Name of the Project
Okiep copper project (OCP).

Location
Northern Cape, South Africa.

Project Owner/s
Orion Minerals.

In August 2021, Orion exercised its exclusive option to acquire a controlling interest in the majority of the properties comprising the OCP.

Orion has also applied for additional prospecting rights to supplement the OCP mineral rights. The mineral rights are intended to be held by two newly formed Orion companies – New Okiep Exploration Company (initially 100% Orion) and the New Okiep Mining Company (initially 56.3% Orion and 43.7% Industrial Development Corporation (IDC). Both companies will, in future, include empowerment partners in compliance with Mining Charter 2018.

Project Description
A scoping study completed in May 2021 has proposed a proof-of-concept-scale copper mining operation at the brownfield OCP, and has confirmed that the project’s deposits have the potential to be mined at low cost using openpit and underground mining methods.

The outcome of the scoping study, based on five initial deposits, supports the economic merit of developing a foundation-phase mining operation, while Orion conducts the required work and engineering studies to evaluate the potential to re-establish mining operations.

The life-of-mine for the proof-of-concept foundation phase is modelled for 12 years, during which concurrent exploration and mine expansion scenarios will be planned and potentially implemented.

The proposed foundation-scale mining operations could run at a design processing plant throughput of 780 000 t/y, resulting in 9 011 t/y of copper sold in marketable concentrates. This could potentially supplement the 22 000 t/y of copper production planned from Orion’s flagship Prieska copper/zinc project.

Underground and surface mining methods will be used in conjunction with mineral processing using conventional froth-flotation concentration to produce the copper concentrates for export.

The proof-of-concept phase of the proposed operation targets the development of only those Okiep copper deposits for which Orion has verified and reported mineral resources during the early phase of the due diligence period. The production target is, therefore, supported by measured resources of 33%, indicated resources of 46% and inferred resources of 21%.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of R1.9-billion and an internal rate of return of 44%, with a payback from first production of 3.25 years.

Capital Expenditure
Peak funding is estimated at R643-million.

Planned Start/End Date
First production is possible within 16 months from the start of construction.

Latest Developments
Initial drilling assays from the maiden drilling programme at the OCP have delivered very positive results, confirming the presence of shallow high-grade copper mineralisation and demonstrating the potential for additional high-grade mineralised lenses at depth.

The exploration drilling programme at the OCP is designed to test and expand mineralisation intersected in historical drilling. Drilling is currently focused on the Carolusberg–Koperberg line of intrusives.

Orion is exploring prospects with known copper mineralisation along strike of Carolusberg, applying an exploration model derived from structural interpretation of Carolusberg mine mineralisation.

The current drilling programme also includes twin and infill drilling to verify historical drilling results and allow for future resource estimation.

Assay results have been received for the first four drill holes from the maiden drilling programme at confirming and exceeding expectations.

Three holes were drilled to confirm historically reported mineralisation, returning high-grade results.

Notably, drilling also intersected a new mineralised zone at Koperberg West, supporting Orion’s geological model.

The maiden drilling programme is now 55% complete, with 14 diamond holes completed at Koperberg West and two diamond holes completed at Koperberg East.

To date, 1 900 m of the 3 500 m planned diamond drilling programme have been completed, representing 16 of the 26 planned holes. Assay results from 39 samples have been received.

Further drill holes are being logged and sampled by Orion’s geological team, prior to dispatch to ALS Laboratory, in Johannesburg.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Orion Minerals, tel  +27 11 880 3159 or email info@orionminerals.com.au.