Name of the Project
Okiep Copper Project (OCP).

Location
Northern Cape, South Africa.

Project Owner/s
New Okiep Mining Company (NOM) comprises ASX- and JSE-listed Orion Minerals (56.25%) and South African national development finance institution the Industrial Development Corporation of South Africa, or IDC, (43.75%).

Project Description
A definitive feasibility study (DFS) completed on the Flat Mines (FM) project, part of Orion’s OCP, has delivered favourable financial outcomes and confirmed the project's ability to deliver a safe, modern, fully mechanised copper mine.

The FM project comprises a 12-year life-of-mine (LoM) from first concentrate production, mining an estimated 65 000 t/m at steady state (780 000 t/y) of copper mineralised material at full production, at an average LoM grade of 1.18% copper.

Mineralised material will be sourced from four underground mining areas: 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 3 km of one another and the location of the proposed central processing facility. Excavated run-of-mine (RoM) material will be processed through a processing plant – which will comprise particle-ore sorters – located near FMN, followed by conventional milling and flotation, to produce an average 24 000 t/y (wet) of copper concentrate at an average grade of 30% copper over the LoM.

The concentrates will be bagged, trucked to Cape Town and shipped internationally. This is expected to result in the delivery of an average of 6 500 t/y of contained copper metal over the LoM, including the ramp-up and ramp-down periods. Nameplate production of 9 300 t/y of contained copper is expected to be sustained for a three-year period under the current 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. FM-Nab and FMS 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 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 1 will include the mining of about 32 500 t a month of mineralised material at an average grade of 1.04% copper for 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% copper.

Although no ore sorters will be used in Phase 1, this time will be used to conduct pilot-scale testing in the operational plant. Pilot-scale testing is expected to confirm the benefits of ore-sorting indicated during drill core testing 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. In Phase 2, production from FME will be combined with FMN to achieve a target of 65 000 t a month of mineralised material delivered to the RoM pad. The process plant will be expanded, possibly inclusive of the installation of ore sorters to accommodate the increased production from mining. 

Phase 2 is designed to maintain steady monthly production of 65 000 t a month, initially from 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 FMS production is treated at a reduced rate, limited by the capacity of mining from FMS only. Production is planned to continue for 145 months from first concentrate production.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The DFS estimates a pretax net present value, at an 8% discount rate, of R1.42-billion million and an internal rate of return of 23%, with a payback of 5.3 years from first production.

Capital Expenditure
Total project capital expenditure, including contingency, is estimated at R1.60-billion.

Planned Start/End Date
The official start date of the project will be confirmed once funding is secured and the final investment decision is made. Assuming the effective date of the feasibility study is March 21, 2025, construction of the Phase 1 processing plant is scheduled to start in month 10 and be completed by month 21. Production at 32 500 t a month will follow commissioning and ramp-up, with first concentrate expected to be sold in month 22.

Early works at FMN, such as dewatering and underground rehabilitation, are expected to start in month 2. First RoM ore from FMN is expected in month 7 and will be stockpiled ahead of processing, with steady-state production achieved by month 29.

Portal construction at FME is expected to start in month 15, with RoM production starting in month 38 and steady-state achieved by month 56. Early works at FM-Nab and FMS will start in month 34. FM-Nab will be accessed first, with RoM production starting in month 48 and reaching steady-state by month 62.

Production from FMS is scheduled to start in month 62, reaching steady-state by month 81. Upgrades to the processing plant to accommodate Phase 2 production are planned to start in month 44, with full production expected by month 50, coinciding with FME’s ramp-up. Production will then continue for the balance of the mine’s operational life.

Latest Developments
None stated.

Key Contracts, Suppliers and Consultants
Z Star Mineral Resource Consultants; Sound Mining International; Dayenu Mining Consultants; Paterson & Cooke Consulting Engineers; JHK Consulting; METC Engineering Consultants; Epoch Resources; Prysm Ventilation Services; Fraser McGill; and Advisory on Business and Sustainability Africa (feasibility study).

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