Orion Minerals Company Profile

ORION MINERALS

A minerals exploration and development company focussing on zinc, copper, nickel, gold and platinum-group elements in South Africa and Australia
Company Exposure

Zinc, Copper, Nickel,
Silver, Gold, PGE

Company Listing

Orion Minerals

Stock Code

ASX/JSE:ORN

Company Overview



Orion Minerals Ltd (ASX/JSE:ORN) is an ASX and JSE listed explorer / developer that has directed its focus on fast tracking the development of a major Zinc-Copper project, following the acquisition of an effective 73.33% interest in the advanced Prieska Project, located near Copperton in the Northern Cape Province of South Africa. Exploration upside to the Prieska Project is also secured via earn-in rights over a large part of the Areachap geological terrane, extending along a 125km long belt to the north of Copperton. A number of earn-in properties boast historic discoveries of Zinc-Copper, Gold-Copper, Nickel-Copper-Cobalt-PGE and Lithium-Rare Earth Elements. This Areachap Project presents excellent near-term growth potential for the Company.

Orion’s strategy is to focus on world class Volcanogenic Massive Sulphide (VMS) and multi-commodity mineral deposits to meet the increasing industrial demand led by ongoing technological innovation. This demand is reflected in the continuing upward trend in the prices for copper and zinc. The company has targeted geological terranes known for VMS potential and shortlisted world class mineral provinces, where modern exploration techniques would then be applied to prove its mining potential. This search has resulted in Orion securing a large consolidated land package (1,790km2) in the proven Areachap Minerals Belt in South Africa, which includes the Prieska Zinc-Copper Project, as well as highly prospective zones with VMS and precious metals potential.

INVESTMENT HIGHLIGHTS

  • A very strong team of South African professionals oversee the corporate and technical activities on the South African projects.
  • ORN offers “Blu Sky” upside after Independence Group (ASX:IGO) acquired A$5m stake in Orion at a 35% premium to market value. IGO now own 11.1% of ORN and have preferential rights for a JV or purchase of Orion’s nickel projects within the company’s Areachap exploration portfolio.
  • Cornerstone investor Tembo Capital has indicated that it intends to use its Top Up Right to maintain a minimum 12.5% stake in Orion.
  • Mining Right Application submitted to convert the Repli Prospecting Right to a Mining Right, covering 723Ha at the Prieska Project. A Mining Right, allowing ORN to use existing underground infrastructure to mine the Deep Sulphide Mineral Resource, should be granted July 2019.
  • Repli and Vardocube Prospecting Right deliver a total Mineral Resource of 29.4Mt, containing 1.13Mt Zn and 0.36Mt Cu (refer ASX release 9 April 2018). The Vardocube Prospecting Right covers the southeast extension of the Repli Deep Sulphides, an area adjacent to the company’s existing Repli Prospecting Right at the Prieska Zinc-Copper Project.
  • Good infrastructure established at Prieska.
  • Highly prospective exploration targets at the Kantienpan, Marydale and Jacomynspan projects. Good potential of the fertile and under-explored Areachap Belt to host a variety of mineralisation styles, including VMS and intrusive related nickel-copper-PGE systems.
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Share Price Performance

DIRECTORS & MANAGEMENT

Denis Waddell – Chairman
Errol Smart -Managing Director & CEO
Alexander Haller – Non-Executive Director
Mark Palmer – Non-Executive Director
Michael Hulmes – Non-Executive Director

MAJOR SHAREHOLDERS

Tembo Capital – 18.56%
Independence Group NL – 11.09%
Tarney Holdings – 7.41%
Hargreave Hale Ltd – 6.00%
Silja Investment and Alexander Haller  – 4.92%
Board Management – 14.00%
Top 20 Shareholders –  47.98%

Projects Overview


PRIESKA Zn-Cu PROJECT

Total Mineral Resource of 29.4Mt containing 1,126,000 tonnes Zn @ 3.8% and 365,000 tonnes Cu @ 1.2% (based on drilling results available as at 31 Dec 2017) (refer ASX release 9 April 2018)

Drilling is ongoing, with the objective of achieving an upgrade in the classification of a substantial portion of the total Mineral Resource and to test the currently open extensions of the deposit

The total Mineral Resource is located on the Repli and recently obtained Vardocube Prospecting Rights

Mineral Resource remains open on dip and strike

DEVELOPMENT AND MINE PLANNING

Infrastructure

  • Primary shafts and underground decline roadways in place to access
    deepest remaining Mineral Resource
  • Sealed access roads to project site
  • 48km via bitumen road to existing rail siding
  • 175MW operational solar power plants in the area
    • additional 675MW have been approved, with further 300MW pending authorisation
    • 4 HV regional lines linked to the national electricity grid
  • 800km rail link to major, bulk commodity and deep water port at Saldanha Bay
  • Bulk water pipeline supplies site
    • sourced from Orange River with all year pumping capacity
  • Good contractors accommodation available in the private village of Copperton, ~3km from project site
    • existing disturbed/rehabilitated mine footprintRelatively low regional environmental sensitivity

Bankable Feasibility Study

  • BFS scheduled for completion in Q4 2018
    • DRA appointed as lead BFS consultant
    • ABS Africa appointed to manage EIA studies to comply with leading international standards and to support project finance
  • Key BFS technical project parameters include
    • Construction of 1.2mtpa throughput flotation plant to produce Zn and Cu concentrates
    • Confirm optimal sequence of open pit feed for consistency in ore presentation through oxide and high grade supergene zones
    • Confirm suitability of using drift-and-fill and longhole stoping for the mining of deep sulphide mineralisation to minimise dilution
    • Use of underground water for process & dust suppression
    • Dewatering underground while mining open pit
    • Closed, zero-discharge environmental strategy
  • Mining Right and EA applications submitted 6 April 2018

EXPLORATION IN A PROVEN MINERALISED DISTRICT

Namaqua – Disawell (Jacomynspan) Project – Nickel, Copper, Cobalt, PGE

  • Represents a rare threefold discovery and investment opportunity in the well-endowed Northern Cape Province of South Africa.
  • The Jacomynspan Ni-Cu-Co-PGE Deposit is under investigation for bulk mining (open-pit) potential
  • Project has excellent promise to significantly expand the current resources as much of the license area remains to be thoroughly explored as both a polymetallic Intrusive Nickel Sulphide terrane and a zinc-copper Volcanic Massive Sulphide (VMS) terrane.
  • The maiden JORC Mineral Resource for the Jacomynspan Deposit is for 6.8Mt containing 39,480 tonnes nickel, 22,800 tonnes copper, 1,800 tonnes cobalt at a 0.4% Ni cut-off with grades of 0.57% Ni, 0.33% Cu and 0.03% Co (refer ASX release 8 March 2018).

Masiqhame Project – Zinc & Copper

  • In April 2016, Orion entered into a binding option agreement to earn up to a 73% interest in Masiqhame Trading 855 Pty Ltd (Masiqhame), which holds a prospecting right covering an area of almost 980km2 located 80 kilometres north of the Prieska Zinc-Copper Project.
  • Orion targeted the large Masiqhame Prospecting Right after analysing regional data which points to the potential for three significant styles of mineralisation:
    1. Zinc-Copper VHMS-SEDEX mineralisation in the Areachap-Copperton Province;
    2. Nickel-Copper mineralisation hosted in mafic intrusions analogous to the Jacomynspan Deposit; and
    3. Pegmatite hosted mineralisation such as lithium, beryl and REEs in the Orange River pegmatite belt.

Contact Details

WEBSITE: orionminerals.com.au

EMAIL: info@orionminerals.com.au

PHONE: +61 3-8080-7170

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