Wrap Text
June 2024 Quarterly Activities Report
Orion Minerals Limited
Incorporated in the Commonwealth of Australia
Australian Company Number 098 939 274
ASX share code: ORN
JSE share code: ORN
ISIN: AU000000ORN1
June 2024 Quarterly Activities Report
HIGHLIGHTS
- Feasibility Studies for both the Prieska Copper Zinc Mine (PCZM) and Okiep Copper Project (OCP) on track
for completion in the September 2024 Quarter.
- Trial mining of the Supergene orebody at PCZM successfully completed with significantly improved
development rates achieved. Trial mining has provided key inputs into the updated Bankable Feasibility
Study for PCZM.
- Upgrade of the Cuprum electrical sub-station completed for the supply of 15MVA to PCZM, providing
sufficient power for dewatering and early mining operations to run simultaneously.
- Key underground portions of the PCZM mine dewatering mechanical and electrical infrastructure
successfully installed in June, with the dewatering rate from the pump station at the 178m Level achieving
in excess of the required 500m3/hour.
- All blasting required to construct the lined 13ha water storage dam/future TSF at PCZM completed with
installation of key infrastructure to the water storage dam well advanced. This will allow forced evaporation
and dewatering of the underground to commence in the September 2024 Quarter.
- Water Supply & Management Agreement signed with Armscor, allowing PCZM to take over the complete
maintenance and operation of the Armscor water pipeline delivering water from the Prieska water works
to the mine.
- Outstanding initial results received from confirmatory diamond drilling, currently underway at the Okiep
Copper Project (OCP), executed to support the Feasibility Study:
• 49.35m at 5.05% Cu including 21.66m at 9.41% Cu (Flat Mine East, drill-hole OFMED153);
• 9.27m at 3.01% Cu and 15.00m at 4.80% Cu within 78.00m at 1.57% Cu (Flat Mine East, drill-hole
OFMED154, located 50m along strike from OFMED153; and
• 20.50m at 4.99% Cu within 43.00m at 3.41% Cu (Flat Mine South drill-hole OFMSD077).
- The drilling has confirmed the interpretations that support the current Mineral Resource models while also
demonstrating the potential for high-grade copper mineralisation.
- All conditions satisfied for Orion to progress with the first closing of the acquisition of the Okiep Copper
Project.
- A$7.7 million (~ZAR92.3 million) capital raising completed in July 2024, with funds raised to be used
principally to progress the development of the Prieska Copper Zinc Mine and permitting and acceleration
of infrastructure development for early production in respect of the Okiep Copper Project and ongoing
exploration drilling at Okiep.
- Share Purchase Plan offered to provide eligible shareholders with the opportunity to subscribe for new
Shares in Orion at the same offer price as the Shares issued under the capital raising.
EXECUTIVE SUMMARY
OVERVIEW
Orion Minerals Ltd (ASX/JSE: ORN) is a diversified international base metals company which is developing
three complementary base metal production hubs in South Africa's Northern Cape Province, a richly
endowed mineral province and well-established mining jurisdiction.
Orion is well advanced in its transition to developer and operating mining company, focused on the
production of metals that are critical to the global clean energy transition and which have strong market
fundamentals due to declining supply and grade profiles at major mines and a lack of investment in the
development of new mines.
The Company is targeting first production from its key development projects in 2026 with the aspirational
goal of ramping up copper production to more than 50ktpa by the end of the decade.
QUARTERLY SUMMARY
During the June 2024 Quarter, Orion continued to fast-track the development of its flagship project, the
Prieska Copper Zinc Mine (PCZM) in South Africa's Northern Cape Province, paving the way for an
updated Bankable Feasibility Study due in the September 2024 Quarter. The PCZM is a substantial
brownfields development asset, underpinned by JORC (2012) Mineral Resource of 31Mt grading 1.2% Cu
and 3.6% Zn, containing 370kt copper and 1.1Mt zinc including the near-surface high grade +105 Block
with 2.3Mt at 1.7% Cu and 1.6% Zn, containing 38,000t of copper and 35,000t of zinc in oxide and sulphide
mineralisation (refer ASX/JSE release 25 July 2023).
The +105m Block has been identified as an attractive early mining opportunity focused on the high-grade
sulphide mineralisation of 1.3Mt qt a grade of 2.4% Cu and 2.1% Zn for 30,000t contained copper and
27,000t of contained zinc (refer ASX/JSE release 25 July 2023) that can be accessed from existing
underground development.
During the Quarter, a successful mine establishment and trial mining program was completed at PCZM.
The trial mining completed primary ramp and haulage development and accessed ore over a 270m
strike of the +105 level block and exposed ore up to 77m level providing key data to underpin the BFS
now nearing completion. The Cuprum electrical sub-station for the supply of 15MVA grid power to the
mine was commissioned and will provide sufficient power for dewatering and early mining operations.
At the Okiep Copper Project (OCP), exceptional initial assay results were reported from an 11-hole
confirmation diamond drilling program at the Flat Mines Area, including an intersection of 49.35m at 5.05%
Cu at Flat Mine East which represents the highest-grade drill intercept ever reported at Flat Mines (refer
ASX/JSE release 22 April 2023). OCP is a highly strategic asset, located within a prolific copper-producing
district that historically produced over two million tonnes of contained metal.
The latest results have added further momentum to Orion's development strategy for OCP and confirm
the geology and endowment of the Flat Mines Area. The drill results amplify the potential for the Flat Mines
orebodies to replicate the typical nature of Okiep copper intrusive mineralisation, where zones of very
high-grade mineralisation are commonly contained within large bodies of moderate grade.
The Bankable Feasibility Study for the OCP to progress to underpin project finance and mine development
on Orion's brownfields redevelopment sites, is on track for completion in the September 2024 Quarter, in
parallel with ongoing drilling and exploration work.
Subsequent to Quarter-end, Orion completed a capital raising of ~A$7.7 million (~ZAR92.3 million), by way
of Share placement of approximately 513 million Shares, with funds raised to be used principally to
progress the development of PCZM, as well as permitting and accelerating infrastructure development
for early production and ongoing exploration drilling at OCP.
HEALTH AND SAFETY, ENVIRONMENTAL, SOCIAL AND GOVERNANCE
Health and Safety
No injuries were recorded during the Quarter. The hours worked for the Quarter and the 2024 financial
year are shown in the table below:
Table 1: Hours worked at the Group's Areachap and Okiep Copper Projects (South Africa).
Hours Worked
Category of Work
Quarter FY2024 Total
Exploration 21,456 41,085
Surface 18,394 57,928
Underground 63,067 133,308
Contractors 68,112 132,159
Total 171,029 364,480
The Lost-Time Injury Frequency Rate (LTIFR) per 200,000 hours worked is 0.0 for the June Quarter.
At the end of the Quarter, the team celebrated 1,773 days without a Lost-Time Injury (LTI).
Community and Stakeholder Engagement
PCZM prioritises local community employment and procurement
PCZM has maintained community representation within its workforce in line with the 50% target. At the
end of the Quarter, 103 community members were employed at PCZM, out of a total on-site complement
of 206. Local employees from the communities of Prieska, Marydale, and Niekerkshoop continue to fill
various roles at the operation.
During the Quarter, 20.6% of PCZM's goods and services and subcontracting opportunities were awarded
to local suppliers who were either based in the community, employed community labour, or were based
in the Northern Cape. This is higher than the 18.5% achieved in the prior Quarter. Of these contracts, 69%
were awarded to businesses that are either based in, or employ labour from, the host communities of
Siyathemba and Vanwyksvlei, and 31% to businesses located elsewhere in the Northern Cape. Orion
continues to identify competent local enterprises to further increase host community spend.
These figures reflect the ongoing efforts to achieve the aspirational targets set for host community
employment and procurement at PCZM including 50% of host community employment, 30% of host
community procurement and 40% of subcontracting opportunities. Orion remains committed to meeting
these aspirational targets and aims to replicate this model at the Okiep Copper Project in the Nama- Khoi
municipal area.
Community Training and Development
Orion launched a new training registration process during the Quarter, where members of the community
were invited to register their interest in participating in Orion's mine specific training and development
opportunities. The registration was made available on the Company website and captures the field of
interest, type of development required and current level of education.
The process will evaluate each application to funnel it into the correct pipeline for potential development
opportunities. Future training and development programs will be guided by the registrations received
together with the existing pool of individuals who have previously participated in the Introduction to
Mining Course and undergone occupational assessments.
Ten community members from Siyathemba and Vanwyksvlei completed their six-month learnership
program at the Murray & Roberts Training Centre in Carletonville during the Quarter. The learnership
opportunity was offered to entry-level mining community members. Orion remains committed to the
training, development and upskilling of host community members.
Photo 1: Mining Qualifications Authority Learnership graduates.
PCZM initiates stakeholder consultations on new Social and Labour Plan (SLP)
In accordance with the Mineral and Petroleum Resources Development Act (MPRDA), a mine's Social
and Labour Plan (SLP) must be renewed every five years. The current cycle SLP for PCZM ends in
December 2024 and development of a new SLP for the next five-year cycle has been initiated for
submission to the Department of Mineral and Petroleum Resources during the next Quarter.
Consultations with the Siyathemba Local Municipality and the Orion Siyathemba Stakeholder
Engagement Forum were held during the Quarter and were followed by a series of public meetings in all
of the host community towns during July 2024.
Environmental Management
Making positive contributions to the state of the natural environment, reducing pollution, and ensuring
negligible contamination from operational activities are central to Orion's business model and part of the
Company's commitment to delivering the highest level of environmental compliance while managing
and monitoring the environmental impacts of our activities throughout the exploration and mining
lifecycle.
There were no environmental incidents recorded during the Quarter.
ORION MINERALS' OPERATIONS
PRIESKA COPPER ZINC MINE (PCZM) DEVELOPMENT AND EXPLORATION
Critical Focus Items
During the June 2024 Quarter, the focus was on completion of mine site establishment, execution of trial
mining, installation of dewatering infrastructure, offices and workshops, site roadways and power supply
at PCZM with significant progress made, including:
• Trial mining of the +105m Level Supergene orebody was completed. Reef drive dimensions remained
4.5m x 4.5m and total development along strike in the northerly and southerly directions were 143.5m
and 127.2m respectively;
• The installation of surface and underground electrical infrastructure was completed up to the Cuprum
substation. The installation of a 4km 11kVA overhead powerline to the dewatering storage dam,
evaporation and water treatment site and TSF is 80% complete;
• The construction and commissioning of the 15MVA Eskom grid connection sub-station expansion was
completed in June 2024;
• Installation of the mine dewatering pumps, and piping infrastructure was completed and dewatering
pumping rates of nearly 600m3/hr were measured in the first week of June 2024;
• Bulk diesel storage of 90 000 litres was installed and commissioned;
• Site offices, workshops, roadways, laboratory, sampling crusher and ablutions suitable for the early
mining program were completed and are in use;
• The diversion road to the Alkantpan weapons testing site was constructed and commissioned
diverting all non-mine traffic past the mine site; and
• A team of up to 200 people were recruited and locally housed with transport between mine site and
the town of Prieska, provided by a local shuttle bus service. This demonstrated important principles of
human resource management and local housing with significant capital and operation cost
implications.
Feasibility Study Report
Orion completed an Updated Bankable Feasibility Study for the PCZM development in May 2020 (BFS-
20), based on a 12-year "Foundation Phase" 2.4Mtpa underground and open pit mining operation,
delivering total payable metal production of 226kt of copper and 680kt of zinc in differentiated
concentrates. Importantly the BFS20 modelled first production from the 33rd month.
The Company is currently finalising an optimised and updated Bankable Feasibility Study for PCZM that
considers an accelerated development strategy from high-grade near-surface JORC Resources that
have been accessed and prepared for production during the 2024 Trial Mining Program while preparing
the deeps ore for extraction at 200ktpm from the fifth year of operation.
The current optimised study has focused on the aspirational objective of the addition of early production
from as early as the 12th month, which is expected to reduce the peak external funding requirements and
improve the project's financial returns.
Orion plans to use underground mining with conventional froth-flotation concentration to produce
differentiated copper and zinc concentrates for the export market. The updated BFS is expected to be
completed during Q3 CY2024.
Dewatering
The underground water depth is currently at approximately 267m below the surface, with primary
dewatering to commence once the 13ha water storage dam construction and lining is complete in Q3
CY2024.
Installation of the dewatering electrical and mechanical infrastructure began in January 2024 on the
178m Level.
The installed underground dewatering electrical and mechanical equipment was commissioned in the
first week of June 2024 and the discharge flowrate was measured at 582m3/hr. The mine dewatering is
scheduled to take 36months at an average rate of 500m3/hr.
Photo 2: Dewatering into Intermediate Surface Dams.
Power Reticulation
The engineering design of the 15MVA electricity supply point of the Cuprum sub-station upgrade was
approved by Eskom in October 2023. The sub-station upgrade work was contracted to an Eskom
approved engineering company and commenced in April 2024 with Eskom commissioning and
handover taking place in June 2024.
All the surface and underground electrical reticulation installation has been completed at the mine site
and up to the feed point of the overhead powerline to the 13ha water treatment site, storage dam and
future TSF located 4km south of the mine site.
Water Storage Dam
The optimal location of the dewatering brine water storage facility within the footprint of the approved
65ha tailings storage facility (TSF) was determined following a geotechnical drilling program that assessed
the hardpan calcrete depth and its suitability, once drilled and blasted, as embankment construction
material.
The appointed TSF engineering design consultants completed the design of the 13ha water storage dam
positioned it in the eastern corner of the 65ha approved TSF footprint. The design minimises the
embankment civil construction earthworks required by following the natural ground contours.
Figure 1: 13ha Water Storage Dam on 65ha TSF footprint.
The design also calls for a trench linking this lowest point with the exploratory borrow pit for future inclusion
in the final TSF drainage system. The dam will have a single 2mm liner. The design will allow for a seamless
transition into use as a TSF minimising additional capital costs. The footprint has been optimised for the
planned dewatering rates and will make use of evaporators to concentrate the salts in storage.
A surface hardpan calcrete layer up to 2.5m thick at the approved 65ha TSF site requires drilling and
blasting before it can be excavated for use as wall construction material. By optimising the excavation
and civil construction methods and optimising the design for modular expansion to eventually cover the
entire 65ha approved site the upfront capital costs for inclusion in the current BFS are significantly
reduced.
Photo 3: First Blast at 13ha Brine Water Storage Dam / TSF.
The blasting of the 13ha water storage dam was completed in June 2024 and construction of the
embankment walls has commenced. Construction and lining of the dam is scheduled for completion in
Q3 CY2024.
Mineral Resource Evaluation
The review of the interpretation and modelling of the PCZM orebody is ongoing to incorporate the data
from trial mining with expected completion by end-July 2024. Sampling results continue to show good
correlation with the Supergene resource model.
Geology
The +105m Level geological sampling focused on the 99m Level north and south ore drives and
associated exploration raises. Blasted material from each face is trucked to the crusher and sub sampling
plant before sample pulverisation and preparation and Assay via XRF in the mine assay facility. Selected
duplicate sample pulps have been dispatched to accredited laboratories for ICP analysis and verification
of XRF results.
Channel sampling of development provides a second reference for development grade, with samples
also analysed in the same manner as samples of blasted ore. On surface, underground material from
both the +105m Level supergene sulphide development (23,300t) as well as the 143m Level draw point
material (1,500t) is stockpiled according to metallurgical classification.
Photo 4: +105m Level supergene sulphide stockpiles sampling material on surface.
Trial Mining
Trial mining of the supergene sulphide zone of the +105m Resource Block successfully concluded at the
end of June 2024 and the mining contractor, demobilised from site.
Drilling and blasting of the development cross-cut ramp started in late November 2023 and advanced a
total of 82m (4.5m wide x 4.5m high) to reach the supergene sulphide zone on -99m level in late January
2024.
The rock conditions along the 99m level supergene sulphide ore drive have proven to meet the most
optimistic expectations with very competent geotechnical conditions demonstrated. The original
conservative drive dimensions of 3.0m high and 3.0m wide were increased to 4.5m x 4.5m while keeping
the same roof support regimen that was used during the waste development drive.
A total of 369m of development within mineralisation has been developed along the 99m Level and raises
off the -99m reaching -77m during trial mining. The mineralised package was tested along 240m of strike
with a combination of reef drives, crosscuts short cubbies and raises.
The trial mining included two 2.0m x 2.0m exploration raises to determine the rock conditions in the up-
dip area close to the top of the supergene sulphide zone. The north raise confirmed that geotechnical
quality of the ore zone decreases vertically and around the -84m elevation ground support requirements
will include end anchors, and 120mm shotcrete.
The revised mining plan is being developed to align with the future early mining requirements, with
considerations regarding ventilation, mining method, machine access and access to services. Early
mining is planned to be 4m x 4m drift and fill for the complete strike of supergene crown pillar to minimise
dilution and maximise ore recovery while closely following the orebody. Wide ore sections up to 12m in
width will require multiple drift cuts.
Figure 2: +105m Level Supergene Drift & Fill.
Initial trial mining development rates were hampered by poor drill rig availability as well as grid power
loadshedding by the state utility, Eskom. This situation improved substantially over the last Quarter with
104m and 109m horizontal development achieved for the last two months respectively.
Photo 5: ITC120 Ore Pass Loading.
Photo 6: 99m Level Face Drilling.
Trial mining has tested the conventional load-haul-dump arrangement as well as an alternative
underground mining method using continuous loaders matched with bi-directional trucks loaded at the
120m Level waste and ore passes. The learnings and efficiency improvements will feed into the revised
mining BFS for the drift and fill mining machine selection, ore-pass loading and drive sizes.
Trial Mine Learnings
Trial mining was executed to gather information for incorporation into the 2024 revised BFS and proved
the following:
• Geotechnical condition of the supergene sulphide section of the crown pillar;
• Crown pillar mining method;
• Competency of site-based mining team;
• Workforce transport and accommodation;
• Single drill development rates in excess of 100m per month;
• Mining operations consumable supply chain and logistics;
• Mining services like air, water and power;
• ITC120 loader improved cycle times;
• Operational systems and management; and
• Regulatory compliance during mining operations.
Metallurgical Process Re-evaluation and Early Concentrator Plant Design
PCZM Supergene Ore Test Work
The supergene sulphide test work is being completed at Maelgwyn Mineral Services Africa (Maelgwyn)
and Brisbane Metallurgical Laboratory (BML). The primary aim is to develop a robust flowsheet for
producing saleable copper and zinc concentrates from supergene sulphide resources at PCZM.
The test work tested challenges in supergene sulphide material for separating copper minerals from
sphalerite into separate copper and zinc concentrates. The existence of secondary copper minerals in
the supergene sulphide, adds complexity to the process.
Enquiries with potential off takers have confirmed the ability to market a bulk Cu-Zn sulphide concentrate,
with potential savings in plant capital and OPEX costs offsetting lower payabilities for the mixed metal
concentrate.
Discussions with potential concentrate off-take parties continue in parallel to plant optimisation to
produce an optimum value product.
Human Resources
As PCZM moves through trial mining and towards continuous operations, a complete site-based, skilled
operating team has recruited. Importantly, this confirmed the ability to recruit an entirely site resident
team who can be housed in the local town and transported to site and home again using local transport
providers.
This demonstration for a team of nearly 200 people has important implications for capital and operating
cost considerations in the BFS, with the removal of need to first construct a dedicated mine village with
all amenities and services before developing the mine.
OKIEP COPPER PROJECT (OCP) DEVELOPMENT AND EXPLORATION
Progress with the acquisition of the Okiep Copper Project and mine permitting
Orion progressed with the acquisition agreements for the Okiep Copper Project to allow closing in several
stages as and when the outstanding conditions precedent are met (refer ASX/JSE releases 17 April 2024
and 6 May 2024). The acquisition totals an aggregate purchase consideration of approximately ZAR59.60
million (~A$4.88 million) payable by Orion, comprising a combination of cash and Orion Shares, with the
first phase settlement being ZAR10.86 million (~A$0.89 million) cash and ZAR35.10 million (~A$2.88 million)
in Orion Shares.
The initial consideration includes the important SAFTA Mining Right which was transferred to the ownership
of New Okiep Mining Company (Pty) Ltd (NOM) in December 2023. Orion can proceed to the completion
of the acquisition of a controlling interest in OCP.
The Industrial Development Corporation of South Africa Ltd (IDC) approved ZAR43.75 million (~A$3.6
million) of additional funding to fund its proportional share of ongoing BFS studies including drilling,
geotechnical test work and metallurgical evaluation.
The Company is awaiting the approval of the water use licence before the project is fully permitted and
mine development can commence.
The Feasibility Study is on track for completion in the September 2024 Quarter.
Feasibility Study Report
Work on the review and updating of the Feasibility Study for the Flat Mines Project continued throughout
the June 2024 Quarter. Critical to the finalisation of the study is the completion of the confirmation drilling
program which commenced in February 2024. This drilling program is designed to validate earlier
exploration drilling by Goldfields and Newmont who were the previous owners of the Flat Mines Deposits,
as well as providing drill-core for geotechnical studies and metallurgical test work on larger sample masses
from all the Flat Mines Deposits than were previously available.
While the l BFS currently underway focusses on immediately available JORC-compliant Mineral Resources
from Flat Mines North (FMN), Flat Mines East (FME) and Flat Mines South (FMS), the aspirational target is to
restore the Okiep properties to their historical production levels of 20,000 - 50,000 tonnes of copper
production per annum. The potential for achieving this aspiration is underscored by ongoing drilling
results.
Flat Mines Confirmatory Drilling Program
During the Quarter, Orion reported outstanding high-grade assay results from confirmation diamond
drilling at the OCP's Flat Mines Area. The holes have been specifically designed to best cover the areas
that contribute most significantly to confirming the overall estimated Indicated Mineral Resource.
The initial diamond drilling program commenced in the Flat Mines area of OCP in February 2024,
comprising five holes at FME, four holes at FMS and two holes at FMN. All holes include a deflection (or
wedge) drilled through the mineralisation to provide additional material for confirmatory metallurgical
test work.
Results from diamond drilling at FME during this Quarter included 49.35m at 5.05% Cu including 21.66m at
9.41% Cu in OFMED153 and 9.27m at 3.01% Cu and 15.00m at 4.80% Cu within 78.00m at 1.57% Cu in
OFMED154 (refer ASX/JSE releases 22 April and 24 June 2024).
Diamond drill hole OFMSD077, completed at FMS, intersected 20.50m at 4.99% Cu within 43.00m at 3.41%
Cu with mineralisation open down-dip (refer ASX/JSE release 9 July 2024).
A second confirmation diamond drilling program commenced during June 2024, with six holes planned
at Flat Mines Nababeep (FMNab) to test shallow mineralisation that may be accessed by FMS primary
access (Figure 3).
The geological and mineralisation envelope interpretations will be reviewed and adjusted where
necessary once the drilling program has been completed, and an addendum to the Mineral Resource
estimate will be included describing the new information, however material changes to the Mineral
Resource are not expected. New geotechnical information will be used for input to mine design.
Planned confirmatory metallurgical test work includes comminution, flotation optimisation, locked cycle
tests, tailings characterisation and XRF sorting.
Figure 3: Plan showing historical and Orion drill holes, mineralisation envelope interpretations and extent of the
Mining Right.
Figure 4: Plan view of FME, with sectional view inset, showing historical and Orion drill holes and mineralisation
envelope interpretations.
Assay results
Drilling assay results received during the Quarter were reported in the Company's ASX/JSE
announcements dated 22 April, 24 June and 9 July 2024, which included a number of exceptional
intersections in terms of copper grades and widths. The intersections recorded confirm the validity of the
historical drilling results and the geological and mineralised envelope intersections. Results received for
FME and FMS are summarised in Table 2 below, with further results from drilling at FMN, FMS and FMNab
pending.
Table 2: Summary table of drill results to date for FME and FMS prospects (a minimum cut-off of 0.7% Cu with
maximum 3m internal waste allowed). Intersections and inclusions with grades mostly above 1% Cu are tabulated.
The data was not capped. Note: widths are drill widths.
Mineralisation
Area Hole ID
Notes From (m) To (m) Interval (m) % Cu
260.00 285.22 25.22 0.97
Flat Mines East OFMED151
Including 275.00 285.22 10.22 1.35
194.00 202.00 8.00 1.59
OFMED152
215.00 238.00 23.00 1.45
231.00 280.35 49.35 5.05
Including 231.00 250.00 19.00 2.14
Including 253.84 256.25 2.41 1.82
OFMED153
Including 258.69 280.35 21.66 9.41
Including 258.69 266.78 8.09 8.18
Including 269.77 280.35 10.58 12.99
185.00 194.27 9.27 3.01
OFMED154
248.00 263.00 15.00 4.80
OFMED155 214.00 235.00 21.00 1.12
Mineralisation
Area Hole ID
Notes From (m) To (m) Interval (m) % Cu
246.00 264.00 18.00 1.44
430.00 439.00 9.00 0.70
Flat Mines South OFMSD076 446.00 448.00 2.00 1.19
454.00 460.00 6.00 0.90
527.00 570.00 43.00 3.41
OFMSD077
Including 549.50 570.00 20.50 4.99
Significant widths of waste granitic material are included within the reported intersection widths, providing
opportunities for upgrading of material through modern XRF ore sorting techniques to reject internal waste
before milling. As part of the ore sorting test work, a RADOS "XRF core tray analyser" was brought to site
to scan all available drill core, and the XRF scanning measurements were compared to assays returned
for the core.
The RADOS™ scans show a very promising ability for the scanner to accurately recognise waste xenoliths
within high-or low-grade mineralised intrusives. This is anticipated to facilitate the ability to sort and reject
the waste that would be included in bulk mining methods, allowing for optimum ore extraction at
reduced cost. Sorting of blasted and crushed ore to produce a pre-concentrate, before milling and
flotation will have significant benefits in the reduction of capital and operating costs of the milling and
concentrator plants.
Additional benefits in the form of reduced energy, water, reagent consumptions and reduced tailings
storage requirements all combine to minimise the environmental impact of copper production.
Geotechnical logging on oriented core has been completed for all holes. Samples from the deflections
have been submitted to engineering laboratories for test work, which will include point load strength tests
and triaxial compressive strength tests. This data will be used for 3-D modelling to inform the stoping
layouts and mine design parameters from a rock strength perspective.
Flat Mines Exploration and Resource Upgrade Drilling Program
With the completion of the major portion of the planned 6,300m drill program, two of the five drill rigs
have been demobilised, with three rigs retained on site to test exploration targets and confirm additional
resources. At FMS, historical Goldfields holes and Orion drill hole OFMSD077 indicate high grade
mineralisation open downdip for up to 200m within an untested area of strike length of 300m (Figure 5).
Historical intersections open downdip (Figure 5) include the following:
• 38.98m (25m TW) at 2.16% Cu including 24.45m (16m TW) at 3.06% Cu in FMS053D1;
• 18.74m (10m TW) at 4.29% Cu including 15.74m (8m TW) at 4.86% Cu in FMS048; and
• 70.96m (34m TW) at 1.21% Cu including 10.24m (5m TW) at 2.81% Cu in FMS047.
Hole, OFMSD080, is currently in progress targeting this area, with further holes planned pending
interpretation and assay results.
Figure 5: Long Section of FMS downdip drilling target.
Confirmatory drilling is underway at Flat Mine (Nababeep) where an Inferred Mineral Resource of 1Mt at
1.4% Cu was previously reported (refer ASX/JSE release 29 March 2021). Original drilling over the main
zone of mineralisation was carried out by the Cape Copper Company in the 1940's with 141Kt at 2.72%
Cu being subsequently mined in two stopes in the 1950's. Six holes totalling approximately 530m are
initially planned to test and confirm the mineralisation (Figure 6).
Figure 6: 3D view of FM (Nababeep) mineralisation envelopes, historical mine workings, historical drilling and
planned drilling.
Water Use Licence Application
The Water Use Licence (WUL) required for the Project was submitted to the Department of Water and
Sanitation (DWS) in September 2023. Regular follow-up contact is made with the appointed case officer
to track the progress of the application. To date, while the WUL has not yet been granted, feedback from
the authorities indicates that the application has progressed to final approval.
Metallurgical test work
Following the completion of the on-site XRF scanning of the drill core from all the Flat Mines Deposits, core
representative of the ore zones was dispatched to RADOS Works in Gauteng for pilot scale processing.
This test work is currently in progress. The objective of this work is to simulate the actual sorting of ore by
sorting the core samples representing the entire ore-zones into an ore sorter concentrate and a sorter
discard. The results from the work will indicate the realistic outcome achievable from ore sorting in terms
of upgrade ratio and copper metal recovery to the concentrate.
Following successful completion of this work, the concentrate produced by the ore sorter will be
transferred for further milling and flotation test work to confirm the effectiveness of the entire Process Flow
Design. In the interim, whole-ore samples are currently undergoing milling and flotation test work to
provide the base case performance with which to compare the efficacy of the ore sorting option.
Following completion of the current test work, the operating cost and capital cost estimate will be
updated.
Preliminary results from the metallurgical test work are expected towards the end of July 2024, with final
results expected by the end of August 2024 with operating cost and capital cost estimate updated for
the BFS.
Mine Planning
Intersections from Orion drilling at FME show a broad correlation with historical Goldfields drilling (refer
ASX/JSE releases on 22 April, 24 June and 9 July 2024) indicating no significant deviation to the existing
interpretation. The remainder of the drill assay results from the FMN and FMS drilling are required before a
final assessment can be made for these prospects. Results from the rock strength tests are required before
the existing stope layouts can be confirmed by the Geotechnical Engineer. These results are expected
by the end of July 2024.
The mine planning undertaken during the Quarter has included a review of the mining fleet, blasting
designs and ventilation simulations to optimise the development layouts and mining costs.
Infrastructure
Work on the surface infrastructure is limited to updating the construction costs of offices, roads, power
and water supply. Regular discussions are held with the local Municipality regarding the provision of a
power connection for construction, and the off-take of process water from the Municipal Waste Water
Works (WWW). The mine has offered oversight assistance in the process of refurbishing the WWW by
contractors.
Land Access and Permitting
The Mining Right (MR) over the Flat Mines area was executed in December 2022, Land access to the Flat
Mines operational area is currently secure. The SPLUMA land rezoning application remains in process, and
indications from the Local Municipal Manager are that this process is nearing completion.
JACOMYNSPAN Ni-Cu-Co-PGE PROJECT (JMP)
The JMP Nickel-Copper-PGE Project is Orion's third strategic future metals project alongside PCZM and
OCP with potential to be a significant metals producer.
Orion sees compelling potential for large-scale, near-surface bulk mining operation at Jacomynspan,
with drilling confirming the presence of shallow sulphide nickel-copper-cobalt-PGE mineralisation within
the ultramafic structure, commencing at a depth of around 85m vertically below the surface.
Planning continued for a trial mining exercise to generate a sufficient scale representative bulk sample
of Jacomynspan ore to evaluate innovative metallurgical refining/battery pre-cursor production on a
pilot scale.
JMP has a JORC-defined 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 (refer ASX/JSE release 8 March 2018). The current Mineral Resource extends over
less than 1km of strike of a series of outcropping intrusives where wide-spaced scout drilling by Anglovaal,
Newmont, African Nickel (ANL) and Orion have revealed a combined 7km strike of identical mineralised
outcropping or shallow sub-cropping ultramafic intrusive bodies.
Figure 7: JMP and PCZM location map.
Metals Vapour Refining Project
Orion continues to evaluate the potential for application of Chloro and Carbonyl metal vapour refining
to produce premium value chemical and electronic quality metal products.
Several technology development groups have been identified to work alongside the team involved in
the project to date with the objective of accelerating the development pathway.
Areachap Exploration
The Areachap Project is located in an under-explored belt of the same name, covering an area
exceeding 175,000ha with multiple copper-zinc and nickel-copper-cobalt-PGE-gold intrusive targets
within Orion's tenements. Multiple VMS-style copper-zinc and nickel-copper-cobalt-PGE-gold in
ultramafic intrusive targets are known within the tenements, including numerous unevaluated targets.
Chief among these are:
• The Kantienpan zinc-copper VMS project - Identified a substantial mineralised deposit through
drill-testing and will progress this project to pre-feasibility level;
• The Witkop copper-gold project - Completed a preliminary assessment and is in discussions to
develop the Project;
• The Boksputs copper-zinc VMS project- Additional follow-up exploration needed following
geophysical investigation and preliminary drill-testing; and
• Orange River pegmatite swarm - Additional lithium, beryllium and Rare Earth Element (REE)
mineralisation potential is being investigated in this area, which traverses the Orion tenements.
Exploration activities in the Quarter included geological mapping and sampling on two of the licences,
processing of existing geophysical survey results and design of detailed follow-up geophysical survey
programs.
Australian Projects
Fraser Range – Nickel-Copper Projects (Western Australia)
The Fraser Range Project is a belt-scale project, highly prospective for high-value magmatic nickel-
copper-cobalt sulphide discoveries. The project is a venture with ASX-listed IGO Limited, who is the
dominant landholder in the Fraser Range and owns the Nova Operation, which is mining and processing
the Nova-Bollinger nickel-copper-cobalt sulphide deposit discovered in 2015.
Orion maintains a sizeable tenement package in the Fraser Range under a joint venture with IGO. In terms
of the joint venture, IGO is responsible for the exploration of all the tenements while Orion is free carried
by IGO through to the first Pre-Feasibility Study. This allows Orion to maintain exposure to ongoing
exploration and development of the project, without any ongoing financial commitment.
During the Quarter, IGO did not undertake any field work activity on the joint venture ground. Work
planned for next Quarter includes rehabilitation of tracks and assessment of the area following flooding
in the June Quarter.
Walhalla – Gold and Polymetals Project (Victoria)
While the Walhalla-Woods Point District is best known for gold mining, high-grade copper-nickel and PGE
mineralisation also occurs within the belt. Both the gold and copper-nickel-PGE mineralisation within this
district are hosted within dykes from the Woods Point Dyke Swarm, a series of ultramafic to felsic dykes
occurring over a 75km long north-south belt.
No field or exploration work was carried out on the Walhalla Project during the Quarter.
Corporate
Cash and Finance
Cash on hand at the end of the Quarter was A$8.27 million. Payments made to related parties and their
associates during the Quarter was A$161,000 for director fees and consulting fees, as listed in Section 6 of
the Company's Quarterly Cash Flow Report (Appendix 5B).
PCZM Project Funding
Drawdown of the IDC Convertible Loan is in tranches and is pro rata matched by the drawdown requests
that Orion makes under the Triple Flag Funding Arrangement. In May 2024, Orion received ~A$8.61 million
in cash from the third drawdown of the IDC Convertible Loan Facility and the Triple Flag early Funding
Arrangement. At the end of the Quarter ~A$1.60 million remains available for drawdown from the funding
facilities.
A summary of the material terms of the IDC Convertible Loan definitive agreement was provided in
Appendix 1 of the Company's 8 February 2023 ASX/JSE release and a summary of the material terms of
the Triple Flag definitive agreements was provided in Appendix 1 of the 13 December 2022 ASX/JSE
release.
Okiep Copper Project – Settlement of Phase One Shares
With all conditions satisfied, the Company proceeded with the first closing of the acquisition of the Okiep
Copper Project (refer ASX/JSE releases 17 April 2024 and 6 May 2024). The first phase of the settlement in
acquiring a controlling interest in the Okiep Copper Project was the payment of consideration totalling
ZAR46 million (~A$3.8 million), being ZAR11 million payable in cash and ZAR35 million settled by way of
Orion issuing fully paid ordinary shares (Shares).
On 7 May 2024, the Company issued the selling shareholders 206.57 million Shares in Orion at an issue
price of A$1.4 cents per Share (ZAR17.6 cents).
The Company anticipates completion of phases two and three of the closing agreement, which are each
subject to the granting of the relevant Mineral Rights and, if applicable, approval from the Minister of the
Department of Mineral Resources and Energy (or his lawful delegate) in terms of the South African Mineral
and Petroleum Resources Development Act, 2002 for the transfer of the relevant Mineral Rights from each
Target Entity to the relevant Purchaser (S11 Approval), in the coming months.
Capital Raising
On 1 July 2024, the Company announced a A$7.7 million (~ZAR92.3 million) capital raising, conducted
via a placement to sophisticated and professional investors, pursuant to Section 708A of the Corporations
Act 2001 (Placement). The Placement, which was completed on 18 July 2024, comprised the issue of
approximately 513 million Shares at an issue price of A$1.5 cents (being ZAR18 cents) per Share.
Share Purchase Plan
In addition to the Placement announced on 1 July 2024, Orion also announced a Share Purchase Plan
(SPP), providing shareholders an opportunity to increase their shareholding in the Company at the same
offer price as the Shares issued under the Placement.
Under the SPP, Eligible Shareholders can subscribe for new Shares in parcels starting from A$165 (or
ZAR2,000) up to a maximum of A$30,000 (or ZAR365,000) at an issue price of A$1.5 cents per Share (ZAR18
cents) to raise up to A$5 million (or ~ZAR60 million).
The SPP opened on 5 July 2024 and closes on 23 July 2024.
The funds raised from the Placement and SPP will be used principally to progress the development of the
PCZM and permitting and acceleration of infrastructure development for early production in respect of
the OCP and ongoing exploration drilling at Okiep.
Shares in Lieu of Non-Executive Director Fees
To preserve the Company's cash reserves, certain Company Non-Executive Directors have elected,
subject to shareholder approval, to receive a proportion of their accrued Director fees in Shares in lieu of
cash.
Each Director may at any time and at their election, alter the proportion of Director fees to be received
in Director Fees Shares and such election shall apply from the date that the Company receives the
election in writing from the Director. The Director Fees Shares shall be issued in arrears in respect of
accrued Director fees, subject to shareholder approval at the relevant general meeting.
During the Quarter, following receipt of shareholder approval at the General Meeting, the Company
issued 2.78 million Shares to Non-Executive Directors, Mr Godfrey Gomwe, Ms Patience Mpofu and Mr
Anthony Lennox. The Shares were issued at a deemed issue price of A$1.4 cents per Share, being the 10-
trading day volume weighted average price of the Shares traded on the ASX and JSE before 27
December 2023, being two days prior to the date of announcement to the ASX that referred to the Non-
Executive directors electing to receive Director Fee Shares instead of cash (refer ASX/JSE release 29
December 2023).
General Meeting
A general meeting of shareholders of Orion was held at the offices of Clayton Utz, Level 27, QV1 Building,
250 St Georges Terrace, Perth, Western Australia on Thursday 23 May 2024 (General Meeting) and all
resolutions presented were passed by poll.
Tenement Table
Ownership Change in
Tenement Project Joint Venture Partner
Interest Quarter
South Africa
NC30/5/1/1/2/11850PR
NC30/5/1/1/2/13528PR Bartotrax 100% --- ---
NC30/5/1/2/2/10138MR Prieska Copper Zinc 70% --- ---
Mine
NC30/5/1/2/2/10146MR Prieska Copper Zinc 70% --- ---
Mine
NC30/5/1/1/2/12257PR Prieska Near Mine-OE5 100% --- ---
NC30/5/1/1/2/12258PR Prieska Near Mine-OE5 100% --- ---
NC30/5/1/1/2/12287PR Prieska Near Mine-OE5 100% --- ---
NC30/5/1/1/2/12405PR Prieska Near Mine-OE5 100% --- ---
NC30/5/1/1/2/11840PR Doonies Pan 70% --- ---
NC30/5/1/1/2/13752PR
NC30/5/1/2/2/10032MR Namaqua-Disawell 25% --- Namaqua Nickel Mining (Pty) Ltd
NC30/5/1/1/2/12216PR Namaqua-Disawell 25% --- Namaqua Nickel Mining (Pty) Ltd
NC30/5/1/1/2/10938PR Namaqua-Disawell 25% --- Disawell (Pty) Ltd
NC30/5/1/1/2/13397PR
NC30/5/1/1/2/11010PR Namaqua-Disawell 25% --- Disawell (Pty) Ltd
NC30/5/1/1/2/13398PR
NC30/5/1/1/2/12292PR Masiqhame 50% --- Masiqhame 855 (Pty) Ltd
NC30/5/1/1/2/12197PR Boksputs North 70% --- ---
NC30/5/1/1/2/11125PR Okiep 100% --- ---
Ownership Change in
Tenement Project Joint Venture Partner
Interest Quarter
NC30/5/1/1/2/13395PR
NC30/5/1/1/2/12357PR Okiep 100% --- ---
NC30/5/1/1/2/12897PR Okiep 100% --- ---
NC30/5/1/2/2/10150MR Okiep 56.25% --- Industrial Development Corporation
of South Africa Limited (IDC)
NC30/5/1/1/2/12850PR Okiep 56.25% --- Industrial Development Corporation
of South Africa Limited (IDC)
NC30/5/1/1/2/12852PR Okiep 100% --- ---
NC30/5/1/1/2/12854PR Okiep 100% --- ---
Western Australia
E28/2367 Fraser Range 30% --- IGO Limited
E28/2596 Fraser Range 30% --- IGO Limited
IGO Limited & Geological
E39/1653 Fraser Range 35% ---
Resources Pty Ltd
E39/1654 Fraser Range 10% --- IGO Limited & NBX Pty Ltd
Victoria
EL6069 Walhalla 100% --- ---
EL5042 Walhalla 100% --- ---
This Quarterly report is authorised by the Board.
22 July 2024
JSE Sponsor
Merchantec Capital
Date: 22-07-2024 08:58:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
