Through two fully permitted brownfield projects in South Africa’s Northern Cape province, and with first production expected in just over a year once project financing is secured, diversified miner Orion Minerals is set to become a near-term base metals producer.

Orion’s flagship Prieska Copper Zinc Mine (PCZM) ranks among the world’s top 30 volcanogenic massive sulphide (VMS) base metal deposits, while its Okiep Copper Project (OCP) is situated in the Northern Cape’s historical copper-rich district, says Orion CEO and MD Tony Lennox.

Alongside PCZM and OCP, he says the Northern Cape hosts several “world-class” copper deposits as well as the Jacomynspan nickel/copper/platinum group elements magmatic sulphide deposit.

Given its extensive mining history and underexplored areas, exploration in the Northern Cape continues to uncover new deposits across these regions.

Orion’s long-term strategy is to systematically advance its extensive pipeline of projects across the Northern Cape, from near-mine extensions and scoping study-ready projects to greenfield exploration targets, anchored by the PCZM and OCP production centres that are ready for development.

In March, Orion published an updated feasibility study for PCZM confirming the potential to develop a long-life, safe and financially robust mining operation through a two-phase development strategy.

The initial Upper-Level Phase will involve mining near-surface supergene sulphide ore accessible from an existing decline, while the subsequent Deeps Phase will start once mine dewatering, main shaft refurbishment and mining infrastructure construction are complete.

At steady-state production, Lennox says the Deeps Phase is expected to mill 2.4-million tonnes a year and produce 22 000 t/y of copper and 65 000 t/y of zinc, at an all- inclusive sustaining cost of about $2/lb of copper equivalent.

Orion recently signed a non-binding term sheet with diversified miner Glencore for project financing of between $200-million and $250-million, as well as concentrate offtake from the PCZM.

Noting that securing project funding has been a key challenge, he explains that significant progress has been made with Glencore on offtake-related financing, with Orion currently advancing the due diligence process.

The company aims to transition rapidly into the development phase, targeting first concentrate production by December next year, points out Lennox.

“The redevelopment of the PCZM is in-itself the biggest opportunity – we see a long-life operation from developing the current known resources,” he says.

Further, the Areachap Belt, in which PCZM is situated, is vastly underexplored, with only about five other small deposits currently known, notes Lennox; however, geological modelling indicates significant potential for additional VMS discoveries.

In 2019, Orion discovered the Ayoba deposit, located 5 km west of Prieska, after drilling a geophysical anomaly at a depth of 600 m, validating Orion’s exploration targeting model.

The company has since completed nearly 15 000 km of airborne geophysics, covering more than 2 500 km2 of its tenements.

Given that near-surface areas have been extensively explored, Orion is focused on deeper and undercover targets, with geophysics “proving invaluable” for mapping geological features at depth, he notes.

Okiep Copper Project
The OCP comprises the core of a premier historical copper district that produced more than 2-million tonnes of copper over 150 years, ending in 2003, highlights Lennox.

In March, Orion completed a definitive feasibility study (DFS) on a portion of the OCP – the Flat Mines project, updating the mineral resource to 11.5-million tonnes at 1.3% copper for 152 000 t of contained copper.

Here, the project comprises the opening of two unmined orebodies and the continuation of a third, already mined, orebody to depth.

The DFS is currently being optimised to enhance financial outcomes, with results expected in the coming months, before deciding on the development strategy for Flat Mines, he says.

“We strongly believe in the potential of the region and expect Flat Mines to be the first mine we develop at OCP. We expect the first production to be 18 months from the start of construction,” says Lennox.

Leveraging OCP’s existing infrastructure, he explains that underground infrastructure will help fast-track mine development; however, surface infrastructure will need to be constructed.

Owing to its strong mining history, the region is well-established which will help to fast-track infrastructure construction, adds Lennox.

Environmental responsibility also remains central to Orion’s operations, he adds. Aligned to this, the company has developed a carbon-neutral roadmap and long-term strategy to power both the PCZM and OCP entirely with renewable energy.

Further, given water stress in the Northern Cape, Orion prioritises water conservation and recycling. The company’s water management strategy includes reusing tailings water and supplying any excess to local communities for irrigation.