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Progress Update - Feasibility Studies for Prieska and Okiep Projects, South Africa
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
Progress Update – Feasibility Studies for Prieska and Okiep Projects, South Africa
Internal review and optimisation of both Feasibility Studies underway to realise additional potential
upside following key appointments to strengthen the Owners' team
• Internationally respected project manager Nick Fouche appointed as PCZM Project Director to
manage the completion of the PCZM Feasibility Study and oversee project execution.
• Australian-based LMMS Consultants, who are global experts in mine design and scheduling and
have significant international and South African project experience, appointed to assist with the
completion of the final stages of the Feasibility Study for the Prieska Copper Zinc Mine (PCZM).
• internal review of the PCZM Feasibility Study following these appointments has identified the
potential for further upside that may be realised from the optimisation of mine scheduling and
design.
• As a result, LMMS has commenced a further mine schedule optimisation program, which is
scheduled for completion in the current quarter. The outcomes of this work will be incorporated
in the final PCZM Feasibility Study, which is now scheduled for delivery in Q1 CY2025.
• Feasibility Study for the Flat Mines Project, part of the broader Okiep Copper Project, on track for
external review commencing in mid-November 2024. Flat Mines Feasibility Study targeted for
delivery in late Q4 CY2024.
Orion's Managing Director and CEO, Errol Smart, commented:
"We are thrilled to welcome Nick Fouche as Project Director for the PCZM development. Nick was Project
Director for the Feasibility Study and execution of the Palabora underground mining project and has
unique experience that is applicable to Orion's underground copper mining projects. His vast global
experience includes roles with ERO Copper, South 32 and Rio Tinto as General Manager Growth. Nick is
a fantastic addition to the Orion team, as we move towards the development phase at Prieska.
"We are also pleased to have secured the services of LMMS Consultants, the same expert mining team
that contributed to the success of the Palabora Copper Mine Lift 2 development project, the last big
underground copper mine developed in South Africa. LMMS are recognised internationally for their
specialist expertise in underground bulk mining applications and consult on high-profile large mining
project development optimisations for major mining houses such as BHP, Rio Tinto and South 32, as well
as for several junior mining companies.
"A recent review of the Prieska financial model with input from LMMS and Nick has highlighted the
potential to unlock additional upside at Prieska by further optimising mine design and scheduling. The
Prieska Mineral Resource has unique geometry, being folded through dip rotations of almost 3200 and
having mineralised true widths varying from 2m – 45m.
"While it has been relatively simple to select suitable mining methods to extract this superb orebody, the
iterative process required to optimise the appropriate mining methods in different mining areas to
achieve optimum ore recovery and cash-flow is proving time consuming.
"The additional optimisations now underway will require several iterative runs using Mine Shape Optimiser
(MSO) software with manual adaptation of development layouts to connect mining areas using different
mining methods. This time-consuming process can only be executed by suitably experienced mining
engineers.
"When building large, long-life mines with large specialist mining fleets, getting the best combination of
mining methods and primary development layouts is critical to maximise long-term project execution and
financial returns. In the case of PCZM, unlocking the potential upside from additional optimisation studies
outweighs the earlier completion of a Feasibility Study."
Orion Minerals Ltd (ASX/JSE: ORN) (Orion or the Company) provides an update on the progress of the
Feasibility Studies for both the Prieska Copper Zinc Mine (PCZM) and the Okiep Copper Project (OCP),
both located in the Northern Cape Province of South Africa.
The Company has appointed highly respected and experienced international project manager, Nick
Fouche, as PCZM Project Director to oversee the completion of the Feasibility Study.
Mr Fouche is a highly regarded global mining executive with vast experience in the development of
execution of major mining projects around the world. He was previously General Manager Growth for
HBIS Palabora Mining Company, where he oversaw the development of the last major copper mine in
South Africa. He has also held senior roles with South32, MMC Mining, Rio Tinto and, most recently,
Piedmont Lithium.
Orion has also secured the services of highly respected LMMS Consultants to assist in expediting ongoing
optimisation work for the PCZM Feasibility Study.
LMMS have been contracted for a three-month period from October 2024 to provide intensive input to
optimise the PCZM BFS (see below). The consultant employees involved in the optimisation program are
Joe Luxford and Doug Syme, both of whom have worked on orebodies using the selected mining
methods for PCZM, both in Australia and worldwide.
They were also both key members of the Palabora mine planning and execution teams and therefore
understand the South African operating environment with local challenges and opportunities.
PCZM Feasibility Study Optimisation
Orion recently completed an internal review of the PCZM Feasibility Study with input from LMMS and Mr
Fouche. This review highlighted the potential to unlock additional upside in the Project by undertaking a
further optimisation of the mine design and scheduling for the Prieska Deeps orebody.
The PCZM orebody is unique due to its laterally extensive but folded tabular structure. The dip of the
orebody rotates through almost 3200 on mine scale and has true widths of 2m – 45m; however, due to
folding, the horizontal spans can vary from 2m – 200m and the vertical height of mineralised blocks ranges
from 2m – 200m.
In the Deeps section of the orebody, which has a Mineral Resource of 29 million tonnes at 1.2% Cu and
3.8% Zn (refer ASX/JSE release 18 December 2018)1, the complex geometry of the Mineral Resource results
in the need for multiple mine stoping methods to extract the ore of varying dip and thicknesses (Figure
1).
1Mineral Resource reported in ASX release of 18 December 2018: "Landmark Resource Upgrade Sets Strong Foundation" available to the
public on http://www.orionminerals.com.au/investors/asx-jse-announcements/. Competent Person Orion's exploration: Mr Errol Smart.
Competent Person: Orion's Mineral Resource: Mr Sean Duggan. Orion confirms it is not aware of any new information or data that materially
affects the information included above. For the Mineral Resources, the Company confirms that all material assumptions and technical
parameters underpinning the estimates in the ASX release of 18 December 2018 continue to apply and have not materially changed. Orion
confirms that the form and context in which the Competent Person's findings are presented here have not been materially modified.
The different mining methods that have been selected require different mining equipment and different
layouts of waste access development.
Figure 1: Variable Mineral Resource dip over the Prieska Deeps Mining Area.
While some ore blocks may be extracted by more than one of the selected mining methods, each will
deliver different waste dilution tonnes and therefore influence run-of-mine grade and require different
development intensity.
The combination of these three factors may materially impact Capex, Opex and operating revenue in
any given period. The detailed layouts, planning and relative scheduling have been identified as factors
that can materially impact peak funding and operating cash-flows, and which therefore require
increased focus on optimisation.
Figure 2: Cross-section through the PCZM Deeps orebody demonstrating variation in dip & thickness of ore.
Figure 3: Section through the twin orebody Deeps Mineral Resource Area showing variation in dip and thickness
and having geotechnical considerations for relative scheduling of extraction.
The detailed mine scheduling requires multiple iterative scenario runs, which require manual intervention
and detailed design finessing in addition to the use of standard computerised Mine Shape Optimiser
(MSO) software. This is particularly the case in the zones where the geometry of the orebody requires
mining methods to transition and where complete runs of the financial model are required to test the
impact of the modifications.
The primary development and ventilation layouts also require optimisation for long-term use to extract
the anticipated extensions of the orebody in the strike and parallel footwall orebody (Figure 3).
In addition, the geotechnical stress regime needs to be reviewed for different extraction schedules and
mining rates, taking into consideration the geometry of mining void development.
LMMS have commenced detailed optimisation of the mine schedule, with the optimisation program
expected to be completed in December 2024. This will be submitted for review by external experts at the
earliest opportunity and then incorporated into the finalised PCZM Feasibility Study.
Considering potential December festive season disruption, the final Feasibility Study is expected to be
ready for release in early Q1 CY2025.
New Okiep Mining (NOM), Flat Mines Copper Project
The first draft of the Flat Mines Feasibility Study was reviewed by The Minerals Corporation (TMC), which
has been appointed as the debt financiers' Independent Experts, in July 2023. TMC recommended some
additional work requiring confirmation drilling.
The revised Flat Mines Feasibility Study is progressing well following the successful completion of an 11
hole, 5,800m confirmation drilling program that was executed and reported between February 2024 and
September 2024.
The drilling program confirmed the Mineral Resource Estimates as previously reported which were
incorporated in the initial life-of-mine (LOM) schedules.
The availability of drill core also afforded the opportunity for additional geotechnical appraisal and
metallurgical test work.
Metallurgical test work has now confirmed historical data and recovery assumptions that were used the
first draft of the Feasibility Study that was reviewed by TMC
Geotechnical test work of core and a review of detailed logging and mapping has also confirmed
expectations of highly competent host rock, with minor modifications being recommended for stope
designs to accommodate rare, minor fractures within the orebodies.
These revised stope designs are now nearing completion and will be incorporated in the financial
modelling and submitted for external review by mid-November 2024.
This will pave the way for the expected release of the Flat Mines Feasibility Study in December 2024.
For and on behalf of the Board.
Errol Smart
Managing Director and CEO
29 October 2024
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
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
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• disclaim any obligations or undertaking to release any updates or revisions to the information to reflect any
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• disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability
for negligence).
Date: 29-10-2024 08:17:00
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