinct textures and visible cross cutting relationships.
Widespread strong silica - clay and outer chlorite alteration is
notable in the deposit. This 8km by 4km alteration zone is
indicative of a large magmatic hydrothermal system.
There are multiple types of porphyry
mineralisation observed within the Purok Tan-ao Deposit. The
dominant type is related to early-stage porphyry quartz stockwork
veins with associated potassic alteration and chalcopyrite as the
dominant copper sulphide. A later-stage porphyry Cu-Mo type
mineralisation has been identified and is hosted in silica -
sericite - chlorite alteration. In addition, evidence exists
for a later-stage epithermal vein deposit type which exist within
close proximity to the large-scale porphyry copper-gold
mineralisation.
At this stage, only the porphyry
copper-gold type of deposit was defined in the MRE.
Drilling Techniques
All of the drilling data used for
the Sagay MRE is based on diamond drilling information from a total
of 45 diamond drill holes-with a cumulative meterage of
25,782.1m.
Initial diamond drilling was
conducted between December 2012 and 2016 by Freeport-McMoRan, who
completed a total of 28 drill holes at Purok Tan-ao, with an
aggregate core depth of 22,516.70 metres.
From November 2021 to April 2022,
Celsius has completed a total of 4 drill holes and 1 offset, for a
total to 2,440 metres[3]. More
recently in late 2023, Celsius completed a further 12 shallow drill
holes which are the focus for this Mineral Resource update.
These shallow drill holes relate to the 900SG mineralised domain
with a total meterage of 824.7m[4].
Sampling and Sub-sampling
Techniques
The following sub sampling and
sample preparations were followed for all the diamond drilling at
Sagay.
Half core samples were collected
from diamond holes drilled from the surface. All drill cores were
generally sampled at 2m intervals. In cases where geological and
mineralogical characteristics change, the sample length is reduced
to best fit the geological contact, with a minimum observed sample
size of one metre. Sampling typically commenced after the
overburden horizon depth was exceeded.
Cut samples were bagged on site
prior to delivery to the laboratory (Intertek) in Manila for sample
preparation and analysis.
Sample Analysis Method
All samples were analysed at the
Intertek, an internationally recognised and ISO/IEC 17025:2005
& ISO/IEC 17020:2004 certified independent laboratory in
Manila.
Copper (Cu) values were analysed by
means of multi-acid (4-acid) digest. Elements were determined by
ICP-OES/MS with AAS finish. Samples were fire assayed for gold (Au)
using a 50-gram charge, with a detection limit of 0.005
ppm.
Estimation Methodology
A parent cell block size of 10m x
10m x 10m was chosen based on the general dimensions of the
interpreted ore domains, and the likely mining method.
Ordinary Kriging was chosen as the
interpolation method for the block model which defines the
MRE.
The parameters for Ordinary Kriging
were based on an analysis of the variograms for each domain in
addition to some broad assumptions with regards to the direction
and continuity of the copper and gold mineralisation associated
with each defined mineralised domain. The variograms were located
along the plane of the interpreted controlling geological trend
which is striking at approximately 50 degrees at a near vertical
dip.
A broad review of the statistics for
each domain did not identify significant high value outliers that
are considered likely to result in an overestimated either locally
or globally to the grade distribution within the block model.
Therefore, no top cut was applied to the MRE.
Classification Criteria
The mineralisation is constrained
within boundaries which are also considered to define the limits
for each domain as supported by the current drill hole information.
Within these domain constraints, minimum search distances and
composited drill hole information parameters determined which
locations were defined as Measured, Indicated, Inferred or as
further Exploration Targets.
A small portion of the 900SG was
classified in the Measured
category where there is tighter drill spacing (less than 50m),
multiple drill holes which show continuity of mineralisation and
the variogram analysis is also supporting of the relationship of
the assay data between drill holes.
The Indicated category was classified based
on maximum distance of 150m to the major position, 85m to the
semi-major axis and 25m in the minor direction for the limits, with
a minimum number of samples at 8 and maximum number of samples at
16. A minimum of two drill holes was also applied for the
Indicated category.
The Inferred Mineral Resource represents
over 90% of the total MRE due to the thick and broadly spaced
copper intersections as deeper levels which contain the most copper
mineralisation identified to date at Purok Tan-ao. This
category was extended for twice the distances applied to the
Indicated Resource pushing the limits search ellipse to 300m x 150m
x 50m, with a minimum of four samples and maximum of 20 samples
defined for each block.
No restriction on the number of
drill holes was applied for the Inferred Mineral Resource
category.
Cut-off Grade
A preferred lower cut-off grade of
0.2% copper has been used in the reported MRE. This is considered
appropriate based on the geological continuity associated with
copper mineralisation above 0.2% copper in addition to a broad
economic cut-off point based on a ~US$10,000/t copper
price.
Dimensions
The mineralisation at Purok Tan-ao
is classified as a porphyry copper-gold deposit which, at deeper
levels (below 400m depth), has a broad geometry of up to 1km along
strike towards the north-east (with a main trend of ~45o
azimuth) and true widths of up to 280m. At shallower levels,
the copper mineralisation is broken up into multiple domains which
are individually up to 600m along strike and with true widths of up
to 150m.
The 900SG domain is a shallow, flat
lying zone of mineralisation which has formed along the current and
ancient water table at a broadly horizontal orientation. This
domain is elongated in the direction of some interpreted
controlling faults and/or source porphyry copper
mineralisation. These trends appear to be both north-east and
north-west in orientation.
Metallurgical and Mining
Parameters
For the 900SG domain which is the
basis of the Feasibility Study, utilised a potential surface mine
approach with an interpreted costs of US$3.30/t for mining and
US$4.8/t for processing.
Possible later mining development
costs of US$10/t to US$7/t and processing costs of US$7/t to US$4/t
respectively for a medium sized (5Mt to 10Mt per annum) underground
block caving mining method and processing using floatation (to
produce a copper-gold concentrate) have been assumed where
applicable for the MRE.
This cost range estimate matches
closely with a broad geological cut-off grade of between 0.15%
copper and 0.25% copper (at a forward-looking Copper Price of
~US$10,000/t).
Study Results
Based on the resource model, mining
parameters, and metallurgical test works, a Mining Project
Feasibility Study was submitted to the Philippine Mines and
Geosciences Bureau on 20 December 2023 confirming the presence of
minerals in the area which are recoverable by processing the ore
through gravity separation which was determined to be economically
sound, ensuring environmental protection and preservation methods
would be implemented through the advanced mining
technologies[5].
The study focused on the shallow
supergene chalcocite deposit which is suitable for a medium-scale
surface mining operation. The copper concentrate produced will have
no deleterious elements which makes it highly
marketable.
Technical, environmental, and social
considerations were incorporated in the mine design to reduce the
mine footprint to approximately 20 hectares. The process plant is
engineered to enhance the ore through a gravity concentration
method which is effective in extracting valuable components form
the ore, thus contributing to the overall success of the ore
beneficiation process.
Metallurgical test works indicated
that the tails produced is non-acid generating. All tailings will
be managed through dry stacking method which eliminates the need
for a tailings dam, thus removing the possibility of environmental
impacts (tailings spill). Other alternative disposal methods are
currently being studied, including the potential use of tailings
for hollow block manufacturing as a community livelihood program,
road base, and landfill among others.
Next Steps
Following the submission of the
DMPF, the key technical, environmental, and social plans and
programs are under review by the Philippine Government. Once
approved, the Company will apply for a mineral agreement with the
government.
Listing Rule 5.19 and 5.23 Disclosure
The information is this announcement
with respect to the MRE for the Sagay Project was first announced
by the Company to ASX on 7 November 2022. Where reference is made
to previous announcements of exploration results in this
announcement, the Company confirms that it is not aware of any new
information or data that materially affects the information and
results included in the original market announcements and that all
material assumptions and technical parameters underpinning the MRE
continue to apply and have not materially changed.
Forward Looking Statements
Some of the statements appearing in
this announcement may be in the nature of forward-looking
statements. You should be aware that such statements are only
predictions and are subject to inherent risks and uncertainties.
Those risks and uncertainties include factors and risks specific to
the industries in which the Company operates and proposes to
operate as well as general economic conditions, prevailing exchange
rates and interest rates and conditions in the financial markets,
among other things. Actual events or results may differ materially
from the events or results expressed or implied in any
forward-looking statement.
No forward-looking statement is a
guarantee or representation as to future performance or any other
future matters, which will be influenced by a number of factors and
subject to various uncertainties and contingencies, many of which
will be outside the Company's control.
The Company does not undertake any
obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after
today's date or to reflect the occurrence of unanticipated events.
No representation or warranty, express or implied, is made as to
the fairness, accuracy, completeness or correctness of the
information, opinions or conclusions contained in this
announcement. To the maximum extent permitted by law, none of the
Company's Directors, employees, advisors, or agents, nor any other
person, accepts any liability for any loss arising from the use of
the information contained in this announcement. You are cautioned
not to place undue reliance on any forward-looking statement. The
forward-looking statements in this announcement reflect views held
only as at
Competent Persons Statement
Information in this report relating
to the reporting of Mineral Resource Estimates and Exploration
Results is based on information compiled, reviewed and assessed by
Mr. Steven Olsen, who is a Member of the Australasian Institute of
Mining and Metallurgy and the Australian Institute of
Geoscientists. Mr. Olsen is an Employee of Global Geologica, an
independent consulting Company to Celsius Resources Limited, and
has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined by the 2012 Edition of the Australasian Code for
reporting of Exploration Results, Mineral Resources and Ore
Reserves. Mr. Olsen consents to the inclusion of the data in the
form and context in which it appears.
This announcement has been authorised by the Board of
Directors of Celsius Resources Limited.
The information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018.
Celsius Resources Contact
Information
Level 5, 191 St. Georges
Terrace
Perth WA 6000
PO Box 7059
Cloisters Square PO
Perth WA 6850
P: +61 2 8072 1400
E:
info@celsiusresources.com.au
W:
www.celsiusresources.com
Celsius Resources Limited
|
Peter Hume
(Managing Director)
|
P: +61 2 8072 1400
E:
info@celsiusresources.com.au
W:
www.celsiusresources.com
|
Multiplier Media
Jon Cuthbert
|
M: +61 402 075 707
E:
jon.cuthbert@multiplier
|
Beaumont Cornish Limited
(Nominated Adviser)
Roland Cornish/Felicity Geidt/Andrew
Price
|
P: +44 (0) 207 628 3396
E:
corpfin@b-cornish.com.uk
|
WH
Ireland (Broker)
Harry Ansell/James Joyce/Isaac
Hooper
|
P: +44 (0)
20 7220 1666
|
Beaumont Cornish Limited ("Beaumont Cornish") is the Company's
Nominated Adviser and is authorised and regulated by the FCA.
Beaumont Cornish's responsibilities as the Company's Nominated
Adviser, including a responsibility to advise and guide the Company
on its responsibilities under the AIM Rules for Companies and AIM
Rules for Nominated Advisers, are owed solely to the London Stock
Exchange. Beaumont Cornish is not acting for and will not be
responsible to any other persons for providing protections afforded
to customers of Beaumont Cornish nor for advising them in relation
to the proposed arrangements described in this announcement or any
matter referred to in it.
Appendix 1: The following
tables are provided to ensure compliance with the JORC Code (2012)
requirements for the reporting of Exploration Results for the MCB
Project.
SECTION 1:
Sampling Techniques and
Data
(Criteria in this section apply to
all succeeding sections.)
Criteria
|
JORC
Code explanation
|
Commentary
|
Sampling techniques
|
· Nature and quality of sampling (e.g., cut channels, random
chips, or specific specialised industry standard measurement tools
appropriate to the minerals under investigation, such as down whole
gamma sondes, or handheld XRF instruments, etc). These examples
should not be taken as limiting the broad meaning of
sampling.
· Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any measurement
tools or systems used.
· Aspects of
the determination of mineralisation that are Material to the Public
Report. In cases where 'industry standard' work has been done this
would be relatively simple (e.g., 'reverse circulation drilling was
used to obtain 1 m samples from which 3 kg was pulverised to
produce a 30 g charge for fire assay'). In other cases, more
explanation may be required, such as where there is coarse gold
that has inherent sampling problems.
|
· Samples were collected from diamond core drilled from the
surface. All drill core was generally sampled on 2-meter intervals.
In cases where geological and mineralogical characteristics change,
sample length was not less than 1 meter.
· Core
samples cut into half using diamond core saw following the cutting
lines marked by the Geologist. Split cores returned to its
respective core tray.
· Samples were shipped by company vehicle to Intertek Testing
Services which is an external laboratory located in Manila,
Philippines.
· Crushed samples were fire assayed for gold (Au) using a
30-gram charge, with a detection limit of 0.005 ppm. Gold values
greater than 50 ppm were determined by gravimetric fire
assay.
· Copper
(Cu) values were assayed using four-acid digestion. Elements
determined by ICP-OES/MS with AAS finish with final reporting for a
total of 36 elements.
|
Drilling techniques
|
· Drill type (e.g., core, reverse circulation, open-hole hammer,
rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core
diameter, triple or standard tube, depth of diamond tails,
face-sampling bit or other type, whether core is oriented and if
so, by what method, etc).
|
· Previous exploration and drilling were conducted between
December 2012 and 2016 by Freeport-McMoRan, completing a total of
28 drill holes for the Purok Tan-ao deposit, with an aggregate
depth of 22,516.70 meters.
· A
further exploration program had commenced between November 2021 to
April 2022, completing a total of 4 drill holes and 1 offset hole
in the prospect, with a cumulative depth of 2,440.70
meters.
· The
most recent drilling program was completed in late 2023 with 12
shallow diamond drill holes for a total length of 824.7m
· There are a total of 45 holes in the database used for the MRE
which is the subject of this release for a cumulative depth
of 25,782.1 meters.
· The
core drilling utilised a triple-tube core barrel from collar to
end-of-hole to ensure optimum core recovery, with the deepest hole
drilled being 1,400 meters.
|
Drill sample recovery
|
· Method of recording and assessing core and chip sample
recoveries and results assessed.
· Measures taken to maximise sample recovery and ensure
representative nature of the samples.
· Whether a relationship exists between sample recovery and
grade and whether sample bias may have occurred due to preferential
loss/gain of fine/coarse material.
|
· Core
recovery has been recorded for every interval as part of the
routine geomechanical logging.
· Recovered core lengths on average were measured to be over 97%
for the drill holes with form part of the MRE, indicating a high
recovery and minimal lost core.
· All
drilling activities were supervised by company Geologists. Trained
Core house technician were responsible for the core recovery
determination.
|
Logging
|
· Whether core and chip samples have been geologically and
geotechnically logged to a level of detail to support appropriate
Mineral Resource estimation, mining studies and metallurgical
studies.
· Whether logging is qualitative or quantitative in nature. Core
(or costean, channel, etc) photography.
· The
total length and percentage of the relevant intersections
logged.
|
· Geologists were tasked to oversee the daily quick log report
down to sampling. Daily quick log form was completed to identify
the geological details such as lithology, alteration and
mineralisation with corresponding percentage estimate of Cu
minerals and Cu grade, using an established geological
code.
· Detailed logging proceeds describing geological
characteristics present in the core, i.e. lithology, alteration,
mineralogy, structures, etc.
· Core
photography was undertaken after completing the geomechanical
logging.
|
Sub-sampling techniques and sample
preparation
|
· If
core, whether cut or sawn and whether quarter, half or all core
taken.
· If
non-core, whether riffled, tube sampled, rotary split, etc and
whether sampled wet or dry.
· For
all sample types, the nature, quality and appropriateness of the
sample preparation technique.
· Quality control procedures adopted for all sub-sampling stages
to maximise representivity of samples.
· Measures taken to ensure that the sampling is representative
of the in-situ material collected, including for instance results
for field duplicate/second-half sampling.
· Whether sample sizes are appropriate to the grain size of the
material being sampled.
|
· Samples were routinely taken over a 2m interval, and cut in
half, with half of the drill core sent for analysis and half of the
drill core retained for future reference.
· Samples were cut on site using a hand core saw. Samples
were then selected and bagged on site prior to delivery to the
laboratory (Intertek) in Manila for sample preparation.
· The
sample size is considered appropriate for type of material being
samples.
|
Quality of assay data and laboratory tests
|
· The
nature, quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or
total.
· For
geophysical tools, spectrometers, handheld XRF instruments, etc,
the parameters used in determining the analysis including
instrument make and model, reading times, calibrations factors
applied and their derivation, etc.
· Nature of quality control procedures adopted (e.g. standards,
blanks, duplicates, external laboratory checks) and whether
acceptable levels of accuracy (i.e. lack of bias) and precision
have been established.
|
· Samples were fire assayed for gold (Au) using a 30-gram
charge, with a detection limit of 0.005 ppm. Gold values greater
than 50 ppm were determined by gravimetric fire assay. Copper (Cu)
values were assayed using four acid digestion. Elements determined
by AAS finish.
· The
procedures for the submission of samples to the laboratory also
include the regular insertion of QA/QC samples in every transmittal
form or batch, which was typically delivered to the laboratory in
batches of 50 numbered samples. For each batch of 50 samples a
total of 43 came from core samples and an additional 7 samples were
included for QA/QC checks, which were as follows:
o Four
referenced standards
o One
referenced Blank
o One
coarse (unrecognisable) blank
o One
field duplicate taken from the quartered core
· After sample preparation, all samples were sent for final
analysis to Intertek at their laboratory in Manila. Intertek
is an internationally recognised and ISO/IEC 17025:2005 &
ISO/IEC 17020:2004 certified independent laboratory.
|
Verification of sampling and assaying
|
· The
verification of significant intersections by either independent or
alternative company personnel.
· The
use of twinned holes.
· Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic)
protocols.
· Discuss any adjustment to assay data.
|
· Analytical procedures provided by an internationally certified
laboratory is considered in line with industry standard for the
type of deposit and mineralisation identified at the
Property.
· Apart from the verification of the procedures and results as
described above, no further verification of the sampling and
assaying have been undertaken.
· None
of the diamond drill holes in this report are twinned.
|
Location of data points
|
· Accuracy and quality of surveys used to locate drill holes
(collar and down-hole surveys), trenches, mine workings and other
locations used in Mineral Resource estimation.
· Specification of the grid system used.
· Quality and adequacy of topographic control.
|
· All
data reference points and maps for the Sagay database, including
drill hole collar co-ordinates are recorded in WGS 84/UTM Zone
51N.
· Compass measurements taken by Geologists were used to
establish the dip and azimuth of the collar hole as part of their
initial collar surveys. Drill collar locations were positioned
using a handheld Garmin GPS unit, set to UTM WGS 84 Zone 51N
coordinate reference system, with an accuracy expected to be within
2 metres. Downhole surveys were also completed using a Keeper Gyro
at 50m intervals.
· Collar surveys were then logged into the master MS Excel
spreadsheet as part of the database.
|
Data
spacing and distribution
|
· Data
spacing for reporting of Exploration Results.
· Whether the data spacing, and distribution is sufficient to
establish the degree of geological and grade continuity appropriate
for the Mineral Resource and Ore Reserve estimation procedure(s)
and classifications applied.
· Whether sample compositing has been applied.
|
· In
the MRE, drill hole assays were composited to 2 metres which
matches closely with the sample length down hole for all drill hole
sampling completed at Sagay.
· The
drilling completed at Sagay is dominantly towards the north-west or
south-east which is perpendicular to the main trend of the copper
mineralisation and host rock geology. The drill spacing for the
drill holes in this orientation is irregular, ranging from just
over 150m separation up to 400m separation.
· Drill hole spacing for the 900SG area have been reduced to
between 50m and 100m with the results from the 2023 drilling
program.
· Some
drilling has been conducted towards the south-west which is
sub-parallel to the main trends of copper mineralisation. These
drill holes have not had a significant influence on the MRE due to
their poor orientation for both the copper boundary definition and
for sampling.
· The
drill hole spacing has broadly defined the major trends to the
copper-gold mineralisation.
|
Orientation of data in relation to geological
structure
|
· Whether the orientation of sampling achieves unbiased sampling
of possible structures and the extent to which this is known,
considering the deposit type.
· If
the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to have
introduced a sampling bias, this should be assessed and reported if
material.
|
· The
drill hole orientations at Purok Tan-ao are largely towards the
south-west or towards the south-east. These orientations were
chosen to cut roughly perpendicular to the interpreted dominant
structural trend and possible trend of the mineralised intrusive
rocks which are trending towards the north-east, and some evidence
of a trend to the north-west.
· The
dominant trend of the intrusive rocks which are interpreted to be
related to the copper-gold mineralisation has an overall strike of
40 to 60 degrees and a near to vertical dip. The drill holes which
are dipping approximately 60 degrees towards the south-east appear
to be at a good angle to effectively test the copper-gold
mineralisation in this trend. The holes which have been drilled
towards the south-east are optimal for some cross cutting
north-west trending structures, but at a poor angle to test the
dominant copper-gold mineralisation which is sub parallel to these
drill holes.
· The
900SG domain is at a horizontal orientation and drilling has
largely been completed at a 60-degree angle which is appropriate
for defining both this flat lying domain in addition to potential
vertical feeder structures related to the primary porphyry copper
source of this supergene copper domain.
|
Sample security
|
· The
measures taken to ensure sample security.
|
· The
following standard procedures were documented to have been followed
in relation to sample security for all Purok Tan-ao diamond
drilling:
Sample bags are arranged in sequence
according to its sample number. These are then weighed and jotted
down to a sample dispatch note which details the sample numbers,
sample type and laboratory processing required. Geologists ensures
that the transmittal form is correct for encoding and submission.
The samples are checked by a Mines and Geological Sciences (MGB)
Geologist before issuance of an Ore Transport Permit (OTP). Upon
receipt of the OTP, the sample bags are sealed in a crate, and sent
to Manila via a certified courier contractor. Upon arrival in
Manila, a company vehicle checks the samples before they're
delivered to Intertek Testing Services. No unsupervised third
parties were given access prior to the chain of custody
procedure.
o Upon
receipt of samples, these were arranged in sequence to review the
numbers, and a sample received report was sent to the Geologists.
Samples are individually weighed again for verification.
· Samples were delivered to Intertek Testing Services along with
two copies of the sample dispatch form. One copy for the laboratory
to accept custody of the sample, and the signed/received copy
return to database custodian given access prior to the chain of
custody procedure.
|
Audits or reviews
|
· The
results of any audits or reviews of sampling techniques and
data.
|
· No
other specific audit or review was conducted other than the
validation checks by the author documented earlier regarding the
sample preparation, analysis or security for the information for
the Sagay drill hole database.
|
SECTION 2:
Reporting of Exploration
Results
(Criteria listed in the preceding
section also apply to this section.)
|
|
|
Mineral tenement and land tenure status
|
· Type, reference name/number, location and ownership including
agreements or material issues with third parties such as joint
ventures, partnerships, overriding royalties, native title
interests, historical sites, wilderness or national park and
environmental settings.
· The
security of the tenure held at the time of reporting along with any
known impediments to obtaining a licence to operate in the
area.
·
|
· The
Sagay Copper project is at the north-eastern part of Negros Island
within the Cities of Sagay and Escalante Negros
Occidental.
· The
underlying title is in the name of the Philippines registered
corporation Tambuli Mining Company Inc. (TMCI) is currently 100%
owned by a private Delaware Company who in turn is owned by Celsius
Resources Ltd.
· Tambuli Mining Company, Inc. (TMCI) was first granted a single
Exploration Permit denominated as EP-000003VI on 6 May 2008 under
Phelps Dodge Exploration Corporation - Philippine Branch (PDEC),
which was later acquired by Freeport-McMoRan Exploration
Corporation - Philippine Branch (FMEC) in 2007. The permit area
covers a total of 4,594.23 hectares, which has recently been
reduced to 1,791.3736 hectares
where the Deposit is situated.
· On
August 11, 2021, TMCI, now a subsidiary of CLA, was granted a
fourth exploration permit renewal (extension) which is valid until
February 10, 2024. The current two-year renewal period allowed the
resumption of ore definition drilling activities aimed to define
the deep ore zone (two drill holes), its shallow/near surface
extensions (three drill holes), and test possible near surface
chalcocite ore zones (three drill holes).
· TMCI
has recently submitted an application for a Declaration of Mining
Project Feasibility (DMPF), which is the first step towards a
further application of a mining permit which will allow for the
further exploration and development of the Sagay Project once
granted.
|
Exploration done by other parties
|
· Acknowledgment and appraisal of exploration by other
parties.
|
· Exploration work and drilling was completed by Tambuli Mining
Company Inc. which was a subsidiary of Freeport-McMoRan Exploration
Corporation-Philippine Branch from year 2008 to 2016.
· The
exploration activities were generally completed over two stages.
From 2008 up to 2009, the work was focused on project assessment
which included surface sampling and mapping, in addition to a
number of ground geophysical surveys, most particularly a ground
magnetic survey and a series of 2D Induced Polarisation
surveys.
· From
2012 through to 2016 the exploration activities were focused on
diamond drilling to test the targets identified from the work
completed over 2008 and 2009.
· A
further exploration under Celsius Resources commenced between
November 2021 to April 2022, completing a total of 4 drill holes
and 1 offset hole in the prospect, with a cumulative depth of
2,440.70 meters.
· The
most recent drilling program was completed in late 2023 with 12
shallow diamond drill holes for a total length of 824.7m
· The
drilling activities were predominately at the Purok Tan-ao with all
drilling results reported in this release.
|
Geology
|
· Deposit type, geological setting and style of
mineralisation.
|
· The
geological setting for the Purok Tan-ao copper-gold mineralisation
is typical of a porphyry copper + gold + moly deposit as commonly
defined in many academic papers (Hedenquist and Lowernstern, 1994;
Sillitoe, R. H., 2010. Corbett and Leach, 1997). The
mineralisation and associated alteration exist predominantly within
a series of large intrusive bodies that have intruded the host
country rocks.
· The
Sagay Project host rocks are part of the Negros Occidental Island,
which is situated in western Visayas, Central Philippines. The
eastern part of the island comprises a NNE trending volcanic arc
related to the eastward subduction beneath the Negros Trench in the
southwest off-shore of Negros Island.
· The
major rocks identified are a series of intrusions which exist
within an older host rock setting of basalt rocks that are overlain
by felsic tuffs and metamorphosed sedimentary rocks. These rocks
are in turn overlain by Quaternary pyroclastic rocks that consist
of tuff and tuff breccias. Intrusions include diorite and andesite
porphyry. Post-mineral Pliocene to Pleistocene andesitic to dacitic
volcanics cover the northern part of the area.
· Three distinct diorite intrusives were identified, following
the local nomenclature in the Project, these are (from oldest to
youngest) the: (1) Equigranular Diorite (MEQ), (2) Medium-grained
Porphyritic Diorite (MPOC), and the (3) Fine-grained Equigranular
Diorite (FEQ). These intrusive rocks have distinct textures and
visible cross cutting relationships.
· Widespread strong silica clay and outer chlorite alteration is
notable in the deposit. This 8km by 4km alteration zone is
indicative of a large magmatic hydrothermal system. the surface
alteration is approximately 1.7km by 1.7km, which tends to extend
southwest along possible controlling structures.
· The
following are the established ore types in the deposit:
o Ore
Type 1 - Early porphyry to late porphyry mineralisation
o Ore
Type 2 - Mixed zone of late porphyry mineralisation and epithermal
mineralisation.
· Ore
Type 3 - possible mixed zone of supergene enrichment and high
sulfidation to intermediate sulfidation epithermal mineralisation.
Divided into OT3A and OT3B based on the associated mineral
assemblages.
|
Drill hole Information
|
· A
summary of all information material to the understanding of the
exploration results including a tabulation of the following
information for all Material drill holes:
· easting and northing of the drill hole collar
· elevation or RL (Reduced Level - elevation above sea level in
metres) of the drill hole collar
· dip
and azimuth of the hole
· down
hole length and interception depth
· hole
length.
· If
the exclusion of this information is justified on the basis that
the information is not Material and this exclusion does not detract
from the understanding of the report, the Competent Person should
clearly explain why this is the case.
|
· In
summary, the drill hole in the database for the Property which
relate specifically to the Purok Tan-ao area consists of 45 diamond
core drilled holes with an accumulative meterage of 25,782.1m after
the inclusion of the drill holes which are the subject of this
release.
· No
drill hole information has been excluded.
|
Data
aggregation methods
|
· In
reporting Exploration Results, weighting averaging techniques,
maximum and/or minimum grade truncations (eg cutting of high
grades) and cut-off grades are usually Material and should be
stated.
· Where aggregate intercepts incorporate short lengths of
high-grade results and longer lengths of low-grade results, the
procedure used for such aggregation should be stated and some
typical examples of such aggregations should be shown in
detail.
· The
assumptions used for any reporting of metal equivalent values
should be clearly stated.
|
· Significant intersections for the purpose of representing the
defined mineralisation in the MRE which is the subject of this
report are shown in figures 5 to 7. The intersections
reported are aggregated relative to broad mineralised interval
which correspond with a definable and continuous zone of
copper-gold mineralisation, nominally above a grade of 0.2%
copper. The intervals have been reported as weighted average
totals. Internal to the broader mineralisation that has been
reported, there are some internal higher-grade copper-gold assay
results reported (nominally above 0.5% copper) which are
interpreted to exist as a continuous domain of higher-grade
copper-gold mineralisation. These sections have also been
reported as weighted average totals.
· Only
individual weighted average assay results have been reported and no
metal equivalent values have been reported.
|
Relationship between mineralisation widths and intercept
lengths
|
· These relationships are particularly important in the
reporting of Exploration Results.
· If
the geometry of the mineralisation with respect to the drill hole
angle is known, its nature should be reported.
· If
it is not known and only the down hole lengths are reported, there
should be a clear statement to this effect (e.g. 'down hole length,
true width not known').
|
· There are a number of drilling orientations, but generally
drill holes were designed on lines oriented towards 130 degrees to
the south-east or towards 220 degrees to the south-west and spacing
at just over 200m between holes. Where the mineralisation is
interpreted to strike roughly perpendicular to the orientation of
the drill holes, the angle between the drill hole (typically at a
60-degree dip) and the vertical mineralisation implies true width
ranges of between 70-90% of the downhole width.
|
Diagrams
|
· Appropriate maps and sections (with scales) and tabulations of
intercepts should be included for any significant discovery being
reported These should include, but not be limited to a plan view of
drill hole collar locations and appropriate sectional
views.
|
· See
figures 3 to 7 for a representative plan and cross sections of the
Geology and its relationship to the copper-gold mineralisation at
Purok Tan-ao.
|
Balanced reporting
|
· Where comprehensive reporting of all Exploration Results is
not practicable, representative reporting of both low and high
grades and/or widths should be practiced to avoid misleading
reporting of Exploration Results.
|
· All
data for the project has been collected, validated and reported and
is considered to be a fair representation of the MRE from the Sagay
Project which is the subject of this release.
|
Other substantive exploration data
|
· Other exploration data, if meaningful and material, should be
reported including (but not limited to): geological observations;
geophysical survey results; geochemical survey results; bulk
samples - size and method of treatment; metallurgical test results;
bulk density, groundwater, geotechnical and rock characteristics;
potential deleterious or contaminating substances.
|
· Historical exploration since the date of the original grant of
EXP000003VI in 2008 was undertaken under the ownership and
management of Tambuli Mining Company Inc.
· On
June 2008, first stage of geological work was established by
geological mapping, gridlines preparations, soil and rock sampling,
as well as geophysical surveys that consisted of induced
polarisation, resistivity and ground magnetic. These activities
were completed by 20th of December on the same year.
· This
was followed by a period of diamond drilling from 2012 through to
2016 for a total of 31 diamond drill holes, 28 of which were
drilled at Purok Tan-ao.
· Further diamond drilling
commenced between November 2021 to April 2022,
completing a total of 4 drill holes and 1 offset hole in the
prospect, with a cumulative depth of 2,440.70 meters.
· The
most recent drilling program was completed in late 2023 with 12
shallow diamond drill holes for a total length of 824.7m
|
Further work
|
· The
nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out
drilling).
· Diagrams clearly highlighting the areas of possible
extensions, including the main geological interpretations and
future drilling areas, provided this information is not
commercially sensitive.
|
· There are a few locations where the potential extensions to
the current defined large-scale copper-gold mineralisation could be
tested. These locations are largely based on an interpreted
north-east strike and near vertical dip to the copper-gold
mineralisation.
· The
location for the possible shallow higher-grade copper-gold at Purok
Tan-ao is also yet to be defined. Further drilling along possible
north-east or northwest orientations to the previous shallow
copper-gold intersections is warranted to test the extent of this
mineralisation.
· Apart from the direct extensions to the currently defined
copper-gold mineralisation, there is considerable scope for further
discoveries of two defined deposit types within the Sagay Tenement
as follows:
· Porphyry copper-gold deposit types
o There are extensive intrusions in the area that are directly
related to the copper-gold mineralisation, and which could at
multiple locations formed significant high-grade copper-gold
deposits.
o Existing geophysical datasets have already identified a number
of large untested features that are worthy of drill testing for the
potential to discover further large-scale copper-gold
mineralisation
· Epithermal vein hosted deposit types
· It
is considered likely that there could be a combination of narrow
high grade, and/or more broad large scale and lower grade
epithermal deposit types at Purok Tan-ao. There are a number of
apparent large-scale structures which exist adjacent to Tan-ao
which are worthy of follow up drill testing for this style of
deposit. There may be some merit in further surface sampling with a
greater emphasis on epithermal gold deposit types. However, the
relatively extensive geophysical surveys are already indicating a
number or drill ready target positions that are worthy of follow
up.
|
Section 3
Estimation and Reporting of Mineral
Resources
(Criteria listed in section 1, and
where relevant in section 2, also apply to this
section.)
|
|
|
Database integrity
|
·
Measures taken
to ensure that data has not been corrupted by, for example,
transcription or keying errors, between its initial collection and
its use for Mineral Resource estimation purposes.
Data validation procedures used.
|
· The
original assay sheets and drill logs were checked against the drill
hole database by the author and no systematic or random errors were
identified as part of this validation check of the
database.
· In
addition, the original laboratory reports were checked against the
drill hole database. This data review did not identify any
systematic or isolated errors in the drill hole
database.
· Drill core observations and validation steps were completed in
September 2022 which included a review of all the defined Ore
Domains and broad contact positions between the high grade and
low-grade domains in addition to the low-grade ore to waste domain
boundaries.
· All
drill core from the Purok Tan-ao drilling which were used to define
the 2024 MRE have been preserved and were available for the author
to visually check against the drill logs and recorded assay
results.
· Geological observations that are recorded in the drill logs
leading to the definition of the ore domains at Purok Tan-ao appear
consistent and reflective of what could be observed from the drill
core by the Author. In addition, copper sulphides and
recently weathered copper-sulphides (due to exposure of the drill
core at the surface) are observable in the drill core where
high-grade copper mineralisation has been reported. The
relative presence of copper sulphides and oxidised copper minerals
appear reasonably reflective of the assay results reported in the
database based on the observations made by the author of the drill
core.
|
Site visits
|
·
Comment on any
site visits undertaken by the Competent Person and the outcome of
those visits.
· If no site visits have been
undertaken indicate why this is the case.
|
· The
Author has completed site inspections of the property including
detailed review of the drill core which relate to the Mineral
Resource Estimate. The field inspections included validation
for approximately 30% of the drill collar locations for the drill
holes which are included in the Mineral Resource estimate using a
handheld GPS.
· The
review of drill core and field inspections were conducted from
September 28 to September 30, 2021.
|
Geological interpretation
|
·
Confidence in
(or conversely, the uncertainty of) the geological interpretation
of the mineral deposit.
·
Nature of the
data used and of any assumptions made.
·
The effect, if
any, of alternative interpretations on Mineral Resource
estimation.
·
The use of
geology in guiding and controlling Mineral Resource
estimation.
· The factors affecting
continuity both of grade and geology.
|
· The
geological interpretation associated with the Purok Tan-ao Mineral
Resource estimate is considered by the author to have a high level
of confidence, with limited variability considered likely due to a
difference in the geological interpretation.
· The
interpretation and Mineral Resource estimate have been compared
directly with previous interpretations made by the geological staff
at Freeport-McMoRan, which completed early stage previous
exploration activities at Purok Tan-ao. The copper and gold
mineralisation defined in the Mineral Resource estimate has a high
level of consistency relative to the geological interpretation
completed by Freeport-McMoRan.
· The
geological controls on the copper-gold mineralisation at the Purok
Tan-ao copper-gold mineralisation is typical of a porphyry copper +
gold + moly deposit as commonly defined in many academic papers
(Hedenquist and Lowernstern, 1994; Sillitoe, R. H., 2010. Corbett
and Leach, 1997).
|
Dimensions
|
·
The extent and
variability of the Mineral Resource expressed as length (along
strike or otherwise), plan width, and depth below surface to the
upper and lower limits of the Mineral Resource.
|
· The
copper-gold mineralisation at Purok Tan-ao classified as a porphyry
copper-gold deposit at deeper levels (below 400m depth) has a broad
geometry of up to 1km along strike towards the north-east (main
trend ~45°) and true widths of up to 280m. At shallower
levels the copper mineralisation is broken up into multiple domains
which are individually up to 600m along strike and with true widths
of up to 150m.
|
Estimation and modelling techniques
|
·
The nature and
appropriateness of the estimation technique(s) applied and key
assumptions, including treatment of extreme grade values,
domaining, interpolation parameters and maximum distance of
extrapolation from data points. If a computer assisted estimation
method was chosen include a description of computer software and
parameters used.
·
The availability
of check estimates, previous estimates and/or mine production
records and whether the Mineral Resource estimate takes appropriate
account of such data.
·
The assumptions
made regarding recovery of by-products.
·
Estimation of
deleterious elements or other non-grade variables of economic
significance (eg sulphur for acid mine drainage
characterisation).
·
In the case of
block model interpolation, the block size in relation to the
average sample spacing and the search employed.
·
Any assumptions
behind modelling of selective mining units.
·
Any assumptions
about correlation between variables.
·
Description of
how the geological interpretation was used to control the resource
estimates.
·
Discussion of
basis for using or not using grade cutting or
capping.
·
The process of
validation, the checking process used, the comparison of model data
to drill hole data, and use of reconciliation data if
available.
|
The Purok Tan-ao geological models,
ore domain models and associated interpolation were all completed
in the 3D software modelling package Leapfrog Geo and Leapfrog Edge
(Version 2023.1).
ORE
DOMAINS
A combination of features was
utilised to review and subsequently domain the copper
mineralisation to an appropriate level for the purpose of
estimating the copper and gold contents.
High Grade Copper Domain
High-grade porphyry Cu-Au
mineralisation is hosted in older volcanics and in the series of
diorite intrusions, but widely situated in Medium Porphyritic
Diorite (MPOC). This ore type was defined based on a combination of
its alteration mineralogy, high-grade copper (mostly above 0.5%
copper) and broad extensions to this mineralisation parallel to the
dominant geological trend.
The classified distinct ore types
established in 2016 was used as a preliminary basis to construct
the ore domains specified in this Technical Report.
Ore Type 2 (as discussed in Section
13.1) positions were reviewed relative to the potential continuity
of this ore type and to see the relationship between its
copper-gold mineralisation.
In locations where this ore type was
very narrow, or patchy and no observable continuity, this ore type
was not defined as a 100HG domain.
Low Grade Copper Domain
Further grade continuity models were
created surrounding the high-grade material, with observable
boundaries which are parallel to the older volcanics and diorite
intrusions position.
There appear to be a natural
geological boundary at close to 0.2% copper, which has been used as
the basis for developing a surrounding low-grade domain which is
substantially mineralised. The position for copper
mineralisation is not necessarily at exactly 0.2% copper, however,
it is observable that there are distinct trends with grade
distributions roughly above and then below into waste domains
across this position.
A low-grade domain boundary was
created which obeyed the general trend of the contact position
between assay results which were above and below 0.2% copper and
for which this contact position was distinctly parallel to the
dominant geological trends.
BLOCK SIZE
A parent cell size of 10m x 10m x
10m was used as the final model block size which appear to
appropriately fill the model with cells and is considered
appropriate for any potential economic evaluation of the Mineral
Resource, which is most likely considered to be via the block
caving method for later development.
ORE
CONTINUITY AND STATISTICAL ANALYSIS
After applying the constraints on
the ore domains for the high-grade and low-grade domain boundaries,
each dataset was reviewed in terms of their basic statistics and
also a review of their potential continuity based on their
variograms.
STATISTICS AND TOP CUT
The summary basic statistical
information for copper, gold and specific gravity associated with
each domain, based on the 2-meters composited datasets from within
each domain are summarised in the following tables.
A review of the statistics for each
domain did not identify significant high value outliers that are
considered likely to result in an overestimated either locally or
globally to the grade distribution within the block model.
Therefore, no top cut was applied to the Mineral Resource
estimate.
|
|
|
|
Count
|
1907.0
|
1907.0
|
1406.0
|
Length
|
3803.9
|
3803.9
|
163.5
|
Mean
|
0.31
|
0.09
|
2.51
|
Standard Deviation
|
0.17
|
0.07
|
0.17
|
Co.
of Variation
|
0.54
|
0.82
|
0.07
|
Variance
|
0.03
|
0.005
|
0.03
|
Minimum
|
0.01
|
0.004
|
2.02
|
Lower Quartile (Q1)
|
0.19
|
0.04
|
2.39
|
Second Quartile (Q2)
|
0.28
|
0.07
|
2.57
|
Upper Quartile (Q3)
|
0.39
|
0.11
|
2.64
|
Maximum
|
1.55
|
1.31
|
2.95
|
|
Copper
(%)
|
Gold
(g/t)
|
Specific
Gravity
|
|
331.0
|
332.0
|
93.0
|
|
659.9
|
660.9
|
9.5
|
|
0.48
|
0.03
|
2.13
|
|
0.38
|
0.04
|
0.23
|
|
0.78
|
1.54
|
0.11
|
|
0.14
|
0.002
|
0.05
|
|
0.06
|
0.003
|
1.63
|
|
0.22
|
0.01
|
1.92
|
|
0.34
|
0.02
|
2.10
|
|
0.65
|
0.03
|
2.33
|
|
2.60
|
0.37
|
2.58
|
|
|
|
|
|
648.0
|
650.0
|
507.0
|
|
1296.0
|
1302.1
|
58.5
|
|
0.57
|
0.15
|
2.43
|
|
0.27
|
0.12
|
0.16
|
|
0.49
|
0.82
|
0.07
|
|
0.08
|
0.015
|
0.03
|
|
0.04
|
0.018
|
2.02
|
|
0.39
|
0.09
|
2.29
|
|
0.55
|
0.13
|
2.46
|
|
0.68
|
0.18
|
2.56
|
|
3.70
|
1.95
|
2.98
|
VARIOGRAM ANALYSIS
Variogram analysis was competed for
the 3 mineralised domains, the results of which are indicated
below.
100LG Domain: The major
axis has a strike of 45 degrees which is very close to the
observable trend of the geology and interpreted boundaries to the
copper mineralisation. The variograms are based on very
sparse data. However, it is observed that there is a possible
Sill developing for the major direction at over 100m in length,
which would possibly be better supported with some closer spaced
drill hole information. The semi-major direction has a reasonably
good variogram with a Sill at approximately 70m, and the minor axis
produces a variogram with a Sill at 20m.
100HG Domain: The higher-grade
domain appears to occur as an internal zone with a shallow dip
within the 100LG domain. The orientation of this
mineralisation is broadly perpendicular to the major trends that
are defined in the 100LG domain which is also reflected in the
variogram results. The major direction is outlined in a fairly good
variogram with a Sill at over 135m in length. The semi-major
direction is delineated with a Sill at about 45m, and the minor
axis yields a variogram with a Sill at about 25m.
900SG Domain: This patchy near
surface supergene chalcocite enrichment zone is constrained to an
area which is located to the west of the larger 100 domain. The
variograms are based on an evenly scattered drillhole data. The
major direction is defined with a Sill more than 90m in length. The
semi-major direction is delineated with a Sill at about 85m, and
the minor axis yields a variogram with a Sill at about
25m.
INTERPOLATION METHOD
After definition of the ore domains
and subsequent statistical and variogram analysis were completed
for each ore domain, Ordinary Kriging (OK) was used as a standard
estimator for both copper and gold values.
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Moisture
|
·
Whether the
tonnages are estimated on a dry basis or with natural moisture, and
the method of determination of the moisture
content.
|
The tonnes estimated for the Purok
Tan-ao deposit block models were calculated on a dry
basis.
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Cut-off parameters
|
·
The basis of the
adopted cut-off grade(s) or quality parameters
applied.
|
· The
Purok Tan-ao deposit has been limited to a defined body of copper
and gold mineralisation which are predominantly above 0.2% copper
on average.
· The
0.2% lower limit is also broadly in line with the expected economic
limits of the likely mining and processing options considered for
Purok Tan-ao.
· Therefore,
a preferred lower cut-off grade of 0.2% copper was applied to the
reporting of the Mineral Resource estimate which is based on the
information provided in this report (Table 1).
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Mining factors or assumptions
|
·
Assumptions made
regarding possible mining methods, minimum mining dimensions and
internal (or, if applicable, external) mining dilution. It is
always necessary as part of the process of determining reasonable
prospects for eventual economic extraction to consider potential
mining methods, but the assumptions made regarding mining methods
and parameters when estimating Mineral Resources may not always be
rigorous. Where this is the case, this should be reported with an
explanation of the basis of the mining assumptions
made.
|
· It
has been assumed that the large bodies of copper-gold
mineralisation that are considered likely to form a continuous body
of mineralisation potentially amenable to block cave mining have
been included within the reported Mineral Resource estimate.
Isolated or narrow structurally controlled sections of copper-gold
mineralisation at this stage at Tan-ao do not appear to be of a
scale to suggest that they have reasonable prospects for eventual
economic extraction and are therefore not included in this
Technical Report.
· For
the 900SG domain which is the basis of the Feasibility Study,
utilised a potential surface mine approach with an interpreted
costs of US$3.30/t for mining and US$4.8/t for
processing.
· Possible later mining costs of US$10/t to US$7/t and
processing costs of US$7/t to US$4/t respectively for a medium
sized (5Mt to 10Mt per annum) underground block caving mining
method and processing using floatation to produce a copper-gold
concentrate have been assumed where applicable for the Mineral
Resource estimate.
· This
cost range estimate matches closely with a broad geological cut-off
grade of between 0.15% copper and 0.25% copper (at a Copper Price
of ~US$10,000/t).
· A lower
cut-off grade of 0.2% copper has been used as the preferred lower
cut-off grade for the reported Mineral Resource estimate, which is
considered appropriate based on the geological continuity
associated with copper mineralisation above 0.2% copper in addition
to a broad economic cut-off point based on a ~US10,000/t copper
price.
|
Metallurgical factors or assumptions
|
·
The basis for
assumptions or predictions regarding metallurgical amenability. It
is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider
potential metallurgical methods, but the assumptions regarding
metallurgical treatment processes and parameters made when
reporting Mineral Resources may not always be rigorous. Where this
is the case, this should be reported with an explanation of the
basis of the metallurgical assumptions made.
|
· A
metallurgical assessment was conducted on the 900SG ore which
determined it gravity separation would deliver economic results.
Further testing would be required on other mineralisation to
determine the best processing method.
· Apart from
the 900 SG ore it can be assumed that Metallurgical characteristics
have been assumed to be similar to other porphyry copper deposits
throughout the Philippines which have a similar mineralogy, of
predominantly Chalcopyrite and minor amounts of bornite and
chalcocite. It is common for other similar deposits to have
copper recoveries in excess of 85%.
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Environ-mental factors or assumptions
|
·
Assumptions made
regarding possible waste and process residue disposal options. It
is always necessary as part of the process of determining
reasonable prospects for eventual economic extraction to consider
the potential environmental impacts of the mining and processing
operation. While at this stage the determination of potential
environmental impacts, particularly for a greenfields project, may
not always be well advanced, the status of early consideration of
these potential environmental impacts should be reported. Where
these aspects have not been considered this should be reported with
an explanation of the environmental assumptions
made.
|
· No
limitations or modification were applied to the Mineral Resource
estimate with regard to the environmental factors or
assumptions. It is recognised in general that there is
limited space and some environmental issues associated with the
placement of any waste storage facilities or a tailings storage
facility. However, there are also generally considered
multiple options, such as backfill of waste and tailing
underground, which will still allow for a potential future mining
operation.
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Bulk Density
|
·
Whether assumed
or determined. If assumed, the basis for the assumptions. If
determined, the method used, whether wet or dry, the frequency of
the measurements, the nature, size and representativeness of the
samples.
·
The bulk density
for bulk material must have been measured by methods that
adequately account for void spaces (vugs, porosity, etc), moisture
and differences between rock and alteration zones within the
deposit.
·
Discuss
assumptions for bulk density estimates used in the evaluation
process of the different materials.
|
· Bulk
density measurements were routinely taken throughout the drilling
campaign and are available for all of the defined ore
domains.
· The
method used to collect the specific gravity information for each
drill hole is summarised in the sampling and core management
procedures from an internal reports by Freeport-McMoRan.
These procedures are summarised as follows:
· Specific gravity is determined by weighing a dry core sample
in air and as submerge in water.
· Two
10 to 15 cm long split core samples are collected from each
sampling interval, one near the start and the other near the end of
the interval.
· Samples
were weighed in air, weighed suspended in water, and weighed in air
again to determine its saturated weight.
|
Classification
|
·
The basis for
the classification of the Mineral Resources into varying confidence
categories.
·
Whether
appropriate account has been taken of all relevant factors (ie
relative confidence in tonnage/grade estimations, reliability of
input data, confidence in continuity of geology and metal values,
quality, quantity and distribution of the data).
·
Whether the
result appropriately reflects the Competent Person's view of the
deposit.
|
Measured Mineral Resource
Classification
· To
determine the Measured Mineral Resource, a maximum estimation
distance of 50 meters was applied in the major direction, 25 meters
in the semi-major axis, and 10 meters in the minor direction. This
was complemented by a requirement for a minimum of 10 and a maximum
of 16 samples. A maximum of 6 samples per drill hole was applied
with at least 2 drill holes needed to be within the specified
search ellipse for this category.
· The
maximum distances applied to the search ellipse parameters for the
Measured category were based on the extents of the variogram where
there appears to be robust trend, in addition to being
approximately 60% of the Sill distance.
Indicated Mineral Resource
Classification
· The
grade distribution within the Purok Tan-ao block model was
classified as Indicated where the geology and associated
copper-gold mineralisation, within a constrained high grade
(100HG), low grade (100LG) and supergene enrichment (900SG) domains
could be confidently extrapolated based on the understanding of the
mineralisation deposit type, the current distribution of the
drilling information and the information obtained from the
variogram analysis.
· Based on the combination of the changes to geology and the
statistics, it was considered appropriate to apply a maximum
distance of 150m to the major position, 85m to the semi-major axis
and 25m in the minor direction for the limits of the Indicated
Mineral Resource, with a minimum number of samples at 8 and maximum
number of samples at 16.
Inferred Mineral Resource
Classification
· The
Inferred Mineral Resource was extended for twice the distances
applied to the Indicated Mineral Resource pushing the limits search
ellipse to 300m x 150m x 50m, with a minimum of 4 sample and
maximum of 20 samples defined for each block. This was
considered appropriate for this level of confidence based on the
broad dimensions of the copper-gold mineralisation defined to date
at Purok Tan-ao.
|
Audits or reviews
|
·
The results of
any audits or reviews of Mineral Resource
estimates.
|
· No
independent audit or review has been undertaken on the updated
Mineral Resource estimate for the Sagay Property which is the
subject of this JORC Report.
|
Discussion of relative accuracy/
confidence
|
·
Where
appropriate a statement of the relative accuracy and confidence
level in the Mineral Resource estimate using an approach or
procedure deemed appropriate by the Competent Person. For example,
the application of statistical or geostatistical procedures to
quantify the relative accuracy of the resource within stated
confidence limits, or, if such an approach is not deemed
appropriate, a qualitative discussion of the factors that could
affect the relative accuracy and confidence of the
estimate.
·
The statement
should specify whether it relates to global or local estimates,
and, if local, state the relevant tonnages, which should be
relevant to technical and economic evaluation. Documentation should
include assumptions made and the procedures used.
·
These statements
of relative accuracy and confidence of the estimate should be
compared with production data, where available.
|
· All
the available drill hole information relating to the Purok Tan-ao
Mineral Resource estimate have been appropriately documented within
this Technical Report. The author is not aware of any
omission or bias that relates to the information as it has been
presented in this report which relates specifically to the Mineral
Resource estimate for Purok Tan-ao.
· The
analysis of the drill hole data statistics within each respective
ore domain has identified a relatively good correlation and
consistency of assay data for hundreds of meters, with some local
variations being consistent with what would be expected within a
relatively large porphyry copper style of mineral
deposit.
· The
current level of Inferred, Indicated and Measured Mineral Resource
estimates are considered appropriate relative to the data
distribution and confidence in the distribution of the copper and
gold mineralisation.
· There only
issue that has prevented larger portion of the Mineral Resource
estimate from having a higher level of confidence is due to the
drill hole data not being located over an even spacing and
distribution. There are distances of over 200m in some
locations between drill hole data points which, with infill
drilling would be expected to be converted to a higher level of
Resource category.
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