Proceeds from the recent capital raise will place?Orion in a strong position to capitalise on growth. As Orion’s Managing Director and CEO, Errol Smart, commented,?‘with our two Bankable Feasibility Studies for the Prieska Copper Zinc Mine and the Okiep Mine now imminent, and ongoing drilling recently delivering very impressive copper intersections at Okiep, this capital raise allows work to continue on preparation for commercial mining and on exploration, while the optimum debt funding arrangements are negotiated with funding institutions.’ ? ?
Further factual information has been summarised below:
- Orion is very well positioned to take advantage?of the rising demand for copper. As EU credit insurance group Credendo has noted,?‘Copper demand could double by 2035. The main drivers are the revival in demand from Chinese manufacturers, the rebound of the global economy and the boom in investments in green technologies (e.g. renewables and electrical vehicles) and in AI technologies - cooling systems/data centres.’?From a supply perspective, they note?‘Supply is expected to grow but not as fast as demand. This is primarily due to two factors: the time required for new mine construction and the ageing of already existing mines.’
- Orion is building a high-quality pipeline of copper mine development assets to supply the demands created?by the global clean energy transition.? The company has set itself the aspirational corporate objective of achieving first copper sales from its development projects in 2026 and growing copper production to more than 50Ktpa Cu by the end of the decade.
Plans are currently underway to accelerate?three key base metal projects towards first production:
1.??????? PCZM?- Prieska is one of the world’s Top-30 volcanogenic massive sulphide (VMS) base metal deposits, with recorded historical production of over 430,000 tonnes of copper and 1Mt of zinc from 46.8Mt of sulphide ore milled. ?The brownfields mine site with a current globally significant VMS resource of 31Mt at 1.2% Cu and 3.6% Zn. An updated Bankable Feasibility Study is currently underway for an accelerated development strategy at the PCZM. The Mine site has been re-established with all bulk services (grid power and bulk water supply) connected. Primary underground access to ore has been established and trial mining has been completed with ore stockpiled on surface by an experienced, site resident management and operations team. Dewatering of the mine is imminent and will run for three years while high grade, near surface sulphide mineralisation, that was accessed and tested during trial mining over the past 9 months, will provide an early ore source. Management have set themselves a target for first production of sulphide concentrate within 12 months of securing development finance. Production is intended to climb to 22ktpa Cu and 65ktpa Zn over five years with an initial 16 year mine life. The orebody remains open in all dimensions with drilling and geophysics indicating potential for 30-50% upside of sulphide mineralisation.
- PCZM’s first Bankable Feasibility Study was completed in May 2020 (BFS-20),?focused on the development of the Deep Sulphide Resource at PCZM, which currently comprises 28.73Mt at 1.2% Cu and 3.8% Zn.?The BFS-20 is based on a modern 2.4Mtpa underground and open pit mining operation, with a 12-year ‘Foundation Phase’ delivering payable metal production of 226kt of copper and 680kt of zinc in differentiated concentrates. The BFS-20 delivered undiscounted free cash flows to A$1.6 billion, pre-tax (A$1.2 billion post-tax). ?An updated BFS (BFS24) is nearing completion.
- PCZM (BFS24) is currently underway for an accelerated development strategy with completion imminent.?The brownfields project (closed in 1991)?has had site re-establishment completed and has completed a trial mining program to demonstrate the orebody quality and mining methods to be used to extract near surface ore while dewatering the Deeps section.? Installation of the dewatering pumps and water treatment and surface storage systems is underway and commencement of dewatering which is expected to take 3 years, is imminent. The BFS24 plan is designed to bring forward revenue generation and reduce the upfront external peak funding requirements by phasing the mine build while retaining the ability to accelerate scale up to a full-scale project as sufficient funding becomes available. A skilled, experienced mine management and operations team has been recruited and is site resident. Bulk services (15MW grid power and bulk water supply) are connected. Primary underground access to Near Surface (-105m) sulphide ore has been established and the mining methods demonstrated in a trial mining exercise.?The updated BFS24 is intended to demonstrate the potential for first production within 12 months of project funding being secured, resulting in reduced peak funding requirement due to early cash flow. The expected result is intended to improve project economics and resultant return on investment. Mine life is expected be extended to 16 years with increased aggregate metal production over Life of Mine.
2.??????? OCP?– Also a brownfield mine site with intrusive hosted copper resource of 11.3Mt @ 1.4% Cu presenting the opportunity for a second base metal production hub alongside the PCZM. Orion is targeting initial proof-of-concept-scale copper mining operation with the potential for first production within 16 months of the start of construction. A large inventory of historically drilled mineralisation awaits confirmation drilling in order to upgrade to JORC compliant resources and upgrade to reserve before increasing the scale of operations to restore historic Cu production levels from the OCP mineral rights to between 25-50ktpa.
- The BFS is focused on underground extraction of three bodies, FME, FMS, FMN (The Flat Mines)?within a 3km radius of a planned central concentrator processing plant.
- The BFS is based on production over 10 years at an average of 9ktpa Cu.
- Flat Mines– High-Grade Potential Confirmed with Recent Outstanding Drill Hits.?A total of 11 diamond core drill holes drilled at Flat Mine East (FME), Flat Mine South (FMS) and Flat Mine North (FMN), comprising a total of approximately 5,800m. Results reported to-date include highlights of: ?
- FME: OFMED 153?returned?49.35m @ 5.05% Cu from 231m including 21.66m @ 9.41% Cu.?
- FMS: Confirmation drilling results?received to date build on the initial results reported from Flat Mine East.? Flat Mine South drill hole?OFMSD077 returned 20.50m at 4.99% Cu?within 43.00m at 3.41% Cu, from depth of 527.00m.
- On?completion of the drilling program at Flat Mines, the geological and mineralisation envelope interpretations will be reviewed and adjusted where necessary, followed by an update of the Mineral Resource Estimate, including the new information. New geotechnical information will be used for confirmation of the mine design. Planned confirmatory metallurgical test work includes comminution, flotation optimisation, tailings characterisation and XRF ore sorting.
3.? JMP Nickel-Copper Cobalt-PGE Mine?with a JORC Mineral Resource of 65Mt at 0.28% Ni, 0.19% Cu, 0.02% Co, & 0.2g/t 2PGE+Au?using a cut-off of 0.2% Ni. Potential for open pit and shallow underground mining. Orion is investigating innovative proprietary technology to recover high purity, ultrafine metal powders, for use in electronics and chemical industries – the company noting this as a value game changer.
- Managing Director and Chief Executive Officer - Errol Smart, has an established a track record as a geologist,?which includes over 30 years of industry experience across all aspects of exploration, mine development and operations with experience in precious and base metals. He has held positions in Anglogold, Cluff Mining, Metallon Gold, Clarity Minerals, Lion Gold Corporation, and African Stellar Holdings. Errol’s senior executive roles have been on several boards of companies listed on both the TSX and ASX and currently serves as a Director on the Board of the Minerals Council South Africa as Chair of the Junior Mining and Exploration Forum.
- Orion’s highly experienced?Board?and?Management?Team?have extensive hands-on operational experience in minerals exploration, mining and commercial production development in South Africa, Australia and around the world.
ORION MINERALS LTD?(ORN)?is a dual-listed (ASX and JSE) development and exploration company, focused on the supply of the future facing metals that will drive the global transition to a lower carbon future. The Company holds a portfolio of high-quality development and exploration assets in South Africa’s Northern Cape, with Mineral Rights including known deposits of copper, zinc, nickel, cobalt, Platinum Group Elements (PGE), gold, silver, tungsten, Rare Earth Elements (REE) and lithium. ?
Plans are currently underway to accelerate three key base metal projects towards first production:
- PCZM?-?Globally significant VMS resource – 31Mt at 1.2% Cu and 3.6% Zn, with an updated Bankable Feasibility Study currently underway for an accelerated development strategy at the PCZM. Trial mining has been completed and mine dewatering is imminent.
- OCP?– A significant initial JORC Resource of 11.3Mt @ 1.4% Cu?presents the opportunity for a second base metal production hub alongside the PCZM, targeting an initial proof-of-concept-scale copper mining operation with the potential for first production within 16 months of the start of construction. A Bankable Feasibility Study is nearing completion and ongoing drilling continues to highlight exceptional high grade Cu mineralisation.
- Jacomynspan Project (JMP) Nickel-Copper Cobalt-PGE Mine?with a JORC Mineral Resource of 65Mt at 0.28% Ni, 0.19% Cu,0.02% Co & .19g/t 2PGE+Au using a cut-off of 0.2% Ni.?Potential for open pit and shallow underground mining. Investigating innovative proprietary technology to recover high purity, ultrafine metal powders, for use in electronics and chemical industries – the company noting this as a value game changer
DISCLAIMER: ‘The information does not constitute personal financial advice. Consult your adviser or broker prior to making any investment decision.
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