Wrap Text
Definitive Feasibility Study for Flat Mines Project Outlines Robust Development Pathway for Okiep Copper Project
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
Definitive Feasibility Study for Flat Mines Project Outlines Robust Development Pathway for Okiep
Copper Project
DFS on Stage 1 development confirms sound financial outcomes from a modern underground copper mine
Definitive Feasibility Study (DFS) completed for the Flat Mines Project, part of Orion's Okiep Copper Project
(OCP) in South Africa's Northern Cape Province, with results delivering favourable financial outcomes and
confirming the ability to deliver a safe, modern, fully mechanised copper mine.
Key financial outcomes, include:
o NPV (at an 8% discount rate) of AUD114 million (ZAR1,423 million), pre-tax (AUD75 million (ZAR935 million),
post-tax);
o IRR of 23%, pre-tax (19%, post-tax);
o Payback period from first production of 5.3 years;
o Undiscounted free cash flows of AUD219 million (ZAR2,744 million), pre-tax;
o Peak funding requirements of AUD103 million (ZAR1,290 million);
o Total project capital expenditure (including contingency) of AUD128 million (ZAR1,604 million);
o Capital intensity of USD10,383/t, based on nameplate annual copper production;
o All-in-sustaining costs of USD5,270/t (USD2.39/lb) of copper metal sold;
o All-in-sustaining margin of 41%, based on average received copper price of USD8,944/t; and
o Average annual production of 6.5kt of copper (peak production of 9.5kt of copper), with a mine life
of 12 years.
Modest initial capital expenditure given the planned build, own, operate, transfer (BOOT) arrangement for the
plant.
Mineral Resources for the Flat Mines Project total 10Mt at an average grade of 1.3% copper, resulting in 132kt
of contained copper.
o Measured Mineral Resources of 0.44 Mt @ 1.13% copper for 5kt contained copper;
o Indicated Mineral Resources of 7.2 Mt @ 1.35% copper for 98kt contained copper; and
o Inferred Mineral Resources of 2.3 Mt @ 1.3% copper for 29kt contained copper.
Probable Ore Reserves for the Flat Mines Project total 6.1Mt at an average grade of 1.17% copper, resulting in
71.2kt of combined copper metal.
Phased development approach:
o Flat Mines Project represents the first phase of Orion's longer-term development strategy at the OCP.
o Phase 1: Development of FMN only and plant construction for 50% of processing capacity
o Phase 2: Development of FME over approximately 24 months and plant expansion to 100% of
processing design capacity of 65ktpm
o Phased approach allows Orion to deliver value from the OCP in a way that is more easily achievable
for a junior mining company.
Mining Right secured in 2022, meaning the project is fully permitted. Key approvals in place include:
o Approved Mine Works Programme (MWP);
o a Social and Labour Plan (SLP);
o Environmental Authorisation (EA) and Environmental Management Program (EMPr), including Waste
Management;
o Water Use Licence (WUL) granted in July 2024; and
o Rezoning of the surface for mining authorised in August 2024, by Nama Khoi Local Municipality (NKLM).
Externally reviewed
o The DFS has been externally reviewed by independent technical experts Practara Metals and Mining
Advisory (Practara).
Upside potential
o The OCP offers substantial exploration potential with ongoing exploration to be a key driver of further
Resource/Reserve growth and mine life extensions at the Flat Mines Project.
The effective date of the DFS is 31 December 2024. The indicative timelines that have been provided in the
report are for illustrative purposes and assumes that the project is fully funded at the report effective date.
Next steps are to advance:
o Project financing;
o Project implementation planning;
o Concentrate offtake negotiations; and
o Agreements with service providers for key early works activities and long lead time items.
Disclosure on Forward Looking Statements
Certain information set forth in this Feasibility Study Report contains "forward looking information", including "future
oriented financial information" and "financial outlook", under applicable securities laws (collectively referred to
herein as forward-looking statements). Information contained herein constitutes forward looking statements.
Forward looking statements are provided to allow potential investors the opportunity to understand
management's beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one
factor in evaluating an investment. These statements are not guarantees of future performance and undue
reliance should not be placed on them. Such forward looking statements necessarily involve known and unknown
risks and uncertainties, which may cause actual performance and financial results in future periods to differ
materially from any projections of future performance or result expressed or implied by such forward looking
statements.
Although forward looking statements contained in this Feasibility Study Report are based upon what management
of the Company believes are reasonable assumptions, there can be no assurance that forward looking statements
will prove to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. The Company undertakes no obligation to update forward looking statements if circumstances or
management's estimates or opinions should change except as required by applicable securities laws. The reader
is cautioned not to place undue reliance on forward looking statements.
The Definitive Feasibility Study (DFS) reported in this Announcement determines the commercial viability of
establishing mining and ore processing operations on the Flat Mines Project at the Okiep Copper Project. The DFS
has been prepared with the objective that its findings are subject to an accuracy range of ±15%. The findings in
the Study, including the estimates of rates of return, costs, payback, NPV, milling rates, and production rates, should
be viewed with this in mind and are subject to all necessary permits, regulatory requirements, financing, Board
approval and further works as described throughout.
This Feasibility Study contains Production Targets and Forecast Financial information supported by a combination
of approximately 82% Probable Ore Reserves, Indicated Mineral Resources and approximately 18% Inferred
Mineral Resources, all classified and disclosed in compliance with ASX Listing Rules and JORC Code (2012)
reporting standards. Orion is satisfied that the portions of Inferred Mineral Resources included in the Production
Targets (never more than 18% of the mining plan) are not the determining factor in project viability and do not
feature as a significant portion early in the mining plan.
Note that there is a low level of geological confidence associated with Inferred Mineral Resources and there is no
certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the
portion of the production target reliant on Inferred Mineral Resources will be realised.
The Ore Reserves and Mineral Resources underpinning the Production Target have been prepared by Competent
Persons in accordance with the requirements in Appendix 5A JORC Code (2012) in accordance with the ASX
Listing Rules.
All material assumptions for the DFS are outlined in this report. These include assumptions about the availability of
funding. While Orion considers all of the material assumptions to be based on reasonable grounds, there is no
certainty that they will prove to be correct or that the range of outcomes indicated by the DFS will be achieved.
Peak funding in the order of ZAR1,290 million (AUD103 million) (which incorporates an 8% contingency allowance)
will be required.
Mining industry risks
The businesses of mining and mineral exploration, development and production by their natures contain significant
operational risks. The businesses depend upon, among other things, successful exploration programmes and
competent management. Profitability and asset values can be affected by unforeseen changes in operating
circumstances, technical issues and market volatility.
Factors such as political and industrial disruption, currency fluctuation, increased competition from other
prospecting and mining rights holders and interest rates could have an impact on any future activities on the
properties in question. The majority of these factors are, and will be, beyond the control of Orion or any other
operating entity.
Orion's Managing Director and CEO, Errol Smart, commented:
"The completion of the Flat Mines DFS marks an important step towards our objective of unlocking the long-term
potential of the Okiep Copper Project. The DFS for the Flat Mines Project has delivered positive outcomes that
confirm the potential to develop an initial underground mining operation with a modest upfront capital
requirement that will allow Orion to get into production relatively quickly at Okiep.
"The study only reflects the deposits that were included in the Mine Works Programme that was submitted in
support of the Mining Right application by the previous owners before Orion purchased the Mining Right.
"We see this as a modest scale starter project that will operate while we undertake additional exploration drilling
to increase the Mineral Resources on more than ten surrounding deposits that were drilled historically by Newmont
and Goldfields where we are not yet able to state Mineral Resources or complete and report feasibility studies in
accordance with the JORC Code. The Flat Mines concentrator plant, and mine infrastructure will become the
core of our growth and expansion plans in the district, with the aspiration of eventually treating ore trucked from
multiple satellite deposits.
"Starting small ensures we not only meet the requirements of our approved Mining Right as granted by South
Africa's Department of Mineral Resources and Energy (DMRE) but also allows Orion to transition into production in
a measured way, with a key focus on training up a highly skilled workforce that can operate to international mining
standards and efficiencies.
"The DFS includes a range of Environmental, Social and Governance (ESG) factors, including our commitment to
safety; local employment and procurement; tailings management, water stewardship and community
engagement. We believe, that together with the development of our flagship Prieska Copper Zinc Mine, the
development of OCP will enable Orion to make an important contribution to the economic development of the
Northern Cape.
"In addition, we see immense prospectivity in the Okiep district and strongly believe that the Flat Mines Project will
present the first of several mines that Orion will develop in the region. We aim to reach our aspirational target to
restore production from the OCP to historical levels. We remain committed to rapid resource and reserve growth
and will have a targeted and disciplined approach to exploration with the aim of delivering additional value from
the Okiep region to all stakeholders.
"Our focus now turns to finalising our funding strategy for both the OCP and Prieska, which we expect will be made
up of a combination of debt, equity and offtake-related financing. Negotiations on the concentrate offtake will
also be a key focus in the coming months.
"I would like to sincerely thank the team, led by our General Manager of the OCP, Mark Meyer, for the hard work
that has gone into delivering this favourable DFS. I would also like to acknowledge the ongoing support from our
project partners and shareholders."
IDC Divisional Executive Industry Planning and Project Development, Rian Coetzee, commented:
"The IDC's critical Minerals Game Plan seeks to ensure that South Africa becomes one of the biggest producers
of critical minerals in the continent. The progress made thus far towards ensuring that Okiep becomes a fully-
fledged copper producer is encouraging and adds to our prospects. We reiterate our continued support for this
project."
Orion Minerals Limited (ASX/JSE: ORN) (Orion or the Company) is pleased to present the outcomes of the Definitive
Feasibility Study for the Flat Mine Project, within the Okiep Copper Project, located in the Northern Cape Province
of South Africa.
The DFS outlines a robust long-life underground mining operation with the potential to deliver strong financial
returns from a relatively modest capital outlay, with the project representing a valuable 'starter project' for Orion
at the OCP that will allow it to commence operations and start generating cash-flow to unlock the broader
potential of the asset.
The Flat Mines DFS has been delivered concurrently with the DFS on the Company's flagship Prieska Copper Zinc
Project, also located in the Northern Cape and outlines the Company's development plans for its main production
hub.
Together, the two projects are expected to underpin Orion's vision to become a significant base metal producer
in South Africa's Northern Cape in the next 2-3 years.
EXECUTIVE SUMMARY
The Flat Mines Project (FM Project or the Project), held by New Okiep Mining Company (Pty) Limited (NOMC), is
located in the Northern Cape Province of South Africa (Figure 4). NOMC's majority shareholder, Orion Minerals
Limited (Orion), is listed on the Australian Securities Exchange (ASX: ORN) and has a secondary listing on the Main
Board of the Johannesburg Stock Exchange (JSE: ORN).
The mineral tenure associated with the FM Project comprises a granted and executed mining right (MR) (NC 10150
MR) for copper and tungsten ore, valid until 2037, held by NOMC and three granted and executed prospecting
rights (PRs) (NC 12850 PR, NC 12755 PR and NC 12848 PR) held by Southern African Tantalum Mining (Pty) Limited
(SAFTA) (Figure 5).
The FM Project comprises a 12 year (yr) life of mine (LOM) from first concentrate production, mining approximately
65,000 tonnes per month (tpm) at steady state (780,000 tonnes per annum (tpa)) of copper mineralised material
at full production, at an average LOM grade of 1.18% copper (Cu). Mineralised material will be sourced from four
separate underground mining areas namely, the historically mined Flat Mines North (FMN) and Flat Mines
Nababeep (FM-Nab) mines and the planned unmined deposits at Flat Mines East (FME) and Flat Mines South
(FMS). All mining areas are located within 3km of each other and the location of the proposed central processing
facility.
The excavated run of mine (ROM) material will be processed through a processing plant to be located near FMN,
which will comprise particle ore sorters, followed by conventional milling and flotation, to produce an average
over the LOM, of approximately 24,000tpa (wet) of copper concentrate at an average grade of 30% Cu. The
concentrates will be bagged, trucked to Cape Town, and loaded into shipping containers for transportation to
international markets. This will amount to an average over the LOM of 6,500tpa of contained copper metal
including ramp-up and ramp-down periods. Nameplate production of 9,300tpa contained copper will be
attained and maintained for three years based on the current LOM plan.
The underground mining areas will be sequentially developed. FMN will be developed first using the existing
decline, followed by FME using a new twin decline. The FM-Nab and FMS areas will share a common decline with
FM-Nab being mined first as development continues to open FMS. A maximum of two mining areas will be fully
operational at any one time.
To derisk the project and reduce the initial capital outlay for the process plant, the FM Project will be developed
using a phased approach. Phase I will include the mining of approximately 32,500tpm of mineralised material at
an average grade of 1.04% Cu for a period of 24 months from FMN. In this phase the mineralised material will be
treated through conventional milling and flotation, to produce copper concentrate at an average grade of 30%
Cu. Although no ore sorters will be used in Phase I, this time will be used to carry out pilot scale testing in the
operational plant. Pilot scale testing is expected to confirm the benefits of ore-sorting indicated during testing of
drill core from the various FM Project deposits during the study phase, in which case the installation and
commissioning of the full scale ore sorting plant would be expedited. The cost and benefit of the ore sorting plant
is excluded from this Feasibility Study.
In Phase II, production from FME will be combined with FMN to achieve a target of 65ktpm of mineralised material
delivered to the run of mine (ROM) pad. The process plant will be expanded, possibly inclusive of the installation
of ore-sorters to accommodate the increased production from mining. Phase II is designed to maintain steady
monthly production of 65ktpm from initially FMN and FME, until FMN production is replaced by production from
FM-Nab and FMS. Full production is sustained for 86 months until FME is depleted, after which time, FMS production
is treated at a reduced rate limited by the capacity of mining from FMS only. Production is planned to continue
for a total of 145 months from first concentrate production.
Table 1: Key DFS Results for the Flat Mines Project. Note that the Study estimation accuracy level is ± 15%.
Executive Dashboard
Production and Financial Summary Key Parameters
Priceand FX Assumptions Unit Value Financial Performance Unit Value Unit Value
Metal price – Cu USD/t 9,396 NPV pre- tax @ 8% discount rate ZAR M 1,423 AUD M 114
Metal price – Au USD/oz 2,157 NPV post- tax @ 8% discount rate ZAR M 935 AUD M 75
Metal price – Ag USD/oz 27 IRR pre- tax % 23
Exchange rate ZAR:USD 18.90 IRR post- tax % 19
Exchange rate ZAR:AUD 12.50 Payback from first production Years 5.25
Undiscounted free cash flow pre- tax ZAR M 2,744 AUD M 219
Peak funding ZAR M 1,290 AUD M 103
Capital intensity * USD/Cu t 10,383 * AUD/Cu t 15,699
Production Metrics Unit Value Project Cost Metrics Unit Value Unit Value
Life of Mine Years 12.08 Average cash operating unit cost ZAR/t 769 AUD/t 62
Treatment plant capacity Ktpa 780 All- in- sustaining cost per unit ROM t ZAR/t 1,078 AUD/t 86
ROM Plant Feed – tonnage kt 7,235 All- in- sustaining cost per unit Cu t sold USD/t Cu 5,270 AUD/t Cu 7,968
ROM Plant Feed – grade - Cu % 1.18% All- in- sustaining cost per unit Cu t sold USD/lb Cu 2.39 AUD/lb Cu 3.61
Concentrate grade - Au g/t conc 0.9 Price received (net of NSR) - Cu USD/t Cu 8,944 AUD/t Cu 13,523
Concentrate grade - Ag g/t conc 31.4 All- in- sustaining margin % 41%
Overall Plant Revocery % 91.90% Operating breakeven grade (Cu) % 0.73%
Concentrate Tonnage (wet mass) - Cu kt 285 Project Cash Flows Unit Value Unit Value
Concentrate Grade - Cu % 30% LoM net revenue ZAR M 12,701 AUD M 1,016
NSR as % of metal price – Cu % 95.20% LoM operating costs (+ Royalty and Tax) ZAR M 6,608 AUD M 529
Metal Sold (in concentrates) - Cu tonnes 78,340 Project Start- up Capital Expenditure ZAR M 894 AUD M 71
Total Cu Sales tonnes 78,340 Total Project Capital (incl Contingency) ZAR M 1,604 AUD M 128
Contingency ZAR M 90 AUD M 7
Sustaining Capital Expenditure ZAR M 768 AUD M 61
Income Tax ZAR M 977 AUD M 78
Cash Flow after tax ZAR M 2,744 AUD M 219
Level of Accuracy of Financial Model ± 15%, LoM = Life of Mine, NSR = Net Smelter Return, NPV = Net Present Value, IRR = Internal Rate of Return
There is a low level of geological confidence associated with Inferred Mineral Resources and therefore there is no certainty that further exploration work will result in the
determination of Indicated Mineral Resources or that the Production Target or financial forecast information referred to in this Study will be realised.
Figure 1: Sensitivity of the post-tax NPV to changes in key project parameters for the FM Project DFS.
Table 2: Effect of fluctuations in metal prices and foreign currency exchange rates on the post-tax NPV and IRR for Flat Mines Project.
% Change -15% -10% -5% 0% +5% +10% +15% IRR
Cu Price $/tonne 7987 8457 8927 9396 9866 10336 10806
ZAR:USD
16.07 - 393 - 180 28 232 435 635 834 10.7%
17.01 - 182 38 255 469 681 891 1,100 13.5%
17.96 25 253 479 703 925 1,144 1,364 16.1%
18.90 227 466 701 935 1,166 1,398 1,628 18.6%
19.85 429 676 922 1,165 1,408 1,650 1,891 21.1%
20.79 628 885 1,140 1,394 1,648 1,901 2,152 23.5%
21.74 825 1,092 1,358 1,624 1,888 2,151 2,413 25.8%
Project levels of study
In April 2021, Orion completed a Scoping Study as part of the company's due diligence and resultant decision to
acquire the Okiep Copper Project (which included the FM Project). The Scoping Study investigated the
commercial viability of a "proof of concept" scale mining and mineral processing operation and completed to a
cost estimation accuracy of ±25%. The scoping study assessed mining of the four deposits that are the focus of this
Feasibility Study but also included mining of deposits located on the surrounding PR which were excluded from
this Feasibility Study. Conceptual underground mine designs and schedule, as well as unoptimised pit designs and
schedules were completed, containing a combination of Measured, Indicated and Inferred Mineral Resources.
Mining was planned at a rate of 65,000tpm using open pit methods and underground methods including vertical
crater retreat (VCR), long hole open stoping (LHOS) and board and pillar (B&P) methods, where relevant.
Processing included crushing and milling, followed by flotation to produce a concentrate with an average grade
of 26% Cu. The Scoping Study financial valuation returned an NPV of ZAR1.27bn (post tax) using non-inflation-
adjusted estimates and a real discount rate of 10%. The IRR was estimated at 37% (post tax).
Orion commenced with the current Feasibility Study on the FM Project in February 2022 and completed it in March
2025. It was undertaken by the owners team, NOMC and their specialist advisors. Orion prepared the Feasibility
Study to meet the industry standard accuracy range of +/-15% with detailed engineering at 20% to 50% complete.
The focus of the Feasibility Study was on the following:
• confirming the Mineral Resources, which had previously been estimated using historical drilling
only through confirmatory drilling by NOMC;
• geotechnical testwork and appraisal of surface outcrop and drill core;
• preparing a detailed mine design, optimisation, schedule and costing for the four separate
mining areas;
• performing detailed metallurgical testwork to confirm the proposed plant design and recovery
factors;
• performing a detailed design, optimisation and costing for the processing plant and associated
waste streams;
• performing a detailed design and costing for the supporting infrastructure, both surface and
underground;
• completing the required environmental studies to obtain a Water Use License and other
regulatory approvals;
• defining an Ore Reserve estimate;
• preparing a Master LOM Schedule;
• assessing the technical and financial risks of the Project; and
• demonstrating the economic merits of the FM Project.
The results of this Feasibility Study have demonstrated the economic merits of the FM Project with the results
encapsulated in this Feasibility Study Report. The Feasibility Study results will be used as the basis to raise the
required funding to develop the project.
Project timelines
The effective date of this Feasibility Study is 21 March 2025 and, for illustrative purposes, the months provided in the
project timelines assume the FM Project is fully funded at the effective date. The reader is cautioned regarding
the actual project start date, with it only occurring once funding is secured and the Financial Investment Decision
(FID) finalised.
The successful result of this Feasibility Study and the Orion Board's approval will lead to the development of the FM
Project as soon as adequate construction finance, as defined by this report, has been raised by Orion. It is
envisaged that fund raising will take two months whereafter awarding of the major contracts will commence. The
summary project execution plan (PEP) for the FM Project over the next five years, until the end of 2030, is presented
in Table 3.
Construction work for the Phase I process plant is planned to commence in Month 10 with the plant to be
completed in Month 21. Production at 32.5ktpm will be reached on completion of commissioning and production
ramp-up by Month 24, with first concentrate to be sold in Month 22 (Table 3). Funding required to achieve first
production is estimated to be AUD122 million.
Early works, including dewatering and rehabilitation of existing underground development, will commence at FMN
in Month 2 with development running concurrently with plant construction. FMN is scheduled to produce its first
ROM ore from development in Month 7 which will be stockpiled on the ROM pad at the plant. Steady state
production from FMN will be reached in Month 29. Portal construction on FME is scheduled for commencement in
Month 15. Following development of the twin decline, initial ROM production will be available in Month 38 with
steady state being reached by Month 56. FM-Nab and FMS will be developed together, commencing early works
in Month 34. FM-Nab is expected to branch off from the combined decline in Month 47, with ROM ore being
produced the following month and steady state production reached in Month 62. FMS will continue to develop
and is scheduled to produce first ROM ore in Month 62. Steady state ROM production is expected from FMS in
Month 81.
Construction of the upgraded plant is scheduled to commence in Month 44 for Phase II full production planned
in Month 50 to coincide with steady state production from FME. Production will continue for the remaining LOM.
Key contributors
The Feasibility Study was managed by NOMC with contributions from the NOMC and Orion owners team and
independent experts. The major contributors included Z Star Mineral Resource Consultants (Pty) Limited (Z*), Sound
Mining International (Pty) Limited (Sound Mining), Dayenu Mining Consultants (Dayenu), Paterson & Cooke
Consulting Engineers (P&C), JHK Consulting (JHK or Mr Jon Hudson), METC Engineering Consultants Limited (METC),
Epoch Resources Limited (Epoch), Prysm Ventilation Services (Pty) Limited (Prysm), Fraser McGill (Pty) Limited (Fraser
McGill) and Advisory on Business and Sustainability Africa (Pty) Limited (ABS Africa).
DETAILS OF THE DEFINITIVE FEASIBILITY STUDY
Corporate structure
NOMC's FM Project is currently held by Orion through its South African subsidiary Area Metals Holdings No.6 (Pty)
Limited (AMH6) (50.63%), with the balance of the shareholding held by the Industrial Development Corporation of
South Africa (IDC) (19.37%), Landmark Capital (BEE Entrepreneur) (20%), Orion Nama Khoi Employee Trust (5%),
Orion Nama Khoi Community Trust (5%), as set out in Figure 2.
This holding structure meets the BEE requirements of the Mining Charter (2018). The IDC's participation contributes
additionally to the 20% minimum required BEE entrepreneurship credentials. The Community and Employee Trusts
would not be required to contribute to any up front funding of the Project development. However, all funding
contributions made on behalf of the trusts would be entitled to be recovered from FM Project cash flows before
any dividend distributions are made to the trusts.
Page 10 of 144
Mineral and surface tenure
The FM Project comprises a granted and executed mining right (MR) (NC 10150 MR) and three granted and
executed prospecting rights (PRs) (NC 12850 PR, NC 12755 PR and NC 12848 PR). The MR and PRs are currently
held by NOMC and SAFTA, respectively (Figure 5). The reader is to note that NC 10150 MR and NC 12850 PR cover
the same surface area but are held for different minerals, with the MR being held for copper and tungsten ore
and the PR being held for 26 other minerals.
Similarly, NC 12755 PR and NC 12848 PR cover the same surface area (surrounding NC 10150 MR and NC 12850
PR) and are held for copper and tungsten and 26 other minerals, respectively. Applications for Section 11
permission to cede the PRs have been submitted to the Department of Mineral Resources and Energy (DMRE).
The majority of mining infrastructure, processing plant, roads, powerlines, service water pipelines and portals will
be located on approximately 480ha of land belonging to the Nama Khoi Local Municipality (NKLM). A lease
agreement has been concluded with NKLM for the duration of the LOM. This portion of the NKLM property has
been rezoned for mining (Industrial IV).
The balance of the land within the MR boundary is currently owned by Mora Plase (Pty) Limited (More Plase).
NOMC has concluded a purchase agreement with Mora Plase to acquire the land, with payment terms over
approximately three years. On payment of the final annual tranche, transfer of the property to NOMC will be
affected. The property is occupied and administered by Orion until title transfer is completed.
Regulatory aspects
As part of the awarding of the MR in 2022, the FM Project holds an approved Mine Works Programme (MWP),
Social and Labour Plan (SLP), an Environmental Authorisation (EA), Environmental Management Programme
(EMPr) and Waste Management permit. NOMC obtained their Water Use Licence (WUL) in July 2024 and
authorisation from NKLM for the rezoning of the surface for mining in August 2024. In accordance with the terms
of the mining right and Section 25(2)(b) of the MPRDA, an application for ministerial consent for the extension of
the commencement date for mining operations to 31 December 2025 has been submitted to the DMRE.
NOMC is not aware of any other licences that will be required to commence with the current development of the
FM Project. A protected and/or indigenous plant removal permit will be obtained prior to commencement of
construction.
Location and access
The FM Project is located in the Northern Cape Province of South Africa, approximately 583km by road north of
Cape Town (via the N7 national road) and 20km by road north northwest of the town of Springbok (Figure 4) in an
area commonly referred to as the Okiep Copper District. This area has been subject to an extensive history of
copper mining primarily carried out by the Okiep Copper Company Limited (OCC), under various holding
companies between 1937 and 2003. The FM Project is located within NKLM of the Namakwa District Municipality.
Tarred access roads are located to within 3.5km from the MR boundary and 5.0km from the proposed processing
facility (Figure 5 and Figure 6).
Figure 4: Regional locality of the Flat Mines Project.
Figure 5: Topographic map of PR and MR area.
Existing infrastructure
Surface infrastructure currently located on site is limited as no formal project development has commenced. A
gravel access road passes through the MR (Figure 6), on which NOMC has erected a security control boom.
Other infrastructure is mainly related to historical mining activities on the property and include a water dam,
evaporation paddocks and ponds from tungsten mining, an existing decline portal which accessed the historical
Wheal Flat Mine (now FMN) and an existing vertical shaft which accessed the historical FM-Nab Mine. Previous
OCC administrative offices, a core shed, storage facilities and workshops situated in the town of Nababeep are
currently being utilised by the FM Project development and exploration teams.
Current land use within the MR boundary comprises sheep farming, informal temporary dwellings and associated
livestock grazing.
Figure 6: Proposed site plan.
Historical ownership and production
Although copper was identified and extracted as far back as the 1600s, the Okiep Copper District has a history of
over 150 years of copper mining. From 1935 to the 1980s copper mining boomed in the area with copper ore
being extracted from 32 separate mineralised bodies. Modern commercial copper mining activities commenced
in 1937 when the international mining conglomerate, Newmont Mining Company (now Newmont Corporation
Limited) (Newmont), consolidated the copper production in the area under OCC.
The company treated ore from multiple mines that fed a centralised concentration plant and copper smelter
facility at Nababeep. In 1984, South African mining house, Gold Fields of South Africa Limited (GFSA), bought out
Newmont's stake. GFSA's copper assets were later sold to Metorex (Pty) Limited (Metorex) in 1998. Metorex closed
the OCC operations in 2003. Formal records available from the 1940s onwards estimated a total of 1.57Mt of blister
copper was produced from the OCC mines between the 1940s and 2003. Records from Newmont's operating era
(1946-1985) indicate that 72.75Mt of ore were processed at an average mill grade of 1.58% Cu to produce 1.15Mt
of blister copper.
The so-called Flat Mine Nababeep (referred to as FM-Nab in this Feasibility Study Report) was mined in the 1950s
by OCC under Newmont. Although drilling continued into the late 1970s the actual mining operation was
abandoned in 1953. The Wheal Flat Mine (referred to as FMN in this Feasibility Study Report) was initially developed
by Newmont in 1981 but closed prior to any mining occurring. In the late 1990s it was reopened by GFSA and
mined briefly between 1996-1997. In the early 2000s it was reopened again by Metorex, with ROM material being
batch treated at the Nababeep slag processing plant. Almost twenty years later, it was dewatered by SAFTA,
shortly after their acquisition of the FM Project, but not mined.
Survey
A drone digital terrain survey carried out in 2022 which provided the digital terrain model (DTM) of 1m contours
over the majority of the MR area. This survey was used by the engineering companies in their design work. The FM
Project is currently using the Hartebeesthoek94 Lo17 coordinate system and will continue to do so going forward.
The drill hole database is also available in Universal Transverse Mercator (UTM) map projection system, WGS84 in
Zone 35 south (S).
Regional geology and mineralisation
The Okiep Copper District lies within the Namaqualand/Natal mobile belt (Figure 7). The regional geology
associated with the Okiep Copper District can be summarised in the following sequence of events:
• formation of the first primitive crust 1,700-2,000 million years (Ma) ago;
• deposition of a supracrustal succession, ~1,650 Ma ago;
• intrusion of large volumes of granite 1,180–1,210Ma ago during the Namaquan Orogeny
including the Little Namaqualand Suite and Concordia Granite (Figure 7);
• intrusion of the Rietberg Granite (1,020–1,040Ma ago) and the copper-bearing Koperberg Suite
(800 - 845Ma ago) (Figure 7);
• erosion and denudation 1,030 - 550Ma ago removing 20km of crust and exposing the present
erosion level;
• deposition 520 – 550Ma ago of sedimentary rocks of the Nama Group; and
• circulation of low-temperature meteoric fluids as part of the Damaran Orogeny (480 – 580Ma
ago) resulting in supergene enrichment.
Copper mineralisation is predominantly hosted within the Koperberg Suite of the mafic to intermediate intrusive
bodies (Figure 7). The Koperberg Suite intruded as dykes, plugs, sills and shallow plunging tubular bodies into the
Khurisberg Subgroup and Little Namaqualand Suite. More than 1,700 of these basic bodies is known to exist. The
bulk of the mafic bodies intruded along east-northeast and east-west trending structures known as 'steep
structures'. Major rock types of the Koperberg Suite include anorthosite, leuco-diorite, biotite-diorite, leuco-norite,
norite, glimmerite and orthopyroxenite. The most common arrangement of mafic bodies is that of irregular, steeply
north dipping dykes, emplaced along antiformal steep structures. Intrusions are composites of multiple phases of
intrusion with different mineral endowment.
The Koperberg Suite is a rare example of economic copper mineralisation in rocks of the anorthosite–charnockite
family with the only other presently exploited example of this being in Caraiba, Brazil.
Copper deposits are either hosted in sills, dykes or plug-like bodies, with the deposit in the latter being considerably
larger than those found in dykes and sills. Mineralisation usually occurs as fine to coarse disseminated copper
mineral assemblages with less massive sulphides in the mafic rocks in the following order: bornite > chalcopyrite >
chalcocite and less pyrite and pyrrhotite. The more mafic and magnetite rich lithologies typically host the bulk of
and higher-grade mineralisation. The copper sulphides are generally regarded to have been deposited by
immiscible sulphide liquid.
Local geology
The FM Project MR is largely underlain by Concordia Granite with some areas of Rietberg Granite and scattered
outcrops of metasediment, anorthosite and diorite of the Koperberg Suite. Diorite is the most prospective rock
type in the area and these mafic rocks form a very distinctive curvilinear trend towards the east. Diorite as sills
(FMN) and dykes (FME and FMS) are less common and are predominantly hosted within the anorthosite. Three
dimensional geological models of the mafic bodies and their associated mineralisation envelopes are presented
in Figure 8 and Figure 9.
Figure 7: Geological map, stratigraphic column and cross section through the Okiep Copper District.
Figure 8: FMN and FME - Mineralised domains in relation to mafic intrusives and drill hole traces.
Figure 9: FMS and FM-Nab - Mineralised domains in relation to mafic intrusives and drill hole traces.
FMN
Copper mineralisation at FMN is hosted predominantly in anorthosite, biotite-diorite and glimmerite. The mafic
rocks occur on the northern flank of a broad east-west striking antiform in Concordia Granite gneiss. The mafic
rocks intruded the Concordia granitic gneiss in a lit-par-lit style to form a sill complex consisting of inter-banded
mafic rocks and granitic gneiss. The highest copper grades occur within the biotite-diorite and glimmerite where
it intruded close to the base of the sill complex.
The geometry of the FMN deposit does not conform to the general attitudes of mineralised bodies in the Okiep
Copper District. The deposit strikes for 600m north-south with a shallow plunge to the north and then makes a
dogleg in the north to continue eastward on an east-west strike direction. FMN has been divided into three
mineralised bodies (MB) namely: FMN-MB1, FMN-MB2 and FMN-MB3.
FMN-MB1 occurs in a channel like feature at the base of the sill complex. This has resulted in the formation of a
250m long, 40m wide and 15 - 50m thick sausage shaped mineral deposit that plunges at 45° northwest for the
initial 80m and then flattens out to near horizontal for the next 130m. The plunge direction changes from 345° to
due north after 400m and then increases again to 45° for 400m, where the FMN-MB1 mineralisation pinches out.
Mineralisation reaches a maximum depth of 120m below surface on the 640m (AMSL) level in FMN-MB1. The
mineralisation envelope interpreted for the Mineral Resource estimation was broadly defined on a 0.5% Cu cut-off
with exceptions to maintain continuity.
Mineralisation continues again 90m to the north of FMN-MB1 on the 660m level. FMN-MB2 continues for 250m along
the same north trend as FMN-MB1 but plunges shallowly at 2° to 25°. The mineralised body attains the same irregular
sausage shape, albeit thinner than in FMN-MB1, at 10 - 15m thick and 25 - 50m wide. Mineralisation is hosted by
dark biotite rich diorite within a larger anorthosite body. The mafic body is more constrained than the sill complexes
hosting FMN-MB1and MB3.
At FMN-MB3, the strike of the mineralisation abruptly changes to east-west, plunging shallowly towards the east for
250m at a depth of 170 to 250m as an irregular lens-shaped body up to 20m thick. Copper mineralisation in this
area is hosted by glimmerite and biotite-rich diorite developed at the base of a northerly dipping, 170m thick sill
complex.
FME
At FME, the main mafic intrusive massif is approximately 970m long and 20 to 80m wide. The intrusive strikes at 65°
ENE and dips 50° - 75° WNW. The mafic body occupies an ENE trending steep structure within the Concordia
Granite and Wolfram Schist. Unlike at FMN and FMS, diorite is not as volumetrically important as norite, which hosts
the bulk of the mineralisation. The volume proportion of norite in the mafic body increases to the east. Anorthosite
is more erratically mineralised with lower grades.
Drilling has defined three mineralised bodies namely: FME-MB1, FME-MB2 and FME-MBW. Mineralisation is
concordant with the steep dip of the main mafic intrusive body. Significant zones of unmineralised tabular or
lenticular xenoliths of Concordia Granite occur in both FME-MB1 and FMS-MB2 mineralised bodies.
FME-MB1 is the main mineralised body and occurs over a strike length of 500m. Mineralisation starts at 115m below
surface and continues down dip for a maximum of 250m. The width of the mineralisation reaches up to 80m.
FME-MB2 is a smaller body developed structurally above and in the northeastern section FME-MB1. Mineralisation
strikes east-west and dips towards the north at 70°. The top of the mineralisation is 25m below surface and it extends
down dip to 200m below surface. The total strike length for FME-MB2 is 125m and the maximum true width is
approximately 20m.
FME-MBW is a mineralised zone that has been broadly defined by wider spaced exploration drilling. Mineralisation
here is predominantly hosted by diorite.
FMS
Interpretation of drilling indicates that a single mineralised body is present at FMS (FMS-MB1) which has an irregular
but continuous east-west strike. The interpreted mineralised body has a strike length of 570m, down dip extent of
530m and a maximum width of 30m. The overall dip of the mineralised body is approximately 40° - 60° but
steepening to 80° in the deeper sections. The thicker anorthosite tends to be poorly mineralised and more biotite
rich and hybrid-diorite varieties carry blebby rather than disseminated sulphides.
FM-Nab
At FM-Nab, mafic rocks of the Koperberg Suite consist mainly of anorthosite, biotite diorite and biotite schist. The
anorthosite does not host economic copper mineralisation. The FM-Nab mafic intrusive complex outcrops
continuously over 1,300m, striking at 70° east of north.
The eastern end of the complex terminates against the Flat Mine Fault while the mafic rocks in the west pinches
out approximately 820m WSW of FM-Nab. The dyke-like complex can be up to 100m wide and is vertical to steep
northerly dipping. It is commonly intercalated with Concordia granite. In the vicinity of the shaft, 50m of Concordia
granite separates the complex into a northern, 35m wide, biotite diorite and biotite schist-dominant dyke that host
the FM-Nab deposit and a southern anorthosite-dominant dyke.
Surface mapping, drilling and mine plans shows copper mineralisation to occur over a strike length of 180m with
the mineralised body terminating against NNE striking D4 faults on both the eastern and western sides. Mining
reached a depth of 150m from surface with an average width of less than 4m. From underground mapping and
sampling the mineralisation was reported as lenticular with erratic grades. The mineralised biotite diorite and biotite
schist is segmented by unmineralised anorthosite. The best mineralisation is confined to the contact zones with the
highest grades developed in the eastern part of the mine where a fairly massive body of high-grade ore was
developed.
Structure
The FM Project MR is situated on the northern limb of the Springbok Dome, the general dip on the S2 fabric and
lithological units of the Wolfram Schist are to the north. The most prominent structural feature on the tenement is
the D4 north – south striking Flat Mines Fault. This fault has been mapped over a strike of approximately 16km and
in the MR the fault zone is up to 80m wide. Regional maps shows that rocks were displaced to the north on the
east side of the fault. This indicates sinistral movement, or considering the northerly dip of the strata, down throw
on the west side, or a combination of the two.
Historical exploration and drilling (1953 - 2003)
During the Newmont (1953 – 1983) and later GFSA (1984 – 2003) eras, a substantial amount of exploration was
undertaken, and many mineralised outcrops were intensely drilled at shallow depths, but without all progressing
to mine development. A massive data repository including the post 1940s mining records and all of Newmont and
GFSA's exploration results are available in hard copy with much of the data available in digital format. This was
purchased by NOMC in 2021.
The Koperberg Suite rock types have characteristic geophysical signatures, when compared to the granite
gneisses they were intruded into, and therefore geophysical methods formed an important reconnaissance
exploration tool used in the Okiep Copper District. Reconnaissance surveys were then followed up with more
detailed surveys in the vicinity of specific targets, with geophysical results being used to site exploration drill holes.
Historical drilling specifically related to the FM Project is extensive (Table 4) with Newmont having drilled a total of
266 holes (54km) and GFSA an additional 202 holes (~70km). The location of the drill holes is presented in Figure 10.
Table 4: Summary of exploration drill holes for the FM Project.
No. drill Total Used in
Location Company Year/s
holes drilling (m) geological model
Newmont 1953 - 1982 209 37,764 209
GFSA 1994 - 1997 28 3,458 28
FMN
SAFTA 2018 10 1,525 9
NOMC 2024 4 1,071 0
Subtotal FMN 251 43,818 246
Newmont 1978 - 1981 22 6,598 22
FME GFSA 1992 - 1996 129 43,992 129
NOMC 2024 10 3,040 0
Subtotal FME 161 53,630 151
Newmont 1979 - 1982 35 10,291 35
GFSA 1987 - 1999 45 22,468 45
FMS
SAFTA 2018 3 807 2
NOMC 2024 8 4,441 0
Subtotal FMS 91 38,007 82
Newmont 1947 - 1978 171 18,048 145
FM-Nab
NOMC 2024 9 959 8
Subtotal FM-Nab 180 19,008 153
Total FM Project 683 154,462 632
Note: Deflections included as additional drill holes, 2x twin holes were abandoned and are excluded
from the geological model. Source: FM Project SQL drilling database.
Figure 10: FM Project - Location of all drilling in MR area.
The historical drilling has added significantly to the knowledge base of the various mineralised bodies in the FM
Project. Evident from the data records readily available in the offices in Nababeep the drilling practises were
good, and the data recording was thorough. Drill hole logs of these drilling campaigns are readily available in the
OCC offices in Nababeep and have been digitised by NOMC. In addition, the plans and cross sections of these
results have provided valuable insight into the interpretation of the mineralised bodies. The Newmont and GFSA
drilling results have demonstrated the continuity of the mineralised bodies to an acceptable level which supports
the classification of Mineral Resources.
The paucity of QA/QC has meant that the accuracy and repeatability of the assay results could not be verified.
As a result, twin drilling was initially undertaken by SAFTA, and later by NOMC to confirm the Newmont and GFSA
results. No significant discrepancies have been identified, and this has led NOMC to the conclusion that the
historical data is reliable and can be used (in conjunction with the recent results) for the purposes of Mineral
Resource estimation and classification.
Previous exploration and drilling (2004 - 2021)
The previous exploration and drilling, refers to those activities undertaken by SAFTA, prior to Orion's involvement in
the FM Project. SAFTA's exploration included two ground geophysical surveys and twin drilling. The focus of the
SAFTA twin drilling was the verification of the historical drilling to allow it to be used in the reporting of Mineral
Resource estimates in accordance with the JORC Code (2012). Mineral Resources were estimated by Concession
Creek Consulting (CCC) in 2018 and incorporated into SAFTA's Pre-Feasibility Study (2019). A total of 13 holes were
drilled at FMN and FMS (Table 4). Drill hole locations included in Figure 10.
The SAFTA drilling represented the first drill campaign undertaken with complete QA/QC records required by
modern best practices to demonstrate the accuracy and repeatability of assay results.
According to CCC (2018), the twin holes, although limited in number, confirmed the reliability of the historical drill
hole results both in relation to lithology and the copper grades within the mineralised zones. This confirmation
provided SAFTA with the confidence to use the historical database to support the Mineral Resource estimation
process and reporting in accordance with JORC Code (2012) standards.
As part of the Z* Star Mineral Resource Consultants (Pty) Limited (Z*) sign off of Mineral Resources in accordance
with the JORC Code (2012) for the FM Project in 2023, the company carried out a comparison of the SAFTA twinned
holes to their historical counterparts. Due to the lack of QA/QC protocols pertaining to the historical data, Z*
carried out this analysis to demonstrate that there was no reason to exclude the historical information from the
geological modelling database from a statistical standpoint. Z* concluded that there was no reason to assume
that the historical data was incompatible and that it could not be incorporated with the SAFTA data for further
analysis and estimation purposes.
Recent exploration and drilling (2021 to present)
Recent exploration is defined as the exploration and drilling activities undertaken on the FM Project since Orion's
involvement. Orion carried out a regional airborne geophysical in conjunction with the Council for Geosciences
covering a total area of 1,872km2. Two ground geophysical surveys were conducted over the plant location of
the TSF to identify structures.
Drilling included limited percussion drilling for groundwater monitoring, and reverse circulation drilling to investigate
the ground conditions in and around the planned TSF footprint.
Confirmatory diamond core drilling was undertaken in 2024 (Figure 10). The aim of the confirmatory drilling by
NOMC on FMN, FME, FM-Nab and FMS included:
• confirming the historical drilling results and the more recent drilling by SAFTA;
• providing additional evidence on geological and grade continuity required for the estimation
of Measured and Indicated Mineral Resources through infill drilling;
• conducting additional geotechnical testwork on the drill cores required for mine planning;
• testing the suitability of the FM mineralised material to ore sorting using the Rados XRF ore sorter;
and
• obtaining samples for additional, more detailed metallurgical testwork.
At the date of issue of this Feasibility Study Report, a total of 31 holes including deflections (~9,512m) of drilling had
been drilled, logged, sampled and assayed, with their results being assessed in relation to the existing geological
model.
The confirmatory exploration programme was undertaken using international, industry best practise standards
relating to the drilling, logging, sampling and assaying protocols. Data associated with the programme has been
accurately recorded by suitably qualified NOMC personnel and safely stored. The chain of custody has been
documented and correctly implemented to ensure sample security. The required QA/QC protocols were
implemented and the results assessed to confirm the reliability of the assay results obtained. Therefore, the
confirmatory drilling and sampling program results can be relied upon for use in geological modelling and
included into the estimation of Mineral Resources and Ore Reserves.
Although the confirmatory drilling for FMN, FME and FMS was not included in the geological model used in this
Feasibility Study Report, the results have been considered, both internally by NOMC and independently, in relation
to the 2023 geological model and no material differences in volume, density and grade for the mineralised zones
were identified. As a result, no update to Mineral Resources used in this Feasibility Study Report was required.
The confirmatory drilling at FM-Nab has been included in the latest geological model and used to update the
Mineral Resource released on 28 March 2025, and used in this Feasibility Study.
Importantly, the recent confirmatory drilling results have provided confidence in the accuracy and reliability of
the Newmont and GFSA drilling results and have confirmed their acceptability for use in the geological model,
Mineral Resource estimation, Feasibility Study, and Ore Reserve estimation.
Data acquisition, database management and security
In 2021, Orion purchased a substantial dataset from OCC, O'Okiep Australia (Pty) Limited and N7 Transport. The
dataset included scanned drill logs, plans and documents and a digital database of historical drilling results
compiled by Mr PJ Fourie. The Fourie database included many other prospects over and above those associated
with the FM Project. SAFTA validated this database for FMN, FME and FMS only, included the 11 twin drill holes
drilled by SAFTA in 2018. Further validation of historical drill hole data was carried out by NOMC in 2021 and 2022
which included data checking and corrections i.e. checking for overlaps, gaps, collar positions and erroneous
surveys. NOMC has ready access to all available historical hardcopy records including the following at the
Nababeep offices:
• geological logs, assay results and drill sections;
• geological, geophysical and mine plans; and
• geological, geophysical and mine reports.
NOMC is in the process of digitally capturing the remaining priority data from prospects outside the FM Project
area. SAFTA twin drill hole cores are also available in the core shed at the Nababeep offices.
The database used for the geological modelling and Mineral Resource estimates for FMN, FME and FMS included
all drilling data captured to October 2022. NOMC combined the drill hole data into a single Excel™ spreadsheet
(FMN FME FMS Drill Data.xlsx) which was provided to Z*. This file included the following five sheets: Collar (496
records), Survey (7,147 records), Geology (26,956 records), Assay (27,238 records) and SG (3,470 records).
NOMC's 2024 confirmatory drilling data for FMN, FME and FMS have been added to the Orion drilling database.
This database was used by NOMC to update the wireframes for each area in August 2024 and was provided to
Z* to review the impact of the drilling results on the 2023 Mineral Resource estimate.
The database used for the geological modelling and Mineral Resource estimates for FM-Nab included all drilling
data captured to November 2024. This database was used by NOMC to update the wireframes for FM-Nab in
December 2024. The database (FM-Nab Drill Data.xlsx) included the following five sheets: Collar (153 records),
Survey (381 records), Geology (1,694 records), Assay (2,357 records) and SG (371 records).
All data are currently stored in the DataShed (SQL Server) database on Orion's server. Database access is
password protected and is limited to competent personnel through granted permission levels in the database and
IT services. The Orion server is backed up automatically and regularly backed up.
Geological modelling and results
The geological modelling has provided volume, density and grade estimates which are considered sufficiently
robust to be relied on for the declaration of Mineral Resources according to international reporting codes. The
2024 confirmatory drilling has provided additional volume, density and grade results which have confirmed the
2023 geological models for FMN, FME and FMS, with no material differences having been identified. For FM-Nab
there has been a significant change in the geological interpretation which has been incorporated into the
updated Mineral Resource estimate reported in ASX/JSE release 28 March 2025. More importantly the results have
reconfirmed the reliability of the historical results where no records were available on sampling methodology,
sample security and QA/QC.
The geological modelling and associated estimations for FMN, FME and FMS were undertaken by Mr P Matthews,
Orion's CP, in association with Z*, with Z* assuming ultimate responsibility for the Mineral Resource estimation and
classification. The 2023 geological model was used for the purposes of mine planning for the Feasibility Study
undertaken by Sound Mining and for Ore Reserve estimation.
The geological model for FM-Nab had not been updated since 2021. The recent confirmatory drilling undertaken
in 2024 was included into an updated geological model and Mineral Resource estimate. The geological modelling
and associated estimations were undertaken by Mr P Matthews, Orion's Competent Person, and Mr Matthews has
assumed responsibility for the Mineral Resource estimation and classification for FM-Nab.
FMN, FME and FMS
The wireframing of the mineralised envelopes was undertaken by Mr P Matthews in late 2022. Mineralisation occurs
as lenses within and normally following the general trend of a broader mafic intrusive body. With the irregular
intrusive nature of the geology and mineralisation it was difficult to correlate individual lenses between drill holes
and in many cases modelling was only feasible by grouping the lenses into a broader mineralisation envelope. A
0.5% Cu cut-off grade was selected for the outer limit of the mineralisation envelope. Wireframing defined eight
MBs or domains with volumes. The domain definitions include portions of country rock waste which could, for the
most part, not be separated out into three dimensional volumes and were represented by assay data in the drill
core at 0% Cu. The wireframe volumes were depleted for the mined out areas at FMN.
These wireframe domains were provided to Z* for grade and density modelling. Each of the areas was treated
independently for estimation purposes despite the similarities in geology and copper mineralisation. Following the
initial exploratory data analysis FME MB1 and MB2 were combined as was FMN MB1 and MB2 and MB3. Although
part of the estimation process, the MB1 Pillar and MB2 Pillar domains at FME were considered as broader regions
of internal waste with a low copper grade, often comprising country rock lithologies and hence referred to as
pillars.
Estimation was carried out for both copper grades and density using the following general methodology:
• incorporation of the wireframe models for FME, FMN and FMS provided by NOMC;
• NOMC data (collars, assays and survey data) imported and de-surveyed using Datamine
StudioTM coupled with validation and selection of data to be used for the estimation;
• incorporation of the wireframe models for FME, FMN and FMS provided by NOMC;
• selection of samples within each estimation domain for analysis of the estimation variables, i.e.
Cu% and density (t/m3). Selection of samples was undertaken by Mr P Matthews to ensure
compatibility between GEOVIA® GEMSTM sample coordinates and the mineralised zone
locations. This was undertaken to ensure no inconsistencies occurred between downhole de-
survey techniques used in different software packages;
• exploratory data analysis (EDA), including capping and compositing where necessary;
• creation of an appropriate block model for each area;
• spatial analysis and variogram modelling of estimation variables where possible;
• assigning local variogram and neighbourhood rotations to each block as appropriate. None of
the orebodies is tabular and as a result significant changes in dip were considered;
• estimation neighbourhood analysis using a dynamically rotated neighbourhood. This was an
iterative process which also provided a suitable method of validating the estimates;
• generation of local block estimates using Ordinary kriging (OK) where possible. OK is a robust
technique that typically results in the lowest error variance associated with grade estimates;
and
• validation of the local block estimates including examining possible changes to the
variography and/or neighbourhood.
The methodology was applied to each of the areas separately, with the FM Project block models created
independently of one another.
The twinning analysis undertaken by Z* to compare the historical drill hole sampling and the SAFTA twin drill holes
identified that there was no need to make a distinction between these samples for estimation purposes. Therefore,
the samples were combined with the historical data to form a single data set.
Salient features of the FMN modelling by Z* included:
• two mineralised domains (FMN MB1 and FMN MB2+MB3) within the mafic unit defined by the
mineralised zone cut-off of 0.7% Cu;
• grade capping of three samples at 11.79% Cu;
• 2m grade sample composite length for all mineralised domains;
• block model with no rotation;
• block size of X=30m, Y= 30m and Z= 8m;
• copper content estimation within blocks included a spatial analysis, variogram modelling
followed by a neighbourhood analysis using ordinary kriging (OK) and local block estimation;
• density capping of three high samples at 3.17t/m3 and two low samples at 2.79t/m 3; and
• density estimation within blocks included a spatial analysis, variogram modelling followed by a
neighbourhood analysis and local block estimation.
Salient features of the FME modelling by Z* included:
• three mineralised domains (FME MB1, FME MB2 and FME MBW) with higher copper grade and
two pillars (FME MB1 Pillar, FME MB2 Pillar) comprising low grade material were delineated at
the mineralised zone defined cut-off of 0.7% Cu;
• pillars are internal waste within the mineralised domains and typically comprised of country
rock. Although each pillar was wireframed and modelled separately for grade, density and
tonnage by Z*, these do not form part of the Mineral Resource estimate. The pillar volumes were
subtracted from the MB volumes for the purposes of Mineral Resource estimation;
• grade capping of five samples at 11.62% Cu in FME MB1 and a single value at 2.16% Cu for FME
MBW;
• 2m grade sample composite lengths for all mineralised domains;
• block model with rotation X=-38° and Z=-20°;
• block size of X=30m, Y= 8m and Z= 30m;
• the copper content of blocks in the FME MB1 + MB2 domains consisted of a spatial analysis,
variogram modelling, a neighbourhood analysis (and validation) using quantitative kriging
neighbour analysis (QKNA) and local block estimation;
• no clear spatial relationship between samples was observed for FME MBW. Therefore, inverse
distance weighting (IDW) approach was utilised. This method was finalised after testing multiple
exponents including orientating the search neighbourhood (similar to that used for the density
estimate);
• no density data were available for the FME MB1 + MB2 domains. As the host lithologies for FME
are the same as those of FMN, Z* elected to use these lithologies densities as a proxy. The
average density per host lithology in FMN was applied to the logged FME MB1 + MB2 lithologies.
To estimate density values for the FME MB1 and MB2 blocks an inverse distance squared
technique was applied using the results applied by lithology; and
• density measurements (N=43) were available FME MBW. A local block estimate was calculated
using an inverse distance squared weighting methodology.
Salient features of the FMS modeming by Z* included:
• a single estimation domain (FMS MB1) within a steeply dipping mafic zone defined at a cut-off
of 0.7% Cu;
• no grade capping was deemed necessary;
• 1.5m grade sample composite length;
• block model with rotation X=-10°;
• block size of X=30m, Y= 6m and Z= 30m;
• copper content estimation within blocks included a spatial analysis, variogram modelling
followed by a neighbourhood analysis using OK and local block estimation;
• a multi-pass approach after the initial kriging run was devised to populate the blocks at depth
which were edge effects were noted; and
• the IDW approach was utilised to estimate the densities into the blocks, with the copper
variogram ranges being used to establish the size of the neighbourhood.
Additional drilling results
As noted previously, although confirmatory drilling was undertaken by NOMC in 2024, the 2023 geological model
and associated 2023 Mineral Resource estimate were not updated due to no material changes being identified.
NOMC and Z* reviewed the confirmatory drilling results in relation to the 2023 geological model, in terms of volume,
density and grade to confirm that no material changes to the geological model (and the resultant 2023 Mineral
Resource estimate) would have occurred had the additional drill holes been included.
More specifically, NOMC included the confirmatory drilling assay results in the 2023 geological model, updated
the wireframes for a 0.5%Cu cut-off, and compared the resultant 2024 geological model wireframe volumes to
those generated in 2023. This was carried out for each deposit. The volume difference for the FM Project was a
decrease of <1%.
Both NOMC and Z* concluded that the 2024 drilling and sampling results did not differ significantly from historical
data. It is Z*'s view that the addition of the latest data would not significantly impact the 2023 FMN, FME and FMS
Mineral Resource estimates and that changes would be marginal and only on a local scale, i.e. the overall metal
content was unlikely to be materially impacted. The confirmatory drilling further supports the decision to include
the historical drilling information in the 2023 Mineral Resource estimation.
FM-Nab
Although various previous interpretations and mineral resource estimates had been completed, there was
ongoing uncertainty regarding the validity of the data, primarily relating to significant changes in the geology and
copper grades over short distances. However, on thorough checking of the data in 2022, no significant errors were
identified but with the some of the data dating back as far of the 1940s, accuracy and transposition errors were
considered a risk.
Confirmation drilling was deemed necessary to validate the historical data and was undertaken in 2024. The
database used for the geological modelling and Mineral Resource estimation for FM-Nab included all drilling data
captured to November 2024. Geology and intersections for the confirmatory drill holes were plotted and viewed,
section by section, with the historical drill hole data. The recent drill hole intersections corresponded well with the
historical drilling data for most sections in the deposit.
Salient features of the FM-Nab modeming by NOMC (Mr Matthews) included:
• three mineralised domains or zones (main, west and east) were defined at a cut-off of 0.5% Cu;
• grade capping at 10% Cu was applied, in line with Mineral Resource estimations carried out for
FMN, FME and FMS;
• no capping was applied to density;
• density values for all historical drill holes were applied by proxy using the average density by
lithology from FM-Nab, FMN, FME and FMS;
• all samples composited to 1m;
• block model with no rotation;
• block size of X=2m, Y= 2m and Z= 2m;
• grade estimation into each block was undertaken using the inverse distance squared (ID2)
method of interpolation; and
• historical development drives and stopes were modelled and excluded from the volume and
grade estimates.
Mineral Resource estimates
Orion reported Mineral Resource estimates for FMN, FME and FMS in accordance with JORC (2012) in February
2021. This was based on the SAFTA Mineral Resource after Orion had performed their own verification of the
historical drilling results and SAFTA modelling. The 2021 Mineral Resource estimate incorporated the drilling
database including the results of 235 surface and 17 underground drill holes totalling 43,413m of drilling at FMN, 80
surface holes (32,750m) at FMS and 151 surface holes (51,414m) at FME. Mineralised zones for all three deposits
(FMN, FME and FMS) were delineated by using a 0.7% Cu cut-off grade but for many areas a cut-off grade of 0.5%
Cu (or lower) was used.
Orion reported a Mineral Resource estimate for FM-Nab in accordance with JORC (2012) on 29 March 2021. The
estimate was prepared by Dr Deon Vermaakt and reported in an internal Orion note for the record. The maiden
Mineral Resource estimate used 33 surface drill holes totalling 5,462m at FM-Nab and applied a 0.7% Cu cut-off
grade.
Orion issued an updated Mineral Resource estimate for FMN, FME and FMS in accordance with the JORC Code
(2012) in August 2023. An updated Mineral Resource estimate for FM-Nab is released concurrent with this
announcement on 28 March 2025. These represent the current Mineral Resource estimates for the FM Project
(Table 5) that formed the basis of the Feasibility Study reported herein.
Table 5: Summary FM Project Mineral Resource estimates (Inclusive of Ore Reserves).
Cut off Grade Contained
Location Date Classification Tonnes
% Cu % Cu Copper (t)
Measured 440,000 1.13 5,000
28 August
FMN 0.7 Indicated 940,000 1.42 13,000
2023
Inferred 200,000 1.5 4,000
Total FMN 1,600,000 1.3 22,000
Measured --- --- ---
28 August
FME 0.7 Indicated 3,400,000 1.37 47,000
2023
Inferred 1,000,000 1.0 9,000
Total FME 4,400,000 1.3 56,000
Measured --- --- ---
28 August
FMS 0.7 Indicated 2,600,000 1.35 35,000
2023
Inferred 800,000 1.6 13,000
Total FMS 3,400,000 1.4 48,000
Measured --- --- ---
FM-Nab 28 March 2025 0.5 Indicated 300,000 1.07 3,000
Inferred 300,000 1.0 3,000
Total FM-Nab 600,000 1.0 6,000
Total FM Project 10,000,000 1.3 132,000
Notes: Measured and Indicated tonnes rounded to two significant figures, copper grade rounded to two
decimal places. Inferred tonnes rounded to one significant figure, copper grades rounded to one decimal
places. All copper content tonnes rounded to the nearest thousand. Totals may not tally due to rounding.
Reported in accordance with the JORC Code (2012) in Source: Z* (2023), ASX/JSE-20230828, Matthews
(2024b). Refer ASX/JSE release 28 March 2025.
The current Mineral Resource estimate for FM-Nab was compiled and signed off by Mr Paul Matthews (dated 28
March 2025).
The reader is to note that in the case of the FM Project, the lithological model does not directly impact the
mineralised component of the estimation domains within the mafic zone. Mineralisation wireframes are based on
copper assay values with due consideration given to lithological logs and geological interpretations. No
extrapolation was carried out beyond the 0.5% Cu cut-off wireframes prepared by NOMC.
Reasonable prospects for eventual economic extraction (RPEEE) were demonstrated for the various FM Project
areas through the results of this Feasibility Study and the declaration of Ore Reserves.
Classification of the FME, FMN, FMS and FM-Nab Mineral Resource estimates was undertaken in accordance with
the JORC Code (2012). The location of the classified Mineral Resources, per mining area, are presented in Figure
11.
Figure 11: FM Project - Schematic showing location and classification Mineral Resources.
Although each of the FM areas was classified independently, the same approach was followed for each , with
classification taking cognisance of the uncertainty associated with the following key parameters:
• geological model on a regional and local scale;
• reliability of data obtained from drilling and sample programmes, including the confidence in
historical data where supporting documentation was lacking (e.g. QA/QC, drill hole logs, etc.);
• estimation of volumes utilising the defined estimation domains, i.e. the wireframe models;
• confidence associated with Cu% and density (t/m3) estimates; and
• historically mined out areas.
The FM Project Mineral Resources are classified as Measured (4% by contained copper), Indicated (74%) and
Inferred (22%). The FM Project comprises a total Mineral Resource estimate of 10.00Mt at an average grade of
1.32% Cu amounting to ~132,00t of contained copper.
Grade tonnage curves (Figure 12) provide an indication of the sensitivity of the Mineral Resources to changes in
the cut-off grade and have been provided for each of the FM Project areas for the combined Mineral Resource
(Measured, Indicated and Inferred). FMN and FM-Nab have significantly less mineralised rock tonnes when
compared to FME and FMS. FMN has a lower range of grades and is therefore less sensitive to changes of the cut-
off grade than FME and FMS. FME and FMS show similar sensitivities to changes in the cut-off grade. FME, with the
largest associated tonnage, shows the largest sensitivity to rock tonnes and contained copper tonnes with a
change in cut-off grade. FM-Nab shows a significant decrease in tonnage above the 0.5% Cu cut-off.
Figure 12: FM Project - Grade tonnage curves for Mineral Resource rock tonnes.
Geohydrology (ground water)
Geohydrological studies involve the determination of the characteristics and conditions of the groundwater.
Information on the groundwater is gathered from existing water boreholes or water sources identified during a
hydrocensus of the surrounding area. This information is included into a groundwater model which predicts
groundwater volumes and flow rates. The importance of groundwater studies is to identify the impact of mining
on the groundwater conditions (both physical and chemical) and to determine the dewatering requirements of
the underground mining operation.
A detailed geohydrological study was completed as part of the requirements of the IWUL application for the FM
Project by Irene Lea Environmental & Hydrogeology (iLEH) and various subcontractors. After an initial desktop
Page 32 of 144
assessment, a fieldwork programme was completed to characterise the aquifer associated with the FM Project.
This included a hydrocensus, geophysical surveys, drilling of 14 dedicated percussion monitoring boreholes, drilling
of seven RC boreholes around the TSF footprint, aquifer testing as well as groundwater, surface water and existing
mine water sampling and analysis. Thereafter a numerical groundwater flow and contaminant transport model
was constructed to assess the impact of the proposed FM Project.
The FM Project geohydrology is strongly controlled by the geological setting. Groundwater occurrence is mainly
associated with fracture and fault zones as well as the presence of alluvium. Of specific importance is the presence
of a regional north-south striking breccia fault, referred to as the Flat Mines Fault. This fault is regionally associated
with stronger groundwater yields and is targeted for groundwater supply. Groundwater will provide potable water
and process make-up water for the FM Project. Also present are east-west striking fractures, some of which are
water bearing. Unfractured granite has a low permeability and does not transmit groundwater significantly.
Recharge to the water bearing fault and fracture zones is thought to be associated with runoff from granite
outcrops that is stored in alluvial material as well as the presence of surface water which recharges to the
underlying fractured aquifers. Regionally, groundwater flow is in a westerly direction.
During the assessment, impacts associated with underground mining, stockpiling of ROM material and waste,
processing activities and the deposition of tailings on a TSF were evaluated.
The zone of impact of groundwater abstraction for the FM Project were assessed as follows:
• in unfractured granite, the cone of depression in groundwater levels due to mine dewatering is
unlikely to extend more than 300m from the mining areas;
• along fracture zones, the cone of depression extends significantly further from the mining area,
up to 1,200m from deeper mining areas like FMS and FME;
• immediately above the underground workings, groundwater levels may be drawn down by
more than 80m. The cone of depression is however likely to be narrow, thus restricting the zone
of influence;
• in the deeper mining areas, the zone of impact on groundwater levels is unlikely to extend
further than 200m in unfractured granite. Along fractures, the drawdown cone may extend up
to 800m from the mining areas; and
none of the private boreholes identified during the hydrocensus fall within the delineated zone
of impact on groundwater levels.
The numerical model was used to estimate the expected dewatering volumes at three mining areas:
• groundwater seepage rates to the FMN underground workings are expected to increase from
around 7,400m3/a to ~15,000m3/a. Seepage rates are expected to reduce to around
13,000m3/a towards the end of mining in this area;
• underground seepage rates to the FME mining area could be as high as 19,000m 3/a during the
development and early stages of stoping but is expected to decrease to ~7,000m 3/a toward
the end of mining; and
• during development, seepage rates to the FMS underground workings are expected to be
<13,000m3/a, but could increase to <24,000m3/a when deeper areas are mined.
The rest water level in the existing historical FMN underground workings is approximately 80m below surface. This
suggests that the risk of decant from the underground workings is low. Underground mining will take place at
depths greater than 100m below surface. Under these conditions, no subsidence to surface is expected from the
underground workings. Unless large scale pillar extraction is undertaken, the risk of decant from the underground
workings will remain low in the long-term.
The results of the water monitoring programme, as well as a detailed geochemical study, were used to identify
the potential contaminants to groundwater. Results indicated that sulphate is the most dominant anion,
specifically associated with historical and existing impacts. The field data and geochemical testwork results
indicated that groundwater associated with the historical evaporation paddocks and the historical evaporation
pond were most severely impacted. In these areas sulphate concentrations in groundwater exceed 20,000mg/l
and pH conditions were extremely acidic. In comparison, ambient groundwater had sulphate concentrations of
less than 250mg/l. The available monitoring information suggested that the Water Shaft, mine voids and
underground workings were also existing sources to groundwater contamination. The planned residue deposition
in the TSF, backfilling of tailings into the underground workings and the storage of dirty water in lined facilities on
surface will also contribute to the groundwater sources of contaminants.
The tailings material was classified as a Type 3 waste in terms of prevailing legislation. The TSF footprint area is
underlain by historical evaporation paddocks and an evaporation pond used during tungsten mining undertaken
during the 1940s. Geochemical analysis of the evaporation paddock material confirms that it is also classified as
a Type 3 waste. Wet material from the historical evaporation pond, however, poses the most significant risk to
groundwater contamination. Geochemical analysis of this material indicates that it is highly soluble and poses a
high risk of acidification. Groundwater monitoring results confirm that significant contamination has already taken
place at and down gradient of the paddocks.
The TSF footprint is underlain by four fracture zones, two of which are water-bearing and considered preferential
flow paths to groundwater. The presence of these preferential flow paths, as well as the impact of historical
groundwater contamination, was taken into consideration during TSF design. The mitigating measures will include:
• double lining the fracture zones over a width of 15m along the length of the fracture zones to
ensure that variations in the width of the fractures are taken into consideration in the design;
and
• the historical evaporation pond material will be completely removed prior to TSF construction
and stored away from the TSF footprint in a suitably lined facility.
The impact assessment indicated that, under optimal design and operation, the preferred alternative TSF design
was not likely to result in significant negative impact on groundwater quality. In fact, the removal of the
evaporation pond material and deposition of the TSF will be significantly beneficial to the groundwater quality of
the area. In addition, the impact of the dewatering and pumping associated with the FM Project on the
groundwater levels will not be significant for the existing users.
Hydrology (surface water)
The surface water study was conducted by Peens & Associates Civil Engineering and Training Consultants (Pty)
Limited (Peens) in 2023. This included an assessment of the surface hydrology, flood hydrology, surface water
quality, geochemical assessment of the historical evaporation paddocks and pond, and storm water
management around the TSF and process plant.
The FM Project is in the F30E quaternary catchment of the Lower Orange River water management area which
drains in a westerly direction towards the Atlantic Ocean. There are three non-perennial watercourses in the FM
Project area that drain into a single tributary of the Buffel River, which ultimately discharges into the Atlantic
Ocean. Surface water only accumulates in drainage channels after good rains, resulting in the streams being non
perennial for long periods of time.
The FM Project is located within an area characterised by low rainfall and high evaporation rates. As a result, the
few drainages present are all non-perennial. Three catchment areas were identified which drain the MR area and
these were quantified according to catchment area, both before and after the construction of the FM Project
related infrastructure, and runoff volumes to determine the peak flood events and associated volumes of water.
The revised stormwater management included the design of two rip-rap channels and two diversion berms. A
total of five culverts are required, three to be upgraded using the existing ones. All dirty water will be collected in
the ROWD. This will also receive water from the TSF toe drains and excess water from FME and FMS. No pollution
control dams, nor silt retention dams are required due to the arid climate and very low annual rainfall.
The assessed impact of the FM Project on the size of the catchments was negligible (<5%) and on surface water
quality was rated to be low to medium.
The outcome of the geochemical classification of the paddock material based on nett acid generation
characteristics was uncertain, with the nett acid production potential of the material most likely being over
estimation. As a result, the risk of acid formation from the paddock material was very low. This material was
classified as a Type 3 waste.
In the case of the pond material, elements of concern identified as part of the waste classification process
included manganese and to a lesser extent nickel. On this basis, the pond material was classified as a Type 1
waste.
Geotechnical investigations for mining
The latest geotechnical study, undertaken by Dayenu, has informed the current mine design, the LOM plan and
the Ore Reserve estimate and is based on the confirmatory drilling specifically undertaken for geotechnical
purposes in 2024 and the previous SAFTA drilling results - a total of 31 holes geotechnically logged by the Orion
team. Of these, 11 holes were drilled as part of the SAFTA twin drilling programme and the remaining 12 holes were
part of Orion's 2024 confirmatory programme. Eight additional drill holes were since completed and
geotechnically logged with the primary focus on the FM-Nab mining area.
Geotechnical tests undertaken on rock samples included uniaxial compressive strength (UCS), tensile strength
testing (UTB), triaxial strength testing (TCS), base frictional tests BFA, and shear strength of joints. These provided
sufficient data for input into Rocscience's RSDATA software to quantify the strength and shear properties of the
rock.
Copper mineralisation is found across various rock types, including granites, norites and anorthosites. Due to the
complexity of distinguishing between the mineralised material and host rock, as mineralisation was noted across
all material types, the geotechnical data was divided into two domains: the host rock and the mineralised zone.
The variability within the rock mass was well supported by the extensive dataset. The rock mass rating (RMR),
geological strength index (GSI), and rock quality designation (RQD) values exhibited low variability within each
rock material domain. The Q and Q' values for both the host rock and mineralised zones showed significant
standard deviation when analysed using conventional statistical methods. Therefore, cumulative distribution
curves were created for both domains. It was observed that only a few data points fell below the 20th percentile
of the Q and Q' values. Consequently, the decision was made to use the 20 th percentile to determine the stability
number (N') and for the stope designs.
It is important to note that 80% of the rock mass within both the host rock and mineralised domains is of higher
quality than the 20th percentile used in stope span designs. In general, the rock mass conditions are of very good
quality with limited structures and weak zones.
The use of the VCR method allows for increased stope spans compared to conventional open stoping methods.
VCR is a variation of shrinkage stoping that provides support to the hangingwall, footwall, and endwalls, thus
minimising exposure. A critical factor for the VCR method is the stability of the crown, which necessitates the use
of a supported crown and hence provides an increased critical hydraulic radius.
An undercut is necessary to facilitate the loading of blasted ore. In areas with significant spans, a semi-room-and-
pillar layout is recommended to ensure safe undercut development. The room widths are designed to
accommodate the swell from blasting the stope block and the pillars during undercutting.
Pillar dimensions range between 10m and 24m and have been designed using a minimum safety factor of 1.4.
In general, FME has a narrower mineralised zone compared to FMN. The stope spans for both mines were
individually assessed. Uncemented hydraulic backfill will be used after the removal of blasted material in most
stoping areas. A cemented hydraulic backfill design is also proposed. The freestanding strength of the backfill
ranges from 340kPa to 710kPa for stope heights of 15m to 40m, respectively.
Considering the complex requirements related to tailings storage, pumping, and stope design, it is recommended
that:
• a combination of backfill types be used at the FM Project;
• cemented backfill should be applied adjacent to pillars to facilitate future pillar retrieval;
• in areas with larger spans, a cemented fill should be placed at the centre of these blocks, requiring
the mining of a primary block followed by backfilling and curing; and
• high strength backfill should be used in areas requiring undermining of the stope or where two mining
fronts are planned.
Empirical methods were used to design the primary support requirements, and following discussions with the on
site mining teams, end anchored rock studs were recommended. These studs should have a minimum ultimate
tensile strength of 15t. The primary support spacing and lengths were calculated for all planned primary
development, including drill drives and undercut development.
Stope analysis and design have been completed for FMN and FME, as these stopes have been designed and
scheduled, providing a clear understanding of stope widths and design parameters.
Eight new drill holes were drilled at FM-Nab and were geotechnically logged in order to obtain geotechnical
engineering parameters required to derive rock mass quality indices. The existing geotechnical database was
updated using the new core logging data, and four spatially representative boreholes were selected for use in
conducting stable span analyses.
The integration of data from the three areas, along with additional drill holes at FM-Nab, provided adequate
information for a Feasibility level geotechnical study for all four mining areas. Additional testing to further detail the
material properties, complemented by an overarching site visit by Dayenu, provided sufficient confidence for a
Feasibility level of study.
A total of 31 geotechnical drill holes were completed in the FM Project area: FMN (12), FME (4), FM-Nab (8) and
FMS (5). Significant data was obtained from drilling at FMN, and combining this data helped account for variability
in both FMN and FME during the design process. While specific data for FME was limited (4 drill holes) at the time
of reporting, the risk was mitigated by integrating the geotechnical data due to the similar composition of
materials and rock types.
No significant geotechnical risks were identified in the study.
Optimisation, mine design, scheduling and costing
The optimisation, mine design, scheduling and costing was undertaken by Sound Mining under the direction of
JHK during the latter part of 2024 and first quarter of 2025. The planned development of the FM Project is based
on an owner operator model managed using a phased approach. The mine development and production build-
up are planned to commence with the FMN decline using its existing mine infrastructure (Phase 1). The
development of the FME portal and twin decline with conveyor is planned to commence once the critical path
development to the ventilation shafts is in place at FMN (Phase 2). The development of the FMS and FM-Nab is
planned from a shared portal and twin decline located approximately 275m north of the FM-Nab surface exposure
at the FM-Nab location to reduce the amount of development. FM-Nab is a small low-grade deposit close to
surface which is planned to fill the production gap prior to commencing production at FMS. The location of the
mining areas in relation to each other and the surface infrastructure is presented in Figure 6.
FMN
The isometric view of the FMN mine layout is presented in Figure 13 and illustrates the development required to
access the orebody. The FMN section is separated into three mining sections (Upper Mine, Central Mine and Lower
Mine) defined by the mineralised body geometry. The planned workings will extend to a maximum depth of 215m
below surface.
Figure 13: FM Project - Isometric views of the mining layouts.
Existing mine development is included in the mine design to provide access to the Upper Mine Zone. Decline
development is designed to access the Central and Lower Mine areas from the Upper Mine production level. This
decline provides the primary ventilation intake airway and access for men and materials and hauling of ore and
waste. Two existing ventilation upcast shafts will serve as ventilation outlets while the deeper development
continues. LOM twin ventilation return airways are planned via two new 2.4m diameter raise boreholes (RBH). The
planned development required to mine FMN, including total stoping and development tonnages is presented in
Table 6.
The FMN mine design yielded total ROM of approximately 1.5Mt for early production at a rate of 30ktpm. The
development follows the undulation of the mineralisation. No provision is made for any ore passes hence rock will
be loaded by load haul dumpers (LHDs) directly into trucks in loading bays located near the draw points.
Table 6: FM Project – Design production results.
Description Unit FMN FME FM-Nab FMS Total
Total development m 8,809 20,076 1,433 24,792 55,110
On-reef development m 2,178 4,543 118 5,889 12,728
Waste development m 5,912 13,428 1,226 16,001 36,567
Vertical development m 720 2,104 89 2,902 5,816
Total waste development conveyed
t 415,700 764,364 107,929 1,108,924 2,396,917
and/or trucked to surface
Total on-reef development hoisted t 129,335 429,609 4,312 274,632 837,888
Total stope tonnes reporting to plant t 1,260,263 2,391,999 206,425 1,576,563 5,435,250
Total pillar tonnes reporting to plant t 90,223 163,813 658,556 912,591
Total ROM reporting to plant t 1,479,821 2,985,421 210,737 2,509,750 7,185,728
Metal reporting to plant % Cu 1.04% 1.17% 0.89% 1.32% 1.19%
Metal reporting to plant t 15,399 34,794 1,874 33,205 85,272
Stope metal grade reporting to plant % Cu 1.08% 1.21% 0.88% 1.30% 1.19%
Stope metal reporting to plant t 13,614 29,008 1,814 20,498 64,933
Pillar metal head grade % Cu 0.91% 0.96% 0.00% 1.44% 1.30%
Pillar metal reporting to plant t 820 1,574 9,491 11,886
On-reef development head grade % Cu 0.75% 0.98% 1.39% 1.17% 1.01%
On reef development ROM reporting
to plant t 965 4,212 60 3,217 8,454
FME
FME has no existing development in place. The FME deposit and the plant area are separated by a 320m high
ridge with no direct surface access between the two areas (Figure 6). The planned layout consists of a twin decline
developed from a surface portal. The twin decline will be equipped with a conveyor and an adjacent service
road providing access to the surface for all ore, men and material logistics. After completion of the primary
development and installation of an underground crusher and conveyor, all ore and waste rock will be conveyed
to surface. The planned development required to mine FME, including total stoping and development tonnages
is presented in Table 6. The infrastructure is planned to access the bottom of the known mineralisation for bottom-
up stoping.
Two RBHs are to be reamed from surface above the workings to provide the additional intake and return
ventilation requirements for FME (Figure 6). The locations of the RBHs have been selected at sites accessible by
existing tracks on the eastern side of the mountain where the Mineral Resource projects to surface.
The portal is planned in a readily accessible area in the valley southeast and approximately 2km from the
processing plant, on the plant side of the mountain and from there the conveyor decline accesses the deepest
point of the deposit at an inclination of 7° below the horizontal. This is the shortest connection to the Mineral
Resource as any surface access or a portal located on the opposite side of the mountain would result in a longer
and difficult access route. The portal is planned to be blasted and excavated in two cuts. The portal will be
supported with mesh, rock bolts, cable anchors and shotcrete and equipped with bulk water, power, compressed
air and ventilation services.
Minimal ROM ore trucking is envisaged on the levels as rock will be transported on the loading levels to the ore
pass system using LHDs. The ore pass system will feed the crusher installed on an interlevel above the conveyor
decline below the lowest level of FME. Crushed material will then be fed onto the conveyor and conveyed to an
ore-bin at the portal on surface, and from there, overland by truck to the plant.
Ore passes above and below the crusher will provide surge capacity between the LHD tipping operation, the
crusher and the conveyor system to ensure the system provides buffer capacity and does not cause LHD waiting
time. The crusher chamber and the bottom of the conveyor decline are connected directly to the main return
airway, so that dust or, in the unlikely event of a fire, smoke can be prevented from entering the workings.
The FME mineralised body is a wide zone with multiple low-grade areas separating high grade lenses on strike. This
results in several parallel stopes and associated reef drives. The FME design yields a waste to ore to waste ratio of
26%.
FM-Nab and FMS
The isometric layout for the combined FM-Nab and FMS access is presented in Figure 13. The main mining block
for FM-Nab daylights and will be drilled and blasted from surface but the ore will be loaded from the drawpoints
underground. The final void will be backfilled with waste from surface. Additional Indicated ore above the cut-off
is mined underground below the surface block and not backfilled. The workings will extend to a maximum depth
of 100m below surface.
The twin decline planned to access both FM-Nab and FMS provides primary intake ventilation and access for men
and materials and hauling of ore and waste. Twin ventilation return airways are provided via two 2.4m diameter
raise bore holes. The FM-Nab design yields a waste to ore ratio of 51%.
The excavation of the shared portal for FM-Nab and FMS are planned as three blasts. Similar to FME the portal will
be excavated and supported with mesh, rockbolts, cable anchors and shotcrete and equipped with bulk water,
power, compressed air and ventilation services.
The FMS mineralised body is naturally divided into Upper and Lower mining areas defined by Mineral Resource
geometry. The planned workings of the lower deposit extend to a depth of 615m below surface. There is no existing
development at FMS. The planned access is the same as FME using a twin decline from a surface boxcut and
portals to access the bottom of the Upper mining area.
Ore and waste from FMS is planned to be truck hauled to the surface portal area. Surface trucks will then transport
ore to the processing plant and waste rock to the TSF embankment. The FMS will be serviced by a twin decline to
enhance the intake ventilation capacity to the workings. The installation of an underground crusher and conveyor
system similar to FME was considered, but the trucking option was included in the study to minimise capital cost
and time for the development of the access to FMS. Should additional resources be proven by exploration drilling,
the crushing and conveyor option could be revsited as the twin decline could accommodate this. 2 x RBHs provide
the return ventilation requirements for the workings.
The steeply dipping nature of the Mineral Resource does not allow simultaneous mining of both sections (i.e. Upper
mine and Lower mine). The twin decline will access the Upper mine first and establish production while
development of the decline continues downdip to access the Lower mine for extraction.
Due to the relatively narrow nature of the FMS orebody, the bulk of the stoping is done in stope widths <10m which
is amenable to longitudinal long hole stoping. The thicker mining areas >10m will be mined using VCR mining
method similar to FME. Backfill as classified tailings is planned to be pumped overland from the processing plant
to boreholes feeding directly into the Upper and Lower mining areas.
Ore will be loaded by LHDs into trucks and trucked out the mine. As mining progresses deeper, trucking distances
and associated costs will increase.
The FMS design yields a waste to ore ratio of 44%. The waste to ore ratio is high due to the development
requirements to accommodate the relatively thin steep dipping nature of the orebody.
Mineral Resource considerations
The Mineral Resource geometries are presented in Table 7 and demonstrate the range of dimensions and dips
found across the wider proposed mining areas. The Datamine TM Mineable Stope Optimiser (MSO) was used to
establish mineable shapes for the mine planning and optimisation.
Table 7: FM Project - Dimensions of the Mineral Resource extract used for the mining study.
Description Unit FMN FME FM-Nab FMS
Mineral Resource dip range ° 0 - 10 50 - 75 80 80
Mineral Resource thickness range m 15 - 50 20 - 40 5 - 30 5 - 30
Mineral Resource strike length m 790 300 200 395
Mineral Resource depth - downdip m 340 205 150 480
Mineral Resource upper limit mbsl Surface 140 Surface 135
Mineral Resource lower limit mbsl 250 322 80 615
The reader should note that the various cut-offs were estimated at the start of the mine planning phase. In the case
of the copper price, the cut-offs were based on analyst long term real copper price consensus and ignored higher
prices in the short term forecasts.
ROM cut-off grade estimation methodology
The FM Project Feasibility Study uses a breakeven grade as a cut-off grade to determine the volume of ROM ore
available for mine planning purposes. From the Mineral Resource modelling work and the MSO study, increasing
the cut-off grade above the 0.7% Cu breakeven grade results in a significant reduction in total mineable volume
of potential ore with increased complexity of stope shapes generated by the MSO process.
The cut-off grade used for the mine planning of FMN and FME is 0.7% Cu based on previous costing (Sound Mining,
2023). A 0.8% Cu cut-off grade is calculated for FMS (Table 8) based on recent costing which accommodates the
increased depth of mining. Based on the same logic, a marginal cut-off of 0.6% Cu was used for all mining blocks
below the cut-off grade between the payable blocks with shared development and for FM-Nab, which is close
to surface and used as supplementary tonnage in the LOM plan to the process plant.
Table 8: FMS / FM-Nab - Cut-off grade calculation.
Cost and revenue parameters Units Value
On-mine direct production costs (C1) ZAR/ROM t 932.0
General & admin (G&A) ZAR/ROM t 87.0
Royalty (average) ZAR/ROM t 75.2
Stay in business (SIB) capex ZAR/ROM t 92.0
All-in-sustaining costs ZAR/ROM t 1,186.2
All-in-sustaining costs - ex G&A ZAR/ROM t 1,099.2
Total direct mining & processing cost ZAR/ROM t 1,186.2
Exchange rate (ZAR conversion to USD) ZAR:USD 18.90
Total direct mining & processing cost USD/ROM t 62.8
Cu price USD/ t 9,369
Cu net smelter return (NSR) % 93.70%
Net Cu price received USD/ROM t 8,772
Unplanned mining dilution % 2.00%
Cu plant recovery factor % 91.18%
Breakeven in situ Cu grade % 0.80%
The cut-off grade is based on the total direct cost of mining, processing and metal sales, including sustaining
capital, but excluding overheads and project capital. In arriving at the break-even grade estimation strategy, the
following considerations were considered important:
• the direct production costs are based on the "Real terms financial analysis" and "Leased" scenario
selection in the financial model hence capital for mining equipment is largely transferred to
operating costs;
• the general & administration (G&A) overhead costs were excluded from the cut-off grade
calculation;
• the processing recovery in the breakeven calculation excludes ore sorting. The level of study work
for the ore sorting requires more detail and is considered to be at a concept level pending further
test work;
• the mining costs for the four FM Project deposits differ significantly due to the variation in
development requirements, owing to the differing depth below surface and geometry of the
respective Mineral Resources. An average LOM cost was used to calculate an average cut-off grade
for the FM Project. FMS, scheduled in the later years of the Project, has the highest unit mining cost
due to its depth and higher development required for the relatively narrow Mineral Resources;
• the electricity cost is from ESKOM supply only (via NKLM network and tariff) and excludes any 3rd
party power purchase agreement (PPA) which is being investigated;
• the planned (internal) dilution is catered for in the Datamine TM MSO design where rock outside the
Mineral Resource boundary may be included within economic stope shapes above the break-even
grade. Therefore, only unplanned dilution (outside of the designed stope – i.e. overbreak on stope
hanging wall and footwall) is added in the break-even estimation; and
• the marginal cut-off grade calculation excludes the mine development and fixed processing costs
cut-off.
Testwork indicates that the precious metal content in concentrates from FMN will realise additional credits but not
those from FMS concentrates. No values for gold or silver are included in the FM Project Mineral Resource which
may represent future upside. The net smelter return (NSR) calculation therefore excludes any gold or silver
revenues.
The marginal cut-off grade calculation is presented in Table 9.
Table 9: FMS / FM-Nab – Marginal cut-off grade calculation.
Cost and revenue parameters Units Value
On-mine direct production costs (C1) ZAR/ROM t 723.0
General & admin (G&A) ZAR/ROM t 87.0
State Mineral Royalty (average) ZAR/ROM t 75.2
Stay in business (SIB) capex ZAR/ROM t 92.0
All-in-sustaining costs ZAR/ROM t 977.2
All-in-sustaining costs - ex G&A ZAR/ROM t 890.2
Total direct mining & processing cost ZAR/ROM t 890.2
Exchange rate (ZAR conversion to USD) ZAR:USD 18.90
Total direct mining & processing cost USD/ROM t 47.1
Cu price USD/ t 9,369
Cu net smelter return (NSR) % 93.70%
Net Cu price received USD/ROM t 8,772
Unplanned mining dilution % 2.00%
Cu plant recovery factor % 91.18%
Marginal breakeven in situ Cu grade % 0.60%
Mineralisation (ore) determination
The MSO DatamineTM software was used to delineate the economic mineable blocks for mine planning. The
software identified and delineated the stope shapes at acceptable grades for the respective mine plans. Pillar
location and designs followed the MSO analyses to determine pillar design characteristics which satisfies both
geotechnical stability requirements and ensures minimal lockup of copper metal through the delineation of low-
grade mining areas below or close to the planned cut-off grade of 0.7% Cu. The final design ore tonnes and grade
for the FM Project based on the optimisation process are shown in Table 10.
Table 10: FM Project - Final design tonnage and grade from the optimisation process.
Parameter Units FMN FME FM-Nab FMS Total / avg
Ore tonnes Mt 1.5 3.0 0.3 2.4 7.2
Cu content t 15.4 33.8 2.1 31.0 82.3
Cu grade % Cu 1.04 1.17 0.75 1.30 1.14
Stope tonnes Mt 1.4 2.4 0.3 1.9 6.0
Stope Cu content t 14.6 29.0 2.1 25.1 70.8
Stope Cu grade % Cu 1.05 1.21 0.75 1.32 1.18
Pillar tonnes Mt 0.1 0.2 0.0 0.5 0.8
Pillar Cu content t 0.8 1.6 0.0 6.0 8.4
Pillar Cu grade % Cu 0.91 0.96 0.00 1.22 1.05
Production geology and grade control planning
The copper mineralisation in the FM Project occurs in mafic intrusives as irregular shaped lenses with the mining
cut-off often not a sharp contact but based on an economic grade cut-off. As a result, diamond core stope
delineation drilling is planned (i.e. core drilling during production) to define the economic limits of the
mineralisation. The objectives of the grade control drilling, with holes planned at a 20-25m spacing, are to:
• define the ore/waste contacts by grade control drilling and/or geological mapping;
• define the irregular shape (pinching and swelling) of the mineralisation to allow for accurate
stope design;
• minimise waste dilution during the mining process;
• facilitate the liaison between mine geologists and the mine planning section for short, medium
and long-term planning in optimising ore extraction;
• liaise with the plant operations to ensure that the grades and quality of material delivered to
the plant are within specification, and to reconcile plant production with actual mined and
resource model estimates;
• provide a performance indicator to feed back into resource estimation and grade control
modelling practices to improve estimation and modelling; and
• improve orebody understanding and knowledge.
The grade control system will determine the robustness of the geological block model once in the operational
phase, as mining plans including delineation of mineralisation types, grades and tonnages are generated from
that model. Monthly reconciliation between the mining and processing plant serves as a tool for monitoring the
performance of grade control and the Mineral Resource estimate in the entire mining value chain.
Mine design criteria
The parameters and criteria are based upon Sound Mining's input and historical knowledge of the area, with input
from NOMC and Orion. A summary of the mine design criteria and scheduling criteria applied to the FM Project in
the LOM schedule is summarised in Table 11.
Table 11: FM Project - Summary of mine design criteria.
Description Units FMN FME FM-Nab FMS
Primary waste development height m 5.0 4.5 4.5 4.5
Primary waste development width m 5.0 5.1 4.5 4.5
Waste development height m 5.0 4.3 4.5 4.5
Waste development width m 4.5 4.5 4.5 4.5
ROMon-reef development height m 5.0 4.3 4.5 4.3
ROMon reef development width m 4.5/8.0 6.0/8.0 4.5 4.5
Vertical development diameter (drop-raise) m 2.4 2.4 2.4 3.6
Gradient
Maximum development design gradient ° 9 9 9 9
Loading
Loading bay truck height m 6.2 6.2 6.2 6.2
Loading bay truck width m 4.5 4.5 4.5 4.5
Rates
Trackless development rate per rig m/month 180 180 180 180
Trackless development rate (max) m/month 80 80 80 80
Trackless development rate large end (max) m/month 60 65 60 60
Vertical development rate (raise bore)
m/month 30 30 30 30
average
Vertical development rate (drop raise) m/month 30 30 30 30
Production drill rig rate (152mm diameter) m/month 3,500 3,500 3,500 3,500
tpm
Stoping LHD loading rate 23,000 23,000 23,000 23,000
(hoisted)
tpm
Stoping trucking loading rate 10,000 10,000 10,000 10,000
(hoisted)
VCR drilling conversion 1 tpm 8 8 8 8
Backfill rate (required) m3/month 10,850 16,275 N/A N/A
Backfill rate (available without sorting) 2 m3/month 24,000 24,000 N/A N/A
Backfill rate (available with sorting) 2 m3/month 19,000 19,000 N/A N/A
Delays
Ventilation pass drilling start delay days 14 14 14 14
Slot cut start delay days 14 14 14 14
Stoping start delay days 0 0 30 42 to 60
Backfill construction delay days 7 14 N/A N/A
Backfill cure delay days 28 14-28 N/A N/A
Additions
Additional development overbreak % 7 7 7 7
Additional stoping dilution % 5 5 2 2
Pillar mining extraction factor % 50 50 N/A 50-66
Losses
Mining loss development % 3 3 3 3
Mining loss stoping % 5 7 7 7
Notes: 1 - Includes 10% re-drill, 2 - Refer to Section 20 (Backfilling) for specification. Sources: Sound Mining (2024)
The geotechnical criteria were used for mine planning based on the geotechnical modelling, calculations and
planning criteria. The primary support for the mine development excavations is 1.8m rock studs, which are
tensioned and post grouted for the main primary development. For the ore development due to temporary nature
of the excavations, the rock studs are tensioned only with no post grouting. The rock studs have a minimum
ultimate tensile strength of 15t. The primary support spacing and lengths were calculated for all planned primary
development, including drill drives and undercut development. The maximum allowable stoping spans (60m to
75m) were determined to be within the calculated critical hydraulic radius for all the FM Project mining areas. Rib
and sill pillars (20-30m) have been placed accordingly to constrain the mine design to the maximum allowable
spans. No historical mine reconciliations were available to verify the dilution modifying factor.
To estimate the expected dilution due to material qualities, the work of Papaioanou & Suorineni (2017) was
referenced, in which equivalent overbreak was measured, and dilution was calculated. For the FM Project, stability
numbers associated with the host rock material were superimposed on the stability graph developed by
Papaioanou & Suorineni to estimate expected dilution. Using this approach, the anticipated dilution for all
operations is expected to be less than 5%, with the highest dilution observed at FMS being approximately 2.5%.
The approximate production rates were applied for the various mining areas as follows; FMN (30ktpm), FME
(35ktpm), FM-Nab (10ktpm) and FMS (25ktpm). The rates were based on a maximum vertical drop-down rate of
50 vertical metres per annum and the strategy to optimise the designed plant capacity. The initial processing plant
design capacity of 32.5ktpm with one mill installed is to satisfy the initial tonnage requirements from FMN only. The
total design processing capacity with both mills and downstream float circuits installed is 65ktpm which is planned
to be in place when FME is in full production combined with FMN. Due to the additional development requirements
required for FMS, FM-Nab is used as a production gap filler as FMN winds down and FMS builds up.
Mining methodology
Historically, the VCR mining method was successfully practiced by OCC. This mining method is characterised by
its adaptability to different stope geometries. A key benefit for VCR mining methods is the ability to mine large
excavations leaving broken ore in the stopes as support as is the case in the shrinkage mining method. The VCR
method has been customised for application at FMN, FME, FM-Nab and FMS with the following guidelines:
• the VCR method is based on drilling rings of large diameter blast holes from an upper drill drive
down to an "undercut" on the loading level pre-developed below. For stope backs over 30m,
multiple drill drives are planned for a single drawpoint level (up to 90m stope backs are
possible);
• vertical intervals up to 30m between drill drives are planned throughout the stoping areas to
limit the blast hole lengths and ensure accuracy of drilling. The drill level spacings are influenced
by the geometry of the Mineral Resource to ensure maximum extraction of the ore;
• 152mm diameter blast holes are drilled down from the lowest drill drive, holing into the undercut
on the drawpoint level. Accommodating widths of up to 20m, rings will be drilled ranging from
1.8m to 2.4m burden and spacings along the drill drive; and
• once the extraction of mineralised material from a stope is complete, the stope void is filled
with deslimed tailings.
A schematic of the VCR mining method is presented in Figure 14.
Figure 14: Schematic of VCR mining method.
Equipment selection
The equipment selection is presented in Table 12, indicating the maximum number of machines required and their
deployment into the various mining areas.
Table 12: FM Project - Underground equipment selection.
Deployment
FM Project
FM- FMS FMS
Type Make Model max. no. FMN FME
Nab (U) (L)
Truck 30 t Epiroc MT 436 dump truck 10 5 2 2 5 7
Truck 20t PAUS ITC 10'000A 3 3 3 - 3 -
LHD 10t Epiroc ST1030 LHD 6 2 2 1 2 2
ITC continuous loader ITC ITC 120N Loader 1 1 1 - 1 -
Twin boom drill rig Epiroc Boomer 282 3 1 1 1 1 1
Single boom drill rig Epiroc Boomer 281 2 1 1 - 1 1
DU 311TSeries ITH
Longhole drill rig Sandvik 3 1 1 1 1 1
longhole drill
Charging unit Fermel LIB - Robotic charger 3 1 1 1 1 1
Grader Fermel 12t Grader 1 1 - - 1 1
LDV Fermel Maverick 8 3 3 1 3 3
Telehandler Manitou 733 with man basket 3 1 1 1 1 1
Notes: Deployment will be sequential as the various mining areas come on stream. Source: NOMC
Blasting design
The blasting design was on the FM Project was undertaken by Mr AJ Rorke in 2024 and updated in 2025 based on
the latest mine designs.
Development blasting is planned to make use of twin boom drill rig (Boomer 282) and single boom drill rig (Boomer
281) with 4.3m steel to drill an effective 4.0m length hole; expected advance is 3.8m per blast. The layout of the
drill holes will vary by excavation size. The main waste development declines are planned to be blasted with small
arches and smooth blasting. This is to ensure longevity of the tunnel through improved ground conditions with
minimal overbreak. This helps the development cycle time through reduced need for barring and face
preparation time. In the LOM plan, there are numerous inter level 2.4m drop raises (ventilation, waste and ore
passes) that will be blasted with the longhole rigs in all mining areas.
In the case of stope blasting, in earlier operations by OCC, 160mm blast holes were drilled and Anfex explosives
utilised for blasting. The FM Project operations in the Feasibility Study are planned to commence with 152mm blast
holes drilled with a Sandvik ITH production drill rig. Blast holes will be charged with emulsion and 150g boosters and
electric detonators. The use of detailed explosive planning based on localised ground conditions determined from
delineation drilling and using emulsion will result in improved fragmentation compared to historical mining. The
VCR mining will also facilitate management and limitation of overbreak and waste dilution.
The FME and FMS deposits are more vertical and narrower than FMN. These stopes are more amenable to
longitudinal VCR mining. For thinner stopes <10m in thickness, conventional longhole stoping methods can be
implemented using 89mm blast holes.
The provisional VCR stoping blast design parameters and efficiency outputs used for the FMN design and
scheduling for all stopes >10m is shown in Table 13. The FME and FMS parameters are presented in Table 14.
Table 13: VCR stope blasting design parameters.
FMN
Description Units VCR stoping
Blast design
Hole diameter mm 152
Rise per blast m 2.3
Bottom stem plug length m 1.4
Bottom stem plug length in hole diameters m 9.2
Stope height m 30
Stope span m 20
Stope width m 10 to 50
Burden m 1.8
Spacing m 1.8
Energy
Explosives type Innovex UG
Explosives density g/cm3 1.2
Charge length m 0.9
Charge mass/linear metre kg/m 21.8
Charge mass per lift/hole kg 19.9
Charge scaled depth of burial m 0.68
Powder factor kg/m3 2.65
Drilling efficiency
Maximum drilling m per m3 of rock m 0.31
Maximum m3 of rock per m of drilling m3 3.24
Fragmentation
P95 size mm 602
P80 size mm 242
P70 size mm 157
P60 size mm 103
P50 size mm 66
P40 size mm 40
P30 size mm 21
P20 size mm 8
Table 14: LHOS blasting design parameters.
FME & FMS
Description Units LHOS
Blast design
Hole diameter mm 89
Stope height m 30
Stope width m 10
Tunnel area m2 34
No. holes per ring # 15
Burden m 2.4
Spacing m 2.4
Total hole length drilled per ring m 250
Blast volume per ring m3 637
Energy
Explosives type Innovex UG
Explosives density g/cm3 1.2
Charge length m 159
Charge mass/linear metre kg/m 7.2
FME & FMS
Description Units LHOS
Charge mass per lift/hole kg 19.9
Charge scaled depth of burial m 0.68
Powder factor kg/m3 1.79
Drilling efficiency
Maximum drilling m per m3 of rock m 0.39
Maximum m3 of rock per m of drilling m3 2.55
Fragmentation
P95 size mm 918
P80 size mm 382
P70 size mm 250
P60 size mm 165
P50 size mm 105
P40 size mm 63
P30 size mm 33
P20 size mm 12
Cycle times
Cycle times for the development and stoping were analysed in detail and used to define the production schedule
and rate of advance.
The FM Project development production cycle is based on a three 8 hour (hr) shift planning cycle with a blast re-
entry for each shift of 1hr. The resultant calculated production hours translate to 14.6hrs/day or 380hrs/month
based on planned stoppages and travelling time used for equipment productivity cycles. Using the calculated
production hours and the drill and blast development designs a development cycle time was formulated to
calculate the monthly advance per rig for each development end type. An average drill rig rate of 180m per
month was used for multiple ends in the mine planning.
The twin (service and conveyor) declines at FME and FMS facilitate higher development rates using multi-blast
conditions. The adjusted shift cycle based on a three 8hr shift operation planning cycle with 0.5hrs blast re-entry
translates to production hours of 17hrs/day or 445hrs/month. A high-level simulation based on the blast cycle for
the twin conveyor and service decline shows that it is theoretically possible to blast both declines per day (based
on 17 production hrs/day) using multi blast conditions.
Upon completion of the twin development at FMS and FME, the shift cycle reverts to the FM Project production
three 8hr shift cycle with one 2hr blast re-entry after the morning shift.
FMN and FM-Nab have a single trucking service decline which is unable to utilise multi blast conditions and
therefore use the production shift cycle for the LOM.
The LHD waste loading cycle into 30t dump trucks has been calculated for the respective mining areas. Loading
bays have been designed at FMN so that the maximum LHD haul distance does not exceed 200m. An LHD tonne
per month calculation for (100m, 150m and 200m) haul distances have been calculated for waste development.
The waste truck hauling cycle to the surface waste pad for one-way distances of 1.0km, 1.5km and 2.5km were
also calculated.
The stoping production cycle for drilling and charging was based on input from Sandvik regarding the drilling
performance of the Sandvik DU311 TK track-mounted ITH long hole drill rig. Based on the production shift cycle,
the rig can drill 3,540m/month. Based on 8.7t of ore per metre drilled from the stope blast designs, this equates to
30,800tpm. Using a 5% redrill contingency this equates to an equivalent 8.3t of stope ore per metre drilled.
The LHD loading cycle for ore into a truck (FMN) and into an ore pass (FME) was calculated. Based on an LHD haul
distance of 150m an average 23ktpm of ROM was calculated which was used mine planning and fleet
calculations. Similarly, truck haul calculations were done for 1.0km, 1.5km and 2.5km one way haul distance which
translated to an average 10ktpm of ROM was calculated which was used mine planning and fleet calculations.
ROM production schedules
Production schedules were prepared independently for each of the four mine designs (i.e. FMN, FME, FM-Nab and
FMS) which included production derived from pillar extraction operations at the end of the life of each mining
area. The FM Project production schedule summary is presented in Table 15, with the combined production graphs
presented in Figure 15, Figure 16 and Figure 17. The planned ore processing schedule and build-up of the planned
stockpile inventory is shown in Figure 18. The graphs indicate that Phase I production of 32ktpm will be reached by
month 30, whilst Phase II steady state production of 65ktpm will be reached by month 44.
Table 15: FM Project - Production scheduling summary.
Description Unit FMN FME FM-Nab FMS
First on-reef development ROM month Month 1 Month 31 Month 46 Month 57
First stoping ROM month Month 15 Month 44 Month 48 Month 75
Steady-state production Month 21 Month 50 Month 56 Month 89
LOM schedule period months 77 116 35 150
Maximum stoping production rate ktpm 32.6 36.7 12.7 26.0
Maximum development rate ktpm 20.4 17.8 8.4 20.6
Maximum mining rate ktpm 49.4 49.4 17.6 43.1
Average grade % Cu 1.04 1.21 0.88 1.34
Maximum grade % Cu 1.56 3.40 1.62 2.71
Development waste km 9.2 13.4 3.0 19.9
On-reef development ROM km 2.2 4.5 0.6 4.6
From approximately month 127, ore production begins to taper off as FME is depleted. Additional drilling of known
mineralised bodies within the PR will remain ongoing post FMN commissioning to develop Ore Reserves from these
respective areas in order to maintain full steady-state production (potentially Jan Coetzee and Nababeep Kloof
which already have Mineral Resource estimates reported in accordance with the JORC Code (2012)).
Figure 15: FM Project – Combined estimated ROM production by mine.
Figure 16: FM Project – Combined estimated ROM and waste quantities to be trucked / conveyed to surface.
Figure 17: FM Project – Combined estimated ROM production by Mineral Resource classification.
Figure 18: FM Project – Combined mining and processing production schedule (with stockpile).
Ventilation
The mining plan uses trackless mining methods heavily reliant on diesel powered equipment. Special ventilation
arrangements must be made to manage the diesel emissions (i.e. gases, fumes, diesel particulate matter (DPM)
and heat), as well as the normal ventilation requirements for personnel operating in the underground workings. As
part of the Feasibility Study a ventilation analysis was initially undertaken by Prysm in 2024, and updated in 2025,
with the purpose of defining the following:
• primary and secondary ventilation strategies and layouts;
• heat loads and cooling requirements;
• main fan operating duty points;
• peak power for ventilation requirements;
• primary ventilation fan equipment lists;
• capital and power estimates for the primary and auxiliary ventilation systems; and
• refuge bay requirements and costs.
The air flow requirements for each mining area were determined based on the mining fleet size coupled to
production rates over time, with design provided for the various stages of each mining areas development.
VentSim electronic models were constructed, incorporating the main fan positions, the airflow directions and
required volumes, auxiliary fans and ducting and finally, refuge chamber positions.
The designs and costings were undertaken to Feasibility Study level for FMN and FME. With Concept Study level
designs undertaken for the FM-Nab and FMS combined ventilation requirements.
Backfilling
Paterson & Cooke Consulting Engineers (P&C) were appointed by NOMC to carry out a Conceptual Study to
investigate the feasibility of underground backfill as an additional tailings disposal method for the FM Project.
Subsequent to this, and on the back of the geotechnical study results, it was also recognised that backfill would
be required for stope void support and to maximise pillar extraction.
It is planned to backfill FMN, FME and FMS with classified tailings and FM-Nab with waste rock to be sourced from
the waste development from FM-Nab and FMS. Backfill is planned to commence at FMN in the third year after
commencement of the FMN development after the process plant has been commissioned. Based on the
production schedule from the respective mines, the backfill requirements for the FM Project combined was
compared with the backfill availability assuming ore sorting and no ore sorting scenarios. The potential for ore
sorting is being investigated by and assumes that 30% of ROM would be discarded as low grade (<0.25% Cu)
material. A mass balance including ore sorting and concentrate mass pull of 4.5% was developed to determine
the mass of tailings available for backfilling.
The proposed hydraulic backfill (HBF) system arrangement consists of a cyclone plant located at the main
processing plant with backfilled to be delivered via an overland pipeline to the various mines and gravity fed
underground where possible. The cyclone plant has therefore been incorporated into the process plant design
and cost.
No testwork was conducted by P&C during the 2023 Scoping Study work. The PSDs of the tailings and cyclone
underflow and overflow were based on a cyclone simulation using Cavex software. The backfill cyclone underflow
PSD requires less than 10% of particles passing 10?m sieve to achieve the permeability requirements of hydraulic
backfill (HBF).
A surface pumping hydraulic analysis was carried out for FMN, FME and FMS and included an assessment of
elevation profile, hydraulic gradient line (HGL) with pump head heights, HDPE pipe requirements and pump sizing
were determined. The detailed results are presented in P&C (2023). Thereafter an underground distribution
hydraulic analysis was carried out for the mining areas.
The underground distribution system for FMN is relatively straightforward, i.e. the mine can be fed by a borehole
with a feed hopper straight from the overland transfer system. No additional pumps are required.
In order to avoid high pressure piping and significant pumping requirements the areas of FME at an elevation
above the decline portal will not be filled. Two initial concept routes were assessed for the FME pumping system,
one for the close voids and one for those further away. For the close voids, the fill pipe will run down the decline
to a fill cubby in between the second and third breakaway points.
The cubby will be approximately 15m long and developed at a dip to allow for emergency deposition and
dumping in the cubby. From there a borehole will be drilled from the muck level down to the fill cubby using the
long hole production drilling rigs. On the muck level the pipe can be distributed on level and another borehole
can be drilled from the relevant drill drive to bring the fill pipe to the desired fill level. For the more distant voids,
the fill pipe will run down the decline to a fill cubby opposite the third breakaway point. The cubby will be
approximately 15m long and developed at a dip to allow for emergency deposition and dumping in the cubby.
From there a borehole will be drilled from the decline. Ideally a small break tank will be located at this point. The
backfill pipes will then run down the decline to the relevant drill drive and be operated in slack flow.
The pipeline to FM-Nab will be a take-off from the FMS line. The system was sized to meet the needs of the furthest
pumping point which is FMS.
The Conceptual Study indicated that, at a consolidated density of 1.5t/m 3 of dry tailings, 8,200m3/m can be
placed into the mined out stopes. Backfilling will benefit the FM Project as follows:
• reduction of the size of the TSF and associated surface impact;
• underground support of open voids decreasing the risk of underground stope closure and
resultant surface subsidence; and
• allowing for sequential mining and increased ore tonnage extraction.
The backfill design, was deemed conceptual in nature by P&S in the 2023 primarily due to the lack of specific PSD
testing. The percentage of minus 10? defines the percolation rate, which is the maximum target for the underflow
PSD and is important from the perspective that water must not be retained in the fill. However, the actual
percolation rate achievable is not critical from a timing perspective. The worst case scenario is that to achieve
the required minimum percolation rate, it may be necessary to install a second stage cyclone in the backfill plant
to remove more fines from the underflow without a loss in mass recovery to the underflow. This could have a cost
implication of less than ZAR1m.
This is unlikely to materially impact the pumps, surge tanks or pipelines specifications or the costs thereof. All these
items are based on recent quotations for the piping and pump equipment costs. Therefore, NOMC considers the
backfill workstream to be at a level better than Scoping Study, but not at Feasibility Study level.
Underground infrastructure and engineering
The underground infrastructure and engineering provided the design and costing to access to the underground
workings and deliver the ore to surface. This was undertaken by NOMC in conjunction with the various service
providers.
Decline portals
The location of the existing FMN portal, along with the proposed positions for FME and FMS / FM-Nab are indicated
on Figure 6.
FMN will use the existing portal and decline which is adequate for the haulage of ore from the underground
drawpoints using low profile articulated dump trucks delivering directly to the ROM pad at the plant. The existing
FMN portal and decline is nominally 4.2m wide by 4.0m high. Isolated areas have been identified in the decline
where slyping of the hanging wall is required to achieve the minimum 4.0m height required. This slyping is planned
to be carried out as part of the refurbishment programme, which will include the installation of rock studs
according to the new support standards of the mine. The existing decline will not require the installation of
ventilation ducting hence the dimensions are sufficient for the passage of haulage trucks and other mining
machines. New development in FMN will be 4.5m wide by 5.0m high.
In the interests of reducing long term operating costs, transport of ore and waste to surface from the depths of
FME is planned to use an electrically driven conveyor.
FME will be accessed via a portal with twin declines including a conveyor decline and service decline. The
conveyor decline will be 4.5m wide by 4.5m high, with the service decline used by the mining machines being
4.5m wide by 5.0m high. The conveyor decline will accommodate a 750mm wide conveyor belt with a receiving
ore bin on surface, where ore will be transferred to surface haulage trucks and transported to the ROM pad at the
plant.
The development of FMS and FM-Nab is planned from a shared portal and twin service declines at the FM-Nab
location to minimise the amount of development. The portal and declines are designed to accommodate trucks
for flexibility purposes to accommodate both mines. Ore and waste will be trucked to surface temporary stockpiles
and rehandled using a FEL and surface trucks. The FMS / FM-Nab trucking service declines will be 5.0m wide by
5.0m high.
The FME and FMS / FM-Nab portals will be the main access for all mining services including electrical, compressed
air and service water supplies. An 11kV electricity supply, compressor station and service water storage tanks will
be located in close proximity to the portals. Office infrastructure will be limited to a first aid station, assembly area
and ablutions.
Confirmatory geotechnical drilling is planned for the FME and FMS portals and declines while FMN is in production.
A total drilling, geotechnical logging and analysis cost of ZAR1.61m has been included in the financial model.
Ventilation and emergency evacuation shafts
RBHs will be used to provide exhaust ventilation airways from the underground workings, with the main decline
serving as the main intake airway. The 2.4m diameter of the RBHs is sufficient for these to be equipped with a
rescue cage and used as emergency evacuation shafts should this become necessary. The location of the
ventilation shafts of the respective mining areas are indicated on Figure 6.
Each vent shaft will be equipped with multiple exhaust fans installed on surface, to provide redundancy in the
event of a fan failure, as well as facilitating the use of these units in future developments. The 11kV surface
electrical reticulation will include a transformer at the fan installations to provide the 690V supply required by the
fan motors.
Emergency evacuation equipment consisting of a 15kW winch, steel head frame and skeleton cage has been
designed to facilitate the hoisting of four men from 300m below surface. The winch is fitted with all the necessary
braking and safety systems required for permitting by the DMRE.
As production at FMN ends prior to the commencement of FMS, its mining, ventilation and general engineering
equipment will be transferred to FMS.
Crushing, conveying and surface bins
NOMC appointed Lambani Engineering Projects (LEP) to design and estimate the costs of the underground
crushing and conveying systems required for FME. In the case of FMN, crushing and conveying systems will not be
required with all rock hauled to surface via the existing decline.
In the case of FME, the haulage of ore and waste from underground will be via two in-series conveyors installed in
the main access decline. Prior to rock being loaded onto the conveyor belt, it will be sized to ensure the flow of
material is uninterrupted and that the belt is not damaged. This requires that all payable ore be crushed before
being loaded on the conveyor. Development waste will be sized by steel grizzlies at the ore pass tips before being
fed directly onto the conveyor belt.
Ore from stopes (and on-reef development) will be loaded from drawpoints by LHDs and tipped into the ore tips.
Ore tips will be fitted with static grizzlies with 500 x 500mm aperture, serviced by a static hydraulic rock breaker to
ensure rocks are small enough to enter the underground jaw crusher. The jaw crusher selected has a feed aperture
of 1,060mm x 700mm and a 110kW electric motor drive. The jaw crusher will be fed from the ore pass system via a
vibrating grizzly feeder. From the crusher the rock will be discharged into a short ore pass below the crusher
chamber.
Waste rock will be loaded by LHDs on the upper levels and tipped into a main waste ore pass feeding the crusher.
The waste-tips are to be fitted with a static grizzly with 300 x 300mm apertures to limit the size of rock that can enter
the ore pass. The bottom of the waste pass will be fitted with a vibrating feeder to control the feed rate of waste
rock onto the belt. The design of the ore pass system and feeding arrangement will be such that the feeder pan
will be protected from rocks falling from potentially significant height.
A mobile hydraulic rock breaker will be available to break near size rocks on the waste tip grizzly, with large oversize
boulders to be removed to a designated cubby for secondary blasting where necessary.
FME requires a total conveyor length of 1,286m and elevation gain of 175m. NOMC specified that two conveyor
flights be installed in the decline to limit the installed power of the drives, as well as ensure the duty remained within
the capability of fabric reinforced belting to reduce cost and facilitate ease of maintenance. LEP utilised the
Sidewinder Conveyor Design software for the design of the mechanical equipment for each of the two
conveyors. A 750mm wide conveyor belt was selected based on a maximum particle size of the rock to be
conveyed of 200mm which has ample capacity for the required duty.
A crushing and conveyor system similar to FME could be utilised in FMS, but this option has not been included in
this study in favour of trucking of rock out the mine to minimise development requirements.
The FMS mineralised bodies are at a greater depth than both the FMN and FME mineralised bodies, with FMS being
scheduled to be mined after FMN has been mined out.
Compressed air
The stope production drill rig selected for the VCR mining method is the Sandvik DU-311-TK model. This is a
diesel/electric powered track rig for mobility fitted with an in-the-hole (ITH) hammer for drilling the blast holes of
152mm diameter. The ITH is a compressed air driven pneumatic percussion hammer requiring approximately
21m3/min of compressed air at 7bar pressure supplied to the machine from the main compressed air reticulation.
The Sandvik DU machine has an on-board booster compressor to boost the air pressure to 20bar for peak
performance. The primary requirement of the compressed air reticulation in each mine is therefore 21m 3/min at
7bar (or approximately 750 cubic feet per minute (cfm) at 100 pounds per square inch (psi) in Imperial terms).
In addition to the production drill rigs, compressed air will be required for the occasional use of handheld
jackhammers for the installation of eyebolts, L-irons and other accessories for the suspension of pipes and cables
in the haulages and declines. Air driven portable reciprocating pumps (e.g. Sandpiper pumps) will also be used
by construction and haulage maintenance teams for the clearing of accidental build-up of water and
maintenance of settler sumps. This maintenance requirement would be typically less than 5m3/min (250cfm) at
7bar.
It is proposed to install a 5m3/min compressor for each mine during the construction phase. Once the primary
development and drill drive development has been completed, production drilling requiring the installation of
21m3/min compressors will commence. Each mine will include one 45kW, 5m3/min screw compressor and two
160kW, 21m3/min screw compressors (one running, one on standby) installed on surface at the portals, or in the
case of FMN, at the collar of the No.2 vent raise.
Electrical reticulation
The bulk power supply and surface electrical reticulation is described under surface infrastructure.
A network of 11kV overhead powerlines supplied from the main 11kV switchboard at the process plant will
distribute power to all the underground loads. The overhead lines will terminate at the portals of FME and FMS, and
in the case of FMN, at the collar of the No.2 vent-raise. At each of these sites, an 11kV ring main unit (RMU) will
facilitate the supply of a local step-down transformer for the surface equipment relevant to each of the mining
sections. It will also provide a connection to the 11kV cable leading into the underground workings for the supply
of underground mining equipment.
The medium voltage (MV) distribution voltage will be 11kV via cross-linked-polyethylene (XLPE) insulated cables
installed on straining wire suspended in a safe area in the haulages and declines, to prevent damage from the
mobile equipment travelling in these areas. Step down transformers to the low tension (LT) distribution voltage of
690V will be housed in portable mini substations fitted with suitable LT distribution boards for distribution of the LT
supply to MCC's and gulley boxes installed close to the loads. The mini substations selected include dry type
transformers in mining specification steel housings to minimise the risk of fire underground and facilitate the
relocation of the equipment to follow the advancing mining operations.
All electrical infrastructure has been selected with the view for re-use in future operations beyond the life of the
FM Project described in this Feasibility Study. The design of pump stations, drainage pumps and ventilation systems
will be replicated in the development of future deposits within the FM Project PR area.
The electrical reticulation design was completed by METC based on the digital mine development layouts and
load lists for each mine.
Dewatering reticulation
Underground dewatering takes into account the initial dewatering of FMN and later FM-Nab, dewatering during
decline development and ongoing mine dewatering.
Decline development at a dip of 1: 7 downgrade is scheduled in all the FM Project mining areas. A pumping
system is required to cater for drilling water used and any fissure water encountered during the development.
From the geohydrological study, the ingress of water from fractures is expected to be low, but intersections with
fractures (quartz veins) and other features are likely.
Standard practice will be to drill cover holes using an underground diamond drilling machine to intersect these
features well in advance of the face. Where necessary, water producing fractures will be grouted with cement to
reduce fissure water ingress to a manageable minimum.
All water generated will report to the face of the decline. The drill rigs will be equipped with submersible pumps
which have limited head capability of approximately 40m. A skid-mounted hi-lift pump will be provided to receive
water pumped from the submersible at the rig and pump this out the decline to surface.
During the decline development phase in each of the FM Project areas, a Netzsch pump (NM076-02S) and steel
receiving tank will be mounted together on a steel skid. This will allow the pumping unit to be relocated from cubby
to cubby as the decline face advances, receiving water pumped from the development end by the small
submersible on the drill rig. This Netzsch pump unit will have a duty of 30m 3/hr at a vertical head of 150m, driven
by a 22kW motor at 400rpm pump speed. The Netzsch pump is a positive displacement type (mono pump type)
that is capable of handling drain water efficiently at high heads. This will be used during the decline development
stage at the respective FME and FMS declines until the permanent pumping arrangements are established.
The hydrogeological study on the FM Project, undertaken by iLEH, estimated the groundwater flow into the
underground workings of the various mines. As the FM Project area is dominated by granite host rocks which have
relatively low permeability, the potential for significant inflows of groundwater into the underground workings is
low, with inflow from service water and backfilling expected to be more significant than seepage.
Backfilling is the major contributor to the mine water. The design backfill rate is 77m3/hr of slurry at 55% solids by
mass, implying 45m3/hr of water in the fill. The maximum drainage rate of water from the fill (assuming 15% water
by mass retained in situ) is estimated at 42m3/hr. In practice, the percolation rate from uncemented backfill will
be significantly lower than the instantaneous inflow of total water contained in the backfill pumped underground.
The capacity of the main dewatering pumps is planned for 60m3/hr, which provides a 25% surplus capacity over
the estimated peak ingress of water. Each pump station will be equipped with a standby unit which is available in
the event of a breakdown.
The FMN and FME mines are relatively shallow with the deepest point of the workings in FMN at 226m below the
portal elevation on surface. The bottom of the decline in FME is 181m below the portal elevation. For these two
mines, a pump station, consisting of a simple grit and silt trap designed to be cleaned by an LHD, will be
established. Settled water will be pumped into a dam with a minimum capacity of 50kl. A hi-lift multistage pump
(plus spare pump unit) will be installed on the dam to pump the drain water to surface. The pump selected for the
duty has a duty of 60m3/hr at the required pumping head at FMN. The slightly reduced head requirement in FME
will require the pumps to operate at below 1,400rpm using a variable speed drive (VSD).
FMS is significantly deeper (633m below surface), therefore three stage pumping will be necessary using similar
pump stations established in series. The FMS development and production will commence at FM-Nab (where the
first pump station and settler sump will be established) and then continue progressively deeper. A second pump
station will be established at the 390m level with a sump equipped with vertical spindle pumps. The lowest
multistage pump station will be established on the 580m level, with the bottom of the mine being 633 level where
a settler sump with 22kW vertical spindle pump will be installed.
The main dewatering pump station at all mines (accommodating the multi-stage pumps) will not be located at
the lowest point of the workings, but rather at an elevation at least 15m above this point. A sump will be
constructed at the lowest point for the installation of a vertical spindle type mine drainage pump (RNE) pumps are
preferred because of their robust design for mining applications) to keep the lowest level dry.
In the event of an extended power or pump failure at the main dewatering pump station, the capacity afforded
by the 15m elevation above the lowest working level will facilitate additional capacity for the accumulation of
water while pumping is restored. This will avoid any damage to major electrical or pumping infrastructure should
the lowest level be inundated by water, allowing normal pumping operations to recommence with minimum
delay or cost.
Underground Mining Conclusions
The FM Project comprises four separate mining areas. As such, NOMC has focussed their Feasibility Study efforts
according to the order in which they will be developed FMN, FME, FM-Nab and finally FMS. In addition, much of
the underground support infrastructure will be transferred from one operation, upon closure, to the next. This
approach enables the costing and designs implemented to be transferred, with the necessary adjustment to
subsequent mining sections thereby bringing the underground infrastructure sequentially to full Feasibility Study
level and beyond.
For FMN and FME, the underground infrastructure has been designed and costed to sufficient detail to meet
Feasibility Study level requirements with a costing accuracy range of +/- 15% and detailed engineering at 20% to
50% complete. No specific geotechnical drilling has been undertaken for the FME and FMS portals and declines.
However, surface reconnaissance and satellite imagery analysis by NOMC geologists familiar with the area was
done without any evidence of notable geotechnical features. Significant exploration and geotechnical drilling
data in close proximity to the locations of the planned portal and decline developments is available indicating
geotechnical anomalies are unlikely to be encountered. Both decline portals and twin declines will be developed
in Concordia Granites as presented in Figure 7. The FMN decline development was similarly excavated in the
Concordia Granite with little evidence of faulting, fracturing or related failures which provides sufficient evidence
that similar geotechnical structure can be expected in the respective FME and FMS decline pairs. Further
geotechnical drilling is, however, planned for these portals and declines once FMN is operational.
Metallurgical testwork
Metallurgical testwork and results relating to the FM Project were reviewed by METC ahead of the company's
involvement with the process plant design scope of work. Metallurgical testwork has included the early Scoping
Study testwork carried out in 2014, followed by the Pre-Feasibility Study testwork leading up to the publishing of the
Pre-Feasibility Study by SAFTA in 2019. The current Feasibility Study metallurgical testwork campaign commenced
in 2022 and has continued through to 2024 using drill holes cores from the recent confirmatory drilling programme.
The testwork carried out on the FM Project during the Scoping, Pre-Feasibility and Feasibility Study periods has been
extensive including various campaigns of metallurgical teswork on crushing and flotation, tailings characterisation,
particle sorting using Rados ore sorters, settling and filtration. These campaigns were used to inform the Feasibility
Study as follows:
- confirmed the flowsheet and performance of the Suntech and Rados tests;
- developed data for process and engineering design;
- demonstrated processing variability from different mining zones;
- demonstrated processing variability between ROM and preconcentrated flotation feed; and
- demonstrated the ability to produce > 25% Cu with overall recovery > 90%.
Ore sorting technology is considered for the FM Project to remove waste rock from crushed ROM material prior to
milling. Separating out gangue and low-grade ore at the earliest opportunity optimises downstream processing.
The application of ore sorting for this Project adds a threefold advantage:
- increasing the grade of the head feed to the processing plant, which typically results in the
potential for better copper recoveries during flotation;
- decreasing the volume of material to the processing plant, thereby decreasing monthly
operating costs through reduced reagent, water and power requirements; and
- ensuring a less variable copper grade of the feed material to the plant.
Various test runs have been concluded for XRF particle sorting of FM Project mineralised zones (FMN, FMS and FME)
to determine the amenability to preconcentration and level of accuracy achievable with respect to cut-off
grade, mass pull and copper recovery. These tests were conducted between 2022 and 2024 and were divided
into eight stages. The following conclusions were drawn from the sorting testwork:
- the 2022 samples had a significantly higher proportion of particles in the 0.10 0.20% Cu range,
which supports more effective low-grade rejection and increased discard tonnage. The 2024
samples showed fewer particles in the 0.05 0.20% Cu range, reducing the amount of material
available for low-grade rejection;
- noting that the 2022 samples had almost double the quantity of 0.0-0.2% Cu when compared
with 2024 samples, it was then interrogated what the mining distribution likely will be for all
mineralised zones and which drill core (2022 versus 2024) would be more representative. Most
of the mineralised material tested in 2022 was sourced from old stockpiles and drill cores while
2024 drill cores were sourced from recent exploration drilling and would therefore be more
representative of the planned mining zones;
- understanding the distribution of the mining zones, one approach could be that Rados
considers creating a composite dataset based on proportions of each hole tested. It was
recommended that further investigation into this methodology be actioned;
using material with on-specification feed grades in future testwork, the FM Project can apply
sorting performance curves (mass pull versus upgrade ratio and recovery) for precise modelling
of the ore sorter performance per mining block; and
- ore sorting with a single cut point threshold parameter proved to be inadequate to achieve
target discard grade at optimal recovery of copper with a mass pull of limited variability for this
project. Multiple cut-point parameters were then applied for a more refined separation. The
multiple cut-point threshold parameters achieved promising target discard grades. Opportunity
therefore exists to further optimise the sorter performance with respect to ideal mass pull and
more favourable copper recovery.
The overriding conclusions from the metallurgical testwork on the FM Project include the following:
- milling indices were very hard, with FMN being the hardest and FMS the softest of the three
mineralised materials. The hardness indices were different to back-calculated historical plant
operations (approximately 15kWh/t) but were confirmed in previous testwork conducted by
Maelgwyn (2018) and Suntech (2022) as well as recent testwork conducted by Geolabs (2024).
Hard rock milling was therefore incorporated in the process plant design;
- sorting has been included in Feasibility Study design on a 15% m/m reject and 99% recovery
basis, but further economic benefit assessments are required for this stage. Additional
opportunity exists to also address any risk of underground mining and/or internal mineral
dilutions. All three mineralised mining areas were amenable to upgrading successfully at
parameters mentioned with a variable mass pull. FM Project test data indicated difficulty in
achieving cut-off grade of <0.15% Cu. Additional bulk testwork, preferably on site, is
recommended when mining has started;
- the FME and FMN sample head assays had minor presence of other base metals such as Pb, Zn
and Co. Feed mineralogy showed that the main Cu-bearing minerals in the FME samples were
chalcopyrite and bornite. The main Cu-bearing minerals in recently tested FMN mineralised
zones were bornite and chalcocite. Similar results were reported historically for FMN (SGS, 2014
and Suntech, 2022);
- the detailed chemical analysis of the final FMN and FME concentrates showed that Ag is
present at similar concentrations for both mineralised materials while Au is more prevalent, and
at higher concentrations in FMN mineralised material. Both these elements were upgraded into
the copper concentrate which could add potential financial benefit in the form of sales credits.
NOMC is mindful of significant MgO and F constituents reported for FME and FMN mineralised
materials. Both these deleterious elements upgraded into the copper concentrate with
significant concentrations reported for the FMN ore. Further testwork may be required to
investigate the successful reduction thereof through the use of a more suitable depressant /
increased depressant dosing / a second cleaner stage / a regrind stage. FMN mineralised
materials contained U and Th which needs to be tested for its contribution to radioactivity to
comply with IAEA Regulations;
- the selected optimal grind size of P90 -106?m established for FME flotation is also confirmed in
historical plant operations for FMN and FMS ores (P60 -75um, which is closely equivalent to P90
-106?m) and similarly in testwork concluded by Suntech in 2022. A finer grind size of P80 -75?m
in recent testwork completed, did not significantly improve copper recovery and was therefore
not considered to benefit the Project at the time. The three different grind size concentrates
produced in testwork was unfortunately not analysed to enable comparisons in the extent of
gangue mineral rejections. Opportunity exists to investigate a finer grind size for improved
liberation of copper and ideal rejection of MgO and F gangue minerals;
- flotation testwork matches historical operations and past testwork done but has better reagent
selection and consumption. The final process flowsheet selected for design includes flash
flotation, rougher and one stage cleaner flotation. Space can be reserved for installation of a
future second cleaning step if the process demands a higher product grade. The plant design
parameters derived from 2024 testwork is listed in Table 16;
Table 16: FM Project Process plant design parameters selected from testwork.
Design parameter Unit Value
Sorters:
Mass pull (relative to sorter feed) % m/m 15
Recovery % Cu m/m 99
Grinding:
BBWi kWh/t 24.7
Optimal grind (P90) m 106
Flash
Flotation: Rougher Cleaner Overall
flotation
Mass pull % m/m < 3.0 < 7.5 < 3.0 < 4.2
Recovery % Cu m/m < 60.0 < 93.5 < 76.5 < 92.5
Concentrate grade % Cu < 25.8 < 18.4 < 38.0 ? 30.0
Flash
Reagents: Rougher Cleaner Overall
flotation
Frother g/t 50 50 30 130
Collector 1 g/t 80 40 - 120
Collector 2 g/t 120 60 - 180
Depressant g/t 80 40 20 140
Flocculant tailings g/t 12
Flocculant concentrate g/t 10
Concentrate:
Concentrate moisture %m/m, unflocculated 15
% m/m, flocculated 12
- the flotation recipe concluded in FME testwork is adequate for part of FMN mineralised material
too. As it is not desired to stray from FME suite, the use of a more selective Mg depressant is
preferred for all mining zones, together with a higher depressant and frother dosing strength for
FMN ores;
- site water quality was found to have no significant impact on copper selectivity in previous
flotation testwork (Suntech, 2022);
- the concentrate thickener overflow turbidity measured were <50NTU, producing reasonably
clean water for recycling as process water. The first filtrate produced in filtration was not clear,
therefore it is recommended that the filtrates be recycled to the thickener feed for clarification
of filtrate and recovery of valuables;
- it is recommended to consider a pinned bed clarifier as a suitable alternative technology for
use in concentrate dewatering;
- plant cake moistures are expected to be approximately 12% if flocculated or 15%
unflocculated. The transportable moisture limit (TML) was not tested. The filter cakes at
consistencies up to 15% moisture appeared to be suitable to be transported without fear of
slumping. Testing of TML is recommended; and
- The testwork and interpretation present a robust process design.
The review of historical operations and recent testwork have identified differences in milling comminution indices
between testwork and back calculated operations. However, the numerous confirmation tests support using the
recent testwork values for design. The design has presented a single ball mill to meet the 65,000tpm requirement.
It is suggested that the use of two parallel ball mills may provide a more flexible operational option to address this
and provide opportunity to operate the plant at a lower throughput if required.
Numerous tests have been conducted on the use of XRF sorting technology to assist with early waste removal to
reduce downstream processing requirements. These results, although beneficial, are not showing the extent of
benefits expected. As such, the plant design allows for the use of sorters but delays the installation. This delay will
provide the opportunity to test larger samples of actual ROM material on pilot scale to more conclusively
determine the benefit of ore-sorting, inlcuding the use of different sensor technologies. Only XRF has been tested
to date, with XRT, a similar X-ray based technology, touted as possibly a superior option in this case.
Early process testwork did not encounter any problems with deleterious elements which would report to the
concentrate. However recent testwork on core samples from two core drill holes into FMN identified the presence
of MgO and F which did show slightly elevated concentrations to report to the concentrate. Although this could
initiate penalties on the sale of this concentrate, it is believed a slight change in flotation reagent recipe and
possible ore blending will mitigate this issue.
Plant process metallurgy and design
The process plant metallurgy and design were carried out by METC. The plant is designed on a nominal feed rate
of 65,000tpm. The process design criteria are presented in Table 17.
Table 17: FM Project Process design criteria.
Parameter Unit Value Source
Plant feed grade % Cu, design 1.27 Orion, NOMC
% Cu, nominal 1.19 Orion, NOMC
Plant treatment capacity tpa 780,000 METC
Shift roster shifts/day 3 METC
Shift duration h/shift 8 METC
Crushing
Crushing circuit utilisation % 76.36 METC
Operating hours h/annum 6,598 METC
Design crushing rate t/h 120 METC
ROM specific gravity t/m3 2.90 Testwork
Feed size (F100) mm 400 METC
Product size (P100) mm 20 METC
Design bond abrasion index g 0.35 Testwork
SMC - A*b <50 Calculated
Milling
Concentrator circuit utilisation % 90 METC
Operating hours h/a 7,776 METC
Design milling rate (incl. preconcentration) tph 91 METC
Design Bond ball work index kWh/t 24.7 Testwork
Product size (P90) m 106 Testwork
Reagents
Flocculant consumption g/t 22 Testwork
Frother consumption g/t 130 Testwork
Collector 1 consumption g/t 120 Testwork
Parameter Unit Value Source
Collector 2 consumption g/t 180 Testwork
Depressant consumption g/t 140 Testwork
Concentrate production
Dewatering plant utilisation % 90 METC
Filter feed t/h, dry solids 8 Calculated
Filter feed moisture % m/m 45 METC
Specific filtration rate t/h/m2 0.465 Testwork
Design concentrate moisture % m/m 12 Testwork
Design concentrate grade % Cu, m/m 30 Calculated
Design copper recovery % 92.50 Calculated
Concentrate production t/a 30,991 Calculated
The crushing and sorting plant is designed for 65,000tpm throughput. The sorter discard is expected to vary,
depending on the mineralogy and head grade, with higher head grades resulting in a lower discard proportion.
Based on the sorting testwork, the plant, from milling onward, was designed assuming a discard of 30%m/m of the
feed to the sorters. This was later updated to 15% m/m mass rejection to ensure that discard cut-off grade criterion
was met. This results in a design feed rate to the downstream (milling) plant of 90tph. The reader is to note that,
should the sorters be offline, or if the discard rate is below 15% m/m, then the associated downstream equipment
will not be able to handle the full 65,000tpm.
Post crushing and sorting, the fine ore silo provides 12hrs of supply to allow continuous feed to the concentrator
plant to provide a buffer between mining operations and the plant.
Flash flotation removes liberated copper minerals at an early stage to prevent over-grinding of ore and to minimise
the challenges of recovering fine particles in flotation.
The block flow diagram for the copper concentrator is presented in Figure 19 which reflects both the testwork
conducted in 2022 and 2024. The general layout of the plant is presented in Figure 20. The Phase II plant will
comprise the following major equipment:
- primary jaw crusher;
- 2x Rados International Technologies (Rados) X-ray fluorescence (XRF) bulk particle ore sorter
- (coarse and fine);
- secondary cone crusher;
- primary ball mill;
- flotation plant including conditioner, rougher and cleaner cells;
- concentrate filter press and bagging plant; and
- tailings cyclone and thickener.
Mass and metal balance
A summary of the mass balance is presented in Table 18. The driving criteria, verified through variability testwork,
included the following:
- feed head grade is 1.27% Cu at throughput capacity of 65,000tpm;
- sorter discard to waste is 10% m/m with a cut-off grade <0.15% Cu; and
- flotation concentrate produced is 4.0% m/m (including flash float) with a grade of
approximately 30% Cu.
Table 18: Summary of plant mass and metal balance.
Parameter Mass Grade Cu mass Mass pull Recovery Mass pull Recovery overall
(tpm) (% Cu) (tpm) (% m/m) (%) Mass overall (tph)
(% m/m) (%)
ROM feed 65,000 1.27 830 100.0 100.0 100.0 100.0 118.0
Sorter fails 6,700 0.08 10 10.3 0.6 10.0 0.6 12.0
Mill feed 58,300 1.41 820 90.0 99.4 90.0 99.4 90.0
Flotation tails 56,200 0.10 60 96.4 6.9 86.5 6.9 87.0
Flotation conc. 2,100 36.38 760 3.6 93.1 3.2 92.5 3.2
Total tailings 62,900 0.10 60 96.8 7.5 96.8 7.5 97.0
Figure 19: Proposed block flow diagram.
Figure 20: General plant layout.
Copper recovery model
The FM Project copper recovery regression model was derived using the various Feasibility Study flotation test data
conducted using FMN and FME domain drill cores and FMN pre-concentrated and ROM composites. The FMN drill
core samples represent the expected mine deposit during the first few years of copper production, while the FME
drill core samples represent the mine deposit which will form most of the copper production for the LOM. FMS mine
deposit testwork on recent core drill samples was not yet completed by the time of writing this report and thus not
used in the recovery model estimate. Results from testwork on core samples tested in the 2022 testwork campaign
indicated copper recoveries and concentrate grades similar to FME results are achievable. The FME composite
samples represent the expected mine blend with a feed grade of 1.27% Cu. Testwork data showed a strong
relationship between concentrate mass pull, achievable upgrade ratios, recovery and, consequently final
concentrate grade.
The modelled LOM recovery estimate for copper as presented in Table 19 reflects the steady state recovery profile
relative to plant feed grade.
Table 19: FM Project - Copper recovery algorithm.
Feed grade range (% Cu) Conc. grade range (% Cu) Recovery caps (%)
95.1 @ 25% conc. grade
0.70 - 2.00 25 - 38 94.6 @ 30% conc. grade
93.6 @ 38% conc. grade
Metallurgical Costing
The base date of the processing plant cost estimate is Q4 2024. The METC design and costing has provided capex
and opex to a level of accuracy of +/- 15%.
The capex estimate for the process plant equipment supply and spares is ZAR645m, including a contingency of
ZAR43m. This amount excludes any project contingency. The cost estimate captured the mechanical equipment,
civil, structural, platework, pipework, electrical and instrumentation as well as detailed engineering and design.
Allowance has also been made for construction management, site supervision and commissioning costs. The
capital cost estimate has been prepared making use of recent market related quotations. Up to date market
related pricing has been obtained for the major mechanical equipment. Updated costing has been obtained for
the earthworks, civil and structural steel works packages.
The opex cost estimate from first principles is ZAR385.13/t milled for Phase I (32.5ktm) and ZAR291.40/t milled for
Phase II (65.0ktm). The difference in these rates is on account of the fixed cost portion of processing opex (labour,
TSF operations for example) being allocated over a reduced processing tonnage in Phase 1 of the Project. In
practice the average processing cost over the LOM includes varying processing rates as well as savings achieved
in energy costs through energy purchases from a renewable energy power purchase agreement.
The production of copper concentrate utilises conventional and well understood technology which has been
supported by the results of recent metallurgical testwork.
Near surface geotechnical investigations
Geotechnical near surface investigations are typically used to determine and identify possible problematic soils,
depth of bedrock, presence of water seepage, etc. These were undertaken InRoads (Pty) Limited (InRoads) in
and around the proposed TSF site.
Tailings Storage Facility (TSF) site
The geotechnical investigation of the TSF site was key to the design, depositional strategy, understanding of the
seepage regime below the TSF and the potential environmental impact associated with it, which ultimately
influenced the cost of the TSF. A total of 27 test pits were excavated, 23 from the proposed TSF footprint and four
from the location of a previously planned runoff water dam (ROWD) footprint. Thirteen test pits were also
excavated within four possible borrow pit sites specifically for sourcing sand for use as a cushion for the high-density
polyethylene (HDPE) liner for the TSF and ROWD.
The planned TSF and ROWD footprints are predominantly blanketed by loose to medium dense silty sand of hill
wash origin which almost extends to the bottom of most of the pits at depths of between 0.2 3.0m, averaging
0.8m, where it is underlain by residual granite and occasionally dorbank. Most of the soils occurring within the site
classify as clayey sand and silty sand soil types. The undisturbed and remoulded samples have an effective friction
angle of 30 39 and an effective cohesion ranging from 0 - 5kPa. The permeability coefficients of the undisturbed
and remoulded samples are generally of the order of 10-6m/s. Excavating throughout the sites is likely to be difficult
and hard excavation can be expected below an average depth of 1.0m.
The reader is to note that post the InRoads (2023) report, Epoch has determined that only the fault lines beneath
the TSF need to be lined, not the entire TSF footprint area. Therefore, the bedding material requirement has been
significantly reduced compared to initial estimate of 120,000m3. Sufficient bedding materials for beneath the TSF
HDPE lining (over faults only) is available on site.
No adverse soil conditions have been identified beneath the TSF and the previously planned ROWD.
Plant site
No specific geotechnical assessments of the soil conditions beneath the proposed plant site have been carried
out. However, two test pits were excavated for Borrow pit 3 (BP3) which is largely representative of the plant site,
and four test pits excavated for BP4 <200 m north of the proposed plant site. The sites were pitted and visually
assessed during the geotechnical investigation for borrow pit material. Therefore, for the purposes of this Feasibility
Study, the subsurface horizons present in the plant site, and their associated geotechnical characteristics are
expected to be similar.
TSF design
Epoch consultants were appointed by NOMC to carry out the Feasibility Study for the TSF. The terms of reference
for the TSF design were a single paddock, valley containment facility which could accommodate 4.07Mt (dry) of
tailings at a production rate of 32,500tpm over a 12yr LOM. The site selection was based on the findings of a site
selection study in 2021 and also that:
- the TFS needed to be located within the existing MR to avoid any additional permitting
requirement which would result in significant delays to the development of the FM Project;
- the location of the existing evaporation paddocks and pond, made this specific site negatively
impacted already; and
- by removing these contamination sources prior to TSF deposition, the FM Project would
significantly improve the current environmental status.
The battery limits for the TSF design were as follows:
- downstream of the point where the slurry delivery pipeline intersects the TSF containment
embankment;
- upstream of the first flange exiting any return water facility's outlet pipe, before any pump
station or similar return facility; and
- the boundary fence around the TSF.
The following was concluded from the detailed design of the FM Project TSF:
- based on the expected tailings production rate of 32.5kt/m, the TSF will reach a tailings
elevation of 789.5mamsl at the end of the 12yr LOM;
- TSF has additional capacity post the 12yr LOM tailings volumes;
- Moss Group classified the tailings as a Type 3 waste with the waste rock and coarse ore rejects
also classified as a Type 3 waste subsequently requiring Class C liner;
- the preferred liner system which involved lining over the fracture zone as well as the upstream
slope of the Raise 1 embankment, returned seepage rate entering the basin equivalent to
natural recharge rates;
- the geohydrological study concluded that the removal of the evaporation paddock and pond
material together with lining the fracture zones reduced the mass plume movement and extent
of the plume when compared to the do-nothing option;
- the deterministic water balance yielded average returns of 36%. Returns as high as 66 % can
be expected during the wet season with a low of 4 % expected during the dry season;
- stability analyses indicated that the downstream slopes of the facility have factors of safety well
above that of the required 1.5 for static conditions;
- stability analyses indicated that the downstream slopes of the facility have factors of safety well
above that of the required 1.1 for pseudo-static conditions;
- a high-level assessment of the effect of the 1: 10,000yr storm and seismic event yielded factors
of safety above 1.5 and 1.1 for static and pseudo-static conditions, respectively; and
- based on the nature of the materials to be deposited in the TSF and the assessment criteria
specified by SANS 10286:1998, the TSF is a medium hazard facility. The number of residents
downstream of the TSF is unknown and satellite imagery indicates no large settlements or
residential areas. NOMC can confirm that the number of residents in the zone of influence will
not exceed 10.
The capex cost estimate for Raise 1 was prepared by Clifford Hutton (Pty) Limited in September 2023 and was
estimated at ZAR81.5m. The costing was based on a detailed bill of quantities and market related rates at the
time of preparation. The costing includes all lining, pumps and piping for the required for the complete TSF,
contingencies and P&Gs. The capex has been escalated in the financial model and may be considered
appropriate to a Feasibility Study, i.e. costing within the range +/- 15%.
The costing for Raises 2-4 has been included as opex and is based on detailed estimates of the respective volumes.
Ore Reserve estimate
The Ore Reserve estimate presented in this Feasibility Study Report has been prepared by Sound Mining in
conjunction with Mr Jonathan Hudson of JHK in accordance with the JORC (2012) and represent NOMC's first Ore
Reserve estimate for the FM Project.
The Ore Reserve estimate is based on the Mineral Resource Estimates and models compiled by Z* for FMN, FME,
FMS (refer ASX/JSE release 28 August 2023) and by Orion for FM-Nab (refer ASX/JSE release 28 March 2025). Mineral
Resources are reported inclusive of Ore Reserves. The four Mineral Resource models were supplied to Sound
Mining. The FMN, FME and FMS models were in a Datamine format: 022023_FME_FIN, 022023_FMN_FIN,
022023_FMS_FIN. FM-Nab was in a comma delimited format: FMNAB-CLASS; converted into Datamine file format.
These models were used as a basis for the mine design and stope optimisation process.
The cut-off grade used for the stope optimisation and mine planning of FMN and FME is 0.7% Cu based on previous
costing. A 0.8% Cu cut-off grade was used for FMS and FM-Nab based on latest costing from the financial model.
A marginal cut-off of 0.6% Cu was calculated and used for all the marginal mining blocks below the cut-off grade
with shared development. A marginal cut-off was used for FM-Nab, which is used as supplementary tonnage in
the LOM plan for the process plant. The cut-off calculation is based on the total direct cost of mining, processing
and metal sales, including sustaining capital, but excluding overheads. The marginal cut-off calculation excludes
the waste development costs, fixed processing costs and overheads. MSO Datamine software was used in
conjunction with the calculated cut-of grades to delineate the economic mineable blocks for mine planning of
FME and FMS. The MSO results for FMN and FM-Nab yielded irregular, impractical stope shapes, with unacceptably
low grades. A selective manual approach was therefore used to design the stopes, targeting the higher-grade
mineral resource areas.
The LOM plan supporting the Feasibility Study includes Inferred Mineral Resources (18% by tonnage). An alternative
mine plan ('Reserves only plan'), based on only Measured and Indicated Mineral Resources, was prepared and
used to support the estimation and reporting of a Probable Ore Reserve. The Reserves only plan is economically
viable and confirms that the Inferred Mineral Resources included in the LOM plan are not the determining factor
in project viability. The Ore Reserve estimate is derived from the respective mine schedules. The mine plan is
considered technically achievable and economically viable. Material modifying factors have been considered
(pillar design and mine extraction, dilution and mining loss). The modifying factors applied in determining the ROM
ore in the LOM plan are presented in Table 20. The stoping dilution modifying factors consider planned and
unplanned dilution. An unplanned stoping dilution of 2% for mixing of waste and backfill contamination was
applied to all the mines based on benchmarking. Note that for FMS and FM-Nab a 25cm skin was applied to the
hanging wall and footwall of the stope shapes as part of the MSO optimisation process to more accurately
simulate the impact of dilution. The 2% stoping dilution for FM-Nab and FMS represents the unplanned dilution only.
Table 20: FM Project - Modifying factors.
Description Units FMN FME FM-Nab FMS
Additional development overbreak % 7 7 7 7
Additional stoping dilution (planned and unplanned) % 5 5 2 2
Pillar mining extraction factor % 50 50 N/A 50-67
Mining loss development % 3 3 3 3
Mining loss stoping % 5 7 7 7
Notes: for FMS and FM Nababeep a 25cm skin was applied around the stope shapes as part of the MSO optimisation
process to more accurately simulate the impact of dilution. The 2% dilution in the table above represents the unplanned
dilution only. Source: Mr J Hudson.
The Ore Reserve estimate is presented in Table 21. All Measured and Indicated Mineral Resources were converted
to Probable Ore Reserves. The Measured Mineral Resource at FMN has been converted to a Probable Ore Reserve
due to the reduced level of confidence in the modifying factors, costs and planning assumptions specific to the
location of the Measured Resource blocks . The proportion of Measured Mineral Resources in the mine plan is
approximately 4% by tonnage. Mineral Resource to Ore Reserve reconciliations were compiled for each of the
four FM Project mining areas on ore tonnes and copper content, highlighting the impact of the modifying factors
to the final Ore Reserve estimate.
The cut-off grade used for the stope optimisation and mine planning of FMN and FME is 0.7% Cu based on previous
costing (Sound Mining, 2023). A 0.8% Cu cut-off grade was used for FMS and FM-Nab based on recent costing. A
marginal cut-off of 0.6% Cu was calculated and used for all the marginal mining blocks below the cut-off grade
with shared development. A marginal cut-off was used for FM-Nab, which is used as supplementary tonnage in
the LOM plan for the process plant. The in-situ cut-off calculation is based on the total direct cost of mining,
processing and metal sales, including sustaining capital and overheads, net copper price received post Net
Smelter Return (NSR) conversion, unplanned dilution and copper plant recovery. The in-situ marginal cut-off
calculation excludes the waste development costs, fixed processing costs and overheads.
Table 21: FM Project Summary Ore Reserve estimate.
Location Date Cut off Ore Reserve Tonnes (t) Grade Contained
(% Cu) category (%Cu) copper (t)
Proved - - -
FMN 28-Mar-25 0.70
Probable 1,238,000 0.99 12,300
Subtotal / average FMN 1,238,000 0.99 12,300
Proved - - -
FME 28-Mar-25 0.70
Probable 2,635,000 1.21 31,900
Subtotal / average FME 2,635,000 1.21 32,000
Proved - - -
FMS 28-Mar-25 0.70
Probable 2,026,000 1.24 25,100
Subtotal / average FMS 2,026,000 1.24 25,100
Proved - - -
FM-Nab 28-Mar-25 0.50
Probable 215,000 0.87 1,900
Subtotal / average FM-Nab 215,000 0.87 1,900
Total FM Project 6,114,000 1.16 71,200
Notes: No Inferred Mineral Resources are included in the Ore Reserve estimate.
Tonnage and grade reported as delivered to the metallurgical plant.
Measured Mineral Resources at FMN have been converted to Probable Ore Reserves due to insufficient
confidence relating to the modifying factors, costs and planning assumptions.
The proportion of Measured Mineral Resources in the mine plan is approximately 4% by tonnage.
Probable tonnes rounded to nearest 1,000t, copper grade rounded to two decimal places, copper content
tonnes rounded to the nearest hundred. Totals may not tally due to rounding.
Reported in accordance with the JORC Code (2012).
The premise of the Reserve Only plan and production schedule was based on the full LOM plan as shown in the
Executive Summary for the FM Project but excluding Inferred Mineral Resources. Inferred Mineral Resources of
approximately 18% by tonnage in the LOM plan have been excluded from the Reserves only plan and Ore Reserve
estimate. All development in the Reserves only plan classified as Inferred Mineral Resource is trammed to waste.
The Reserves Only plan is considered technically achievable and economically viable. The revenue calculation
(in real monetary terms) is premised on a forecast long term copper price of USD9,369/t, an exchange rate of
ZAR/USD 18.90, a payability deduction of USD96/t, treatment and refining costs of USD81/t which results in a net
smelter return of 93.6%. The forecast copper price of USD9,369/t is based on analyst consensus commodity price
forecast.
There is a reasonable expectation that the Inferred Mineral Resources for the four mining areas will be converted
to Indicated Mineral Resources and Ore Reserves which would add significant value to the FM Project. The ranked
valuation sensitivity shows that the FM Project is most sensitive to copper grade and price but also sensitive to
mining operating expenses.
A risk assessment was conducted on the FM Project Feasibility Study with risk ratings and mitigating actions. The
Competent Person is not aware of any material impediments to the FM Project.
Surface infrastructure
The design of the surface infrastructure required for the successful development and operation of the FM Project
is discussed in the sections to follow, with the proposed site plan presented in Figure 6.
Access and roads
The existing public gravel road will be upgraded, repaired and treated with a dust suppression agent. Haul roads
will be constructed to transport ore from the various mine portals to the ROM pad at the plant and waste rock to
the TSF embankment. These will be constructed within the controlled mine area to avoid sharing of roadways with
private vehicles, as far as possible, and to minimise construction effort.
Security and access control
The current site security includes a security boom gate across the access road (Section 1.5.1). Fencing of the
exclusive active mining area will include a 5.3km long, 1.2m high stock fence to ensure no unauthorised access of
people or livestock. In addition, a 2.4m and 1.5km long high security mesh fence will enclose the high security
areas, including the process plant area, mining offices, change houses and workshops complex.
NOMC intends implementing a comprehensive integrated security strategy specific to the FM Project site. Entry to
the high security areas will be under the supervision of the security department, with automated biometric access
control at booms and turnstiles. Security surveillance will be undertaken using CCTV cameras on the perimeter
fencing of the plant and mining areas and within selected buildings. Pan-tilt-zoom cameras will be located at
secure high points in the mining area to monitor traffic entering and within the mining area as required.
Run of mine (ROM) pads
Each portal will have an associated ROM pad situated on surface for storage of the ROM material prior to transport
to the processing plant. For FMN, ROM material will be hauled from underground directly to the plant ROM pad
using underground dump trucks. In the case of FME and FMS, ROM material will be transported to a surface ROM
bin at the portal via a decline conveyor, FMS ROM material will be trucked to a pad near the portal and transferred
to the plant ROM pad by surface trucks.
Waste rock dump (WRD)
Each portal will have an associated WRD. All mines will haul waste from underground to the WRDs using
underground haul trucks (or in the case of FME, by conveyor once installed) Waste will be loaded from the WRDs
by FEL onto tipper trucks and transferred to the TSF embankment, where the waste will be placed and compacted
according to the requirements of the embankment design.
Explosives storage magazine
A bulk emulsion storage facility will be installed on surface near the FMN decline portal which will supply all the
mines with emulsion explosives for development and stope blasting operations. The bulk emulsion storage tanks
will be supplied and installed by the explosive's supplier. Provision is made for two 30t vertical silos. No bulk storage
of cartridges and explosives accessories will be required on the mine site as this will be the responsibility of the
explosives supplier in existing magazines located within 10km of the mine site near Nababeep. An underground
magazine will be constructed on 42 level in FMN for the storage of two weeks supply of accessories. FMN and FME
will each be provided with a mobile emulsion charging unit.
Fuel depot
Refuelling of all utility vehicles and haul trucks will be carried out at the central bulk fuel depot near the surface
workshops. Refuelling of other less mobile machines, including LHDs and drill rigs will be done using an underground
rated utility vehicle mounted mobile refuelling tank fitted with the necessary pumps, metering and safety
equipment.
Mining offices, stores and workshops
The FMN mining complex will include the main workshops, lamp room and change house facilities which will also
service the other mining areas. Offices and stores will be located centrally in the office complex near the process
plant (Figure 6). These facilities will be utilised for the FMN, FME, FMS and FM-Nab mines in the current FM Project
scope.
Change house, lamp room and laundry
The FMN mining complex will include the change house facilities, lamp room and laundry which will also service
the other mining areas. The construction of the lamp room and change house will be prefabricated type, fully
equipped from source.
Plant ROM stockpile
ROM material will be delivered to the ROM stockpile to be located adjacent to the plant (Figure 6) from each of
the respective mine portal ROM pads by truck. The ROM pad is designed to accommodate 100,000t of ore, to
facilitate the stockpiling of high- and low-grade ore separately in demarcated areas.
Process water dam (PWD)
The basic structure for the PWD exists and is located adjacent to the FMN decline portal. This dam will be re-profiled
and lined over an area of 4,000m to provide an estimated 8,500kl of storage for the processing plant. This dam
will initially receive the water currently accumulated below the 103 level of the existing FMN workings which will
be dewatered prior to the commencement of further development of the FMN.
Tailings storage facility
A co-disposal TSF will be constructed to the east of the access road as a single paddock, valley containment
facility. The TSF will be partly positioned over the existing evaporation paddocks and pond. At full capacity the TSF
will have a maximum footprint of 29.913ha, a maximum wall height of 27m and will accommodate 3.761Mm 3 of
material, including 2.797Mm3 of tailings.
Processing plant offices, change house, stores and workshops
The processing plant area will include offices, stores and workshops dedicated to processing operations. These will
be located within the fenced and access-controlled plant area. Consistent with the strategy to minimise
permanent concrete and immovable structures on the site, the process plant workshops and stores will be
constructed using shipping containers for the lock-up portions of the facility, forming the walls of the facility.
Laboratory
An onsite laboratory will be established in the plant area. Broadly, the function of the onsite laboratory is to provide
a quick turn around on results to enable process control, metal accounting and concentrate grade control in the
operation. The laboratory is expected to receive a total of 100 samples per day from these work streams. The
sample matrix used for laboratory design includes 20 samples / day for grade control and 10 samples / day special
samples. Exploration drilling samples will be analysed externally by accredited laboratories.
Bulk water supply
The water balance for the entire site was prepared by Orion in conjunction with their specialist consultants for
submission as part of the IWUL application. The mining operations are water positive, receiving water from fissures,
backfill and service water (222,868 kilo litres per annum (kl/annum)) and losing water only to ore and waste mining
and backfilling (75,353kl/annum). The nett (155,652kl/annum) will be pumped to the PWD for use in the plant.
The plant is expected to consume or lose 425,201kl/annum of water to ore sorter waste, concentrate, backfill and
tailings. The plant will receive water from feed ore, TSF return water, FM Project sewage plant, underground
workings and storm water. The balance or make up water (129,217kl/annum) will be supplied from the Nababeep
Wastewater Treatment Works (WWTW) and four process water boreholes (Figure 6).
The primary long-term source of make-up water for the processing plant is the Nababeep WWTW, which is the
sewage treatment plant operated by the NKLM and services the town of Nababeep. This plant currently
discharges approximately 1,000kl/day of untreated sewage into the Nababeep stream. Refurbishing of this plant
is underway by NKLM using funding from the National Government, with assistance from NOMC. NOMC have
provided funding of ZAR1.9m in terms of the company's SLP commitment and assistance with project
management and supervision of the refurbishment process.
NOMC has an off-take agreement with the NKLM for 1,000kl per day of treated effluent from the WWTW at no cost.
Bulk power supply
The total power requirement for the FM Project is 10 MVA, with peak operating power of 8,729kW and total energy
consumption being 58 Mega Watt hours per annum (MWh/annum). This includes the simultaneous operation of
three mining production centres, which is only likely to occur for a limited period when production from a depleting
section overlaps with production from a new mining section being developed.
The process plant will be equipped with an 11kV distribution switchboard, for the distribution of power at 11kV to
local containerised step down substations and switchboards within the plant area, located near to the various
processing areas to minimise cable runs required for low-tension supply to motors. A network of 11kV overhead
lines is planned to service the remote mining centres, with 11kV armoured cables installed in declines and access
shafts to extend electrical supply for the underground drilling, ventilation and pumping equipment.
The requirement is therefore to provide an 11kV supply of 5MVA for the plant demand, with a further 5MVA supply
via overhead lines to the mining sections. Two viable alternatives for a bulk power supply to the FM Project were
considered by NOMC:
- a direct 66kV Eskom supply from the 66kV line to Henkries along the N7; or
- a NKLM supply from the existing Old Nababeep substation (in use by the neighbouring Copper
360 operations).
It was concluded that the optimum solution would be to construct a new 66/11kV substation on the mine site
adjacent to the plant. This substation would require 66kV incoming supply from either Eskom directly, or from the
Old Nababeep substation.
The proposed 11kV reticulation was modelled in to simulate the load flow parameters and determine the
appropriate conductor sizes required to safely supply the required steady state load. Under normal operating
conditions, all lines will operate within acceptable current and voltage drop limits.
The 66kV reticulation connecting Nababeep, Carolusberg and Okiep to the Eskom Nama STS substation near
Springbok was originally built and operated by OCC until the company closed in 2003 and the infrastructure was
donated to NKLM. Since 2003, following the cession of mining operations, the notified maximum demand for the
supply point from Eskom was reduced to 4.5MVA, although the installed distribution equipment had not changed.
Much of the switching and protection equipment needs to be refurbished or replaced. The overhead lines,
however, were well constructed and are currently operating reliably.
The FM Project processing plant is situated approximately 5km from the 66kV substation on the old mine site in
Nababeep, representing an opportunity to provide a 66kV or 11kV supply to the mine site at relatively low capital
cost and short construction time.
An application to NKLM for a 10MVA supply was approved by management and a joint Power Supply Steering
Committee was established with NKLM to expedite the finalisation of a comprehensive Power Supply Agreement.
An agreement has been concluded in principle to purchase electricity through the NKLM network at an electricity
supply tariff based on a margin on "cost from Eskom" of 10%.
It is estimated that the FM Project will require approximately 1.5MVA power for plant construction and the
extension of development in the FMN. The NKLM existing 11kV capacity at the Old Nababeep substation is
sufficient to supply the 1.5MVA required and the NKLM have agreed to a connection, with NOMC free to continue
with construction immediately.
The inability of Eskom to consistently provide sufficient power to supply South Africa's needs introduced the
concept of "load shedding" where electrical load is shed across the various users during different times. While the
reliability and performance of Eskom power stations has undoubtedly improved, the high cost of generation and
non-payment by municipalities is putting upward pressure on Eskom electricity tariffs. This is borne out by the recent
application by Eskom for a 36% tariff hike. The implication for the FM Project is that a combined back-up and
alternative energy supply solution must be provided to mitigate against the possible insecurity of supply, as well as
the increasing tariffs from Eskom.
It is proposed to delay any commitment to a PPA until the FM Project is well into the construction phase, by which
time it is anticipated that there will be more clarity on the path and structure of future Eskom tariffs. In the interim,
backup diesel generators on rental will be installed at the plant substation to provide back-up for possible power
outages during the construction phase. This will be sufficient to support the underground development operations
at FMN and FME, as well as the plant construction in the event of Eskom power failures.
Effective available roof space over the offices, change houses and carports will be fitted with solar panels and
hybrid inverters to take advantage of the abundant sunshine. This will have the benefit of offsetting the energy
consumption of the infrastructure and providing clean uninterrupted back-up power to the office complex. It is
estimated that approximately 238kWp of solar could be accommodated in this manner.
Offices and general administration
The FM Project will utilise the existing offices in Nababeep for senior management, administration and technical
services staff. The Nababeep office complex includes an area of approximately 5,000m 2 under roof, of which less
than 500m2 is currently utilised. It is planned to systematically renovate sections of the building to accommodate
expansion of the exploration core yard, as well as satisfy the training needs of the business.
Accommodation
No accommodation will be provided by the FM Project as sufficient private housing is available in the nearby
towns of Nababeep, Okiep, Carolusberg and Springbok, all located less than 20km from the project area. In terms
of agreements with the local community, preference will be given to local applicants for the filling of vacancies.
Information and communications technology (ICT)
Cellular networks are available in the area, although reception is poor on the FM Project site. The backbone of
communications for the FM Project will be via a dedicated wireless internet feed from a high site established on
the farm Nababeep 134 Portion 16, currently owned by Mora Please and which is in the process of being acquired
by NOMC.
The FM Project is required, in terms of the MPRDA, to install proximity detection and collision avoidance systems
(CASs) on all mobile machines and personnel present within the mine site, either on surface or underground.
NOMC intends to use this system as the core of an integrated mine-wide communication and data distribution
system.
Provision has been made to establish in-house Mine planning and scheduling capabilities. Specialist technical
equipment and software will be required to operate the FM Project which will include mine scheduling software,
survey and ventilation instruments.
Waste management
Waste reduction and avoidance will be primarily achieved through selection of suppliers that provide operational
consumables and materials with minimal packaging needs and careful stock management to ensure goods are
utilised before their expiry date. NOMC will develop and implement separate programmes to deal with non-
hazardous solid waste / general waste, hazardous waste and organic waste.
Sewage
A containerised package sewage treatment plant will receive all grey and black water generated in the change
houses and offices in both the plant and mining areas. This plant is designed to receive up to 25kl/day of
wastewater.
Conclusions
The FM Project is located in an historical mining area, within 3km from the town of Nababeep. As such regional
infrastructure is well established and comprehensive, although roads, power sources and the local wastewater
treatment plant will require some restoration work. The various mining nodes associated with the FM Project are
located within 3km of each other, with a central plant, thus facilitating the sharing of infrastructure between these
and future satellite mining sections.
The existing offices and workshops in Nababeep, which NOMC has purchased and is occupying, will enable
proximal project management during the development phase and administration thereafter. This office complex
although old and in need of renovation in certain areas, has ample available office space, as well as numerous
fireproof strongrooms, some of which are currently used for the storage of hard copy legacy maps and data.
Although the existing infrastructure located on the FM Project site is minimal, the existing decline portal and
associated development at FMN offers a significant advantage to the FM Project, in that the development time
to steady state production from FMN is significantly reduced compared to a greenfield development. It also
facilitates valuable firsthand insight into the mining conditions that can be expected in the FM Project area.
The position of the proposed TSF over an existing environmentally impacted location (the evaporation paddocks)
will ensure that FM Project impact to the site is kept to a minimum. NOMC is currently assisting the NKLM with the
refurbishing of the Nababeep WWTW which is a commitment in terms of the SLP in the MR as well as a requirement
to provide good quality process water for the FM Project. These measures will remove the sources of serious pre-
existing environmental impacts in the valley, reducing the overall environmental impact of the operations.
The investigation into the options for the bulk power received significant attention. The performance of Eskom in
terms of the cessation of load shedding has undoubtedly improved, yet the non-payment for electricity by
municipalities and other Government entities poses another risk to supply in the form of high energy costs.
From the outset, municipalities look to mining companies for assistance wherever possible, hence it is a reality that
mines are necessarily involved the management and particularly the maintenance of critical infrastructure such
as water, electricity and wastewater treatment. NOMC is already having an impact on the refurbishing works for
the Nababeep WWTW.
By opting for a NKLM bulk electricity supply, the FM Project will see reduced capex of almost ZAR80m compared
to an Eskom connection. The annual revenue benefit likely to accrue to the NKLM from electricity sales is likely to
be ZAR11m per annum, which will be recognised by the NKLM and local community as a significant positive impact
by NOMC to the host community. This will open the door for energy savings through the use of renewable energy
in one form or another in collaboration with the NKLM, once construction is underway.
Environmental baseline descriptions
The environmental baseline descriptions provide a detailed assessment of the receiving environment for the FM
Project. They comprise a series of specialist studies which are reported on, by discipline, in the sections to follow.
The baseline descriptions have provided information required to compile the EIA for the MR application, EMPr and
IWUL application. In addition, these form the basis on which all future impacts of the Project will be measured. The
environmental aspects of the FM Project were coordinated by ABS Africa, who is NOMC's appointed
Environmental Assessment Practitioner.
All baseline studies, as required by the EIA, and the approval of the MR and IWUL have been successfully
completed. Studies have included the following aspects of the FM Project:
- soils, land use and land capability;
- surface water and aquatic ecology;
- hydropedology;
- terrestrial ecology;
- air quality;
- noise;
- socio-economic;
- heritage; and
- palaeontology.
Taking cognisance of the location of the FM Project in an isolated and hidden valley, away from significant
population centres, the following studies were not required:
- visual (aesthetic) impact;
- blasting and vibration; and
- traffic.
Although a traffic study was not required from a environmental perspective, NOMC is required to contact SANRAL
to obtain written permission prior to the transportation of abnormal loads.
Although the Project most certainly has an impact on the receiving environment, none of the impacts resulted in
a "No-Go" option. Post the mitigation measures set out in the Final Environmental Impact Assessment Report of
2019 (FEIR, 2019) all impacts were assessed to be very low to medium low and medium, with the only exception
being the potential impact rated as medium high to the groundwater quantity and quality. During the IWUL
application further, more detailed studies were undertaken which have enabled this risk to be further mitigated.
The following physical characteristics of the FM Project and environmental choices have reduced inherent
potential impacts on the baseline environment:
- rural location away from any settlements of significant size. Those present (numbering
approximately three) are situated in the south of the MR, and away from the location of the
major infrastructure;
- underground mining which significantly reduces the visually impact but also reduces those
associated with blasting, noise and emissions;
- prevailing wind directions where it is located downwind of sensitive receptors;
- reduced TSF footprint because of backfilling of tailings into the mined out areas;
- positioning of the TSF footprint on an already environmentally compromised site;
- concentrated plant and offices footprint to the east of the access road and adjacent to the
existing FMN decline, which is already an environmentally impacted site; and
- the MR is located in an area with an arid climate and low rainfall and therefore all watercourses
are non-perennial, and no wetlands exist, except for the Nababeep stream which being
artificially fed with water sewage from the Nababeep WWTW.
Positive impacts on the baseline environment are significant and will include:
- removal and containment of the evaporation paddocks and pond which will remove the
current source of groundwater pollution;
- renovation of the WWTW which will significantly improve the surface water quality in the
Nababeep stream and return it to its natural non-perennial state;
- upgrading the access road;
- creation of employment opportunities and job security with the associated economic benefits;
income generation for landowners; and
- production of copper for sale on the international markets, bringing export revenue to the
country.
Environmental, social and governance initiatives
Orion is focussed on meeting the growing global trend for corporates and stock exchanges alike to assess
compliance and the level of compliance of individual modern companies against a list of recognised
environmental, social and governance (ESG) parameters.
Orion has developed a Sustainability Framework which provides a holistic and integrated approach to
sustainability management. It is based on a process of continual improvement combined with supporting the
objectives of the United Nations Sustainable Development Goals (SGDs). Orion's top four priority SDGs are key to
ensuring responsible resourcing within the global mineral value chain with the company aiming to:
- substantially increase the number of youths and adults who have relevant skills, including
technical and vocational skills, for employment, decent jobs and entrepreneurship (SDG 4);
- achieve higher levels of economic productivity through innovations and decent work (SDG 8);
- increase resource-use efficiency through adoption of clean and environmentally sound
technologies and industrial processes (SDG 9); and
- ensure responsible, inclusive, participatory and representative decision making at all levels
(SDG 16).
Global compliance gap analysis
The International Finance Corporation (IFC) Performance Standards on Environmental and Social Sustainability
(2012, as amended) are a collection of standards developed by the IFC for managing social and environmental
risks and impacts with the aim of enhancing development opportunities. The standards provide guidance on
identifying and managing risks and impacts and include guidance on stakeholder engagement and disclosure
obligations. Comprising of eight standards supported by several general and sector-specific technical guidelines,
the IFC performance standards (PSs) are recognised as a global good practice standard for environmental and
social performance.
The Equator Principles (EP) (2020, as amended) have been developed in conjunction with the IFC, in an attempt
to establish an international standard with which companies must comply with in order to be considered for
project financing from Equator Principles Financial Institutions (EPFIs). The latter have adopted the EP as a
framework for identifying, assessing, and managing environmental and social risks when financing projects. EPFIs
are required to only provide finance and loans to projects that meet the relevant requirements of Principles 1 to
10
ABS Africa, an independent environmental consulting and advisory company, conducted a high-level gap
analysis of the FM Project against the requirements of the IFC's PS and the EP. This review concluded that the FM
Project broadly complies to the IFC PS 1 to 8 and EP 1 to 10. A total of 16 action plans have been developed to
address the compliance gaps identified in FM Project's 2022 gap analysis. With these action plans implemented,
it is expected that adequate management controls will be in place to ensure ongoing compliance to the IFC PS
and EP.
A single gap was identified relevant to IFC PS 1 and 3 and EP 1 and 2. To close this gap the preparation and costing
of a detailed plan for the removal and disposal of the historically contaminated material is required, ahead of the
TSF embankment wall extension. The reader should note that the TSF embankment wall extension at this location
will only be required in year 4 or beyond of the LOM.
Carbon neutral footprint
The global mining industry is responsible for 10% of greenhouse gas (GHG) emissions and 10% of the world's energy
consumption, with the majority of this energy sourced from fossil fuels. South Africa, heavily reliant on the mining
industry, is the 14th largest emitter of GHGs, with its carbon footprint largely due to the heavy use of fossil fuels for
power generation. South Africa's copper production also has amongst the highest unit carbon emission footprints
in the world.
The FM Project aims to manage GHG emissions by focusing on reducing the amount of carbon dioxide emitted.
Carbon dioxide is the main GHG contributing to the greenhouse effect - widely accepted as the mechanism by
which global temperatures are detrimentally increasing. The Project is to be developed targeting a carbon neutral
footprint for all metals being produced, i.e. there will ultimately be no direct emissions from the production activities
of the Project. To achieve this reduction in carbon dioxide emissions, a study into the best means to establish a
carbon neutral roadmap is recommended.
The FM Project has inherent advantages to achieving a carbon neutral footprint in that:
- the primary commodity to be produced (copper) is an essential contributor to both Fourth
Industrial Revolution (4IR) technologies and a low carbon future;
- a new mining operation is to be established which can wholly adopt the most current
technologies and inculcate operating philosophies that are in keeping with contemporary
standards for global sustainability; and
- the Project is located within a geographic region with some of the highest solar and wind
energy resources on the African continent for renewable energy generation. The backbone
infrastructure for the development of renewable energy facilities is either already in place,
under development or planned in the vicinity.
Environmental and social impacts, risks and management
The environmental and social impacts of the FM Project were assessed as at September 2019, and are re-assessed
annually, in accordance with the minimum requirements in the EIA Regulations (2014) and the associated official
guidelines. Specialist studies were undertaken as part of IWUL application process. As at the date of issuing the
Feasibility Study Report, no environmental issues were identified that resulted in the 'No Go' option being
executed.
For the purposes of Feasibility Study level reporting, environmental, social and governmental aspects meet the
necessary requirements. In addition, the FM Project has largely met the IFC and EP requirements for global
compliance.
Social and Labour Plan (SLP)
An SLP was developed by SAFTA as part of the MR application. This was reviewed by Orion and the DMRE prior to
the granting of the MR, and the revised SLP became effective in December 2022 as part of the granting of the
said right. Once the MR is granted by the DMRE, the commitments laid out in the SLP become legal obligations
with specific targets, budgets and implementation timelines.
The SLP is broadly aimed at the following:
- improving socio-economic circumstances for mine employees and communities;
- transformation within the mining industry; and
- community development, otherwise known as local economic development programmes.
The SLP financial commitments are ZAR8.289m over a period of five years.
Health and safety
The health and safety obligations for the FM Project sites are vested with NOMC, as the employer in terms of the
MHSA, NOMC is responsible the health and safety aspects of the Project. All the required legal appointments in
terms of the MHSA of personnel responsible for the Mining Right are currently in place pertinent to the level of
activity on the site. Prior to commencement of mining activities additional appointments will be made as required,
which will include Safety officers, Occupational hygiene practitioners and emergency medical services.
The MHSA stipulates standards and procedures to ensure a safe working environment. It ensures that a mining
operation achieves the correct levels of design, monitoring and adherence concerning safety and health.
Therefore, in accordance with all the requirements set by the MHSA and the DMRE, a Mine Safety Management
System (MSMS) will be developed prior to the construction phase of the FM Project. This will be further extended
during construction and again in preparation of full production. The MSMS will maintain a working environment
that is safe and that does not pose risks to the health of employees, visitors or the community.
Project execution and operations management
Execution philosophy
Historically, large scale mining projects were executed using the EPCM methodology. In the last 10 years many
mining organisations have reassessed the value of EPCM in terms of execution efficiency, risk transfer and overall
value gained. It has been widely published that EPCM contracts often lack the ability to transfer risk from the owner
to the EPCM and in some cases the EPCM takes on work scopes that are ill suited to their capability set. Other
criteria that influence the choice of EPCM or other methodologies relates to geographic location. In Africa there
are a range of execution approaches ranging from full EPCM to hybrid arrangements with a strong owner's
presence. Since then, new insights emerged, balancing execution capability, practicality, integration, value and
risk.
The execution philosophy for the FM Project considers the best-fit for the combined work packages and for Orion
as an organisation. This required that the following matters be considered:
- the trends, successes and failures of various execution strategies globally and in South Africa;
- analysing work packages for complexity, risk and unique characteristics, schedule and
- interdependencies to determine the appropriate contracting methodologies;
- avoiding unnecessary management overhead and duplication;
- introduce specialist construction contractors with experience of similar underground work;
- building an experienced Owner's team with the required project management systems;
- the location of the FM Project relative to regional and local infrastructure, services and skills;
and
- the selection of service providers and suppliers who share Orion's vision.
After analysis of the above points, the execution phase of the project is planned to be implemented by a
combination of EPCM, EPC and Owner's team led work packages.
Execution phases
Each of the FM Project mining areas require a significant amount of primary and secondary development to
access the target mineralisation prior to any production. The critical path to production is the mining development
to establish access, ventilation and stope preparation; plant construction is not the critical path element. NOMC
intends to utilise the "owner mining" approach as opposed to "contractor mining" to minimise the cost of mining
production. This requires that NOMC, from the outset, resolves to establish a culture of excellence in mechanisation
in order to achieve the required operational productivity of men and machines, as well as high machine
availability.
The commencement of a project presents significant challenges and potential for delays. To derisk the FM Project
and reduce the initial capital outlay, it will be developed using a phased approach. The phases of the project are
outlined as below and presented in Table 3:
Early works duration four months:
o construction of process dam;
o dewatering of FMN workings;
o rehabilitation/re-support of FMN decline;
o establish temporary surface infrastructure, power, water, workshops, change houses
etc. for FMN development; and
o procurement of development TMMs for FMN development;
Phase I duration 18 months construction, 24 months production at 32,500tpm:
o develop FMN decline, ventilation raise-boreholes, etc to establish production at
32,500tpm by owners team;
o construction of process plant for 32,500tpm capacity by build-own-operate-transfer
(BOOT) service provider;
o construction of 66kV overhead lines, step down substation and 11 kV surface power
distribution;
o construction of TSF by contactor;
o construction of process water supply; and
o processing of FMN ROM material at 32,500tpm and conduct pilot scale ore-sorting tests;
Phase II:
o development of FME portal and twin-decline, ventilation RBHs;
o install FME decline conveyor and underground crusher system;
o establish sustainable FME production at 35,000tpm; and
o expand processing capacity to 65,000tpm and including the ore sorting plant.
An early works program utilising a small team of core personnel will undertake the setup of temporary surface
infrastructure, power and water supplies while dewatering and rehabilitation of the existing FMN workings ensue.
This will ensure all required infrastructure, equipment and systems are in place prior to Phase I commencement.
Phase I will include the development of an access decline to the FMN main body to establish the production of
approximately 32,500tpm for a period of 24 months from FMN only.
Phase II will take the project to full design production capacity and will comprise the development and plant
expansion required for the mining of approximately 65,000tpm (combined production from FMN and FME),
processing through particle ore sorters followed by conventional milling and flotation. To sustain Phase II, the FMS
decline will need to commence timeously in anticipation of the required FM-Nab and FMS production replacing
FMN. The steady state labour complement, at 65ktpm, is expected to be approximately 300 people.
The high-level PEP for the development of the FM Project is outlined in Table 3.
NOMC project team
NOMC will establish a Project team to manage progress and interface with various EPCs and local contractors
responsible for various workstreams as presented in Figure 21.
Figure 21: FM Project Execution organogram.
Process Plant Funding and BOOT arrangement
NOMC has opted to enter into a build-own-operate-transfer (BOOT) arrangement for the process plant
construction and operation. The BOOT service provider, who is a well established original equipment manufacturer
(OEM) with strong operational expertise, will be responsible for the funding, detailed design, procurement,
construction and operation of the process plant in the two Phases of construction outlined above. The BOOT term
will operate for 60 months from the date of commissioning of each phase, hence the total duration of the BOOT
contract would equate to seven years from first concentrate production. During this term, monthly payments in
terms of the BOOT financing will be made by NOMC and at the end of the term, ownership of the plant would be
transferred to NOMC. The BOOT provider will provide all technical, operational and maintenance requirements of
the plant according to fixed monthly and variable per ton milled rates defined in the BOOT contract. The BOOT
period will serve as a training period for the Owners team employees who will continue operations after the BOOT
period.
A draft contract with all the related terms has been received.
Master Schedule
The FM Project Master Schedule was developed from the FM Project scope of work and schedules provided by
the respective consultants and moderated by the Orion owners team. In the execution phase of the FM Project,
contractors' detailed schedules will be used to develop the schedule further.
Below is a list of schedules and the sources that were used to generate the FM Project Master Schedule:
- early works: Owner's team schedule;
- underground development: Sound Mining Services schedule;
- infrastructure: METC and Orion owner's team;
- TFS; Epoch;
- earthworks: METC schedule;
- civils: METC schedule;
- SMPP: METC schedule;
- EC&I: estimated durations; and
- commissioning: estimated durations.
BOOT contractor
The BOOT contactor will be the key management entity that controls and plans the day-to-day construction
activities related to the process plant and surface infrastructure. This will include detailed design, procurement
and contract management. Safety, health and environmental management will form part of the contractor's
responsibility, subject to the mine standard procedures and oversight by the Mine Manager and Resident Engineer.
The majority of the BOOT team will be site based with design engineers and drafting office staff located at the
contractor's head office.
EPC contractors
Several work packages have been structured as standalone EPC type contracts whereby a preferred service
supplier has already been selected by Orion to undertake specialised design and construction. These are listed
below with the respective companies involved:
- design and construction of the 10MVA bulk power and 11kV overhead lines installations: Dabar;
- design and construction of surface infrastructure: METC, Speedspace;
- design and construction of the TSF: Epoch;
- mine design and scheduling: Sound Mining; and
- water supply works ; local contractors under supervision of the NOMC Project team.
Before the Project construction begins, a value engineering exercise is planned with the various EPC contractors
in collaboration with NOMC's project management team so that any Project improvements made can be
incorporated into the relevant designs before detailed engineering starts. Once the FM Project is underway, the
EPC contractors will utilise management documents to assist with the day-to-day management of the Project
construction.
Procurement operating framework
NOMC will implement the Orion procurement operating framework designed to establish a consistent,
transparent, and efficient procurement model that supports multiple mine sites, ensuring compliance with
governance standards and delivering value across all purchasing activities. Through this framework, the
organisation ensures that procurement is conducted ethically, efficiently, based on best practice expertise and in
full compliance with all regulatory and corporate requirements, while also enhancing operational continuity, cost-
effectiveness, and positive community impact.
Procurement will be managed from an Orion Group level to leverage the combined group buying power to the
maximum advantage. Specialist procurement resources are provided through Orion for the negotiation and
drafting of supply and services contracts, with site based procurement staff handling ad hoc local purchasing and
receiving functions.
Capex
This Feasibility Study has provided capex cost estimates which have an accuracy within the standard targeted
range of +/- 15%. The total capex estimate for the FM Project is ZAR1,605m (AUD128m) including contingencies
and BOOT financing of the process plant.
The summary of the FM Project capital estimate (before financing) by area is presented in Table 22. The mining
capex forms the majority of the capex cost at 45%, with the mining fleet accounting for 32% of total capital items.
The process plant at an estimated ZAR645m accounts for 39% of total capex. In the surface infrastructure, bulk
power supply and TSF construction (including water supply and contingency) are significant costs at ZAR70m and
ZAR113m, respectively.
NOMC proposes to defer capex by financing the process plant through the BOOT arrangement described above.
Table 22: FM Project Summary of capex.
Contingency
Subtotal
Area Sub area capex cost (%) (ZARm) Total capex % of total
(ZARm) cost (ZARm) capex cost
Underground mining machines 494.41 8.0% 39.55 533.96 32%
Stationary machinery 140.26 8.0% 11.22 151.48 9%
Portal establishment 30.58 8.0% 2.45 33.03 2%
Mining
Backfill piping & equipment 11.91 30.0% 3.57 15.48 1%
Technical services equipment &
8.90 8.0% 0.71 9.61 1%
software
Subtotal mining 686.06 8.4% 57.50 743.56 45%
Equipment supply 370.36 8.0% 29.63 399.99 24%
Processing Installation 187.86 5.0% 9.33 197.20 12%
Spares 44.72 8.0% 3.58 48.30 3%
Subtotal processing 602.94 7.1% 42.54 645.48 39%
Power supply 64.74 8.0% 5.18 69.92 4%
Alternative and backup power supply 0.00 0.0% 0.00 0.00 0%
Mining and plant offices & change
Surface 34.72 8.0% 2.78 37.49 2%
houses
infrastructure
Mining stores & workshops 15.07 8.0% 1.21 16.28 1%
TSF and water supply 104.96 8.0% 8.40 113.36 7%
Land, roads and fencing 21.05 4.8% 1.01 22.07 1%
Subtotal surface infrastructure 240.54 7.7% 18.57 259.12 16%
Total FM Project capex 1,529.54 7.8% 118.61 1,648.16 100%
Notes: Excludes sustaining capex. Source: NOMC financial model
The capex estimate has been compiled assuming the proposed mine development would be managed by an
Orion owner's team, working with a plant BOOT contractor to manage engineering, procurement, construction
and commissioning of the process plant. The BOOT contractor has the capacity and necessary skills in-house to
execute a project of this scale.
The capital estimate was compiled by the various specialist consultants in collaboration with the NOMC Project
General Manager. The basis of estimate includes:
- development of an accuracy range of +/- 15%;
- base date of Q4 2024;
- base currency is ZAR;
- most of the major capital items in the capex estimate have significant foreign exchange
exposure and ZAR values will change with marked fluctuations in rate of exchange. To date,
the rate of exchange has not changed significantly to warrant revaluation of the capital items;
and
- capex estimate prepared in constant money terms.
Contingency has been applied taking cognisance of the following:
- level of detail of the designs and unaccounted engineering development costs;
- basis of the estimate including inaccuracies in quantitative evaluation and allowances; and
- pricing risk.
Opex
This Feasibility Study has provided opex cost estimates which have an accuracy within the standard targeted
range of +/- 15%. The summary of the costs by area is presented Table 23. Mining comprises the majority of the
cost (47%), followed by processing (22%) and concentrate logistics (10%).
Table 23: FM Project Summary of opex.
Total opex % of total
Area
(ZAR/ROM t) Opex
Mining 559.03 48%
Processing 262.35 22%
Off-mine 132.42 11%
Concentrate logistics 121.15 10%
Sustaining capex 106.15 9%
Total FM Project opex 1,181.10 100%
Opex for all disciplines was built up from first principles or where applicable from contractors tendered prices and
using up to date consumable prices and rates. The basis of estimate includes:
- development of an accuracy +/-15%);
- the base date is Q4 CY2024;
- an allowance has been made for escalation, costs reflected are in current terms;
- no contingency was applied for consumables; and
- the base currency is ZAR. No allowance has been made of variations in exchange rate.
Mining opex
Stoping and mining development costs are based on cost estimates per metre of development and per stoping
ton mined using the Candy model from an independent estimator. Mining labour numbers were based on the
number of machines as determined by development meters planned and tons hauled, with the required
supervision per working shift. Mining labour is calculated and allocated per mining section depending on state of
development and production. Mining shared labour applies to categories of employees that can not be
allocated to any particular mining sections and are shared between multiple mining sections. This category of
labour inlcudes management, technical services, engineering and safety personnel, for example.
Other mining costs include consumable costs unrelated to labour for supporting the mining operations and
inlcudes mining electricity, underground diamond drilling consumables, backfilling consumables and
maintenance and technical services software and instrument maintenance.
Table 24: FM Project Summary of mining opex.
Mining opex ZAR/ROM t
Total development cost 118.56
Total stoping cost 106.34
ROM and waste transport costs 35.12
Total mining labour 136.30
Total mining shared labour 68.13
Other mining costs 38.95
Surface and indirect 55.63
Total mining opex 559.03
Note: Real costs shown. Source: NOMC financial
model
Total mining costs for the FM Project are low compared to other similar scale mining operations. This is as a result
of the relatively shallow mining depths and wide mineralisation bodies allowing efficient bulk mining methods to
be effectively applied.
Processing Opex
Total processing opex is recorded at ZAR262/t ROM feed processed, as presented in Table 25. The most significant
costs in the FM Project processing plant are:
- plant labour;
- electricity;
- mill balls and liners; and
- flotation reagents.
Table 25: FM Project Summary of plant opex.
Processing opex ZAR/ROM t
Total plant labour 77.00
Crushing and screening 3.07
Ball milling - balls and liners 43.30
Ball milling - electricity 54.36
Savings with PPA ball milling - electricity -13.24
Flotation reagents 25.40
Other variable costs 5.18
Total variable costs 118.07
TSF operations 8.56
Power costs - excluding ball mill 43.12
Savings with PPA power costs - excluding ball mill -10.76
Maintenance cost 9.01
Assay Laboratory - plant samples 1.35
Sorter licence/maintenance 0.00
BOOT Interest 16.00
Total fixed monthly costs 67.28
Total processing cost 262.35
The labour rates are based on a benchmarking exercise of Northern Cape mining operations, combined with
estimated staffing numbers allocated to the plant in terms of adequate management, maintenance and
operations staff.
Total milling costs including mill balls, liners and mill energy consumption are relatively high compared to other
mining operations owing to the high work index of the ROM material to be processed. This fact is a significant
incentive motivating further investigation and implementation of ore-sorting in the process to remove "unpay"
material from the mill and thereby reducing milling costs. The implementation of ore-sorting could potentially
reduce the cost of milling by up to 30%.
Electricty is a significant cost due to the high milling work index requiring high energy consumtion in the milling
plant to achieve the required particle size for the flotation. To mitigate the high energy demand of the milling
plant, NOMC intends to enter into a power purchase agreement (PPA) with a credible independent power
producer (IPP). Energy wheeling proposals have been received in which up to 80% of total energy consumption
by the operation can be supplied by an IPP at a significant discount to current Eskom tariffs. Energy cost savings
via a PPA have been incorporated into the financial model achieving energy cost savings of up to 25% as is
indicated in Table 25.
The savings achievable through a PPA with power wheeling from remote renewable energy generation site, (wind
and solar) are largely as a result of a PPA tariff at an initial discount to Eskom energy tariffs, coupled with a variance
between the Eskom future escalation forecast by National Energy Regulator of South Africa (NERSA), and the PPA
escaltion which is linked to consumer price index (CPI).
Market assessment
Copper is a common alloying metal with superior electrical conductivity, mechanical strength, and endurance,
which makes it the material of choice for industrial products. Copper is frequently used in construction for roofing
materials, plumbing and heating systems. As the most conductive non-precious metal, copper is the
recommended option for electrical wiring in residential, commercial, and industrial structures due to this superior
electrical conductivity but also its resistance to corrosion. With the push toward green energy sources, battery
metals have seen rapid increase in demand. However, a similar trend is expected for copper, with it being used
almost four times more in electric vehicles than in vehicles fitted with hybrid or internal combustion engines.
Copper's widespread use makes it a valuable indicator of global economic health.
Copper deposits primarily occur in either igneous or sedimentary rock types. Porphyry copper deposits are
associated with igneous intrusions and supply approximately 60% of the world's copper production. These are
primarily located in western North and South America. Sedimentary deposits host approximately 25% of the copper
production and include the central African copper belt and the Zechstein basin of eastern Europe. The Okiep
Copper District copper deposits, although primarily hosted with mafic intrusives, are not porphyry deposits but form
a unique type of mineralisation associated with steep structures.
Global copper resources were estimated at ~940Mt in 2024 and are primarily located in Chile (20%), Peru (11%),
Australia (11%) and the Democratic Republic of Congo (DR Congo) (9%) (Figure 22). Global mining production
totalled an estimated 23.0Mt in 2024 (USGS, 2024) compared to 22.4Mt in 2023, an increase of 2.8%. Global mining
production is dominated by Chile (23%), DR Congo (15%) and Peru (11%) (Figure 22). Interesting to note that China
has significantly less resources than the other major copper mining countries but contributes 8% to the total. There
has been a lack of significant investment into new copper deposit exploration and development according to
S&P Global Commodity Insights over the last ten years, with most exploration being focussed on assets discovered
30 to 40 years ago. However, this is set to change with supply pressures forcing copper mining companies to
prioritise exploration and expansion.
Figure 22: Graphs of global copper resources, mine production and refinery production.
Refined copper production has increased from 18.0Mt (2010) to 28.6Mt estimated for 2024, an increase of 37%
over the last 15 years, with both smelter and refinery capacity dominated by China. Annual copper consumption
was an estimated 27.89Mt in 2024, an increase of less than 1% from 2023 (27.69Mt) (Figure 22). Consumption is
dominated by China, and when combined with the rest of Asia, amounted to 77%.
According to the World Bureau of Metal Statistics (WBMS) the global refined copper production was 27.62Mt with
consumption being 27.69Mt which resulted in a supply shortage of 0.066Mt in 2023. Although the issues in the
Chinese construction industry persist, copper has a positive long-term outlook due to its place in the green energy
transition and electronics, supported by the drop in the supply side in 2023 which is unlikely to change in the short
term. The majority of copper supply coming from countries known for political instability adds to the supply risk. In
addition, there had been a significant lack of investment into new copper deposit exploration and development,
but this is set to change.
The recent copper prices are presented in Figure 23 indicating an increasing trend since 2016.
Figure 23: Graph of recent copper prices (2010 2025)
Current global warehouse stocks are approximately 270,000t (November 2024), reflecting a significant increase
since 2021 (Figure 24). This increase in inventory, coupled with an increased demand, has contributed to a trading
price between USD8,000 USD10,000/t price range during the period. Although prices have since stabilised at
around USD9,200/t, demand remains robust, particularly in the USA, where supply chain disruptions and shipping
delays, such as those more recently caused in the Panama Canal, have tightened local availability and with the
expected decreasing stock levels, the price is expected to increase in the short term.
Figure 24: Graph of copper stockpile levels versus copper price (Feb 2022 Feb 2025).
Price forecasts integrated into the Feasibility Study evaluation were provided by a leading reputable bank
financial analyst forecast in December 2024. This estimate of USD4.25/lb (USD9,369/t) from 2028 onwards (Figure
25) was adopted for Ore Reserve estimation and mine planning purposes. This price modelling ensures robust
revenue projections that consider global trends, including inventory fluctuations, economic sentiment and
geopolitical factors. The weighted average effective copper price used for financial analysis over the FM Project
LOM is USD9,565/t.
The weighted average effective copper price used in the financial analysis over the FM Project LOM is USD9,396/t.
Figure 25: Graph of forecast copper prices (2021 2032).
The impact of the FM Project on the global copper market will be negligible, with the average annual production
over the LOM estimated at 6,500tpa of contained copper metal. However, the tight global supply coupled with
the expected increase in demand from energy transformation pressures and current metal supply deficit bodes
well for the copper market and associated price in the medium term.
The planned delivery of the FM Project concentrate to Cape Town will enable the FM Project to sell to either the
European or Asian markets.
Marketing and sales contracts
Concentrate specification
The typical specifications of the FMN and FME concentrates have been prepared from the results of the
metallurgical testwork specifically from these mining areas and are presented in Table 26. The reader is to note
that the historical copper production from the various mines in the Okiep Copper District was highly sought after
and regarded as free of deleterious elements. An estimated total of 1.57Mt of blister copper was produced from
the OCC mines between the 1940s and 2003.
Table 26: FMN and FME Typical concentrate specifications.
Element / Average value Element / Average value
mineral Unit FMN FME mineral Unit FMN FME
Cu % 36.90 36.00 Mo ppm 23.60 50.00
Zn % 0.013 0.021 Ni % 0.03 0.02
Fe % 5.50 12.00 Ti % 1.38 1.36
Total S % 10.78 15.60 V ppm 109.00 -
Ag ppm 32.97 40.00 K % 0.58 0.19
Total Au ppm 2.42 0.48 Na % 0.61 -
Cl ppm 107.00 50.00 Ba ppm 105.00 -
F ppm 1,522.00 253.00 Bi ppm 6.95 <0.005
Al2O3 % 6.36 6.80 Ge ppm 1.08 -
CaO % 3.25 2.92 Hg ppm 0.076 0.062
MgO % 4.94 3.00 In ppm 0.52 -
Pb % 0.005 0.005 Sb ppm 0.22 <0.005
SiO2 % 26.00 18.90 Se ppm 277.00 <0.005
As % <0.01 0.00 Sn ppm 2.25 -
Cd ppm 0.92 <0.001 Te ppm 412.00 -
Co % 0.003 0.004 Th ppm 9.43 -
Cr2O3 % 0.098 0.040 U ppm 1.35 -
MnO % 0.06 0.06 Notes: Revenue elements highlighted in orange.
Potential penalty elements highlighted in grey.
Marketing contract and nett smelter returns
No marketing or sales contract has been signed by NOMC on the FM Project concentrates. NOMC has opened
discussions with several reputable concentrate traders and obtained an indicative term sheet in December 2024.
Taking the terms into consideration, the net smelter return (NSR) for the FM Project is calculated and presented in
Table 27.
Table 27: FM Project NSR.
Parameter Unit Value Parameter Unit Value
Metal prices NSR - copper
Copper metal value (in
Copper price USD/t 9,396 USD/t conc. 2,819
conc.)
Silver price USD/oz 27 Payability deduction USD/t conc. 96
Gold price USD/oz 2,157 TCs & RCs USD/t conc. 83
Metal revenue copper By-product credits USD/t conc. 87
Concentrate Grade % 30 Total penalties USD/t conc. 0
Cu payability deduction (grade) % 0 Net smelter return (NSR) USD/t conc. 2,727
Payable copper grade % 30
Copper metal value (in conc.) USD/t conc. 2,819 NSR percentage - copper % 96.8
Copper payability % 96.6
Copper price post payability USD/t conc. 2,723
Treatment cost USD/t conc. 50
Refining cost USD/lb Cu 0
Refining cost USD/t conc. 33
Net copper price received USD/t 2,640
The reader is to note that NSR percentage copper provided in Table 27 varies during the LOM according to the
material mined and its associated gold and silver content. The average LOM NSR in the financial model is 95.2%.
The NSR varies significantly from 95% to 98% depending on the source of concentrates as gold and silver credits
have a bearing on the NSR. All the FM Project deposits have similar silver content reporting to concentrates, while
only FMN concentrates contain gold at approximately 1.95g/t of concentrates which is well above the payability
threshold for gold credits. Early production during Phase I of the operations will see concentrates produced from
FMN only, hence in this period, NSR values will exceed 98% because of the significant gold credits received. With
production dominated by FME and FMS in the later years, no gold credits are expected hence the lower NSR in
the later years of the LOM. There is an opportunity to maximise the NSR during operations by managing the
combined processing of FMN and FME ROM materials.
Route to market
The planned transport route for the copper concentrate is indicated on Figure 13. Concentrate will be packaged
into 2t polypropylene bulk bags, trucked to Cape Town, containerised and shipped to the market. The all in
concentrate logistics were estimated at ZAR121/ROM t.
Economic assessment
The economic assessment was prepared by NOMC using inputs from the various independent specialist experts
and engineers as well as the owners team. The level of accuracy of the financial model is +15% - 15%.
The foundation of the financial model is based on a mining tonnes and grade schedule for each of FMN, FME and
FMS/FM-Nab mines. The mine designs and schedules were developed by Sound Mining in collaboration with JHK
(Competent person for the Ore Reserve estimate). The development metres, stoping tonnes and grades
generated by the mine design software are based on realistically achievable mining rates and methods. The LOM
plan is graphically presented in Figure 15 to Figure 17.
Mining fleet, personnel and consumables requirements and costs are applied to the schedule to produce a
cashflow model for DCF analysis.
The financial model was designed and verified by Fraser McGill, independent experts in financial evaluation
models. Various scenarios were considered for which dashboard switches were incorporated to select a
combination of scenarios. The scenarios included in the FM Project financial model are the following:
The scenarios included in the FM Project financial model are the following:
- include BOOT, or NOT;
- include ore sorting, or NOT;
- lease TMM fleet, or OWN; and
- electricity supply Eskom, or PPA.
The scenario with the most favourable financial outcome is as follows:
- BOOT arrangement for processing;
- include ore sorting;
- own TMM fleet; and
- electricity PPA from IPP.
The base economic and technical assumptions are presented in Table 28 along with the results.
Feasibility Study result
The FM Project processes a total of 7.235Mt at an average grade of 1.18% Cu, with copper metal sales totalling
78,340t. Total project capital required is ZAR1.604bn (AUD128m) with start-up capital to first revenue of ZAR894m
(AUD71m) and peak funding of ZAR1.29bn (AUD103). The graph of net cash flows after tax is presented in Figure
26.
Costs included a 8% contingency on capital.
The net result of the DCF analysis is a post tax NPV of ZAR935m (AUD75m) at an 8% discount rate and an IRR of
19%, with capital payback of ~5.25yrs from first concentrate production. The project yields an all-in sustaining cost
(AiSC) margin of 41% at an AiSC cost of USD5,270/t Cu or USD2.39/lb Cu. It has a capital intensity metric of
USD10,383/t Cu (AUD15,699/t Cu) nameplate production per annum. The model is based on the copper price
forecast compiled from analyst consensus by a leading bank in December 2024 with the weighted average LOM
price forecast of USD9,396/t Cu (USD4.26/lb Cu).
The scheduled LOM production includes Inferred Mineral Resources of approximately 18% by tonnes. There is a
low level of geological confidence associated with Inferred Mineral Resources and therefore there is no certainty
that further exploration work will result in the determination of Indicated Mineral Resources or that the production
target or financial forecast information referred to in this Feasibility Study will be realised. The impact of excluding
the Inferred Mineral Resources from the LOM and the gold and silver credits were assessed, and the results
indicated a post tax NPV of ZAR349m (AUD28m) at a discount rate of 8% and an IRR of 12%, , confirming that the
Inferred Mineral Resources included in the LOM plan are not the determining factor in project viability.
The key economic assessment results of the Phase I and Phase II DCF are presented in Table 27.
Figure 26: FM Project - Graph of net cash flows after tax
Table 28: FM Project - Executive dashboard (real model).
Price and forex assumptions Unit Value Financial performance Unit Value Unit Value
Metal price - Cu USD/t 9,396 NPV (pre-tax) @ 8% discount rate ZARm 1,423 AUDm 114
Metal Price - Au USD/oz 2,157 NPV (post-tax) @ 8% discount rate ZARm 935 AUDm 75
Metal Price - Ag USD/oz 27 IRR (pre-tax) % 23
Exchange rate ZAR:USD 18.90 IRR (post-tax) % 19
Exchange rate ZAR:AUD 12.50 Payback from first production years 5.25
Undiscounted free cash flow (pre-tax) ZARm 2,744 AUDm 219
Peak funding ZARm 1,290 AUDm 103
Production metrics Unit Value Capital intensity * USD/Cu t 10,383 * AUD/Cu t 15,699
LOM (from first concentrate production) years 12.08 Project cost metrics Unit Value Unit Value
Treatment plant capacity ktpa 780 Average cash operating unit cost ZAR/t 769 AUD/t 62
ROM - tonnage kt 7,235 AiSC per unit ROM t ZAR/t 1,078 AUD/t 86
ROM - grade % 1.18 AiSC per unit Cu sold USD/t Cu 5,270 AUD/t Cu 7,968
Concentrate grade - Au g/t conc 0.9 AiSC per unit Cu sold USD/lb Cu 2.39 AUD/lb Cu 3.61
Concentrate grade - Ag g/t conc 31.4 Price received (net of NSR) - Cu USD/t Cu 8,944 AUD/t Cu 13,523
Overall plant recovery % 91.9 AiSC margin % 41
Concentrate tonnage (wet mass) - Cu kt 285 Operating breakeven grade - Cu % 0.73
Concentrate grade - Cu % 30 Project cost flows Unit Value Unit Value
NSR as % of metal price - Cu % 95.2 LOM net revenue ZARm 12,701 AUDm 1,016
Metal sold (in concentrates) - Cu tonnes 78,340 LOM operating costs (+ royalties) ZARm 6,608 AUDm 529
Total Cu sales tonnes 78,340 Project start-up capital expenditure (until first revenue) ZARm 894 AUDm 71
Source: NOMC financial model Total project capital (incl contingency) ZARm 1,604 AUDm 128
Contingency ZARm 90 AUDm 7
Note: There is a low level of geological confidence associated with Inferred Sustaining capital expenditure ZARm 768 AUDm 61
Mineral Resources and therefore there is no certainty that further
Income tax ZARm 977 AUDm 78
exploration work will result in the determination of Indicated Mineral
Resources or that the production target or financial forecast information Cash flow after tax ZARm 2,744 AUDm 219
referred to in this Feasibility Study will be realised.
Note: * Currency/nameplate annual copper tonne produced. Level of Accuracy of Financial Model 15%,
LoM = Life of Mine, NSR = Net Smelter Return, NPV = Net Present Value, IRR = Internal Rate of Return
Sensitivity analysis
A sensitivity analysis was carried out on the FM Project cash flow at intervals of +/- 5%, +/-10% and +/-20% for copper
grade, ZAR:USD exchange rate, copper price and various capex and opex inputs. The sensitivity results are
presented as a tornado graph in Figure 27. The results indicate that the cash flow is most sensitive to revenue drivers
of copper grade and copper price and the ZAR:USD exchange rate.
For perspective, an increase in copper price of 5% from the NOMC modelled estimate of USD9,396/t to USD9,866/t
will result in an increase in th FM Project post tax NPV from ZAR935m to ZAR1,166m, an increase of 25%.
Figure 27: FM Project - Graph of sensitivity analysis (% change in undiscounted free cash flow).
Funding
The peak funding requirement for the FM Project is estimated at ZAR1.290bn (AUD103m).
Orion, NOMC's ultimate holding company, is an Australian domiciled company that is listed on the ASX (ASX: ORN)
and has a secondary listing on the Main Board of the JSE (JSE: ORN). Orion intends to fund the development of
the FM Project through a combination of a BOOT arrangement for the plant, asset backed finance for the mining
equipment, offtake related pre-payments, debt from development finance institutions / commercial banks and
equity.
Orion has commenced initial discussions with commercial banks and metal traders and will progress these
discussions in the next three to six months.
Project risks
An assessment of risks was carried out by the NOMC, the Orion owner's team and their specialist consultants. A
risk register was prepared detailing each risk and its proposed mitigation measures. The risk scoring matrix was
applied to the risks which took into account the likelihood of the risk occurring and the severity of its impact on the
FM Project in terms of inter alia timing, cost and reputation. Eash risk was rated pre- and post-mitigation.
The risks ranked as significant and higher are graphically presented in the form of a heat map in Figure 28. These
risks are tabulated according to the post-mitigation likelihood, impact and risk rating in Table 29.
Figure 28: FM Project Graph of significant risks post mitigation.
Table 29: FM Project Significant risks post mitigation.
Likelihood
mitigation
Impact score
Post
Risk Description Mitigation measures
Execution and operations management
Long delivery time
Delays due to the unavailability of critical equipment including Develop strategic alliance with OEMs.
equipment not 2 4 8
mining machinery and mills. Consider the use of refurbished second hand equipment.
available.
Mining
Equipment maintenance philosophy .
Surface workshop design.
Short Interval control management of maintenance plan and
Equipment execution.
Low equipment availability due to damage and breakdowns. 3 4 12
availability. Skilled and experienced supervisors, artisans and operators.
OEM service and spares/repairs.
Standby units.
UG satellite workshops.
Robust ore definition drilling, grade control drilling.
ROM head grade not Actual ore grade below planned grade being delivered. Mineral
Timeous sample turnaround time at on site laboratory.
meeting planned ore Resource model underperforming, mining dilution. Plant
Good mining practice, 3rd party & peer reviews. 2 5 10
grade delivered to underperformance, reduced revenue and poor reputation with
Implementation of ore sorting technology.
the plant. off takers.
Competent grade control geologist and mining supervisors.
Implement fleet management system to improve cycle time
Mechanised development crews do not meet and exceed the management (costs and labour).
Not meeting
required development rates leading to late start of ore Short Interval control project management of critical path
development targets
production. Inexperienced mechanised supervisors / operators / development (mining engineering team and costs). 2 5 10
to access production
artisan, poor OEM backup. Delayed start to on- ore development Skilled and experienced operators.
stopes.
leading to late start of process plant. Run scenario with an additional development crew to mitigate
development shortfall.
Below par performance of production crews, poor mining
Select a shrinkage mining method (VCR) to mitigate the effects
practices (poor fragmentation, hot work conditions), less than
Not meeting ore of horizontal stresses.
optimal stope design, injuries and damage to equipment leading
production targets in Short interval control project management of critical path
to plant stoppages due to no ore. Inexperienced mechanised
terms of volume development (mining engineering team and costs). 2 5 10
supervisors/operators. Poor discipline, poor production logistics,
planned from both Skills transfer and mentorship.
poor ventilation design and controls, poor explosive performance
VCR and LHOS. Skilled and experienced supervisors and operators.
and poor OEM backup. Serious injuries, production
Retraining of operators in alternative mining method.
delay/stoppages, equipment damage.
Potential theft of explosives / electric detonators. Potential for Management and control of explosives (reconciliation).
Explosives theft. criminal use of explosives (e.g. ATM theft, cash in transit heists). 2 4 8
Security checks.
Likelihood mitigation
Impact score
Post
Risk Description Mitigation measures
Human resources
Below par execution of construction and production build up
Lack of construction, plans, poor safety, injuries and equipment damage due to lack of Develop robust HR skills attraction and retention strategy,
mechanized mining, competence and experience at the operational level. Lack of including rosters, accommodation and fit for purpose training &
process plant, and skilled and experience construction, mining, process and development strategy (use of OEMs, BOOT contractors, advisors 2 5 10
maintenance skills maintenance personnel. Poor safety and production etc);
and experience. performance, high equipment maintenance cost, low employee Seamless onboarding process.
morale.
Limited proclaimed plots are available in Springbok for the
construction of new houses.
Lack of Housing for management and specialist employees hired in from Land owned by the company could be made available to
2 4 8
accommodation. outside of the region is in limited supply. developers for the establishment of a mine village to house staff if
required.
Develop an accommodation management plan.
Macroeconomic
Depreciation in USD:ZAR exchange rate during the capital phase Development a procurement strategy, build it into the
Exchange rate. 4 2 8
(i.e. higher than 18.50 to USD). contingency applied.
Geopolitical
Open and honest communication.
Unrealistic community expectations - political activism, unrest,
Community Executing the community development plans (mine, government
intimidation, strikes, violence and damage to mine and 2 4 8
engagement. and community).
community property etc.
Transparent grievance mechanism.
Market
Ensure operating costs remain low.
Metal price
Decrease in copper price on the back of future copper demand. Mine at a higher grade for a short period of time. 2 4 8
uncertainty.
Flexibility in phasing of project if still in the capital phase.
Legal, regulatory
Develop a safe and modern mechanised mine using advanced
technology and best practise always placing underground
Safety and Mining is suspended due to a safety or environmental incident,
personnel in safe working places. 2 4 8
environmental. e.g. Section 54.
Similarly in the plant - develop comprehensive safe work
procedures, pre-start inspections etc.
Geotechnical
Detailed testwork to be done on flotation tailings.
PSD of backfill material, design of the drainage system and stope Detailed design of backfilled stope drainage and bulkheads
Underground backfill
bulk heads must achieve satisfactory drainage of the backfill done before backfilling commences. 2 5 10
system inadequate.
material. Routine and regular testing of backfill material leaving the plant.
Fitting of monitoring equipment to the bulkheads.
Underground infrastructure
Good housekeeping.
Fire suppression for belt installation and mobile fleet.
Fire risk with conveyors, mechanised mining fleet, electrical
Fire. Fire truck and trained emergency response (Proto team). 2 5 10
installations.
Ensure sufficient refuge chambers in place as per ventilation plan.
Decline conveyor connected directly to exhaust airway.
Likelihood mitigation
Impact score
Post
Risk Description Mitigation measures
Process plant including on-site laboratory
Design of the plant has been based on testwork results and sound
plant design.
Historical plant performance in the same recovery range.
Plant metal recovery Recovery less than planned reduces concentrate production and
Short interval controls - QA/QC and quick turnround at laboratory 2 5 10
to concentrate <92%. copper content.
on process control samples.
Efficient and productive operation of the process plant by the
BOOT team by implementing a laboratory management system.
Recruiting of experienced lab manager and technicians which
will include the transfer component of the BOOT process.
On-mine laboratory
Slow turnaround, poor QA/QC with resultant compromised Skills transfer will be critical.
capacity, efficiency 2 4 8
analysis accuracy - round robin analyses etc. Export analyses will go via third-party accredited lab which will
and quality.
directly impact on speed of invoicing and payment receipt thus
improving cash flow.
Bulk power
Preferential supply agreement with Eskom with committed
Eskom power
Eskom power generation capacity and cost trends are trending escalations as an energy intensive user in the region.
unreliable or 2 4 8
above inflation. General reliability of Eskom supply. Investigate alternative energy supplies in the form of wheeling
expensive.
from an IPP and/or on-site generation - diesel or renewable.
Upside mineral resource potential and value engineering opportunities
Opportunities exist for the FM Project to declare additional mineral resources (with the potential to extend the
LOM) and to pursue other opportunities to improve the economics and/or technical parameters associated with
the FM Project. These have not been investigated to a Feasibility Study level and are therefore simply included
here to alert the reader to the possibilities available to NOMC. These will be further investigated as the FM Project
moves through its development stages.
Upside Mineral Resource potential
The NOMC MR and the surrounding SAFTA PRs offer significant opportunities for mineral resource, definition,
followed by mining and processing using its planned centrally located infrastructure hub and processing plant.
These opportunities include:
- significant Inferred Mineral Resources located at FME and FMS that are not included in the
current LOM plan;
- additional Inferred Mineral Resources, located within the SAFTA PRs, at Jan Coetzee Mine and
Nababeep Kloof Mine that are not considered in this Feasibility Study Report;
- two additional prospects within the NOMC MR, namely Flat Mines Extension North and Franco's
pit, which have been historically drilled and explored; and
- an additional 21 identified prospects and/or historical mines within the SAFTA PRs which have
been historically drilled and/or exploited to varying extents.
Value engineering opportunities
Further value engineering opportunities are available to the FM Project but these will require additional, more
detailed studies going forward. These are tabulated in Table 30 according to their main disciplines.
Table 30: FM Project Value engineering opportunities.
Opportunity Description
Mining geotechnical
Detailed numerical modelling will be used to assess and improve on the stability of the pillar per operation. Additional material strength
Reduce pillar sizes with optimisation.
testing can add to the confidence of improved and reduced pillars.
Approach 100% pillar extraction in certain areas The use of cemented (as opposed to uncemented) backfill in selected stopes will be evaluated for the potential to approach 100%
through the use of cemented backfill. extraction.
Re-evaluation of stope dimensions based on recent Q and Q' index measurements implying upside potential to increase stope spans,
Increase stope dimensions with additional
heights and backs in selected areas once a higher density of geotechnical data is available from production experience and further
geotechnical data.
delineation drilling.
Mining and Ore Reserves
Include FMN Measured Resources into Ore Reserves Drone survey of mined out areas at FMN will provide clarity on what Measured Resources remain for early extraction and can be classified
estimate and mine plan. as Ore Reserves.
Blending of underground ore loaded from draw points through sampling resulting in a more consistent grade throughput to plant.
Improve grade consistency to plant.
Opportunity to stockpile low grade / high grade.
Utilise a drill and blast expert consultant from the emulsion supplier to provide recommendations on explosives handling and
Improve blast efficiency, fragmentation and safety.
management to improve blast efficiency, fragmentation and safety.
Underground infrastructure
Rail link for ore from FME to plant using battery locomotive and rail cars. Operating cost of transfer of ore to plant from FME by rail bound
Decrease haulage costs from FME to plant.
battery locomotive and railcars could be considerably lower than surface trucks as planned.
Decrease loading costs. Use of cable-electric LHDs on draw point levels. Fuel and maintenance costs of electric loader far lower than diesel powered loaders.
Metallurgical testwork
Plant start-up will be at half capacity for a duration of 24 month Phase I mining development. This gives opportunity to defer installation of
ore sorters with minor plant modifications. Sorting testwork can run in parallel to this phase. Sorting testwork can benefit from a continuous
Evaluate the impact of XRT or XRT/XRF combination
feed with consistent head grade range from mining operations to validate performance of XRF sorting technology with inclusion of multi
ore sorting during Phase I.
parameter criteria. In parallel to XRF testwork, it also allows Orion to compare XRF to XRT technology or a combination of XRT and XRF
performance.
While project is in execution phase, opportunity exist to confirm FMS flotation reagent suite, achievable recovery and grade. Alternatively,
Confirm FMS flotation performance FMS is the last mineralised zone scheduled for extraction as per mining plan. The process plant will have an on-site laboratory which can
be used for FMS flotation testwork while operations continue with FMN and FME mineralised zones.
Process plant
Reduce the tailings thickener size. Future settling testwork will be undertaken to assess this potential and its impact on capex.
Reduce the concentrate thickener size Future settling testwork will be undertaken to assess this potential and its impact on capex.
Magnetite content in tailings is known to exist in certain mineralised deposits in potentially economic concentrations, similarly PGEs in the
Recovery of additional by-products from milled ore
FMN concentrate streams. This will be investigated further and plant add-ons implemented to extract additional minerals, and/or credits
e.g. magnetite, PGMs from FMN concentrates.
negotiated for these minerals in the copper concentrate.
Opportunity Description
Surface infrastructure
Significant potential to reduce energy costs for the project by installing on-site solar and/or wind generation capacity with battery
Decrease energy costs and environmental impact.
storage.
Supply chain
Use Orion combined purchasing power to Pressure consumable, equipment suppliers for discounts on the basis of increased purchasing power from the FM Project, Orion's PCZM
negotiate favourable supplier contracts. operation and other mines in the area. Leverage from OEMs with the quantum being purchased by Orion.
Recommendations for further work
Additional work has been identified by either Orion / NOMC and / or their specialist consultants, which is
recommended to be carried out during the development of the FM Project.
Drilling
NOMC has identified the requirement for additional drilling at FME and FMS to upgrade the Inferred Mineral
Resources to an Indicated classification. The plan is to undertake diamond core drilling from underground, from a
single selected collar position along the respective declines during their development. Drilling from underground
has the benefit of reduced drilling costs, as the drill holes will be shorter. In addition, access will be easier, especially
in some areas where surface access is difficult due to steep slopes and a paucity of roads.
Portal and decline geotechnical drilling
While cover drilling will remain ongoing during decline development, NOMC has similarly identified the
requirement for additional geotechnical drilling for the FME and FM-Nab / FMS portals and declines to provide
updated RQD data for the portal bench designs as well as support requirements for both the boxcut, portal and
decline excavations. This drilling will be done from surface, the portal holes at 70? inclinations and the decline holes
vertical if practical due to the topography between the FME portal and the planned underground workings.
Backfilling
Additional recommendations include carrying out PSD and permeability tests on actual tailings material from the
FM Project.
Metallurgical testwork
Based on the overall conclusions of the FM Project metallurgical testwork, METC made the following
recommendations for further work:
- test bulk particle sorting, preferably on site, when mining has started;
- investigate the successful reduction of MgO and F through the use of a more suitable
depressant / increased depressant dosing / a second cleaner stage / a regrind stage;
- test FMN mineralised materials which contained U and Th for their contribution to radioactivity
to comply with IAEA Regulations;
- investigate a finer grind size for improved liberation of copper and ideal rejection of MgO and
F gangue minerals;
- investigate the potential for filtrates be recycled to the thickener feed for clarification of filtrate
and recovery of valuables; and
- test TML in relation to plant cake moisture.
Surface geotechnical studies
Perform geotechnical pitting and testwork at the plant site to confirm the soil conditions prior to the
commencement of plant construction.
TSF related testwork
The following recommendations were made by Epoch regarding the TSF:
- the detailed design of the TSF be undertaken in line with GISTM requirements;
- undertake geotechnical testwork on a sample of the "fine" tailings to determine its strength
parameters and placed dry density;
- undertake waste classification analyses for FME;
- re-evaluate the placed dry density of the total placed tailings and confirm the required
capacity for the TSF;
- undertake a detailed costing for Raises 2-4; and
- appoint an experienced and accredited contractor to undertake the installation of the liner
system.
Feasibility Study level of completion and outstanding work
The FM Project comprises four separate mining areas supported by shared disciplines including, but not limited to,
the central processing plant, surface infrastructure and ESG. The assessment of the FM Project in relation to the
Feasibility Study level of completion is therefore separated into these five areas i.e. the shared disciplines and
each of the four mining areas. Spider graphs of the five areas provide a schematic representation of the status of
the FM Project in relation to industry standard Feasibility Study requirements (Figure 29). The graphs also indicate
the relative importance of the various workstreams in terms of impact on the FM Project's cost, delivery and quality.
The enormous task of bringing four independent mining operations to Feasibility Study level simultaneously should
not be lost on the reader. NOMC's strategy has been to focus their efforts on the shared services which are
required immediately, and then each mining operation according to its respective timing in the LOM plan.
The graphs clearly demonstrate that the shared disciplines are approaching 100% Feasibility Study level
completion, barring the minor surface geotechnical requirement for pitting at the plant site. In respect of the
mining areas, and according to their order of development, FMN has an average completion result of
approximately 93%, FME 92%, FM-Nab 97% and FMS 89%.
The reasons for the mining areas' Feasibility Study completion ratings being less than 100% are two-fold:
- no Proved Ore Reserves are reported and no Measured Mineral Resources have been classified for
FME and FMS. All Mineral Resources at FME and FMS are classified as Indicated and Inferred. Stope
definition is planned from primary development using underground diamond drill rigs to provide the
required drilling density to upgrade Indicated Mineral Resources to Measured Mineral Resources prior
to the commencement of stoping operations; and
- the work done on backfilling for the mines has not been completed to Feasibility Study level, due to
testwork on flotation tailings to determine the mass recovery to the cyclone underflow at the required
PSD of <10% minus 10? particles required to achieve a minimum percolation of water in placed
hydraulic backfill for drainage. The backfill design and costing has been based on cyclone
performance simulations with a 30% contingency on costs applied. Testwork for the completion of
the study will be undertaken using actual flotation tailings samples once the plant is in operation.
Figure 29: FM Project - Spider graphs of Feasibility Study completion levels for shared disciplines and mining areas.
Conclusions
The FM Project Feasibility Study marks the culmination of project work starting in 2022 where numerous refinements
and improvements to the earlier studies have been made. The Project is underpinned by Mineral Resources
reported in accordance with the JORC Code (2012), culminating in an economical LOM plan, integrating the
four mining areas (NPV8% = ZAR935m). An alternative Reserves Only mine plan was compiled (excluding gold and
silver credits) which also shows economic value (NPV8% = ZAR349m) and confirms that the Inferred Mineral
Resources included in the LOM plan are not the determining factor in project viability.
The Feasibility Study has indicated the FM Project to be economically feasible to produce a total of 78,340t of
copper metal over period of 12yrs from first concentrate production. NOMC is committed to advancing the LOM
operation as its business plan. Comprehensive drilling plans have been put in place to upgrade the Inferred
Resources contained in the LOM plan to Indicated Resources for inclusion as Probable Reserves in the business
plan. Orion anticipates that in the longer term, additional Mineral Resources will be delineated to increase the FM
Project mining inventory.
This Feasibility Study has reached a level of costing accuracy and engineering design approaching 100% for the
shared services. In respect of the mining areas, and according to their order of development, FMN is approaching
100%, FME is at an average of 93%, FM-Nab at 89% and FMS at 89%. Orion is expecting to bring the latter mining
operations up to full Feasibility Study level at least six months before commencing their development.
The execution strategy is to develop the project in phases to defer capital expenditure as far as possible while
focussing on the critical path activities. The FM Project plan is to mine two mining areas simultaneously to achieve
a viable scale of operation in the context of the FM Project deposits. The critical activity in the project is the
establishment of world class development teams to undertake the decline development planned in each of the
FM Project deposits. The FM Project benefits from the existing FMN decline and development enabling the time to
steady state production to be significantly reduced. The plant and surface infrastructure will also be phased to
meet the production requirements for FMN only initially in Phase I, with later Phase II expansion to coincide with
FME production coming online.
This strategy provides unique benefits for the FM Project which include:
- the commencement of development in FMN only will allow the full focus of management to provide
staff training and orientation to establish efficient development practices to exceed development
targets,
- highly proficient decline development teams proven in FMN will be transferred to FME decline
development to expedite access to the FME resources, and thereafter to FMS.
- staff experience gained during the development and mining of FMN will benefit subsequent
operations;
- mining on multiple fronts provides added flexibility in managing tons and grade delivered to the ROM
pad at the plant
- mining machinery and underground support equipment will be transferred from one mining operation
to the next, thus limiting the required capital outlay;
- technical information obtained during the development and mining of FMN will be used to inform and
optimise the designs for the subsequent operations;
- staggered processing plant capital outlays; and
- ability to test and quantify the benefits of ore sorting in an operational environment with large sample
population.
The downside of the phased approach is that although the risk of project delays and cost overruns is reduced, the
production buildup to design capacity is longer than could possibly be achieved should the development of FMN
and FME commence simultaneously. The increased time to full production increases the payback time from first
production and reduces the IRR reported in the financial analysis.
The time to first production in Phase I of the project and subsequently the time to full production in Phase II is
defined by the development rates achieved in decline development in FMN initially and then in FME. The
development rates built into the mining schedule is determined by the Competent Person according to South
African benchmarking values for development. These development rates are exceeded in many mining
jurisdictions around the world, hence there is potential to reduce the development time in these declines. The
impact of bringing full Phase II production forward will have a significant positive impact on the project economics,
and this objective will be the priority of the Execution Team.
Key project risks, as outlined in the risk chapter, have been identified with mitigation strategies developed to
manage and control these challenges. Community matters have been included in the top risks, however NOMC
started engaging with the FM Project's host communities since 2021 and a well-established and robust community
Stakeholder Engagement Forum has been in place since then. A number of NOMC sponsored community focused
projects and training programmes have been implemented over this period and aspirational host community
employment (50%) and procurement (30%) targets have been mutually agreed and are being worked towards.
These interactions are expected to foster a cooperative and harmonious relationship with the local community
into the future.
Over and above the economic benefits to the Orion shareholders, the FM Project will improve the local
environment by removing and containing the historical evaporation pond currently polluting the groundwater. In
addition, NOMC has already commenced with refurbishment of the Nababeep WWTW which has been
contaminating the non perennial Nababeep stream with raw sewage.
The NOMC MR and the surrounding SAFTA PRs offer significant opportunities for continued mineral resource
definition, followed by mining and processing using its planned centrally located infrastructure hub and processing
plant, with Nababeep set to become an important new mining hub in the Northern Cape.
This Feasibility Study has also demonstrated that there is potential to further optimise the FM Project economics
through the inclusion of focussed value engineering studies.
For and on behalf of the Board.
Errol Smart
Managing Director & CEO
28 March 2025
ENQUIRIES
Investors Media JSE Sponsor
Errol Smart Managing Director & CEO Nicholas Read Monique Martinez
Denis Waddell Chairman Read Corporate, Australia Merchantec Capital
T: +61 (0) 3 8080 7170 T: +61 (0) 419 929 046 T: +27 (0) 11 325 6363
E: info@orionminerals.com.au E: nicholas@readcorporate.com.au E: monique.martinez@merchantec.com
Competent Person's Statements
The information in this report that relates to Exploration Results (metallurgical testwork results) is based on information compiled
under the supervision of Mr John Edwards (Pr.Sci.Nat), a Competent Person who is a Member of The Australasian Institute of
Mining and Metallurgy, a 'Recognised Professional Organisation' (RPO) for JORC Code (2012) purposes. Mr Edwards is an
employee of METC Engineering (Pty) Ltd, which is fully independent of Orion and the FM Project. Mr Edwards has sufficient
experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being
undertaken to qualify as a Competent Person as defined in the JORC Code (2012). Mr Edwards consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Ore Reserves is based on information compiled under the supervision of Mr Jon
Hudson (Pr.Sci.Nat), a Competent Person who is a Fellow registered with the South African Institute for Mining and Metallurgy
(SAIMM), a 'Recognised Professional Organisation' (RPO) for JORC Code (2012) purposes. Mr Hudson is also a Professional
Engineer registered with the Engineering Council of South Africa (ECSA). Mr Hudson is an employee of JHK Consulting which is
fully independent of Orion and the FM Project. Mr Hudson has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent
Person as defined in the JORC Code (2012). Mr Hudson holds a B Eng. (Hons) Mining degree and MBA. Mr Hudson consents to
the inclusion in the report of the matters based on his information in the form and context in which it appears.
Reference to Previous Reports
Information on the Flat Mine North (FMN), Flat Mine East (FME), and Flat Mine South (FMS) Mineral Resources is extracted from
the report entitled 'Orion upgrades Mineral Resources at the Flat Mines Area, Okiep Copper Project as BFS nears completion'
dated 28 August 2023, available to view on https://www.orionminerals.com.au, and compiled by Mr Sean Duggan (Pr.Sci.Nat),
a Competent Person who is registered with the SACNASP (Registration No. 400035/01) and an employee of Z* which is
independent of Orion. Orion confirms that it is not aware of any new information or data that materially affects the FMN, FME
and FMS Mineral Resources included in the original market announcement and that all material assumptions and technical
parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially
changed. Orion confirms that the form and context in which the Competent Person's findings are presented have not been
materially modified from the original market announcement.
Information on the Flat Mine Nababeep (FM-Nap) Mineral Resources is extracted from the report entitled "Orion Updates
Mineral Resources at Okiep Copper Project" dated 28 March 2025, available to view on https://www.orionminerals.com.au,
and compiled by Mr Paul Matthews (Pr.Sci.Nat.), a Competent Person who is a member of SACNASP (Registration No.
116880/17 and a full-time employee of Orion. Orion confirms that it is not aware of any new information or data that materially
affects the FM-Nap Mineral Resource included in the original market announcement and that all material assumptions and
technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not
materially changed. Orion confirms that the form and context in which the Competent Person's findings are presented have
not been materially modified from the original market announcement.
Disclaimer
This release may include forward-looking statements. Such forward-looking statements may include, among other things,
statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results,
capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates, and are or may be
based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.
These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-
looking statements inherently involve subjective judgement and analysis and are necessarily subject to risks, uncertainties and
other factors, many of which are outside the control of Orion. Actual results and developments may vary materially from those
expressed in this release. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking
statements. Orion makes no undertaking to subsequently update or revise the forward-looking statements made in this release
to reflect events or circumstances after the date of this release. All information in respect of Exploration Results and other
technical information should be read in conjunction with Competent Person Statements in this release (where applicable). To
the maximum extent permitted by law, Orion and any of its related bodies corporate and affiliates and their officers,
employees, agents, associates and advisers:
- disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any change in
expectations or assumptions;
- do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the
information in this release, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or
implied in any forward-looking statement; and
- disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for
negligence).
The 2025 Definitive Feasibility Study for the Flat Mines Project, part of Orion's Okiep Copper Project, including Appendix 1, JORC Tables,
sections 1-4 provided in accordance with the JORC Code (2012) requirements for the reporting of Ore Reserves for the Okiep Copper Project,
is available on Orion's website at:
https://www.orionminerals.com.au/download-category/2025-asx-jse-announcements/
Date: 28-03-2025 03:56:00
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