Orion Minerals
Primary ticker: ASX:ORN, JSE:ORN
Stage of development: Exploration
Primary minerals: Copper, Zinc, Nickel, Cobalt, PGEs, Gold, Silver
Project to promote: Prieska Copper-Zinc Project, Okiep Copper Project, Jacomynspan Project
Project location: Northern Cape Province, South Africa
Website: www.orionminerals.com.au
Orion Minerals Ltd (ASX: ORN | JSE: ORN) is a diversified international base metal explorer and developer which is on track to become a substantial new-generation mining company in South Africa.
Orion is pursuing a fast-track production strategy based on open pit and underground mine developments at three emerging production hubs – the brownfields Prieska Copper Zinc Mine, the Okiep Copper Project and advancing the Jacomynspan Nickel-Copper-Cobalt-PGE sulphide project in the Northern Cape Province, South Africa
Underpinned by a strong ESG focus, a commitment to adopt renewable energy as part of its goal of achieving net-zero carbon emissions, and next-generation work practices, Orion is on track to become a significant producer of critical, future facing metals by the middle of this decade.
Cash: AUD$10M
Debt: AUD$2M
Major shareholders:
Tembo Capital – 15.82%
Delphi Group – 11.66%
Clover Alloys – 7.84%
Mr Tom Borman – 4.78%
Fiartree Capital – 6.09%
Management ownership – 1.71%
Financials
Management Profile
Errol Smart, Managing Director & CEO
Errol is a geologist, registered for JORC purposes, and has 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 LionGold Corporation and African Stellar Holdings. Errol’s senior executive roles have been on several boards of companies listed on the TSX, JSE and ASX and currently serves as a Director on the Board of the Mineral Council of South Africa.
What is your rationale for taking part 121 Mining Investment?
• To engage with institutional and retail investors, as well as broking firms and analysts,
to update them on Orion’s recent progress at the Prieska Copper Zinc Mine (PCZM) and
Okiep Copper Project. This includes the Company’s recent trial mining at PCZM,
progress on Early Production Assessment based on a phased development at the
PCZM and recent exploration success and confirmation drilling, including additional
drilling to test mineralisation at the Okiep Project.
• To engage with potential strategic partners, financiers and customers for the critical
mineral products to be produced at Prieska, Okiep and Jacomynspan.
• To raise the profile of Orion globally as a near-term base metals producer, with an
exciting growth trajectory as it closes-in on development decisions and financing for its
key South African base metal projects.
What recent news would you like to highlight to investors attending?
Prieska Copper Zinc Mine
• Development of key infrastructure to support mining operations at PCZM is progressing on schedule.
* Cuprum electrical sub-station completed for the supply of 15MVA to PCZM, with all electrical infrastructure installed. PCZM is now fully connected to the Eskom grid with an electricity supply agreement in place.
* Mine dewatering and forced evaporation mechanical and electrical infrastructure successfully installed, ready for dewatering to begin.
* Construction of the 13ha water storage dam / future TSF underway, due for completion December 2024 Quarter.
• Updated PCZM +105 Mineral Resource reported, increasing the Resource to 2.3Mt at 1.7% Cu and 1.6% Zn including an Indicated Resource of 1.9Mt at 1.82% Cu and 1.70% Zn. The update increases the total PCZM Mineral Resource to 31Mt grading 1.2% Cu and 3.6% Zn.
• Commencement of discussions with the Central Energy Corporation (CENEC) to investigate the potential inclusion of the Prieska Project as part of CENEC’s landmark Prieska Power Reserve Project, a mega-scale renewable energy and hydrogen hub currently being planned for the Prieska district.
Okiep Copper Project
• Drilling to test down-dip continuity of high-grade copper mineralisation at Flat Mine area in progress. First assay results of intercepts confirm continuation of copper mineralisation, further assays pending.
• Confirmation drill program completed at Flat Mines area of OCP, with results confirm high quality of large historical drilling database inherited from Newmont and Goldfields
• Drilling at Flat Mine East – standout intercept as one of the highest-grade intercepts reported in South Africa for the past 40 years. OFMED153: 49.35m at 5.05% Cu from 231.00m, which includes 21.66m at 9.41% Cu from 258.69m.
Jacomynspan
• High grade, near surface Ni-Cu-Co-PGE sulphide drill intersections confirm upward extension of sulphide mineralisation in JORC resource.
What are your key goals for the next 3, 6 and 12 months?
3 Months:
• Prieska – Complete installation/preparation works for infrastructure at mine as outlined in Early Production Assessment Works
• Okiep – Complete Bankable Feasibility Study and drilling campaigns
• Jacomynspan – Execute Mining Right and complete metallurgical test work program to investigate production of pre-cursor battery metal products
• Progress strategic funding and partnering discussions
6 Months:
• Secure overarching funding and development financing
• Final Investment Decision for both Prieska and Okiep
• Progress near-mine projects
12 Months:
• Commence mine development
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
• Completion of early mining feasibility for PCZM and OCP and subsequent project financing
o All workstreams well advanced
• Completion of all permitting and permissions for mining at Jacomynspan
o Orion’s engineering team advancing feasibility studies and permitting expeditiously
What do you think makes your company such a compelling investment?
• Advanced base metal projects with Mining Rights granted.
• Two fully permitted projects ready for mine development and then production.
• Training and development of local community members underway, in preparation for roles at mine site. Supporting local suppliers and host communities.
• Jacomynspan large tonnage Nickel sulphide deposit on granted mining right to be reviewed with innovative metallurgical processes under review.
What are the top 3 key investor takeaways?
1. Two fully permitted & development ready projects – Prieska Copper Zinc Mine & Okiep Copper Project, each with a BFS imminent.
2. Near term production projects, short pay-back periods
3. Upside of ground holdings surrounding main projects, potential to extend mine life