Name of the Project
Okiep copper project (OCP).

Location
Northern Cape, South Africa.

Project Owner/s
New Okiep Mining Company comprising Orion Minerals (56.25%) and the Industrial Development Corporation of South Africa, or IDC (43.75%).

Project Description
The OCP ground holdings of 641 km² covers the majority of the area where 105-million tonnes is reported to have been mined in the district over the past 100 years.

A scoping study completed in May 2021 proposed a proof-of-concept-scale copper mining operation at the brownfield OCP, and 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 9 000 t/y of copper sold in marketable concentrates. This could potentially supplement the 23 000 t/y of copper production planned from Orion’s flagship Prieska copper/zinc project.

Only mineral resources from the Flat Mines area of the greater Okiep Copper Complex are incorporated in the foundation-phase plan, leaving significant potential for future expansion scenarios to be considered.

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 milled production target comprises measured mineral resources of 33%, indicated mineral resources of 46% and inferred mineral 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
Orion Minerals reported further “outstanding” assay results from the confirmation diamond-drilling programme in the Flat Mines area on June 24.

Results received to date from the last three of the five planned and completed holes at Flat Mine East (FME) have confirmed historical information from drilling by mining firm Gold Fields in the 1990s, used in the mineral resource update announced in August 2023, where 9.4-million tonnes at 1.3% copper was reported for the Flat Mines, including 4.4-million tonnes at 1.3% copper at FME.

FME, a virgin discovery that is blind to surface, will form a key part of Orion’s early production plan for the OCP.

The drilling of 11 diamond drill holes totalling 5 800 m at FME, Flat Mine South and Flat Mine North – to confirm historical drilling results, provide geotechnical information and generate material for additional confirmatory metallurgical testwork – is nearing completion.

“These drilling results further amplify the potential for the Flat Mines orebodies to replicate the typical nature of Okiep copper intrusive mineralisation, where zones of very high-grade mineralisation are commonly contained within large bodies of moderate grade,” Orion CEO and MD Errol Smart has said.

Key Contracts, Suppliers and Consultants
ALS Chemex (core sample analysis).

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